Shared Tools.
In this demo, a set of independent toolmakers each make and use their own tools. Untooled idleness - the idleness of individuals without any tools - steadily falls for several hundred days. On day 1000, when untooled idleness has reached zero, and everyone's idleness is very low, they all start trading tools at zero prices. That is, tool-makers give away tools to anyone who wants them. The result is that idleness rises for just about everybody. They are much better off, as a society, making tools and giving them away, than they are if they don't. But notice that the idleness of different individuals - i1, i2, i3, i4 .. - are not equal. Man 1's idleness has not increased at all, and man 5, who makes an almost useless tool, becomes nearly 70% idle. This is because man 1 is being kept busy by demand for the tool he makes, and man 5 can make his low-cost, low-value tool very quickly.
|
Author: Chris Davis
Last edited: 5 Sep 1998