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The Evolution of the Free Market ~ An Exercise in Thought | Varun Menon | TEDxYouth@AlBarsha


for centuries the global economy has

for centuries the global economy has been subject to the indecisiveness of

been subject to the indecisiveness of

been subject to the indecisiveness of mankind we’ve come from bartering sheep

mankind we’ve come from bartering sheep

mankind we’ve come from bartering sheep for vegetables to an intricately

for vegetables to an intricately

for vegetables to an intricately connected network of international trade

connected network of international trade

connected network of international trade and currently the forces of demand and

and currently the forces of demand and

and currently the forces of demand and supply determine our resources are

supply determine our resources are

supply determine our resources are allocated in an economy and it does is

allocated in an economy and it does is

allocated in an economy and it does is admirably with an invisible hand as the

admirably with an invisible hand as the

admirably with an invisible hand as the economy as the economist Adam Smith put

economy as the economist Adam Smith put

economy as the economist Adam Smith put it somehow seamlessly integrating the

it somehow seamlessly integrating the

it somehow seamlessly integrating the ones in the consumer with the producer

ones in the consumer with the producer

ones in the consumer with the producer now let’s think about how the economy is

now let’s think about how the economy is

now let’s think about how the economy is actually evolved over the last few

actually evolved over the last few

actually evolved over the last few centuries the roots of today’s

centuries the roots of today’s

centuries the roots of today’s materialism can be traced back to the 18

materialism can be traced back to the 18

materialism can be traced back to the 18 and 1900s when the Industrial Revolution

and 1900s when the Industrial Revolution

and 1900s when the Industrial Revolution caused the massive boom in production in

caused the massive boom in production in

caused the massive boom in production in Europe and America but this then led to

Europe and America but this then led to

Europe and America but this then led to a massive disparity in income and living

a massive disparity in income and living

a massive disparity in income and living standards between your workers and the

standards between your workers and the

standards between your workers and the entrepreneurs which in turn led to the

entrepreneurs which in turn led to the

entrepreneurs which in turn led to the popular sentiment shifting towards

popular sentiment shifting towards

popular sentiment shifting towards communism and this is when Karl Marx

communism and this is when Karl Marx

communism and this is when Karl Marx proposed that the next big change in the

proposed that the next big change in the

proposed that the next big change in the global economy would be a radical

global economy would be a radical

global economy would be a radical revolution that would end in a communal

revolution that would end in a communal

revolution that would end in a communal society with central planning and shared

society with central planning and shared

society with central planning and shared resources he proposed the idea of

resources he proposed the idea of

resources he proposed the idea of historical materialism which essentially

historical materialism which essentially

historical materialism which essentially suggests that capitalism in the free

suggests that capitalism in the free

suggests that capitalism in the free market were inherently unstable and had

market were inherently unstable and had

market were inherently unstable and had the seeds of its own destruction yet

the seeds of its own destruction yet

the seeds of its own destruction yet it’s quite obvious that the world didn’t

it’s quite obvious that the world didn’t

it’s quite obvious that the world didn’t take that route and communism has failed

