Tuesday, January 22, 2019

Money Price is Most Relevant for Traditional Scale

If product can readily be duplicated, it is amenable to traditional scale potential, and its monetary price tends to serve as a relatively accurate coordination point. However, if and when a product's essential characteristics are directly related to time units (time based product doesn't scale), the money price may lack coordination potential. How so? Most resources remain part of price systems which regularly adjust to market variations, whatever their current level of use may be. But when the resource of potential labour isn't currently active in the marketplace, a certain amount of aggregate time value is also not being regularly priced, hence negatively impacts mutually held time priorities more than one might expect.

Regular readers are familiar with my suggestions for time as an economic measure or price, for units of time based product which aren't capable of traditional scale. Time arbitrage would allow knowledge and skill to scale in lieu of time, as a useful continuum in circumstance where knowledge and skill may lack sufficient institutional context. Today's skills arbitrage pricing has limited pricing relevance in the open market, since these labour prices don't represent a coordination point for aggregate time value. While time arbitrage would also carry monetary representation (as a general price mass produced commodity), time would function as the price clearing point for the aggregates involved. Even though time arbitrage would not likely impact labour pricing in general equilibrium conditions, it could bring much needed additional time priority value to defined equilibrium settings.

I've reiterated these points in part as a response to a Project Syndicate article from Mariana Mazzucato, "Let's Get Real About Purpose". She questioned why economic activity should be purely a matter of price, and continued:
To get real about purpose, we need to recognize that value is created collectively and build more symbiotic partnerships between public and private institutions and civil society. In doing so, we must address three questions: what value to create, how to evaluate the impact, and how to share the rewards.
Certainly I agree with Mazzucato that value is quite often a collective endeavour, and deserves to be more so. Plus I would also agree with her (in a specific sense) that monetary price is often inadequate for time based product. Nevertheless, I feel her arguments for strengthening "symbiotic partnerships" fall short, for these relationships have long prominently featured in the economic landscape with mixed results. As to creating recognizable value beyond a monetary price, I believe time value is the best approach to bring a new dimension to economic exchange. Indeed, time value as economic measure would also make it simpler for individuals to personally manage for important considerations such as health and happiness.

Economic time value would give us more concrete means to evaluate the impact of what we do. Regarding "how to share the rewards", what's important here, is determining how to make certain that all citizens not only take part in important daily activities which don't scale, but also have production and workplace access to economic activity which does scale. Without such access, we tend to find ourselves limited to demanding more for our skills and knowledge, than many individuals - and governments for that matter - are actually able to support.

To maintain productivity gains in the near future, we will also need a better understanding, how to respond to the fact much of the market is already being given over to product which does not readily scale. Our lack of understanding means this process is occurring at high cost and with low levels of economic participation, for too many citizens. Not only has the percentage of non scale time product been growing in recent decades, it is a major factor in declining total factor productivity and losses in quality of life. We will always need to work with one another in ways that do not readily scale, but we need to do so without the high level of debt and supply side limitation which now accompany this endeavour.

The prices which are functional and integral to our tradable sector activity, will always be important. After all, they are the best indicators where traditional output gains continue to occur. However, if we are to maintain long term growth well into the foreseeable future, we will need to be less dependent on price making from the largess of tradable sector activity, for the many diverse areas of work we engage in that don't readily scale. If we can create real value for our time priorities as economic units, it would ultimately become easier to break our dependency on price inflation and supply side limits as our primary means to create quality time based product.

Sunday, January 20, 2019

Commonalities That Matter For (Economic) Community

Often I've suggested mutually held commonalities as a starting point for new community formation. Domestic summits, for instance, might provide means to bring individuals together, to explore the possibilities of building a productive services environment. However, not all social commonalities are necessarily conducive to positive bonding processes. What rationale might individuals actually have, for living and working in close proximity to one another, which could result in mutually beneficial outcomes?

In particular, one doesn't just throw a bunch of people together who aren't wanted elsewhere, as "Johnny" of the blog "Granola Shotgun" noted recently. He rightfully stressed the irrationality of taking groups of homeless people (who aren't wanted in particular neighborhoods or areas), to relocate them en masse elsewhere. Plus: How would anyone imagine that the native residents of the new location, would be okay with these social outcasts now in their backyard?

