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Merge branch 'master' of github.com:basisproject/basisproject.github.io
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orthecreedence committed Mar 28, 2024
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4 changes: 2 additions & 2 deletions www/contribute.njk
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"How do producers interact with the outside world in ways benefitial to the network?",
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4 changes: 2 additions & 2 deletions www/faq.md.njk
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Expand Up @@ -114,15 +114,15 @@ Accumulation is a problem in a market system because profits distribute in uneve

The idea behind tracking resources and processes is that value is not just derived from labor, but also from what was given to us by the Earth. In order to know the *true cost* of something, we can't just look at its labor content. Knowing both, producers aren't just ordering products based on the labor content, but the resource content as well, which helps make more informed decisions along the supply chain.

Tracking resources and processes gives us other advantages. When someone buys something with their credits, the resources contained in that item can have a credit cost that adds to the final price. For instance, if the fossil fuel content of all products is known, then a carbon tax can be enforced at the consumer level by adjusting the fossil fuel price (in credits). In other words, many externalities can be accounted for by tracking various resources and the processes they go through. We can raise the price of fossil fuel resources and watch as the productive system reorganize to limit use fo fossil fuels.
Tracking resources and processes gives us other advantages. When someone buys something with their credits, the resources contained in that item can have a credit cost that adds to the final price. For instance, if the fossil fuel content of all products is known, then a carbon tax can be enforced at the consumer level by adjusting the fossil fuel price (in credits). In other words, many externalities can be accounted for by tracking various resources and the processes they go through. We can raise the price of fossil fuel resources and watch as the productive system reorganizes to limit use of fossil fuels.

This allows members of the system to adjust resource consumption to match the availability of various resources without relying on capitalist markets to do the right thing or waiting for complex government regulations that take years of bickering to agree on a half-solution.

## If companies are still valuing their outputs based on labor costs, won't there be just as much pressure to externalize?

Yes. Given the system as described so far, a company with lower costs will get more orders, and have less chance of no longer being able to meet social needs (ie, "bankruptcy" in the current system). So there's still a pressure to lower costs, and there's still a need to have a job, and that job being axed creates the same survival drive that exists in capitalism. While profit is removed from production, some dynamics from capitalism still exist.

That said, that companies will *benefit* from tracking certain processes that cause known externalities so they are incentivized to internalize their costs.
That said, companies will *benefit* from tracking certain processes that cause known externalities, so they are incentivized to internalize their costs.

## How do we fix externalization then?

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