6) The market system is driven, in part, by scarcity. The less there is of something, the more money that can be generated in the short term. This sets up a propensity for corporations to limit availability and hence deny production abundance. It is simply against the very nature of what drives demand to create abundance. The Kimberly Diamond Mines in Africa have been documented in the past to burn diamonds in order to keep prices high. Diamonds are rare resources which take billions of years to be created. This is nothing but problematic. The world we live in should be based on the interest to generate an abundance for the world’s people, along with strategic preservation and streamlined methods to enable that abundance. This is a central reason why, as of 2010, there are over a billion people starving on the planet. It has nothing to do with an inability to produce food, and everything having to do with an inherent need to create/preserve scarcity for the sake of short term profits. Abundance, Efficiency and Sustainability are, very simply, the enemies of profit. This also applies to the quality of goods. The idea of creating something that could last, say, a lifetime with little repair, is anathema to the market system, for it reduces consumption rates, which slows growth and creates systemic repercussions (like a loss of jobs, etc.). The scarcity attribute of the market system is nothing but detrimental for these reasons, not to mention that it doesn’t even serve the role of efficient resource preservation, which is often claimed. While supply and demand dictates that the less there is of something, the more it will be valued and hence the increased value will limit consumption, reducing the possibility of “running out” --- the incentive to create scarcity, coupled with the inherent short term reward which results from scarcity driven based prices, nullfies the idea that this enables strategic preservation. We will likely never “run out” of oil, in the current market system. Rather, the prices will become so high that no one can afford it, while those corporation who own the remaining oil, will make a great deal of money off of the scarcity, regardless of the long term social ramifications. In other words, remaining scare resources, existing in such high economic value that it limits their consumption, is not to be confused with preservation that is functional and strategic. True preservation, which must be strategic, can only come from the direct management of the resource in question in reagrd to the most efficient applications of the resource in industry itself, not arbitrary, surface price relationships, absent of rational allocation.
END OF "THE PROFIT PROBLEM" - by Peter Joseph.
TOMORROW, THE LAST TWO PARTS OF "ON THE EDGE" VIDEO FROM THE VENUS PROJECT.
