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> If farmers can get rich growing crops, there will never be a famine.

You're not considering that food has a limited shelf life, seasonal, difficult to distribute efficiently and the customers have highly variable purchasing powers. Also local production is incredibly sensitive to local environmental variation. We already produce enough food to feed nearly twice the global population, and yet plenty of people are malnourished.

I would personally suggest that the best way to prevent famines is to improve food storage and distribution methods, and have robust systems for environmental or conflict induced local famines. Though the unbalanced nature of consumer wealth is also important - it makes sense to waste 50% of your crop selling it in Europe if you can sell it for 3x as much than locally. So maybe the best thing is simply to raise the wealth of poorest people in the world?




I think perhaps you are missing the wider point I am making :-)


I'm not sure, I kind of disagreed with both statements you were making, and decided to pick holes in the latter, since it was providing support for the former.

If I'm missing a "wider point", can you elucidate?


You disagree that societies work best when the interests of all the participants are aligned? This seems obvious to me, so I am curious as to what you object to. If people are rewarded for doing thing X, X will be more likely to happen, and if they are punished for Y, then Y will be less likely to happen. Clearly there will be outliers, but why would you construct a society that actively penalises things that it wants?


Truly aligned incentives are almost impossible to achieve - in a lot of situations, "mostly aligned most of the time" is the best we can hope for.

For example, if my startup is renting servers from AWS our incentives are aligned in the sense that we'll buy more from AWS as we get more users; but unaligned in the sense that if we're using more resources than we need to AWS wouldn't profit from pointing that out. Indeed, even an externality-free positive-sum deal between two parties brings with it a zero-sum deal in deciding how to distribute the benefits.


How do you define what a society wants? There is not an implicit goal when a society exists, there is just a collective of individuals who happen to have some interaction. So essentially, this is the function of politicians in a democracy: to reconcile the irreconcilable views of individuals. However, as with all compromises, often no one is left happy...

I'm not explaining things well I think, hope you can make sense of that!


Care to clarify on the points you are trying to put across??




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