I believe that life is not a zero sum game.
What does it mean?
It means that the pie is not fixed, and can grow unlimitedly.
Which pie?
The pie of all wealth (goods and services) we produce. GDP is a close approximation of this pie.
How do I know it?
Well, earth is a huge plant - with huge natural resources. Nuclear energy has potential to address all our energy needs. Also, the composition of this pie may change over time (e.g. coal may cease to be available for energy), but the size of the pie and its ability to satisfy human needs can grow unlimitedly.
So, life is not a zero sum game because there unlimited resources on earth which can satisfy all our needs..and even wants! The key thing to note is that nature has abundant means of production (land) and resources (water, air, energy), though not enough produce for all of us. Human beings need to apply their labor (physical and mental) to produce.
So, what I am asserting is that there is unlimited possibility on earth to produce goods and services that will more than satisfy our needs and wants.
The only constraint, in a free society, for meeting one's wants is one's own effort.
Therefore, at a fundamental level, there is no scarcity for which human being need to compete with each other. The competition needs to be with oneself - to make as much effort as satisfies one's own wants, in accordance with one's own ambition.
Now, what could be the reasons that this simple concept is not well understood?
There could be three reasons. Firstly, people do not have access to means of production through free competitive markets. Secondly, people do not believe that there can be unlimited produce on earth (which is not the case as mentioned above). Finally, people may not believe that the distribution mechanism is 'fair'.
The remedy to address first and third root causes is to ensure that the means of production (such as land) are available by a free market bidding process, and distribution is done automatically through a market driven price mechanism.
04 September 2010
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