take that route and communism has failed

take that route and communism has failed over time and what we can implicitly

over time and what we can implicitly

over time and what we can implicitly understand from history is that market

understand from history is that market

understand from history is that market failures and the inherent contradictions

failures and the inherent contradictions

failures and the inherent contradictions of the market system will not

of the market system will not

of the market system will not necessarily spell doom for itself it

necessarily spell doom for itself it

necessarily spell doom for itself it does however require an evolution rather

does however require an evolution rather

does however require an evolution rather than a revolution if it is to withstand

than a revolution if it is to withstand

than a revolution if it is to withstand the test of time so this begs the

the test of time so this begs the

the test of time so this begs the question will the free market exists in

question will the free market exists in

question will the free market exists in its current form forever in a world

its current form forever in a world

its current form forever in a world where we have hyperinflation

where we have hyperinflation

where we have hyperinflation deflationary spiral spiral unemployment

deflationary spiral spiral unemployment

deflationary spiral spiral unemployment and massive income disparities it’s

and massive income disparities it’s

and massive income disparities it’s quite obvious that the market has failed

quite obvious that the market has failed

quite obvious that the market has failed and our effects and our efforts to

and our effects and our efforts to

and our effects and our efforts to correct it are in vain newly creating a

correct it are in vain newly creating a

correct it are in vain newly creating a new problem as we tuck away the old one

new problem as we tuck away the old one

new problem as we tuck away the old one in an endless game of whack-a-mole now

in an endless game of whack-a-mole now

in an endless game of whack-a-mole now economic theory presents an interesting

economic theory presents an interesting

economic theory presents an interesting argument against the way we currently

argument against the way we currently

argument against the way we currently use resources it’s called the tragedy of

use resources it’s called the tragedy of

use resources it’s called the tragedy of the Commons now the basic premise is

the Commons now the basic premise is

the Commons now the basic premise is that we tend to over exploit those

that we tend to over exploit those

that we tend to over exploit those restore

restore

restore that aren’t owned by anyone in order to

that aren’t owned by anyone in order to

that aren’t owned by anyone in order to maximize our personal gain but in doing

maximize our personal gain but in doing

maximize our personal gain but in doing so we actually reduce the utility of

so we actually reduce the utility of

so we actually reduce the utility of that resource for the next person

that resource for the next person

that resource for the next person looking to consuming and this is

looking to consuming and this is

looking to consuming and this is precisely how we’ve managed to use more

precisely how we’ve managed to use more

precisely how we’ve managed to use more of our resources in the last 200 years

of our resources in the last 200 years

of our resources in the last 200 years than in the rest of the history of

than in the rest of the history of

than in the rest of the history of planet Earth combined in this endless

planet Earth combined in this endless

planet Earth combined in this endless rat race but more importantly the

rat race but more importantly the

rat race but more importantly the biggest failure of the free market today

biggest failure of the free market today

biggest failure of the free market today albeit subtle is allocated inefficiency

albeit subtle is allocated inefficiency

albeit subtle is allocated inefficiency modern economics fails to create the

modern economics fails to create the

modern economics fails to create the right conditions for what i like to call

right conditions for what i like to call

right conditions for what i like to call real scientific growth something that’s

real scientific growth something that’s

real scientific growth something that’s far greater in value than just monetary

far greater in value than just monetary

far greater in value than just monetary growth and it’s this inefficiency that

growth and it’s this inefficiency that

growth and it’s this inefficiency that I’ll be addressing for the most part

I’ll be addressing for the most part

I’ll be addressing for the most part today because at the end of the day the

today because at the end of the day the

today because at the end of the day the system we live in is flow but we can’t

system we live in is flow but we can’t

system we live in is flow but we can’t see it because it’s all we know and all

see it because it’s all we know and all

see it because it’s all we know and all that we’ve been exposed to so let’s take

that we’ve been exposed to so let’s take

that we’ve been exposed to so let’s take a step back what if we redesign society

a step back what if we redesign society

a step back what if we redesign society from scratch what if we redefine

from scratch what if we redefine

from scratch what if we redefine economics and human behavior to reduce

economics and human behavior to reduce

economics and human behavior to reduce the more conducive environment for

the more conducive environment for

the more conducive environment for scientific growth taking a technology

scientific growth taking a technology

scientific growth taking a technology innovation and the betterment of the

innovation and the betterment of the

innovation and the betterment of the human race in general today we use money

human race in general today we use money

human race in general today we use money to fuel our economic activity as a

to fuel our economic activity as a

to fuel our economic activity as a parameter of exchange but when you

parameter of exchange but when you

parameter of exchange but when you really think about it money and essence

really think about it money and essence

really think about it money and essence is a skewing influence in the sense that

is a skewing influence in the sense that

is a skewing influence in the sense that I tends to dilute or exaggerate the real

