The factions of Dervip: Universalists part 2
Article by Kazfek, Written 10/16/2022, Published 10/17/2022
Whilst I disagree with the Universalists politically I am actually a firm believer in universalist economics and my visit to the foreign world has only strengthened my beliefs in it. Universalist economics mainly revolves around what they call negotiated scarcity and how it drives history. The universalists do not deny that scarification of resources exists and affects cost but they also believe that the price of goods is warped by negotiated scarticy. According to univeralist economics each base resource or material that comes from the earth has an intrinsic value according to his strength, uses, durability and ect but due to limited human knowledge as the good moves from source to source it’s value is distorted based off what others tell each in speech and through price signals. The universalist believes that it is the goal of the state to oversee the pricing and extraction of base resources in order to keep their price at their real value according to their usability and actual scarcity. Of course to them all goods cost are based on two things, the cost of labor that went into a product and the cost of the base materials that went into the product or the cost of the new forms of base materials that went into the product. If I Kazfek were to become leader of Draconica, I would implement price caps and production standards onto all base resources on the island. Now trouble is added when foreign competition is added into a market and the universalists consider the introduction of foreign companies who can act freely to cause what they and I call the distortion effect. The distortion effect is what happens when the prices of goods from foreign countries are introduced to a different country. When the distortion effect begins prices of all goods will either rise or shrink as the negotiated scarcity based prices of either nation attempt to equalize due to what the universalists call the anti-competition effect. The process of rising or declining goods is followed by a rise of unemployment and a loss of money for either the foreign or native industry; this is known as the free-market operation principle. After one side has won the winner will become a monopoly and will proceed to determine negotiated scarcity at will and will also be guaranteed a monopoly until foreign interference can begin once again. So if I were to become monarch of Draconica, I would enforce foreign companies to operate strictly under watch of the government and I would also put in place anti-monopoly policies. Of course the examples I used today revolve around free markets but we have yet to see universality principles be used by a government in action.
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