Market based jobs vs non-Market based jobs

This will be an examination of the increase of efficiency and proper incentives that occur due to market based actions.

Soooo, what is a market really?

The market is YOU, and me and everyone engaged in the economy.

AND... Why does this matter?

Lets first take a look at proper incentives for businesses to produce what the people need and want.

The market as shown is made up of everyone engaged in it, one of those people is you.

First, take a look at the occurrence that you have different tastes, needs, and desires than others.

These desires and needs are exactly what incentivizes economic producers to provide these goods and services.

The people in the economy literally incentivize producers to provide these goods and services.

Now lets first clarify something, an economy is defined as the allocation of scarce resources. The main resource that limits this is human time.

More precisely, human time and energy.

It takes much longer and much more human 'time' and 'energy' to build a Rolls Royce then a Toyota.

This is where the limits of an economy come in:

A market economy is directly incentivized to produce goods and services to the extent individuals are willing to pay for them.

And money, although an idea, is a human representation of our time and energy, our contribution to the economy.

This is often misunderstood that the rich in a lot of ways have contributed more to society in the form of economically valuable actions. 'Actions society values and is willing to pay for'

Money buys human time and energy; past, present, or future.

And thus, those who have contributed more economically have the ability to incentivize more human action with money.

The misunderstanding is why most people drive Toyotas even if they may desire Rolls Royces is this:

A Toyota's cost in terms of human time and energy is priced at a rate that people are willing to pay in terms of their money, which is their time and energy they have contributed.

We often overestimate our contribution and believe we deserve more than we do. Seems to be common, but it is humbling to see that society will reward you for contributing what it values.

An economy is something very few people will ever fully understand, but essentially it is this. (Market based)

People producing and exchanging what they need and desire.

I will clarify this point why a market based incentive is important after the next section.

Efficiency

You wouldn't believe it! 

Efficiency is important. Every excess minute, excess energy, and excess resource you consume to produce something adds up and results in decreased production.

Compounded across many individuals, organizations, or regions, this can have a massive effect.

As we know, increases in production stimulate economic wellbeing and raises the standard of living for individuals. 

To this extent, every inefficiency is less economic progress a society can have and thus is less a standard of wellbeing a people can have.

If you don't believe me, look at the average life expectancy from before the industrial revolution to today.

In truth, it is unknowable how inefficient we are currently other than if we measure ourselves to the most efficient among us. But, it is unlikely even the most efficient among us is as efficient as we can be.

Just to restate this,

Efficiency is producing the same amount of goods or services while consuming less resources.

'Resources do include human time and energy'

So, this is pretty important then!

If someone can build a solar panel that consumes half the resources to build another solar panel, we can double our production of solar panels at current resource consumption rates, or just reduce the consumption of resources to build our current output of solar panels.

This is true for everything, as every resource we consume requires people to produce it, as well as often resources extracted from the earth.

A more efficient world will consume less resources to do everything we do now, but

As efficiency increases, we will likely consume more resources, so it is important to be effective as well as efficient in our endeavors to produce many resources such as electricity, and other natural resources required for our modern world.

The increases in consumption is generally the reduced price (human time and energy required to produce it) in items that more people can now afford these items or services.

As well as, we never stand still as humans, we always desire more and as we increase efficiency, there are new ways to consume even more.

These increases in efficiency have had an amazing effect on the standard of living for society, but it is difficult to know if producing and consuming these resources may have long term effects on our human health and survival as a species. 

While it is popular to reduce or restrict oil production, this would come at a major cost of human wellbeing. 
Currently, to give one example, most food is grown with petroleum based fertilizers and pesticides. To restrict oil would be equivalent to less food production and greater starvation in the world.
More productive food production in terms of human time and energy input, resources input, and harvest/distribution input must be devised if we wish to reduce oil consumption.

Major focus areas for these productivity increases are in:
- Energy
- Food production

It is important to take care of our planet to the best of your ability, but recognize the costs to humanity that would occur in restricting production.

New methods can always be devised and production can always be improved and become more efficient.

Hope you will contribute to these increases in efficiency and the general wellbeing of humanity. 

NOW, take a look at why efficiency is higher in market based operations.

When individuals are all competing for the market to do business with them, they are competing to be as efficient as possible.
In other words, to provide the product or service at the cheapest price.

We find when market based competition is not present, generally due to government operations or government granted monopoly, there is little incentive to be efficient and effective.

There is no alternative, if you want the product or service, you have to pay their rates and they can be as inefficient as they like.

This is where government is rarely efficient or as efficient as a market based operation.

You have no alternative, and thus, you must deal with them.

This is hard to admit as many great people contribute their lives to the services governments provide, but it is unlikely many of these actions are as efficient or effective as a market based operation would be.

Every government salary or operation is a liability on the economy to pay for, and

With little incentive to be as efficient or effective as possible, we are contributing excess resources to inefficient actions.

At the very least, a reduction in the amount of services provided by the government without competition should be considered.

Government actions are generally decided by individuals in the government, and not directly incentivized by the market.

This means, even in the case of the government hiring market based providers to do actions, this incentive is biased and not complete as those engaged in the market economy would be.

Governments aren't penalized the way a company would be for making mistakes or being inefficient, and thus we rarely notice or do anything about it.

Market based companies are naturally incentivized to be efficient and to provide what people want and are willing to pay for.

Any government mistakes are paid for by the people.

idk 😶💭 Shower thoughts

- Chalk