I tends to dilute or exaggerate the real

I tends to dilute or exaggerate the real value of a commodity now what do I mean

value of a commodity now what do I mean

value of a commodity now what do I mean by this let’s consider a bit of an

by this let’s consider a bit of an

by this let’s consider a bit of an oversimplified girl world example to

oversimplified girl world example to

oversimplified girl world example to illustrate what do you think is more

illustrate what do you think is more

illustrate what do you think is more important scoring a goal or curing

important scoring a goal or curing

important scoring a goal or curing cancer now which you think is valued

cancer now which you think is valued

cancer now which you think is valued more financially equal guess the average

more financially equal guess the average

more financially equal guess the average pay of the football player in the

pay of the football player in the

pay of the football player in the English Premier League comes in at

English Premier League comes in at

English Premier League comes in at around eighty thousand US dollars a week

around eighty thousand US dollars a week

around eighty thousand US dollars a week in comparison top-notch postdoctoral

in comparison top-notch postdoctoral

in comparison top-notch postdoctoral cancer research scientists make less

cancer research scientists make less

cancer research scientists make less than half of that a year now as much as

than half of that a year now as much as

than half of that a year now as much as I love football and although the whole

I love football and although the whole

I love football and although the whole scenario might sound a little cliche the

scenario might sound a little cliche the

scenario might sound a little cliche the point is that the gross contribution

point is that the gross contribution

point is that the gross contribution society of to society of the latter is

society of to society of the latter is

society of to society of the latter is exponentially greater but it’s the

exponentially greater but it’s the

exponentially greater but it’s the former that is very incentivized

former that is very incentivized

former that is very incentivized financially the current system only

financially the current system only

financially the current system only accounts for popular demand but they’re

accounts for popular demand but they’re

accounts for popular demand but they’re very large extent neglects actual social

very large extent neglects actual social

very large extent neglects actual social welfare game and this is something that

welfare game and this is something that

welfare game and this is something that will

will

will have to change afraid of progress in the

have to change afraid of progress in the

have to change afraid of progress in the future because as we approach the

future because as we approach the

future because as we approach the technological singularity which is a

technological singularity which is a

technological singularity which is a term used to describe a point in time

term used to describe a point in time

term used to describe a point in time when machine intelligence rivals human

when machine intelligence rivals human

when machine intelligence rivals human lg’s in other words the time of extra

lg’s in other words the time of extra

lg’s in other words the time of extra extraordinary technological ability

extraordinary technological ability

extraordinary technological ability there will come a time when we must

there will come a time when we must

there will come a time when we must ditch the monetary economic system in

ditch the monetary economic system in

ditch the monetary economic system in the hopes of something better something

the hopes of something better something

the hopes of something better something more efficient and something more suited

more efficient and something more suited

more efficient and something more suited to the time we live in because today’s

to the time we live in because today’s

to the time we live in because today’s system prioritizes nominal demand over

system prioritizes nominal demand over

system prioritizes nominal demand over actual societal game and this is its

actual societal game and this is its

actual societal game and this is its biggest flaw we can’t solve problems by

biggest flaw we can’t solve problems by

biggest flaw we can’t solve problems by using the same kind of thinking we used

using the same kind of thinking we used

using the same kind of thinking we used when we created them words by Einstein

when we created them words by Einstein

when we created them words by Einstein that are often coded yet rarely

that are often coded yet rarely

that are often coded yet rarely practiced discussing some conceptual

practiced discussing some conceptual

practiced discussing some conceptual radical new economy doesn’t make sense

radical new economy doesn’t make sense

radical new economy doesn’t make sense in an economy that’s going to be based

in an economy that’s going to be based

in an economy that’s going to be based on axioms of demand and supply and money

on axioms of demand and supply and money

on axioms of demand and supply and money so all that I ask is that we put aside

so all that I ask is that we put aside

so all that I ask is that we put aside our pre-existing notions of social

our pre-existing notions of social

our pre-existing notions of social function and let me consider asking can

function and let me consider asking can

function and let me consider asking can the system in its could current form

the system in its could current form

the system in its could current form ever achieve sustainable growth and with

ever achieve sustainable growth and with

ever achieve sustainable growth and with an alternative be any better than the

an alternative be any better than the

an alternative be any better than the one we have now the fact of the matter

one we have now the fact of the matter

one we have now the fact of the matter is the issues caused by the way we

is the issues caused by the way we

is the issues caused by the way we currently going but go about doing

currently going but go about doing

currently going but go about doing things will become blatantly apparent in

things will become blatantly apparent in

things will become blatantly apparent in the near future and we will face a host

the near future and we will face a host

the near future and we will face a host of challenges very soon energy will

of challenges very soon energy will

of challenges very soon energy will become our greatest pressing concern as

become our greatest pressing concern as

become our greatest pressing concern as we continue to deplete our reserves of

we continue to deplete our reserves of

we continue to deplete our reserves of fossil fuels but even scarier are the

fossil fuels but even scarier are the

fossil fuels but even scarier are the prospects of running out of food thanks

prospects of running out of food thanks

prospects of running out of food thanks to overpopulation drastic climate change

to overpopulation drastic climate change

to overpopulation drastic climate change due to global memory and even the

due to global memory and even the

due to global memory and even the prospect of Earth’s becoming

prospect of Earth’s becoming

prospect of Earth’s becoming uninhabitable this isn’t science fiction

uninhabitable this isn’t science fiction

uninhabitable this isn’t science fiction this just could be a reality at some

this just could be a reality at some

this just could be a reality at some point in the future the biggest issue we

point in the future the biggest issue we

point in the future the biggest issue we currently face though is a sheer lack of

