Decentralization as Price Taking for Time Value

More than anything else, price taking in general equilibrium has made possible the broad coordination of a wide range of work opportunities and resource use in society. Much of this activity continues to occur in ways that appear spontaneous - hence the oft heard reference to Adam Smith's "invisible hand". So long as resources aren't directly linked to time and place, societies have successfully coordinated resource capacity in a global context, and even occasionally via centralized means.

However, resource coordination can break down, when societies attempt to centrally manage product in which time and place hold central roles. In too many instances, price taking has been supplemented or even abandoned, for the more immediate gains of price making activity. Worse, since price making is dominant in non discretionary spending associated with non tradable sectors, it could eventually curtail economic growth and prosperity.

Once extensive price making occurs over lengthy periods, future claims on general equilibrium monetary flows may be exhausted, before many aspiring individuals and groups have a chance to participate. For now, price making in non tradable sectors will continue as the norm for general equilibrium activity. How to address this issue, given the problems it creates in terms of long term growth and economic stability?

While decentralization is being explored in some capacities, few have yet to consider its possibilities for applied knowledge and productive agglomeration at local levels. Defined local equilibrium settings would provide means to create a price taking process which amplifies the human capital investments of the individuals and groups involved.

These decentralized communities would arbitrage mutually held time priorities for local services generation. Instead of envisioning meritocracy as means to divide people into classes, meritocracy would be tapped so as to get things done in the here and now, via "just in time" knowledge application and deep learning AI assistance. Price taking in this context, with group aggregate time value as the time price structure, would allow both individuals and groups to maximize the degree of services generation and market opportunity that is feasible.

The good news is that it's still possible to align human capital potential with the resource capacity of time and place, with the help of today's technology. Present day institutions evolved when the use of knowledge in society was quite limited, yet the capacity of knowledge use to contribute to societal outcomes has risen to an exponential level. Alas, not only does this create uncertainty for the elite, it also plays havoc with countless millions who remain convinced the elite won't concede to broader utilization of knowledge in society. The fact that neither the elite or many among the masses are comfortable about technologically driven hard choices, could lead to massive loss of wealth and stability, if we aren't careful in the years ahead. Hopefully, decentralized communities for 21st century services generation, could provide constructive means to respond to this dilemma.