A timely reminder about business and money

So, I feel like some people might be forgetting that, from a big picture perspective, making money is not a goal for humanity at all. Businesses should not be in business to make money – if they are, they’re likely doing damaging and/or stupid things. They should be in business to provide a product or service. The money is a token used to indicate contributions to the group, that can then be traded for other resources the group provides – I talk about this some in resource allocation as a group, but I think people miss the point, so I will belabor it some more.

When the government takes some of “your” income (which it uses to provide services we all need), they’re actually taking the token that was given to you by the group in exchange for your contributions to the group. Money is never “yours” in the same sense that other things are, it’s always a pointer to group resources.

Beyond that, one also needs to bear in mind that corporations exist to make the world a better place by providing a need or want for the group, in return for which dollars are handed over. The whole system is *supposed* to ensure that everyone is contributing to the welfare of the group but in fact it often does the opposite, because owners and upper management feel that, even though they often contribute the *least* ongoing value, they deserve the lion’s share of the tokens (which they will then hoarde like idiots, see this).

I think part of the problem is that a lot of people have lost sight of the big picture. They don’t think about optimizing user experience or happiness for the system as a whole. However, we would all have the best user experience if we *all* were trying to optimize the happiness for everyone in the system as a whole. *Definitely* one of the things that is killing America – and that may well lead to extinction of humanity if we don’t get our heads on straight – is the making of decisions which ultimately reduce happiness as a whole, or even survivability, in order to make money. We see this in companies destroying ecosystems with toxic chemicals, we see this in America’s perpetual war machine destroying overall value in order to give military contractors yet another pile of pointers, we see this in a lot of places.

But, I still maintain, your well-optimized corporation does not make massive profits. We are *all* the richest when it plows the majority of it’s money into either R&D or employee salaries, and beyond that when the salaries are not vastly disparate, because those who get paid the million dollar salaries are likely to just hoard them.

Now, a aside here – America offers you the only safe option for changing jobs or ceasing working is to have a fairly large nest egg stashed away, and thusly I am doing a bit of money hoarding of my own. I’m not happy that this world forces me to do so or risk starving and freezing to death, I’m not at *all* happy that the homeless in my city have their tents stolen and burned and if I had my way *everyone* who participated in that would forfeit all their assets and be forced to be homeless for a year. We clearly live in a world that is far more dystopian than it needs to be, and part of the blame for that is quite rightly laid at the feet of the conservative and the religious, both of whom are provably believing wrong things and taking actions based on them that are holding us all back.

(It’s always struck me as funny that people call America a “democracy” but we’re not, at all. We’re a democratic republic where your options are generally between two folks neither of which would be as good a choice for leadership as a random individual picked by drawing straws – and while we speak of “keeping the world safe for democracy” and “spreading democracy” what we truly believe in is not democracy but capitalism. We have been known even to overhrow democratically elected governments in order to install friendly dictators but we will bomb you back to the stone age if you dare try some form of collectivism. America stands for “don’t share, don’t work together, be enslaved by the bosses until you die, own lots of guns though!”)

Anyway, to return to my original point, in a ideal world corporations are not concerned about making dollars, they are concerned about making goods and providing services. To have it elsewise means the products get steadily more poorly made and steadily less valuable – a example of how capitalism unfettered leads to a worse outcome for everyone. We must teach our children, and always remember ourselves, that dollars *are not value*, they are just a pointer to it. Decisions that make paper dollars but destroy real value (like holding a war over false pretenses) hurt us all and are to be avoided at all costs.

One Response to “A timely reminder about business and money”

  1. Firesong Says:

    This is one of your best articulations about money, value, and capitalism. I think it’s very clear and even persuasive. (Of course, I am also a commie socialist.) I’d mark it with Best Of, were I you. 🙂

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