Money sucks, part 2

Ok, so leaving aside how often capitalism makes us optimize against the best interests of either the race or individuals, I wanted to talk about a way that money sucks that as far as I can tell applies to almost every single large scale resource allocation system ever built.

Even in “Comminist” and “socialist” countries, they end up using money. And the problem with this is that not all actual real goods are created equal, but every transaction involving money throws away all metadata. So you can trade your paper rubles or dollars or francs or what have you for your resources, and we have completely lost track of what went into those resources. People keep talking about how the “invisible hand of the market” will solve everything, but as far as I can tell, the invisible hand of the market is A: myopic B: slow C: wasteful and D: not really how we should be wanting to do things.

Lately COVID has given us some excessive examples of this. Ideally we would have just stopped pumping as much oil when we realized we weren’t burning as much, but because this didn’t happen, for a while barrels of oil literally had a *negative* value.

Now I get that you could not, pre computers and networks, track every single type of fixed good and inventory on hand. However, things have changed, and I really think someone should be sitting down and working on designing a resource allocation system that is properly tuned to what we can now do.

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