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Explaining The Price System

Published in:

• Technocracy Digest, 4th quarter 1996, No. 322

This is a portion of the Q&A which has been published in several Technocracy publications.

In so many of our articles, we mention the ``Price System'' as a system that interferes with the prosperity and welfare of citizens on the North American Continent. We are asked many questions about this, and what we would do about it, so here are a few answers.

What does Technocracy mean by a Price System?

Technocracy defines a Price System as any system whatsoever which effects the distribution of its goods and services on a basis of commodity evaluation, and which employs any form of debt tokens or money.

By this definition, every major society in the world today employs a Price System, whether they call it capitalism, communism, socialism or by any other label. Whatever their form, all were geared to conditions of natural scarcity, and hence are unsuitable for distributing abundance.

What does Technocracy propose to substitute for the Price System?

Technocracy proposes: first, a carefully planned production adjusted so as to maintain as high a physical standard of living for the people of North America as is compatible with the limitations of non-replaceable natural resources; secondly, a carefully planned distribution, based upon the total amount of energy consumed in production. This two-fold plan would give to each individual an equal and substantial income.

What can we do to stop the terrible waste of our natural resources and still keep the Price System going?

Nothing, because the two go hand in hand. The character of the Price System requires that it constantly expand in order to survive, and this, in turn, requires a mindless drain of resources to satisfy the production needs of the revered Gross National Product. To cut back on the use of resources would necessitate a decline in the GNP, and hence, in the fortunes of Price System operation.

Conservation of our natural resources to any meaningful extent would soon wreck the Price System; but is that so bad, in view of the alternative? For the first time, mankind can look forward to an age of prosperity, but some people still yearn for the past.

What does Technocracy propose to substitute for money?

Energy Accounting. Technocracy proposes to replace money in all of its various forms such as: coin, currency, bank drafts, cheques, credit cards, etc., with a non-fluctuating medium of distribution. Instead of having an elastic type of `value' as at present, goods in a Technate would possess a measurable energy cost, and would be distributed on that basis. Thus, the total cost of all goods and services produced would be the total amount of energy used in their production.

An individual's consuming power, which would be his/her pro rata share of all the non-human energy used in producing goods and services, would be issued to him/her in some form of non-negotiable Energy card. It would be identified only to the person issued and would be usable only by him or her. There would be no point in `saving', for they would all be cancelled out at two-year intervals, and replaced with new allotments.

Does Technocracy envisage the collapse of the Price System in the near future?

Technocracy will not make a flat prediction on this subject. Too many qualifying factors are involved. For example, a major war would inject another huge blood transfusion into the Price System.

What we can say is that the problems of the Price System are multiplying daily, and more and more people are becoming intolerant of this wasteful and obsolete method of social operation.

What percentage of the North American population, demanding social change, would be required to put an end to the Price System?

Social change often comes regardless of man's wishes or demands. The advance of technology will bring an end to the Price System, whether we say yea or nay.

However, Technocracy would welcome a mandate by two-thirds of the North American population in favor of a Technocratic society. This mandate could be in the form of a referendum or plebiscite.

You say the politicians don't know the answers to our problems, but apparently we can't vote for you. Who, then, can get us out of the present mess?

What we have said is that Technocracy Inc. will never operate as a political party and field candidates who solicit votes for themselves. However, our Organization has frequently stated that it would welcome a plebiscite or referendum in favor of a Technate. Since we are a research and educational Organization, we could help direct the citizens of North America out of the present `mess.' When that was done, Technocracy Inc. would disband.

The Scientific Answer

Energy accounting is the only instrument of distribution that can be used in this Continent's emerging era of abundance. This provides the accounting means whereby North American citizens can express their individual preference as to what they want of the products North America is capable of producing. That is its function: to record the demand for goods and services and, thereby, determine the amount to be produced.

By applying one specific technological measuring device, production and consumption can be balanced, and the first specification for social harmony is immediately achievable.

The elimination of the Price System and installation of a Technate will automatically remove many problems which are natural concomitants of our present method of social operation.