There needs to be positive rationale, for individuals to make concerted efforts toward progress and join forces in doing so. Such rationale goes well beyond the (albeit) understandable desire to escape unfortunate circumstance. While the above referenced blog discussion centered around the homeless, it could equally apply for other social outcasts such as former prisoners, individuals recovering from addiction, or those seeking to escape domestic violence. Even in the best of circumstance, should relocation occur based on a common negative identity, how could all these individuals be expected to adapt to a permanently close physical proximity to one another? Many probably would be unable to do so. Alas, there needs to be more to life as well, than being granted some version of a tiny house along with a government check.

Instead of attempting to build new communities based on unfortunate commonalities, it makes more sense to envision new startups in which individuals are uniformly hopeful for better and more successful futures. These are also more likely to be the individuals whose level of trust in others has not been completely shattered by previous life experiences. That's not to say that people with low levels of trust don't also deserve a chance to start over, by any means. Only that such individuals would likely need more outside assistance, until they have a chance to rebuild trust and self respect via mutually beneficial working relationships.

Even what may appear as fortunate commonalities or success indicators, isn't necessarily a good starting point for economic community. In order for communities to succeed, they need a diverse range of individuals with a wide range of skill capacity and personal interests. Perhaps one commonality in such a framework, would be a common belief in the idea of success as desirable in group context. Just as it isn't helpful to build anew from a failed identity set as a group starting point, community as social or political identity is hardly a sufficient base to build upon.

The commonalities that matter for economic community, also cut across many lines of common reference. Low income as a common denominator could provide a helpful starting point. After all, adaptation to low wages over time, could mean a greater appreciation of environments which benefit from simpler zoning requirements, cost effective building manufacture and low maintenance ownership potential. The low maintenance factor is particularly important for individuals who - for any reason - might otherwise find themselves undermined by high costs of ownership and/or maintenance requirements. Many social outcasts and others fall into this category, yet simple low maintenance environments could help bring the strength and stamina they do have, to the fore.

People may be good candidates for new communities, who have reason to believe they could thrive in these open ended free market settings. Yet not every new start will succeed, and every apparent failure would have its own story to tell, to those willing to listen. Much also depends on whether participants have the commonality of faith in the potential of their fellow human beings, regardless of one's personal disappointments and setbacks. Those who hold the belief a better future remains possible through combined efforts, may be able to contribute to a new continuum of knowledge based endeavor, based on services productivity. With such hopefulness as a place to begin anew, many other aspects of economic community could eventually follow.

Sunday, January 13, 2019

Human Capital Potential as Infinite Growth

Could the economy - given the chance - expand indefinitely? Of course, not everyone imagines continued expansion as a desirable outcome. For that matter, given the recent worldwide economic slowdown, might the possibility of infinite expansion already be lost? Hopefully the recent slowdown will prove to be only temporary.

Nevertheless, we could also envision infinite growth capacity which assumes a somewhat different form. By building directly on the possibilities of the human mind, it's not necessary to "use up" other aspects of earth's resources in order to perpetuate the process. The symmetric alignment of time value would make it possible for of the human mind to be tapped, without having to wait for other aspects of earth's other resource capacity to be utilized first.

Recent progress has taken place in ways which are not always encouraging for the long term potential of human capital. Skills arbitrage in particular, is only a fraction of the human capital potential which exists. Skills arbitrage is asymmetrically compensated, hence dependent on other originating sources of wealth before assuming economic validity. This process often requires extensive use of earth's resources, before the larger potential of human capital can be brought into the equation. Knowledge use as a secondary or dependent economic construct, also means that certain aspects of skills demand takes precedence over personal priorities.

Symmetric compensation for time value, would create a more inclusive form of human capital potential, in which time units form a long term continuum with infinite growth possibilities for knowledge use. However, this growth would be measured somewhat differently, since it derives per capita knowledge and skill use as a more important measure of economic gain than actual changes in income. The advantage to such a setting, is that it would give all human capital potential a chance to take part in formal economic processes.

Consider how this process would provide benefits for the long term growth of non tradable sector activity. Skills arbitrage creates a specific human capital harvest in non tradable sector settings, yet if one were to contrast the relevant human capital to a tradable sector apple harvest, it would become clear that only a small portion of human capital is being measured for total growth capacity and marketplace potential. On the other hand, time arbitrage could encourage the measure of all human capital possibilities, and like the tradable sector apple harvest, measure how all human capital might be made relevant to long term growth potential. By far the most important reason to encourage economic expansion indefinitely, is to pursue the potential of the human mind on the same terms.