currently face though is a sheer lack of

currently face though is a sheer lack of fundamental research often we hear the

fundamental research often we hear the

fundamental research often we hear the words exponential growth of technologies

words exponential growth of technologies

words exponential growth of technologies thrown around and yes there is

thrown around and yes there is

thrown around and yes there is exponential growth but you really have

exponential growth but you really have

exponential growth but you really have to ask growth towards what today the

to ask growth towards what today the

to ask growth towards what today the amount of funding that goes into making

amount of funding that goes into making

amount of funding that goes into making your iPhone thinner every year is

your iPhone thinner every year is

your iPhone thinner every year is unbelievably greater than the amount of

unbelievably greater than the amount of

unbelievably greater than the amount of funding that goes into say stopping

funding that goes into say stopping

funding that goes into say stopping climate change or developing an

climate change or developing an

climate change or developing an effective solution to the impending

effective solution to the impending

effective solution to the impending energy crisis and here are some

energy crisis and here are some

energy crisis and here are some statistics to give you an idea of just

statistics to give you an idea of just

statistics to give you an idea of just how this proportion of this disparity

how this proportion of this disparity

how this proportion of this disparity investment really is the

investment really is the

investment really is the you annually spends around 12 and a half

you annually spends around 12 and a half

you annually spends around 12 and a half u.s. dollars per capita on research and

u.s. dollars per capita on research and

u.s. dollars per capita on research and development for rural energy solutions

development for rural energy solutions

development for rural energy solutions in comparison the EU spends around two

in comparison the EU spends around two

in comparison the EU spends around two thousand seven hundred dollars per

thousand seven hundred dollars per

thousand seven hundred dollars per capita on energy expenditure itself

capita on energy expenditure itself

capita on energy expenditure itself including fueling their cars homes and

including fueling their cars homes and

including fueling their cars homes and factories the amount of funding that

factories the amount of funding that

factories the amount of funding that goes into the energy industry is less

goes into the energy industry is less

goes into the energy industry is less than a pitiful 0.5% of expenditure and

than a pitiful 0.5% of expenditure and

than a pitiful 0.5% of expenditure and as you can clearly see this just isn’t a

as you can clearly see this just isn’t a

as you can clearly see this just isn’t a sustainable model meanwhile Apple

sustainable model meanwhile Apple

sustainable model meanwhile Apple incorporated own spent two and a half

incorporated own spent two and a half

incorporated own spent two and a half billion dollars last quarter on the

billion dollars last quarter on the

billion dollars last quarter on the research and development of the new

research and development of the new

research and development of the new iphone 7 that’s just one company in the

iphone 7 that’s just one company in the

iphone 7 that’s just one company in the span of three months as opposed to a

span of three months as opposed to a

span of three months as opposed to a whole trading block over a whole year

whole trading block over a whole year

whole trading block over a whole year and those two numbers shouldn’t be

and those two numbers shouldn’t be

and those two numbers shouldn’t be remotely close to each other the point

remotely close to each other the point

remotely close to each other the point is we have started prioritizing Gurgeh

is we have started prioritizing Gurgeh

is we have started prioritizing Gurgeh nomics / fundamentals and so today today

nomics / fundamentals and so today today

nomics / fundamentals and so today today the majority of our resource is going to

