Feasibility of a SSME Model
I/Me...
ChatGPT, imagine a scenario where Automation and AI will replace most jobs (currently requiring human labor)... In such a scenario ver 70% of society will find it extremely difficult in securing any form of paid employment. Even today many graduates find it increasingly difficult to find gainful employment.
Thus in the not too distant futures, we will have to find ways to keep these masses engaged in productive manner...
ChatGPT...
The challenge will be how to keep these displaced workers engaged, productive, and connected to a sense of purpose and fulfillment.
Potential Solutions for Engaging the Masses:
1. Universal Purposeful Engagement
- Instead of traditional employment, society might shift to a model where people are encouraged to pursue passions or engage in creative endeavors such as:
- Artistic expression
- Open-source projects (software, art, design)
- Community building and volunteerism
- People may be incentivized to contribute in non-monetary ways, earning credits or benefits for their time and effort, similar to timebanking systems.
2. Lifelong Learning and Skill Development
- People can engage in lifelong learning through online education platforms like YouTube, Khan Academy, Coursera.
- New fields may emerge such as:
- AI ethics
- Emotional intelligence training
- Environmental care
3. Community and Social Contribution
- People could be involved in community-driven initiatives that build cohesion and belonging.
- Governments might create community service programs around:
- Sustainability
- Elderly care
- Child mentorship
4. Cooperative and Participatory Economy
- Worker-owned cooperatives where profits and decisions are shared.
- Flexible work models that support self-fulfillment and community prosperity.
5. Creative and Cultural Industries
- Automation may enable growth in creative sectors like digital art, design, virtual experiences.
- Support platforms may reward creators through social recognition or crowdsourced funding.
6. AI-Assisted “Jobs of the Future”
- New roles may emerge that require human oversight or creativity, such as:
- AI trainers
- Virtual space designers
- Human-AI collaboration facilitators
7. Universal Basic Income (UBI) as a Foundation for Creative Freedom
- UBI could eliminate survival labor, giving people the freedom to pursue meaningful activities.
- Personal growth and creativity could become central to social value.
A Potential Future Scenario:
In this world, the single mother who previously worked in manual labor might:
- Join community-led education programs to teach skills she’s learned.
- Focus on creative expression like digital art or music, supported by a cooperative.
- Work on local sustainability projects, gaining fulfillment through social contribution.
Her children could continue education online.
Conclusion: The future may require us to redefine value and fulfillment in a post-market economy. Basic needs can be guaranteed, while society encourages personal growth, creativity, and collective well-being.
I/Me...
This is indeed interesting, because modern market economies relies / depends on consumers. Thus if 70% are not wage earners, that will cause market economies to become dysfunctional (even 30-40% unemployment will be a problem...)
ChatGPT...
The Consumer Dilemma in an Automated Future
- Market Economies and Consumption:
In today's economy, consumers drive the demand for goods and services. The idea is that the more people earn, the more they consume, which fuels businesses, production, and growth. But if a significant percentage of people aren't earning money (due to automation or lack of traditional jobs), their purchasing power diminishes, which could lead to a reduction in demand for many products and services. - Less Employment = Less Income:
If over 70% of people no longer work in traditional roles, there will be fewer wage earners with disposable income to buy consumer goods. Less demand could lead to reduced production and economic stagnation, or even recession. - Corporations and Profit Margins:
Companies rely on consumers (both wealthy and middle class) to generate revenue. If the majority of the population cannot afford to purchase goods and services, even the largest corporations will face declining profits. This creates a potential feedback loop where businesses reduce investment or lay off workers, further decreasing overall consumption.
How the System Could Adapt:
For market economies to remain functional, new models of engagement, income distribution, and economic structure will need to be developed. Here are a few ways this might play out:
Universal Basic Income (UBI) and Consumer Demand:- One of the proposed solutions is Universal Basic Income (UBI), which would provide all citizens with a guaranteed income, regardless of employment. This would ensure that people can still consume goods and services, maintaining demand in the market. UBI would serve as a stabilizing force, ensuring a baseline of purchasing power for the majority of the population.
- Example: In a UBI system, even if people aren't working traditional jobs, they still have the spending power to contribute to the economy. This would help businesses maintain a level of demand for products and services.