Oddly, the efficiency of seeking the best skills in the marketplace, creates its own limits on full human participation. The creation of a economic continuum for time value, could make amends for those limits, by allowing the time value of all individuals to become an active part of indefinite economic expansion. Importantly, this could create a more sustainable form of economic expansion, since time arbitrage would not make the same demands on earth's resources that are often necessary for the asymmetric compensation of knowledge.

Friday, January 4, 2019

Where is the Educational Upside?

A recent post from Bryan Caplan which references his book The Case Against Education: Why the Education System is a Waste of Time and Money, calls to mind a potential twist on the old "markets fail, use markets" argument. "K-12 public education fails. Use K-12 public education!"

Should this juxtaposition seem odd: Where is the structural private sector alternative, to the problems which currently face formal education? Regular readers know how I feel about this matter. Supply side institutions need a chance to meaningfully evolve so as to maintain economic and societal stability. Otherwise, immense quantities of wealth could be lost, should political opponents and populists get the chance to destroy institutions they don't like, despite a lack of institutions which could meaningfully replace them.

Nevertheless, public schooling is caught in an deep conundrum which casts shadows over what it has been able to contribute to a 21st century knowledge based economy. Long before recent voices were raised in protest, some were already questioning the value of present day educational roles. For example: In Gender (1982), Ivan Illich complained how men and women supposedly need "education" as part of growing up, then he continued (page 11):
In traditional societies, they matured without the conditions for growth being perceived as scarce. Now, educational institutions teach them that desirable learning and competence are scarce goods for which men and women must compete. Thus, education turns into the name for learning to live under the assumption of scarcity.
Alas, Illich is right about the scarcity part. In particular, artificially defined skills scarcity led to an incredible transfer of 20th century tradable sector wealth, to professional groups who specialized in time based product. Yet this good fortune could not last forever, and the process is also not well suited for sustainable knowledge use patterns in the 21st century. Already, parts of these non tradable sector supply side activities are being dissembled in the political arena. Nowhere are the results of artificially imposed knowledge scarcity more evident, for instance, than in today's healthcare systems.

Even though formal education doesn't function as well as markets in general, these deep institutional social patterns are nowhere near being superseded by a new reality. If we are to maintain economic stability well into the future (thereby allowing automation to successfully continue reducing labour hours in relation to tradable sector output), nations will need to ask all of their citizens to partake in the world of non tradable sector knowledge.

But we can't extend any such welcome on the earlier terms of wealth capture and non coordinated non tradable sector price making. We can't expand indefinitely, a wealth bonanza that was never intended to serve society as a whole. It's far from easy to think about the implications of this reality, which may partially explain the attitude of those who look forward to less mass production and lower population levels in the future. Ivan Illich also expressed his hope for lower mass production levels, decades earlier in Gender - alongside his desire for permanently reduced economic growth. Hopefully, my readers are well aware, that any heavy structural reductions in economic growth would be anathema to me.

In light of these observations, what about Caplan's essential argument? Even if every "rational" and/or extra bright student were to adopt STEM sensibilities as a way forward, our present system would not be able to miraculously expand its workplace offerings to include every aspiring student on today's generous terms. We have stretched beyond recognition, the boundaries of what originating sources of wealth can be expected to keep redistributing for dependent high skill knowledge sectors. Perhaps some of these harsh realities could help to explain why Lev Novikov, educator and start-up engineer, did not get a substantive response after numerous attempts for open discussion re Caplan's book. As Novikov explained:
The short version is that there was a lot of interest in reading the book, but very little interest in discussing it...The students were extremely reluctant to discuss the book, especially in a group.
Indeed, conversations over the course of the school year, basically came down to two points:
  • I always knew school was wasting my time! Is this why you're trying to teach us to program and build stuff?
  • I can't argue with his points, but I think he's wrong.
Part of the problem is the context of the discussion: Open ended, perhaps, but with few clear alternatives or positive ways to respond. If the argument feels hypothetical, it's also posed as though we should be rid of public education, whether or not trade-offs have been adequately considered. If this weren't enough, economics discussions are normally chock full of trade-offs! What has to be depressing for these kids, is their growing awareness that today's society doesn't really need many of these soon to be high school graduates, in any meaningful context. Young though they may be, many of them can readily discern the doors which are basically closed to them.