the majority of our resource is going to

the majority of our resource is going to funk fueling consumption rather than

funk fueling consumption rather than

funk fueling consumption rather than fuelling the development of relevant

fuelling the development of relevant

fuelling the development of relevant progressive technology but if we did

progressive technology but if we did

progressive technology but if we did increase our focus on the development of

increase our focus on the development of

increase our focus on the development of useful technology it could potentially

useful technology it could potentially

useful technology it could potentially open up the doors to a plethora of

open up the doors to a plethora of

open up the doors to a plethora of solutions to the aforementioned

solutions to the aforementioned

solutions to the aforementioned existential crisis think about it given

existential crisis think about it given

existential crisis think about it given the right conditions startup

the right conditions startup

the right conditions startup technologies like nuclear fusion

technologies like nuclear fusion

technologies like nuclear fusion reactors that could produce several

reactors that could produce several

reactors that could produce several times more energy than our conventional

times more energy than our conventional

times more energy than our conventional fission reactors or asteroid mining for

fission reactors or asteroid mining for

fission reactors or asteroid mining for rare earth resources or perhaps even

rare earth resources or perhaps even

rare earth resources or perhaps even colonizing another planet all these

colonizing another planet all these

colonizing another planet all these next-generation technologies and ideas

next-generation technologies and ideas

next-generation technologies and ideas could be viable given the right economic

could be viable given the right economic

could be viable given the right economic environment the problem is today system

environment the problem is today system

environment the problem is today system doesn’t allocate nearly enough resources

doesn’t allocate nearly enough resources

doesn’t allocate nearly enough resources to solving these existential issues in

to solving these existential issues in

to solving these existential issues in comparison to the migra mechanical

comparison to the migra mechanical

comparison to the migra mechanical activities that human beings will soon

activities that human beings will soon

activities that human beings will soon be above the status quo does enable

be above the status quo does enable

be above the status quo does enable remarkable technological growth but

remarkable technological growth but

remarkable technological growth but perhaps it’s starting to go in the wrong

perhaps it’s starting to go in the wrong

perhaps it’s starting to go in the wrong direction and addressing these concerns

direction and addressing these concerns

direction and addressing these concerns is essential if we’re to survive for the

is essential if we’re to survive for the

is essential if we’re to survive for the long haul on this planet or even

long haul on this planet or even

long haul on this planet or even elsewhere because failure to do so could

elsewhere because failure to do so could

elsewhere because failure to do so could result in a world that’s ravaged by

result in a world that’s ravaged by

result in a world that’s ravaged by hyperinflation ludacris scarcity and a

hyperinflation ludacris scarcity and a

hyperinflation ludacris scarcity and a chaotic society so can we design a

chaotic society so can we design a

chaotic society so can we design a system that’s based on actual human

system that’s based on actual human

system that’s based on actual human needs rather than on the economic

needs rather than on the economic

needs rather than on the economic preconditions that they’re very large

preconditions that they’re very large

preconditions that they’re very large extent determine what our needs and

extent determine what our needs and

extent determine what our needs and wants are today I say think globally but

wants are today I say think globally but

wants are today I say think globally but could you slow

could you slow

could you slow the first step in getting rid of the

the first step in getting rid of the

the first step in getting rid of the inefficiency in the current system

inefficiency in the current system

inefficiency in the current system promotes is to get over our infatuation

promotes is to get over our infatuation

promotes is to get over our infatuation infatuation for a hyper globalised

infatuation for a hyper globalised

infatuation for a hyper globalised economy globalization is a good thing

economy globalization is a good thing

economy globalization is a good thing but not beyond a certain extent i bought

but not beyond a certain extent i bought

but not beyond a certain extent i bought this sweater from bershka the spanish

this sweater from bershka the spanish

this sweater from bershka the spanish own company made from wool that came

own company made from wool that came

own company made from wool that came from New Zealand that is then sent to

from New Zealand that is then sent to

from New Zealand that is then sent to China for fabrication and finally ship

China for fabrication and finally ship

China for fabrication and finally ship halfway across the world so that I can

halfway across the world so that I can

halfway across the world so that I can keep warm in the sweltering heat of the

keep warm in the sweltering heat of the

keep warm in the sweltering heat of the Arabian desert sounds a little absurd

Arabian desert sounds a little absurd

Arabian desert sounds a little absurd when you actually say it out loud

when you actually say it out loud

when you actually say it out loud doesn’t it although a global consumerist

doesn’t it although a global consumerist

doesn’t it although a global consumerist culture may be entertaining it’s gross

culture may be entertaining it’s gross

culture may be entertaining it’s gross be wasteful and far from ideal and if

be wasteful and far from ideal and if

be wasteful and far from ideal and if you were to ever reach anywhere close to

you were to ever reach anywhere close to

you were to ever reach anywhere close to an ideal post-scarcity scenario then the

an ideal post-scarcity scenario then the

an ideal post-scarcity scenario then the first step is to use the resources we do

first step is to use the resources we do

first step is to use the resources we do have optimally thus think globally what

have optimally thus think globally what

have optimally thus think globally what should be globalized this technology

should be globalized this technology

should be globalized this technology itself things like patience and

itself things like patience and

itself things like patience and scientific resources that in the long

scientific resources that in the long

scientific resources that in the long run will allow us to produce whatever we

run will allow us to produce whatever we

run will allow us to produce whatever we need and want with the inherited

need and want with the inherited

need and want with the inherited resources available locally while we

resources available locally while we

resources available locally while we continue to grow globally as a sum of

continue to grow globally as a sum of

continue to grow globally as a sum of several partially self-sustaining

several partially self-sustaining

several partially self-sustaining communities and this is already starting

communities and this is already starting

communities and this is already starting to happen today there’s an increasing

to happen today there’s an increasing

to happen today there’s an increasing global trend towards trade protectionism

global trend towards trade protectionism

global trend towards trade protectionism and the globalisation over the last few

and the globalisation over the last few

and the globalisation over the last few decades we’ve seen a paradigm shift in

decades we’ve seen a paradigm shift in

decades we’ve seen a paradigm shift in the fundamental way we use resources

the fundamental way we use resources

the fundamental way we use resources ownership is slowly starting to make way

ownership is slowly starting to make way

ownership is slowly starting to make way towards and increased reliance on

towards and increased reliance on

towards and increased reliance on rentals and the sharing economy such as

rentals and the sharing economy such as

rentals and the sharing economy such as your uber and Airbnb so I think this is

your uber and Airbnb so I think this is

your uber and Airbnb so I think this is just a sign of things to come but the

just a sign of things to come but the

just a sign of things to come but the next step being a complete change in how

next step being a complete change in how

next step being a complete change in how we own use and allocate resources in the

we own use and allocate resources in the

we own use and allocate resources in the future so how would a conceptual economy

