Friday, 26 August 2011

Energy, Capacity, Priority

Policy makes appear to lack a key concept. I call it, the:

Utility Penalty 
when you defy the left

The production of wealth requires three ingredients. These are Energy, Industrial Capacity and Prioritisation.

In a market economy, which we inherit, the Utility Penalty makes itself felt when the gap between rich and poor widens: Utility in economics101 is a basic idea from economics were basically, the more you have of something, the less you care about it:

As the gap between rich and poor widens, the rich will find themselves with an abundance of money that they care less and less about as they get wealthier and wealthier. They will then spend 'their' money in a way which reflect the lower emotional value they have towards their surplus wealth. The utility of a persons money drops as they find themselves with more and more of it.

This lower value of utility attached to the excess wealth of top gainers, manifests itself in the economy upon which we all depend in inferior prioritisation of production: More frivolous expenditure will result in an industrial response that reflects that.

So as the gap between rich and poor widens, the priority of production becomes less efficient. And that is the Utility Penalty.

Problems with falling Utility of excess wealth undermine the whole economy's production - One of the 3 planks of a solid political economy. (Energy, Capacity, Priority)

The Utility Penalty is effectively eliminated by reallocation of wealth from those with excess from our economy, to those with shortages. Citizens must look left or we will collectively diminish.

Disqus for A New Red Dawn