Since we continue to inhabit an economy which derives hierarchical services sector dominance from decades of mass production, we don't yet have a true educational upside. But many individuals love to learn. Many individuals also enjoy intellectual challenges and a chance to contribute to society. Let's not leave the impression that it is irrational for the overwhelming majority of humanity to desire a full life, should anyone happen to be born in the "wrong" circumstance. We can open the doors to a more inclusive and meaningful society, which does not require the high costs of today's non tradable sectors. After all, it is the costs of final goods and services in these sectors, which lead to irrational demands for higher wages than many employers are able to pay.

We need to explore possibilities for an educational upside which contributes to better economic outcomes for all concerned. The best way to do so, is to integrate education in all its diversity, with a full range of activities which people perform on a regular basis. Taxpayer expense for public education tends to be beside the point, especially since so much of this takes place via local property taxes. Let's discuss potential structural changes in education, without belittling those who are still trying to make the best of the system which still exists. We can build a new educational framework which illuminates productive responses to present day wants and needs, instead of simply working to undermine a system which in certain respects has largely outlived its usefulness.

Wednesday, January 2, 2019

Let's Build More Wealth With Less Debt

Why has it become so important for nations to develop more reliable means than debt in order to get things done? Perhaps the idea of building more with less debt, would be a good New Year's resolution for nations in general. Fortunately, it would not be necessary to focus solely on tradable sector activity (mercantilism) to make it happen. No matter the amount of economic dynamism a nation may experience, civilizations can eventually unravel, if and when they excessively rely on debt and its associated redistribution, to take care of the most vital functions of society.

By way of example, one of the bigger dangers to economic sustainability takes place, when debt is structured around the expectation of future income streams which have little - if anything - to do with what an actual debt decision is expected to accomplish. Indeed, revenue gambles such as this can be equally dangerous whether they involve external gambles on human capital at the micro level (future claims on someone's income generation potential), or at the macro level, in the form of claims on a nation's revenue stream which stem from tradable sector activity.

The rationale for debt creation patterns and their subsequent resolution, also helps to explain why economics as a discipline is so closely interwoven with historical outcomes. No nation can really afford to assume that increasing debt load levels don't warrant serious a serious response that takes long term structural stability into consideration. Should a nation eventually stumble in its debt gambles, the failure would also affect long term societal expectations on the part of its citizens, not to mention how they might consequently view the economic possibilities of their future.

Even though cultural attributes may appear more important than economic considerations in certain respects, continued prosperity nonetheless depends on how nations respond to budgetary obligations over time. However, the need to maintain reasonable debt levels should not be confused with a supposed need for austerity. Plus, who exactly is making that call? We have already observed how no sane political party desires to implement austerity during their watch! Hence austerity in many instances is mostly a default point of no return (overall failure), once governments become unable to postpone their growing budgetary burdens any longer.

A major mistake for all concerned, is when nations refuse to seek additional means of economic dynamism in terms of knowledge use and application, without debt. Yet this is increasingly the fragile position in which developed nations are beginning to find themselves. Many a knowledge based NIMBY impulse has been backed by extensive debt and taxation. Every nation needs to create broader societal support and inclusion for knowledge based endeavour, which doesn't require debt or redistribution as its point of origin.

How might we reconsider long term economic sustainability in the near future? For one, we need to carefully evaluate debt's overall role and importance in building and maintenance cycles. How can we structurally sidestep that role? It is becoming increasingly clear that we need new sources of wealth which can be utilized to reduce debt levels throughout economic systems.

Time arbitrage could be one of the best candidates to strengthen a 21st century knowledge based economy for the long run. Symmetrically aligned time value would serve as a reliable building block to get things done, with no additional budgetary burden. Even though our skills aren't symmetrically aligned, all too often when we compensate for skills differences, not only do we exacerbate existing differences in aptitude, further debt is required for the process. Debt has often been the only way to augment our time value, when it falls too short of the time value of others! Plus, when we harden skills differences, people start thinking about debt jubilees all over again. Should time value be used as a building block in accordance with the time we actually posses, the process could ultimately reduce our need as a society, to constantly redistribute revenue in order to further our building and maintenance activities.

Time as wealth would be a partial, but still important shift away from the burden of extensive debt obligations. In contrast with what is normally built in any society, maintenance roles require far more time hours to accomplish successfully. Since symmetric time units can function as a point of wealth origin (time units as resource building hours), building hours could gradually increase in aggregate, in relation to maintenance hours which otherwise require redistribution. Symmetric time functions as immediately canceled debt, and each of us can claim ownership of the result. By allowing time value to function as a valid economic unit - one which positively contributes to GDP - we could make it possible for an incredible amount of maintenance functions to function in a wealth building capacity, and reduce debt obligations as well.