future so how would a conceptual economy

future so how would a conceptual economy actually arise from what we have today

actually arise from what we have today

actually arise from what we have today the futurist economy is starkly

the futurist economy is starkly

the futurist economy is starkly different from the status quo although

different from the status quo although

different from the status quo although it’s somewhat enabled by it what today’s

it’s somewhat enabled by it what today’s

it’s somewhat enabled by it what today’s technology does exceptionally well is

technology does exceptionally well is

technology does exceptionally well is automation eventually machines will

automation eventually machines will

automation eventually machines will replace human beings in most mechanical

replace human beings in most mechanical

replace human beings in most mechanical work it’s innovate in that inevitable

work it’s innovate in that inevitable

work it’s innovate in that inevitable now in such a situation where does that

now in such a situation where does that

now in such a situation where does that leave us when we have the development of

leave us when we have the development of

leave us when we have the development of things like self-replicating robots nano

things like self-replicating robots nano

things like self-replicating robots nano factories quantum computers and strong

factories quantum computers and strong

factories quantum computers and strong artificial intelligence

artificial intelligence

artificial intelligence these things will take care of

these things will take care of

these things will take care of production processes and rational

production processes and rational

production processes and rational decision-making in the most efficient

decision-making in the most efficient

decision-making in the most efficient way possible which means goods and

way possible which means goods and

way possible which means goods and services will be plentiful in such a

services will be plentiful in such a

services will be plentiful in such a scenario human beings role has changed

scenario human beings role has changed

scenario human beings role has changed from merely being producers and workers

from merely being producers and workers

from merely being producers and workers to be creators designers and innovators

to be creators designers and innovators

to be creators designers and innovators because these are traits of the human

because these are traits of the human

because these are traits of the human brain that cannot be emulated by any

brain that cannot be emulated by any

brain that cannot be emulated by any machine no matter how complicated going

machine no matter how complicated going

machine no matter how complicated going towards such a futurist society is much

towards such a futurist society is much

towards such a futurist society is much like a rocket leaving for outer space in

like a rocket leaving for outer space in

like a rocket leaving for outer space in order to overcome the Earth’s

order to overcome the Earth’s

order to overcome the Earth’s gravitational field a significant amount

gravitational field a significant amount

gravitational field a significant amount of fuel is required but once it reaches

of fuel is required but once it reaches

of fuel is required but once it reaches escape velocity it’s practically

escape velocity it’s practically

escape velocity it’s practically self-sufficient likewise reaching such a

self-sufficient likewise reaching such a

self-sufficient likewise reaching such a high degree of economic or social

high degree of economic or social

high degree of economic or social evolution may well require a significant

evolution may well require a significant

evolution may well require a significant investment in technology today and a

investment in technology today and a

investment in technology today and a large restructuring of the very

large restructuring of the very

large restructuring of the very fundamentals of economics as we know it

fundamentals of economics as we know it

fundamentals of economics as we know it but if and when we do get there it’s a

but if and when we do get there it’s a

but if and when we do get there it’s a whole new world with infinite

whole new world with infinite

whole new world with infinite possibilities that we can only begin to

possibilities that we can only begin to

possibilities that we can only begin to fathom people can’t be the both their

fathom people can’t be the both their

fathom people can’t be the both their lives through activities devoted decided

lives through activities devoted decided

lives through activities devoted decided by the forces of the market often with

by the forces of the market often with

by the forces of the market often with perverse financial incentives in a world

perverse financial incentives in a world

perverse financial incentives in a world where goods and services are plentiful

where goods and services are plentiful

where goods and services are plentiful and the mark is automated human

and the mark is automated human

and the mark is automated human cognitive ability which is our greatest

cognitive ability which is our greatest

cognitive ability which is our greatest useless at the end of the day can be

useless at the end of the day can be

useless at the end of the day can be devoted to activities in line with

devoted to activities in line with

devoted to activities in line with resolving existential issues or to the

resolving existential issues or to the

resolving existential issues or to the development of relevant progressive

development of relevant progressive

development of relevant progressive technology now how would such a

technology now how would such a

technology now how would such a conceptual economy actually determined

conceptual economy actually determined

conceptual economy actually determined resource allocation how would a resource

resource allocation how would a resource

resource allocation how would a resource allocation mechanism work how do we

allocation mechanism work how do we

allocation mechanism work how do we decide who gets what and how does

decide who gets what and how does

decide who gets what and how does exchange actually take place because the

exchange actually take place because the

exchange actually take place because the convenient invisible hand of the free

convenient invisible hand of the free

convenient invisible hand of the free market doesn’t exist without price as a

market doesn’t exist without price as a

market doesn’t exist without price as a fundamental parameter this is where the

fundamental parameter this is where the

fundamental parameter this is where the wonderful world of artificial

wonderful world of artificial

wonderful world of artificial intelligence comes in now no one has