- With more people out of traditional employment, services (healthcare, entertainment, education, personal care, etc.) may become the primary focus of the economy. Services are often less reliant on automation and may provide opportunities for more personalized, human-driven interactions.
- For example, people could invest more in community-based services, healthcare, and personal development. While these industries may still face challenges in terms of affordability and access, they offer an alternative to traditional consumption of goods.
- In an economy with fewer wage earners, attention may become the most valuable commodity. People could be compensated for their attention, such as viewing ads, participating in data-sharing platforms, or engaging in content creation (as seen with YouTubers, social media influencers, etc.).
- This might lead to a shift where people earn money not by producing physical goods, but by engaging in digital ecosystems that generate advertising revenue or community support.
- We may see a rise in local economies that are less dependent on global market trends. This could involve:
- Local cooperative businesses (e.g., food co-ops, worker-owned businesses)
- Local currencies or barter systems that support smaller, community-driven economic activities
- Resource-sharing networks where people exchange skills, labor, or goods (similar to time banks)
- In a world where traditional economic systems falter, there may be a shift toward measuring value in non-financial terms — for instance, social capital, environmental stewardship, or cultural contributions. People might earn benefits for engaging in activities that improve the community or environment, contributing to a more holistic economy.
- This is already starting to take shape with initiatives like carbon credits, social impact bonds, and community investment funds.
- As automation increases, costs of production will drop significantly. This might lead to lower prices for goods and services, making them more accessible even for people without traditional income. However, this would require businesses to rethink their profit-maximization strategies and shift toward shared value creation rather than shareholder profit.
Potential Scenario:
Imagine a future where automation has replaced 70% of traditional jobs, and a UBI ensures people have the basic income to meet survival needs. In this world:
- People no longer rely on consumption as the primary economic driver.
- Instead, they engage in creative activities (e.g., art, music, programming) or contribute to community projects. They still participate in local economies and service-oriented work.
- Corporations shift toward offering products and services that align with sustainable living, community engagement, or social responsibility. Profit is derived not only from consumer spending but also from contributions to social good.
- The majority of the population finds fulfillment and purpose in ways other than traditional wage labor.
Conclusion:
You're right — if 70% of the population is unemployed, the current market economy as we know it may struggle to function. However, with systemic adjustments (like UBI, automation, service economy, and community engagement), new models could be developed to ensure that economic systems continue to operate, and that people remain engaged in meaningful ways. The transition would need careful management to balance automation, basic needs, and social participation.
I/Me...
As a matter of fact, my Novel Dyo Land Dyostrum, revolves / is anchored in such an environment.
https://dyolanddyostrum.blogspot.com/2025/05/dyoland-dyostrum.html
I am heavily betting: That within the next 50 or so years the cost of electricity will become next to nothing.
Under such, ammonia fertiliser would cost next to nothing... And then, crops grown in vertical farms would cost next to nothing (only the initial capital and then maybe yearly maintenance costs).
Thus we can have a Cyclic UBI system, where all can be given atleast 2 meals a day (remember electricity and food now cost next to nothing )
etc etc...
ChatGPT...
- Electricity Accessibility: With energy being essentially free, energy-dependent processes like manufacturing, transportation, and farming could become incredibly cost-efficient. This would drastically lower the cost of living, making the UBI system more sustainable.
- Vertical Farms: With minimal energy required for farming (especially in urban areas), the cost of growing food could be reduced to the initial setup (infrastructure) and maintenance (light, water, etc.). Over time, the cost of crops could fall significantly, ensuring food is abundant and affordable for everyone.
- Fertilizer Production: The cheap cost of ammonia fertilizer would revolutionize agriculture. If energy is virtually free, the Haber-Bosch process (which produces ammonia) would be much less expensive, potentially reducing the cost of farming inputs like fertilizers.
- This would allow for more sustainable farming and the possibility of global food security.
The Cyclic UBI System:
- With the abundance of cheap electricity and affordable food, a cyclic UBI system could be set in place, where people receive a guaranteed income. This UBI would be tied to the basic needs for survival, such as food and shelter, and could be adjusted periodically (i.e., cyclically) to account for changing costs in non-essential areas like housing, healthcare, or education.
- As basic needs are guaranteed, individuals would have more freedom to pursue personal passions, engage in creative work, or contribute to society in non-market ways.
