How do economies of scarcity transist into economies of abundance? In an economy of complete abundance, the amortized marginal cost of any product (and all products) is zero. A good model of this is in computer software, where only the initial investment of a person into actually coding the program is what costs, whereafter everything is, to put it colloquially, dirt cheap. (This assumes that costs like power, food etc are external) In such an economy of complete abundance, there is one thing that will remain scarce, and that is creativity. So, we can either try to reward creativity by direct means, or let fulfillment be its own reward. If the economy of abundance is isolated from any external factors, then the latter seems to be a better thing than the former. See "Studies Find Reward Often No Motivator" by Kohn. And besides, in an economy of complete abundance, there is no natural way of within that economy by itself, materially rewarding a person, except for by artificially restricting everybody else. Hence, the reward, whether given or natural, must be nonmaterial (e.g reputation, sense of creation, etc). However, the software model is not a complete economy. The ideal assumption that costs can be just "made external" and thus not dealt with is void; programmers have to eat too. However, the points made will be of interest when we discuss transitions to possible future economies where living itself is abundant; that is, everything needed to survive can be done without effort from any of the people who are living.[1] Yet, given the progress of technology, it would seem that current economies are transitioning, albeit slowly, into ones of abundance, by increasing automation of tasks. Complete abundance can be reached when an effective replicator[2] can be constructed, as well as its service equivalent -- probably limited AI. If left alone, the tightly wound loop of market feedback, when subjected to this transition will result in an enormous division -- between idleness and hard work, between riches and poverty, in one end caused by business leaders replacing "refiners" (those who add value to any product) by simply taking from the abundance economy in question, and on the other end by the people left over to fall by the side. One may argue that as the economy becomes more abundant, capital will matter less, and therefore the unimaginable riches of the leaders will have no practical value when everybody can use a replicator to get what the leaders have -- in effect, the transition becoming one that "lifts all boats". This is in theory true, and suggests that[3], observing this, the leaders will try to raise artificial barriers to preserve the power that arises from the inequivalence given by scarcity. Publically, such efforts will consist of trying to convince the populace that abundance must be restricted, either because broad abundance makes sophisticated abuses of society simple (by holding people ransom with a nuclear weapon, for instance), or because the amortized nature of the zero marginal cost means that to copy is game-theoretically preferrable to produce. One may observe weakly analogous strategies in software wrt programming corporations and in various other businesses related to creative output, e.g publishing. The question then arises, will the force of transition be so powerful that such attempts are bound to fail, or must we find ways of peacefully change an economy of scarcity into one of abundance in accordance to the external pressure given by technical and other factors? It may be so that the economic change itself will make the restrictions useless (and again, a software analogy can be seen in the perceptions of "hacker communities" who hold that competition alone will destroy the artificial scarcity attempts, and in corporations that try to enact the very same kind of artificial scarcity under the label of security -- argument one). But if the preservers win and chain natural change, the result when the pressure becomes too large may be very messy indeed. Therefore, let's see what other possibilities exist. Such "managed transitions" may give a more smooth change, benefitting the population more during "neither here nor there" economies, as well. An old suggestion, based on a document by Bertrand Russell[4], observes that in an economy of complete abundance, work in the traditional sense does not exist because nobody is forced to do anything. As the marginal cost is zero, there's more than enough to go around. Therefore, given that end point, we should gradually dissolve traditional work the closer we get to the point of complete abundance, and this can be done by adjusting the maximum hours in a work day according to current employment trends, the point being that as abundance takes over, demand on traditional work will decrease, which again prompts a decrease in the work day length so that more have to be hired to do the same amount of work. This in effect distributes time capital, so to speak, among the entire working population. Another way[5] of distributing work is to use raw capital instead of time capital, and probably will not be considered as interventionist by business. As traditional incentive comes from monetary need, the society should simply provide a capital floor to every member of the population, taken from taxes on business. This tax should be adjusted according to the transition towards abundance so that the cost and profit of running a business remains roughly constant for those who change their methods in accordance to what the abundance makes possible, creating a competitive force on corporations to adapt while the population reaps the benefit on an equal basis. ----- [1] Note that Kaczynski (sp) would say that any such society is a dystopia where every being in it is desperately distracting himself with some surrogate activities that never will be as "real" as ones where survival is on the line. [2] That is, a machine that can reproduce anything that can be produced, or as close to anything that can be produced that is necessary to provide a sufficient material standard of existence to support everybody. [3] ... assuming that those in power would rather preserve their relative power than benefit the population at large. This seems to be true. [Monopolists and kings as evidence of this? Yes.] [4] "In Praise of Idleness", Bertrand Russell, 1932. [5] This is denoted the APF solution here, after a work of fiction mentioning this method as analogous to a large permanent fund.