Hi everybody:
Man, there has been a lot of action since I was last here... I'm going to respond to the coding debate in the other thread.
Unless I'm missing something, the only other thing that I really need to respond to is Rodrigo's question about the problems in the Econ model when there is only a lower and upperclass. (And also taking as the definition that the lower class cannot control any capital or land.) I have already described the problem in my post of July 5. I will elaborate on it a little bit here. The main problem comes near subsistence. If we assume that the UC controls all capital and land, it is natural to assume that they get a part of the profits proportional to the capital and land value in the production process. So I have assumed in trying to match the economic and government models that the class that controls a particular input to the production process gets a proportional amount of the production to call theirs. To figure out the value of each input to the production process (labor, capital, and land in the farm sector for example) I assume that the marginal productivity due to that resource indicates its value in the production process.
To make this concrete, the values that are at the top of the Econ spreadsheet for the very poor low-tech province show the extra amount produced if adding a single unit of each of labor, land, and capital in the farming sector. These amounts are 3.68 for labor, 0.93 from land, and 0.81 from capital. So if we assume that the UC gets all the food produced due to its contributions (both land and capital) in the current model it will get (0.93+ 0.81)/(3.68+ 0.93+ 0.81) = 32% of the food credited to it. Only the remaining 68% would be what the LC could call its own. So even Before Any Taxation the food left to the LC would be 68% x 5.27 = 3.6 units of food. This is on the brink of catastrophic starvation! (4 units of food per head are required for minimal nutrition and no net population growth) At this level of food the population will be declining approximately 1% per year! And this is a province with pretty good agricultural land, it would be much worse in a less well-endowed province.
So that is why I think we need one of two things, either an LC that allows for some control of capital, or a middle class. I think Axi's suggestion about calling free subsistence farmers middle class is basically a good one... We could also mess around with the way the Econ model works to avoid this problem, but the Econ model also has a lot of work in it, and is somewhat difficult to balance. I have already cited numerous other arguments for why a middle class is, I think, a good idea, and I won't repeat them here.
Man, there has been a lot of action since I was last here... I'm going to respond to the coding debate in the other thread.
Unless I'm missing something, the only other thing that I really need to respond to is Rodrigo's question about the problems in the Econ model when there is only a lower and upperclass. (And also taking as the definition that the lower class cannot control any capital or land.) I have already described the problem in my post of July 5. I will elaborate on it a little bit here. The main problem comes near subsistence. If we assume that the UC controls all capital and land, it is natural to assume that they get a part of the profits proportional to the capital and land value in the production process. So I have assumed in trying to match the economic and government models that the class that controls a particular input to the production process gets a proportional amount of the production to call theirs. To figure out the value of each input to the production process (labor, capital, and land in the farm sector for example) I assume that the marginal productivity due to that resource indicates its value in the production process.
To make this concrete, the values that are at the top of the Econ spreadsheet for the very poor low-tech province show the extra amount produced if adding a single unit of each of labor, land, and capital in the farming sector. These amounts are 3.68 for labor, 0.93 from land, and 0.81 from capital. So if we assume that the UC gets all the food produced due to its contributions (both land and capital) in the current model it will get (0.93+ 0.81)/(3.68+ 0.93+ 0.81) = 32% of the food credited to it. Only the remaining 68% would be what the LC could call its own. So even Before Any Taxation the food left to the LC would be 68% x 5.27 = 3.6 units of food. This is on the brink of catastrophic starvation! (4 units of food per head are required for minimal nutrition and no net population growth) At this level of food the population will be declining approximately 1% per year! And this is a province with pretty good agricultural land, it would be much worse in a less well-endowed province.
So that is why I think we need one of two things, either an LC that allows for some control of capital, or a middle class. I think Axi's suggestion about calling free subsistence farmers middle class is basically a good one... We could also mess around with the way the Econ model works to avoid this problem, but the Econ model also has a lot of work in it, and is somewhat difficult to balance. I have already cited numerous other arguments for why a middle class is, I think, a good idea, and I won't repeat them here.
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