intelligence comes in now no one has

intelligence comes in now no one has better explained this actual scale of

better explained this actual scale of

better explained this actual scale of technological evolution better than

technological evolution better than

technological evolution better than Steve Jobs than it is 1997 keynote

Steve Jobs than it is 1997 keynote

Steve Jobs than it is 1997 keynote address so it’s only fair that I draw

address so it’s only fair that I draw

address so it’s only fair that I draw some viruses ideas in the early 1900’s

some viruses ideas in the early 1900’s

some viruses ideas in the early 1900’s an electric motor was considered a

an electric motor was considered a

an electric motor was considered a pinnacle of technological achievement

pinnacle of technological achievement

pinnacle of technological achievement there was one massive motor in every

there was one massive motor in every

there was one massive motor in every factory that provided the power for all

factory that provided the power for all

factory that provided the power for all this functions yet the electric motor

this functions yet the electric motor

this functions yet the electric motor got democratized into what we currently

got democratized into what we currently

got democratized into what we currently know as the fractional horsepower motor

know as the fractional horsepower motor

know as the fractional horsepower motor and today there are a few thousand

and today there are a few thousand

and today there are a few thousand motors in our homes from our washing

motors in our homes from our washing

motors in our homes from our washing machines to amplifiers the few dozen in

machines to amplifiers the few dozen in

machines to amplifiers the few dozen in your smartphone camera black guys if you

your smartphone camera black guys if you

your smartphone camera black guys if you told someone just 25 years ago that

told someone just 25 years ago that

told someone just 25 years ago that you’d have a spell supercomputer in the

you’d have a spell supercomputer in the

you’d have a spell supercomputer in the palm of your hand they would have

palm of your hand they would have

palm of your hand they would have probably lasted you artificial

probably lasted you artificial

probably lasted you artificial intelligence is the next big quantum

intelligence is the next big quantum

intelligence is the next big quantum leap in technology today it’s merely a

leap in technology today it’s merely a

leap in technology today it’s merely a concept and infancy but in the future it

concept and infancy but in the future it

concept and infancy but in the future it too will get democratized and

too will get democratized and

too will get democratized and programmable artificial intelligence for

programmable artificial intelligence for

programmable artificial intelligence for specific functions will be just as

specific functions will be just as

specific functions will be just as commonplace as a smart phones in your

commonplace as a smart phones in your

commonplace as a smart phones in your bubbles now in a state of such abundant

bubbles now in a state of such abundant

bubbles now in a state of such abundant advanced machine learning we can use

advanced machine learning we can use

advanced machine learning we can use algorithms of such a high degree of

algorithms of such a high degree of

algorithms of such a high degree of complexity to actually rationalize

complexity to actually rationalize

complexity to actually rationalize resource allocation and exchange based

resource allocation and exchange based

resource allocation and exchange based entirely on efficiency when we take the

entirely on efficiency when we take the

entirely on efficiency when we take the human element out of resource allocation

human element out of resource allocation

human element out of resource allocation in exchange and replace it with

in exchange and replace it with

in exchange and replace it with intelligent algorithms of such a high

intelligent algorithms of such a high

intelligent algorithms of such a high degree that we can only begin to fathom

degree that we can only begin to fathom

degree that we can only begin to fathom how they’d work and with data management

how they’d work and with data management

how they’d work and with data management software like block chain which is a

software like block chain which is a

software like block chain which is a whole other fed talk but then we

whole other fed talk but then we

whole other fed talk but then we actually remove the influence the

actually remove the influence the

actually remove the influence the skewing influence of societal factors

skewing influence of societal factors

skewing influence of societal factors because machines that are globally

because machines that are globally

because machines that are globally linked to each other have no emotional

linked to each other have no emotional

linked to each other have no emotional or financial incentives in essence they

or financial incentives in essence they

or financial incentives in essence they are perfect logicians and this is what

are perfect logicians and this is what

are perfect logicians and this is what makes them so ideal for a regional

makes them so ideal for a regional

makes them so ideal for a regional allocation mechanism in the first place

allocation mechanism in the first place

allocation mechanism in the first place because productive efficiency becomes a

because productive efficiency becomes a

because productive efficiency becomes a sole criteria for exchange for example

sole criteria for exchange for example

sole criteria for exchange for example if I as an entrepreneur wanted to start

if I as an entrepreneur wanted to start

if I as an entrepreneur wanted to start a solar panel business the AI that

a solar panel business the AI that

a solar panel business the AI that assists me would contact the AI that

assists me would contact the AI that

assists me would contact the AI that assists someone else’s vast factory and

assists someone else’s vast factory and

assists someone else’s vast factory and the most efficient producer would be

the most efficient producer would be

the most efficient producer would be selected conversely i would only receive

selected conversely i would only receive

selected conversely i would only receive the resources i needed if my production

the resources i needed if my production

the resources i needed if my production process was considered efficient enough

process was considered efficient enough

process was considered efficient enough by the Machine economy and yes this is a

by the Machine economy and yes this is a

by the Machine economy and yes this is a very isolated example but it illustrates