Sunday, December 30, 2018

Wrap Up for December 2018

"Cities that suffered manufacturing job losses decades ago are now grappling with the problem of fewer opportunities for white-collar employees such as managers, lawyers, bankers and accountants...roughly a third of major U.S. metro areas have lost a greater percentage of white-collar jobs than blue-collar jobs."

"For the first time in history, America is seeing its budget deficit rise dramatically higher during a period of peace and prosperity." "The current situation  is unusual because the deficit has been soaring dramatically higher even as unemployment has fallen to the lowest level since the 1960s (3.7 percent)."

Paul Romer re education: "We always have to be careful not to treat this as a perfect information competitive market."

"Should the Fed purchase Treasuries only?"

What happened to enthusiasm for start-ups?

Who is willing to work longer hours when the return to work declines?

"The key is to avoid favoring one particular transportation choice over others."

are millennials different?

"Empowering people to lay out their own space led to happier, more productive workers." And sometimes, places which appear to "suffer" from age or benign neglect, are the places where the best ideas happen.

How long before the interstate highway system begins to sputter?

A look at the last decade
"With surprising frankness, high officials at the Fed and other central banks have acknowledged that they simply don't know what the link between unemployment and inflation looks like today."

Success turns out to be more likely, when we embrace the state of being stuck.

Paul Romer, Nobel Prize lecture "On the possibility of progress"

Measures of the money stock should be included in future monetary decisions.

Almost half of West Virginia's budget is dedicated to K-12 education.

"Both free markets and property rights are key principles of classical liberalism, and they are in conflict."

The exploratory mode of attention can connect us to a deeper sense of purpose.

Spending on TANF has been falling since its creation in 1996.

Bloomberg's best books of 2018. There's lots of good non fiction this year.

The road to bipolarity is already being traveled.

Arnold Kling: Memoirs of a Would-be Macroeconomist

Vox on China: Was the wrong aggregate production approach being used? Factor costs and mobility vary widely in different industries.

"If we diagnose our anger problem as merely a Trump problem, we'll be sorely disappointed when he eventually departs public life and we remain enraged."

The "five L" headwinds confronting homebuilders: labour, lots, lending, lumber, local regulations.

How does the deceleration of China's growth rate compare to South Korea?

The principle of knowledge relatedness: "Economies are more likely to enter an activity when they are in presence of related activities."

Attempts to overturn globalization, are no solution for existing inequalities.

Spaced repetition can change the forgetting curve.

Fertility losses are a trend which "is shared with many industrialized nations".

Culture as an emergent order.

Monetary policy is not currently in a good place with monetary theory

"If we spend all of our time looking over our shoulders for killer robots, that means we are not looking ahead to discern the outcomes we might actually want."

Forecasting as an antidote to political tribalism.

Musings on a meritocratic endgame.

"We are heading toward the greatest housing problems for low-income people since the Great Depression..."

"It took the United States 193 years to accumulate its first trillion dollars of federal debt. We will add that much in the current fiscal year alone."

Intergenerational wealth transmission.

A short story about the U.S. economy since World War 2.

What makes this slowdown feel so different from other slowdowns?

Africa's supply chain faces many challenges.

Scott Sumner suggests that behavioral economics not be overemphasized in relation to core concepts. John Cochrane agrees and provides some additional examples.

Friday, December 21, 2018

Post Highlights From 2018

Here are highlights for some of the more popular posts of the year.

The Productivity Challenge of Our Time  Occasionally, what may be difficult to decipher, really needs to be understood just the same. This has certainly proven true for the shifting realities of productivity in modern day economies. While there have been tremendous productivity gains in recent centuries, we have nevertheless experienced a major shift (in terms of GDP), towards product which lacks the ability to scale in a normal sense.

How to make certain this shift doesn't ultimately reverse previous gains? We need to organize resource capacity differently, for products and services which have limited ability to scale due to connections with time and place. Fortunately, scale potential can also be envisioned in ways which go beyond monetary and traditional output gain, especially via the compounding interest possibilities of human capital and knowledge dispersal.

