JimUk1 wrote:Those systems also demotivate people. Why would anyone want to go above and beyond when the reward and recognition is the same as the fellow who did next to nothing.
There's a reason the west is attractive to the world; capitalism works!
You're right, this system shares a lot of misconceptions with 20th century socialist/Marxist theory: All labor is not equally valuable. It should go without saying that some skills are more valuable than others. Also, demand for labor is not constant. There may be more or less work to be done, and more or fewer people to do it, just due to demographic fluctuation. This can also vary by type of work, and location. Trying to maintain a consistent value for one unit of "labor" is pure folly.
There's another problem I've identified: there seem to be no limits on "surety." If I agree to "bond" anyone, I am agreeing to assume unlimited debt, from unlimited people. Even if I trust everyone 100%, people can fail to meet their obligations for reasons that aren't their fault (death, injury, loss of job, etc.) And, statements like "you can buy a house and start paying for it in 5 years" imply that a lot of credit is available in the system. That, and the pass-the-buck model for debt, mean that the system is likely to attract deadbeats.
I can't just refuse to bond for deadbeats, because the pyramid nature of the scheme quickly puts me in that position. I might trust persons A, B, C, and D, but the system implicitly requires me to trust everyone they
trust, because those people's debts can trickle two levels to me. And so on and and so on. Before I know it, I'm on the hook for 1/64 of Tom Crawford's new house. Which he's living i, because there are no real repercussions to not paying your debts. People would quickly run up deficits and leave the system.
And what if I end up owing money to myself? So-and-so owes me 100 LC, that debt gets split among 4 people at 25 LC each, and I'm under one of those people to the tune of 6.25 LC. Do I pay myself? It makes some sense that I should have to forfeit this amount, since I indirectly agreed to cover that person's debts. But once again, value is leaking out of the system. I provided 6.25 LC worth of value that I didn't get paid for.
LabourCoin makes an interesting thought experiment in to why freetard utopias simply won't work. They are economically flawed, technically unfeasible, contrary to human nature, and ripe to exploitation.