very isolated example but it illustrates

very isolated example but it illustrates the point and so the need for a

the point and so the need for a

the point and so the need for a parameter of exchange becomes obsolete

parameter of exchange becomes obsolete

parameter of exchange becomes obsolete as a result of this new partially

as a result of this new partially

as a result of this new partially technocratic free market we take what we

technocratic free market we take what we

technocratic free market we take what we demand from a fully automated market and

demand from a fully automated market and

demand from a fully automated market and supplier intellect towards productive

supplier intellect towards productive

supplier intellect towards productive activity now by doing so we aren’t

activity now by doing so we aren’t

activity now by doing so we aren’t giving everyone the same thing as we

giving everyone the same thing as we

giving everyone the same thing as we would in a centrally planned economy

would in a centrally planned economy

would in a centrally planned economy because that’s been tried before in vain

because that’s been tried before in vain

because that’s been tried before in vain and it’s failed what we are doing is

and it’s failed what we are doing is

and it’s failed what we are doing is using technology and computer software

using technology and computer software

using technology and computer software to rationalize resource

to rationalize resource

to rationalize resource and what we are doing is giving everyone

and what we are doing is giving everyone

and what we are doing is giving everyone equal access at least a much higher

equal access at least a much higher

equal access at least a much higher degree of access to technology that

degree of access to technology that

degree of access to technology that enables innovation now all this might

enables innovation now all this might

enables innovation now all this might sound too good to be true and quite

sound too good to be true and quite

sound too good to be true and quite frankly it is this is an experiment in

frankly it is this is an experiment in

frankly it is this is an experiment in thought and it’s a utopian idea and this

thought and it’s a utopian idea and this

thought and it’s a utopian idea and this conceptual economy would never be able

conceptual economy would never be able

conceptual economy would never be able to exist without the development of some

to exist without the development of some

to exist without the development of some assumptions for the most part it

assumptions for the most part it

assumptions for the most part it requires the Society of absolutely

requires the Society of absolutely

requires the Society of absolutely coherent memories because in order to

coherent memories because in order to

coherent memories because in order to have such a high degree of economic and

have such a high degree of economic and

have such a high degree of economic and social evolution everyone in society

social evolution everyone in society

social evolution everyone in society must have the end goal of society itself

must have the end goal of society itself

must have the end goal of society itself along with the road today we’re far from

along with the road today we’re far from

along with the road today we’re far from this we’re hardwired attack in our own

this we’re hardwired attack in our own

this we’re hardwired attack in our own our own self-interests and that’s just

our own self-interests and that’s just

our own self-interests and that’s just the way we are there will come a time

the way we are there will come a time

the way we are there will come a time when we realized that acting in the best

when we realized that acting in the best

when we realized that acting in the best interest of society will inexorably be

interest of society will inexorably be

interest of society will inexorably be the only way to act in our best

the only way to act in our best

the only way to act in our best interests to perhaps then we can consent

interests to perhaps then we can consent

interests to perhaps then we can consent the inherent limitations of the human

the inherent limitations of the human

the inherent limitations of the human condition after all today’s utopia is

condition after all today’s utopia is

condition after all today’s utopia is tomorrow’s reality as we continiously

tomorrow’s reality as we continiously

tomorrow’s reality as we continiously seen throughout history today we like to

seen throughout history today we like to

seen throughout history today we like to label things as idealistic and realistic

label things as idealistic and realistic

label things as idealistic and realistic but what you have to realize is that

but what you have to realize is that

but what you have to realize is that what we label is idealistic today they

what we label is idealistic today they

what we label is idealistic today they very well be the reality of the future a

very well be the reality of the future a

very well be the reality of the future a non-monetary technocratic free market

non-monetary technocratic free market

non-monetary technocratic free market may see me broken it might seem

may see me broken it might seem

may see me broken it might seem idealistic the some of you it might seem

idealistic the some of you it might seem

idealistic the some of you it might seem ridiculous and perhaps even scary but

ridiculous and perhaps even scary but

ridiculous and perhaps even scary but the least I can do is throw the idea out

the least I can do is throw the idea out

the least I can do is throw the idea out there and make you think about it what

there and make you think about it what

there and make you think about it what if what if this really is the next step

if what if this really is the next step

if what if this really is the next step in economic evolution the interesting

in economic evolution the interesting

in economic evolution the interesting question is would you rather stay where

question is would you rather stay where

question is would you rather stay where you are or would you embrace the change

you are or would you embrace the change

you are or would you embrace the change [Applause]

”

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