Changes: New World Economy

Revision as of 18:58, 27 October 2013

The New World Economy is the economic system that took shape on Earth in the late 22nd century, around the time the Federation formed.

According to Tom Paris, it was around the 22nd century that "money went the way of the dinosaur." (VOY: "Dark Frontier")

Under the New World Economy material needs and money no longer existed and humanity had grown out of its infancy. People were no longer obsessed with the accumulation of things, effectively eliminating hunger and want and the need for possessions. The challenge and driving force then were to self-improvement, self-enrichment and the betterment of all humanity. (Star Trek IV: The Voyage Home, TNG: "The Neutral Zone", "The Price", "Time's Arrow, Part II", Star Trek: First Contact)

However, the Federation continued to deal with other cultures which had money-based economies. The Ferengi in particular were scornful of the Federation's economic system:

"I'm Human, I don't have any money."
"It's not my fault that your species decided to abandon currency-based economics in favor of some philosophy of self-enhancement."
"Hey, watch it. There's nothing wrong with our philosophy. We work to better ourselves and the rest of Humanity."
"What does that mean exactly?"
"It means... it means we don't need money!"

- Jake Sisko and Nog, "In the Cards"

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-The '''New World Economy''' ('''NWE''') is the economic system that took shape on [[Earth]] in the late [[22nd century]], around the time the [[United Federation of Planets|Federation]] formed. It is not known if this was a violent or peaceful, gradual or instant transformation. ([[VOY]]: "[[Dark Frontier]]") There is also no precise information on exactly how this economy works. From the few descriptions we are given, it is clear that the NWE has little or no use for [[money]] as we know it, and it has been speculated that it may be a form of socialism or communism. Federation citizens have repeatedly said that the driving force in their lives is a desire to improve themselves and society as a whole.
+The '''New World Economy''' is the economic system that took shape on [[Earth]] in the late [[22nd century]], around the time the [[Federation]] formed.
+According to [[Tom Paris]], it was around the 22nd century that "[[money]] went the way of the [[dinosaur]]." ({{VOY|Dark Frontier}})
-==Currency and Trade==
-The Federation engages in a great deal of trade with non-Federation worlds. From this we can infer that there is some amount of material scarcity within the Federation, at least for certain items; without need there is no reason for trade.
+Under the ''New World Economy'' material needs and money no longer existed and [[humanity]] had grown out of its infancy. People were no longer obsessed with the accumulation of things, effectively eliminating hunger and want and the need for possessions. The challenge and driving force then were to self-improvement, self-enrichment and the betterment of all humanity. ({{film|4}}, {{TNG|The Neutral Zone|The Price|Time's Arrow, Part II}}, {{film|8}})
-[[Credit]]s, appearing to be based on units of energy as the "gold-standard", are used in transactions where replication is impractical or undesired. It would be often used in trade negotiations as a unit of account so the value of two sets of goods could be compared.
+However, the Federation continued to deal with other cultures which had money-based economies.  The [[Ferengi]] in particular were scornful of the Federation's economic system:
-'''Imports.''' Economies import what others cheaply have and whose home production is expensive (in time, resources) relative to what could be done with those resources. Given the restrictions of the NWE, the Federation would mostly import un-replicatable goods that are highly sought after but difficult to obtain. [[Dilithium crystal]]s, services (including engineering, transportation, etc; this is where credits are most likely to be used as a wage to the stationed non-Federation workers), civilian ships, anything alive (from exotic pets to live ''[[gagh]]'') and [[food]]s that just don't "taste right" replicated are a sampling of likely heavy imports.
-'''Exports.''' Economies export the most wanted of what they can cheaply produce. Again, given the nature of the Federation economy, this would mostly likely include replicated/[[Wikipedia:nonrivalrous|nonrivalrous]] items or items/services that people like to provide. [[Art]], technology, replicated household goods and military services (as escorts and peacekeepers) are the most likely heavy exports. (Note that since many other powers have replicators, Federation exports of such goods are not likely to be nearly as large as one might think.)
-{{pna-cite}}
+"''I'm Human, I don't have any money.''"<br />
-==Background==
+"''It's not my fault that your species decided to abandon currency-based economics in favor of some philosophy of self-enhancement.''"<br />
-:''"I think technology will save us. And I think our own goodness will save us, basic human decency." ... "Money is a terrible thing. Why do people work at jobs in ''Star Trek''? Why does someone become a baker? Because the family is going to starve to death? No. People become bakers because certain people love the smell of things baking and certain people take pride &ndash; we all have a little pride &ndash; in something. 'Let me give this to you because it's delicious and you will love it, and I made it, and this is my recipe'. All things will be taken care of." &ndash; [[Gene Roddenberry]] in "[[The Last Conversation]]"''
+"''Hey, watch it. There's nothing wrong with our philosophy. We work to better ourselves and the rest of Humanity.''"<br />
+"''What does that mean exactly?''"<br />
+"''It means... it means we don't need money!''"
+: - '''[[Jake Sisko]]''' and '''[[Nog]]''', {{e|In the Cards}}
-Based on Roddenberry's words, what little canon information we have, economic theory and existing social organizations, we can estimate what the NWE could look like.
+== See also ==
-Federation economics appears to be some form of [[wikipedia:socialism|socialism]] or [[wikipedia:communism|communism]]. What people contribute is based chiefly on what they enjoy doing, not on what makes the most money. Perhaps like the Amish communities in the old [[United States]], who were also money-less, Federation citizens may be driven to add something to society by psychological motivations: pride, ambition, a desire to belong, fear of rejection, guilt, or even boredom. The mechanism for ensuring contribution could also be cultural. Again, the Amish bred a strong work ethic in their children, something Federation parents could do, and in [[First Contact]], the [[Enterprise]] crew suggests that first contact with [[Vulcan]]s caused fundamental changes in the way humans saw themselves and the world, possibly making them more altruistic.
+* [[Credit chip]]
-It has also been suggested that the New World Economy could incorporate elements of [[wikipedia:Technocratic movement|technocracy]], and there is no doubt that technology plays a central role in the NWE. Technological advancement is the chief driving force behind economic growth for the simple reason that it reduces scarcity, allowing more output for less input. Replicators are thus the essential technology in the NWE because they increase efficiency whilst also eliminating many jobs that, while necessary, are tedious or undesirable.
 [[sv:Nya världsekonomin]]
+[[Category:Economics]]
+[[Category:Earth]]