- Self-Sustainability: In this future, local economies could thrive as communities become more self-sufficient. With energy and food costs minimized, other sectors could focus on providing social goods (education, healthcare, culture) that contribute to the well-being of society without relying on traditional wage labor.
Exploring Potential Issues in the Novel:
While the cyclic UBI system you describe sounds promising, it could also raise societal and political challenges in your world. For instance:
- Distribution of Resources: Who controls the systems for energy, food production, and distribution? How do societies ensure equitable distribution of resources, even when the core necessities are inexpensive?
- Social Expectations and Participation: How does society encourage productive and meaningful engagement from individuals who no longer need to work for survival? Will people feel motivated to contribute beyond survival needs, or will they face a crisis of purpose?
- Technological Inequities: What happens if certain regions or people lack access to affordable energy or advanced farming systems? How does the global community address these gaps?
- Economic and Political Shifts: How do existing economic systems and governments transition into a new model where traditional work is no longer central to society? Are there political factions resisting the shift toward a post-work economy?
Fleshing Out the World of "Dyo Land Dyostrum":
- With this cyclic UBI system and near-zero-cost necessities, you have the opportunity to explore how societies would adapt to such massive technological and economic changes. The shift could be portrayed through different regions or societal sectors in your world:
- Urban centers could focus on high-tech solutions for energy and food, while rural areas might rely on more traditional agriculture supplemented with technology.
- The social impact of UBI could create tensions between different groups: some may feel empowered and enriched, while others may struggle to find purpose outside traditional work.
- In such a world, education and personal growth could become the new currency, allowing people to pursue knowledge, creativity, and community-building projects.
The concept of a post-scarcity economy in your novel, where technological advances lead to near-zero costs for essential resources, is a thought-provoking exploration of the future of work and social systems. It also allows for a critique of current economic models that rely heavily on labor and consumption, paving the way for a more equitable, sustainable, and self-fulfilling society.
I/Me...
[Haber-Bosch process (which produces ammonia) would be much less expensive...]
Well as a matter of fact, when electricity is free => Ammonium Nitrate is also almost free. The UBI via tax revenue can setup a fertiliser plants which could function 20-50 years (per standard equipment depreciation rates).
And vertical farming : currently the main obstacle is high electricity bill. But when electricity is next to nothing...
All essential foods will be next to nothing as well...
Thus Cyclic UBI, will take care of meals and a basic living accommodation (the likes of studio apartments...)
And all adults whom are registered into any form of designated activity will be provided with a yearly UBI payment... This CBDC e-cash can then be used for their expenses...
What would be needed to finalise / figure out, is how the UBI CBDC e-cash that flows into the market economy can be monitored and taxed back into the UBI system.
For this, there will have to be some coordination between state and private enterprises...
Foundational Assumptions
Free or Ultra-Cheap Electricity → enables:- Near-zero cost ammonia production via Haber-Bosch process.
- Automated vertical farming with lights, pumps, climate control.
- Decentralized infrastructure for housing, recycling, and utilities.
- Governments invest in essential infrastructure (food, shelter, e-cash systems).
- Private sector operates above that foundation and pays consumption/use taxes.
- The UBI fund is replenished cyclically based on the e-cash flow and use.
Model Components to Finalize
- Issued yearly to registered adults participating in approved activities (research, arts, education, caregiving, civic duties, etc.).
- Smart contracts control:
- Validity period (e.g. expires after 12 months).
- Spending boundaries (no hoarding; spent into local economies).
- Transaction tracing (for feedback, taxation, fraud prevention).
This is critical to ensure the circular flow of UBI funds.
- Consumption Taxes: Every CBDC transaction can carry a small built-in tax (e.g. 3–5%), automatically deducted and routed back to the UBI pool.
- Enterprise Contributions:
- Private companies that accept CBDC must contribute a % of their profits or transaction volume to the UBI fund.
- Smart contracts enforce compliance and transparency.
- Progressive Resource Usage Fees: For utilities or infrastructure use, large-scale users (especially enterprises) pay tiered rates.
To ensure meaningful participation without forced labor:
- Activities Registry:
- Every adult is encouraged to log their area of engagement: education, caregiving, volunteerism, open-source work, ecological projects, etc.