Debt as a Factor in Output and Productivity  When does new debt function as a source of increased output and growth gains? It's important to know whether new debt can do this, or instead represents yet another nested claim on already existing resource capacity. While such claims are realistic and to be expected up to a certain point, they begin to detract from total factor productivity, if they extensively offset debt formation which generates new wealth on more direct terms. While some debt will continue to function mostly as a way to shift existing resources and revenue, we still need to ensure that - at a macro level - sufficient space remains for debt which serves as a source of direct wealth creation.

Can AI Reduce the Burden of Human Capital Investment?  Artificial intelligence has evolved to a point it could now reduce the time which has been necessary for the accumulation of high skill human capital. But is this a result which high skill workers will actually be able to accept, especially given the fact their human capital value is monetarily reflected in their overhead costs of their own working environments? Plus, should artificial intelligence assume some of the duties of applied knowledge, this ultimately affects the valuation structure of formal education. Nevertheless, the more that AI is applied, the less overhead costs will be necessary in the future, in order to get things done. Hopefully, this organizational positive will be put to good use for all income levels.

Are Long Term Budget Issues a "Lost Cause"?  Despite my reservations about his approach, Paul Ryan was one of the few in Washington who recognized what was at stake, regarding long term budgetary issues. How long before these issues surface in ways that create real problems for the economy? It's time to unleash the full potential of human capital, and go well beyond the service structures which the "best of the best" currently generate, so that new social safety nets might emerge which contribute to wealth creation, instead of further budgetary burdens.

Service Sector Dominance vs. the Solow Residual  Why does service sector dominance detract from the long term gains which normally accrue from the Solow Residual, in product which is normally capable of scale? The main problem - especially insofar as it impacts long term budgetary issues, is the social choice between immediate economic reciprocity, and deferred reciprocity for services generation. Too much service sector activity presently takes place as deferred reciprocity - a cycle which not only increases future debt loads, but does so with uncertain near future revenue streams. This impacts total factor productivity, and by extension, reduces standards of living even if in an indirect or relative sense.

Left unchecked, services formation as deferred reciprocity, can negatively impact the prosperity which normally accrues from the Solow Residual. Whereas immediate reciprocity (via time arbitrage) could build new services wealth which would not make demands on existing resource capacity. Over time, immediate reciprocity in services could once again increase the value of the Solow Residual, for the cumulative benefits of product which scale at a macro level.

Resource Flexibility Requires Investment Flexibility Are there circumstances in which yearly property auctions might be beneficial? Perhaps a land auction concept might prove more useful as a means of time centered coordination, where property location is at issue for economic activities which transition during the course of a year. Nevertheless, flexible building components would greatly reduce the risks associated with long term investment strategies in this regard. Not only would flexible building components make it feasible for individuals with limited income to function normally, this economic option would also encourage people at all income levels to build wealth incrementally, via low risk ownership strategies.

The Importance of Personal Autonomy  Among the most crucial aspects of economic freedom, is whether we are actually able to influence and produce for our own local environments. This necessity holds not only for services diversity, but also the ways in which we transform local resource capacity to augment living and working arrangements. When we are able to maintain basic production rights in this regard, our consumption is positively augmented, so that no income is too small to tend to our most basic needs in life.

Empathy, AI and the Knowledge Factor  One problem with skills arbitrage, is that certain skills are in such high demand in the workplace, these individuals often face severe constraints when they are expected to fulfill other societal responsibilities which involve the use of their time. This has become increasingly true for empathy as a societal expectation, as well. What if robots or artificial intelligence could mimic empathy? While our first inclination may be to think of this possibility as extremely sub optimal, consider what individuals who are starved for attention, might actually prefer: "caring" artificial intelligence, over little or even no empathy from actual people.

The Middle Classes: Is There Cause For Concern?  Perhaps insofar as the middle classes seek to shape their environments beyond what can be reasonably paid for. The preferred means by which middle classes have been structured, has in turn created its own limits. If so, how are lower income levels expected to effectively participate? Non tradable sector activity in particular, has been mostly constructed with medium to high levels of income in mind. A dynamic grassroots approach would create new economic opportunities and participation patterns for those with the least amount of income.

Does Price Taking "Deserve" Production Rights?  Time arbitrage would function as a form of price taking for services generation at local levels, and artificial intelligence could boost local skill application where necessary. Importantly, price taking isn't a feasible economic option for high skill services generation at national levels. However: Should nations begin to experience problems compensating high level skill, the most dangerous consequence is "brain drain". It's the loss of valuable human capital to nations which are better able to pay, that might be just the incentive nations need, for assigning stronger production rights to citizens who can work with applied knowledge via equal time coordination.