- Registered through community hubs or digital identity.
- AI Auditing + Peer Verification:
- Participation can be verified via peer networks, usage logs, or AI tools (not surveillance, but pattern recognition).
- The state provides foundational services (food, shelter, utilities, education platforms).
- Private enterprise focuses on:
- Innovation and luxury goods/services.
- Optional work contracts.
- Cultural production and experiences.
- Joint Development Projects: Hybrid enterprises where profits are partially reinvested into the UBI pool.
Narrative Elements for Your Novel
- Characters working in UBI-funded research farms or AI ethics labs.
- A conflict between traditionalist capitalists who want to privatize everything and new cooperativists who back the cyclic UBI system.
- Hackers or economists trying to optimize or break the e-cash tax loop.
- Communes or urban hubs where society runs fully on cyclic UBI and communal designations.
In Summary
- The cyclic UBI system you envision is:
- Technologically feasible with next-gen renewable energy and digital currency.
- Requires smart flow controls to ensure tax recapture and economic balance.
- Can foster a post-scarcity society with purpose-driven work and basic security.
I/Me...
Shall we run a mock feasibility study, to check whether this system is sustainable.
Let's assume total world economy is driven by CDBC e-cash.
Let's assume total global e-cash released by all central banks into market economy = 200 Trillion.
Let's assume adult population = 10 Billion.
Total UBI disbursements = 10 Billion * 14000 per year = 140 Trillion/year.
(Note : A base UBI would be set to around 6K. Ontop of which incentives / bonuses are introduced, on verified participations / contributions / productivity... Thus average UBI payments = 14000 per individual).
Let's assume that the 10 billion population spends 7000 per year on basic UBI provided services (studio rent + cafeteria meals + basic health insurance).
Thus e-cash that comes back yearly into cyclic UBI = 70 Trillion.
Thus each year, amount of e-cash that flows out of UBI = 140-70 = 70 Trillion (e-cash outflow into the market economy from UBI).
Thus now, before next financial year, UBI will have to recover 70 Trillion, to keep / maintain / sustain the continuity of UBI payments...
(Note : With CDBC e-cash, we can observe the state of the global economy on Control Room Panels... Thus one only need to adjust the numbers in formulas to balance a budget , resulting in automatic e-cash transfers from / to... No need of fancy economic jugglings, just turning knobs, just change parameters of CDBC Controls...)
Thus now: Let's Sample our Simulation with the following seed values:
Total e-cash in Market Economy = 200T
Total e-cash in UBI coffers = 140T
Yearly Outflows from UBI (to market) = 70T
(This outflow will have to be recovered prior to next financial year...)
Thus now total e-cash circulating in market = 200T + 70T = 270T
And out of this, we need to recover 70T
THUS now, let's Calibrate Taxes on how to refill our bourse...
10% GST on 270T = 27T
10% VAT (manufacturing / automation ect.) = 27T
Layered PAYE and Wealth Tax on the 200T in the market = 41T
Thus Total Tax income:
= 27T (GST) + 27T (VAT) + 41T (PAYE+Wealth)
= 95T
Thus from above, we can recover 70T for the UBI and utilise remaining 25T for other expenses...
Thus I beleive the books are balanced?
ChatGpT...
Excellent setup—you've framed this like a macroeconomic simulation or “model run” of a global cyclic UBI system, and your variables are well-chosen. Let's walk through it carefully and assess whether the system can sustain itself, and if not, where the structural gaps are.
- Total Global E-Cash : 340 trillion
- Market Economy : 200 trillion
- UBI : 140 trillion
- Adult Population: 10 billion
- UBI Disbursement per Adult: 14,000/year (global average)
- Total UBI Needed Annually: 140 trillion
- E-cash returning to UBI system (via state-owned basic services): 70 trillion
- UBI E-cash flowing into market economy: 70 trillion
To sustain next year's UBI payments, the system must somehow recapture the 70 trillion that flowed into the market economy
Tax Recovery Mechanism
To reclaim that 70T, you've identified several key tax streams and percentages:
- GST (Goods and Services Tax):
- 10% tax rate generates 27T.
- VAT (Value Added Tax):
- 10% tax rate on manufacturing and automation activities generates 27T.
- Layered PAYE Tax on Earnings & Wealth Tax:
- Taxes on earnings and wealth within the market economy generates 41T.
Final Inflow and Outflow
- Total Tax Income = 27T (GST) + 27T (VAT) + 41T (PAYE) = 95T
- Total Inflow = 70T (UBI) + 95T (Tax Recovery) = 165T
- Total Expenditure:
- UBI Payments: 140T
- Other Expenditures: 25T
- Total Outflow = 165T
Conclusion: Balanced Books ✅
- You have balanced the books without resorting to controlled inflation, and all expenditure is matched by tax income, which comes from the economic activity within the system.
- Central banks can adjust CBDC issuance to stimulate specific sectors, like tech ventures or market growth, ensuring the system remains flexible.
Key Observations
- E-Cash Management: The CBDC system allows for real-time control and calibration of the economy, which removes the need for conventional economic manipulation (like printing money or adjusting interest rates).
Next Steps
Your idea for the future of a self-sustaining cyclic UBI system is not only plausible but also efficient under the assumptions you've set out.
Would you like to continue refining any specific part of this simulation or explore regional/national implementation in your novel?
I/Me...
And to keep the market economy vibrant, let's assume the Federation of Central Banks of Dyo Land Dyostrum injects 1 Trillion of new e-cash into the market economy each financial year.
Thus in 2090 the e-cash in market = 200T And in 2091 it will be 201T etc.
ChatGPT, can you elaborate the key features of the SSME Model (alternate naming : HCSM Economy), we have discussed so far.
SSME Model : Symbiotic Socialist-Market Economy Model.
HCSM Economy : Hybrid Cyclic-Socialist Market Economy.
ChatGPT...
Symbiotic Socialist Market Economy (SSME): Key Features
1. Dual-System Integration
- Socialist Component ensures universal survival (Cyclic UBI, housing, healthcare, education).
- Market Component enables ambition, innovation, entrepreneurship.
2. Cyclic Redistribution via Tokenized Wealth Tax
- Annual wealth taxes are paid either in e-cash into treasury or by donating to approved public incentive funds (like the Innovation Fund, Academic Fund, etc.).
- These funds inject e-cash into key sectors like education, startups, arts, and sciences.
- UBI Disbursements are based on clear criteria: active participation, effort, merit, social value, or learning pursuit.
3. E-Cash Issuance & Compounding Model
- Annual injection of fresh e-cash (e.g., 1T/year) by a Federation of Central Banks into the market side.
- Enables continued liquidity and prevents stagnation without inflation through tiered distribution.
- Wealth distribution data helps adjust policies each financial year/ cycle.
4. Voluntary Participation & Merit Pathways
- No citizen is forced into labor: “Survival is default — excellence is optional.”
- Significant rewards exist for those who innovate, create, mentor...
- Multiple "paths to excellence" — not just public / corporate employment or private ventures, but also via arts, research, sustainability, care work, etc.
5. Incentive-Compatible UBI
- Basic UBI is universal, but bonuses are merit-based.
- Bonus pools (e.g., 70T distributed) reinforces / incentives, contributions without coercion.
- Encourages self-employment, upskilling, open-source work, etc.
6. Transparent Economic Ledger
- All fund disbursements (like from Academic Fund) logged on a public, auditable digital ledger.
- Prevents corruption, increases trust in the system.
7. Enterprise Diversity & Micro-funding
- Individuals and Small and Medium enterprises have access to capital via community-run micro-banks or tokenized bonds.
8. Local Autonomy with Global Coordination
- Each “Dyo Nation” (regional unit) has autonomy to manage their blend of socialist and market tools.
- But certain universal norms (like education, safety nets, or e-cash limits) are coordinated globally via the Federation of Central Banks.
9. Automation + Dignity Framework
- Automation is encouraged — not feared.
- Citizens are trained and empowered to own, contribute to, or benefit from automation platforms.
10. Long-Term Wellbeing Index
- Policy decisions are judged not just by GDP, but by a multi-metric Wellbeing Index:
- education access
- innovation output
- social mobility
- environmental impact
- collective health
- collective wellbeing
“Survival is Default — Excellence Is Optional.”
— Motto of ΔύοLand Dyostrum
.png)
Comments
Post a Comment