Resource Based Economy Requires Electric Grid Modernization First

Those wishing for serious political change should take a look at electricity technology infrastructure. Major investments into smart meters, public energy ownership + storage, HVDC transmission cables, modernized electric grids, and a digital network to manage it all.



Let's provide a bit of context for advocacy of something as seemingly dull sounding as digital electric smart meters.

Conceptualizing and verbalizing political alternatives to current socioeconomic stagnation is widely understood to be preferable to mere critiques. As important and vital as a critique is, it has little power without provision of an alternative to fill the vacuum. Critiques are now a booming mainstream industry with today's internet enabled resurgence of muckraking journalism. Provision of serious socioeconomic alternatives is in the early stages of becoming a major trend as well. Online video debates and video replies to recorded educational speeches are a modern example of 18-19th century political debates via pamphleteering.

Similarly, provision of an alternative is toothless without certain technological infrastructural components to make it viable and workable. Tangible investments into physical precursors that make any major political alternatives possible ought to be focused on more than ever. All of the above 3 approaches to social change (critique/alternative/technology) gain maximum power when conducted in parallel with certain emphasis on actual technology induced physical change on the ground. For example, a political faction ought to focus on energy production and distribution regardless of whether the group advocates more political decentralization, more centralization, or a novel hybrid of both for different areas of societal management. Precise vast storage of energy, transmission of it over large areas, and precise computer tracking of production and distribution of vast quantities of electricity is needed to make each different political concept work.

For the most part, specific policy proposals currently are not often tied to technological solutions but rather monetary incentives and disincentives (there is currently an elite driven trend towards soft paternalism). This carrot and stick approach to prod the herd into an even more technologically complex society in the 21st century is inefficient. Considering that economics is an engineering challenge, there is a better way. Government ownership of electric generation used to be more widespread in the United States and contributed to rapid regional development from 1930s to the present. Surviving remnants of it such as the Tennessee Valley Authority are the best examples of a wide scale public system of beneficial power management.

It is immediately clear how ability to manufacture, transmit, and monitor electricity directly affects ability to provide a life artery to any policy proposal in raising human standards of living. The only discussion here concerning public ownership of a sophisticated electrical smart grid (acting as a sort of "skeleton" on which developmental and social projects can grow) is whether ownership is at the municipal, state, regional, national level, or a federated sharing combination. For instance, if a city owns a fission reactor and produces a megawatt of power, does it reserve 20% of it for use by its regional and national neighbors? Or conversely, does it receive a stipend of additional 20% of power from a regional outside authority? Does the city sub-network just continuously release surplus power into the larger grid or is it collected in local large scale energy storage facilities? [You may begin to notice here and in later articles that electric power achieves certain characteristics of money such as liquidity which can be taxed and redistributed as needed.] Various economic projects involving housing, employment, healthcare, and general infrastructure will require for municipalities to figure out their energy generating and energy sharing arrangements. For them to do so, they first need technological components to make futuristic power management possible.

This cannot be stressed enough. Vast majority of what The Pragmatist suggested over the last few years is not possible without the above. Electric smart grid (and overlapping digital data grid to monitor/control it) is the distilled essential for any future society. We can call it various colorful names to promote it (circulatory and nervous systems of a society for instance) but after much deliberation it is clearly the primary step to take. Even if a high tech liquid direct democracy is achieved, it will not be able to accomplish as much without public energy accounting that the grid allows. People's will and political will is shaped and checked by underlining physical technological realities. A lot of current political and social projects would not be possible in a society at a 19th century level of technological and electrical development. In this way, much like economics is an engineering challenge, so is politics and popular consciousness.

Resource based economy and resource accounting is not possible without very effective energy accounting first. Smart Meters and grids give rise to possibility of technocratic governance.

During the hay day of America's Technocracy movement in the 1930s, the main piece of literature (explaining the functioning, goals, and reasons for an empirically managed society) emphasized the need to measure the total amount of electrical generation on the North American continent in real time. This was to understand exactly how much power various extraction, production, and distribution industries use in order to drastically reduce inefficiencies in the national economy and to have the highest possible load factor at all times. This type of informational awareness was obviously not possible at the time especially considering the additional energy accounting complexities that Technocrats advocated (such as energy certificates to be issued to each individual).

Figure 1. Click to Enlarge

As of 2014, North America is covered by a handful of regional wide area synchronous grids (Fig. 1) that are themselves in the gradual process of merging into a continental Unified Smart Grid as mentioned in the previous article. The backbone of the Technocratic vision is thus forming. Potential susceptibility of smart grids to cyber attacks and infiltration necessitates public involvement for security reasons. As the most vital infrastructure component in the country, government authorities have a responsibility to ensure safe, constant, and reliable functioning of the grid as a whole. Military grade encryption will also be required here to ensure that this "Energy Internet" is free of outside disruptions. Subsequently, public control of the energy industry allows public leverage over all other heavy industry. "Security reasons" are a good way to market technocracy to groups in society which may not otherwise be as open to it.

The energy usage of machines that dig up, process, turn raw resources into finished product, and transport it to your locality can now be tracked accurately. The flattening of production and distribution chains that has occurred in recent decades under the guidance of such multinationals as Siemens and Wall-Mart already allows careful monitoring of the entire process. A two way directional energy grid further enables the measurement and control of energy usage of every piece of hardware within this chain. Efficient public industrial and infrastructural policy is now possible via these precise assessments of non-monetary costs. Currently, the cost of any project is measured in money where many blind spots, inefficiencies, and corruptions can be found (such as bloated overhead, middlemen, and undue distortions from non-physical financial sector.) Smart meter management software allows projects of the future to have a transparent real time digital record of the entire process on the physical level. This enables audit of records at any time and subsequent rapid corrective actions.

This ultimately will result in ever increasing representation of technical experts in governmental bodies at all levels. Fusion of technical cadres with governmental cadres is the smoothest way to gradually and peacefully replace the latter. Government cadres increasingly filled with greater and greater proportion of electrical and software engineers is by definition a growing technocracy. This may not exactly be 1/3 of the national legislature staffed with technical experts and scientists like in France but the necessity of greater physical efficiency in government puts us on the road towards legislatures staffed like that.

HVDC cables allow regions, provinces, and counties to act like metropolitan areas

With rapid projected urbanization for most people throughout the world, it may look like very large cities will inevitably become dominant political actors that leave scattered towns, small cities, hamlets, and villages between them increasingly economically and socially isolated. This doesn't need to be the case as hundreds of towns and/or entire counties can band together via efficient high powered long distance transmission HVDC cables and function as singular large cities. Much like diverse energy sources of various strengths can join together into a virtual power plant, local governments can collectively function as one unit without actually politically merging. For example, rather than the economy of New York State being dominated by New York City, counties in upstate New York may use the smart grid technology to work together to manage their energy, resource, and development needs. Hundreds of small spread out populations and political units can thus create a decentralized entity with population, economic size, and political bargaining power similar to a nearby metropolis. Additionally, being able to see precise electrical data for any sized political unit allows municipal role modeling behavior, emulation of successful technical projects, mutual learning, and rapid adaptation of what works. There is no need for small city mayors to wait for urban sprawl from nearest two large urban centers to swallow the town so large infrastructure projects can begin. Distributed generation of electrical power on a regional scale finally enables them to collaborate and pull resources together on projects larger than would otherwise be possible. A highly spread out region of 5 million people can create a similar concentrated economic focus as a densely packed and compact city of 5 million.

First resource based economy (RBE) experiments will likely be conducted in smaller cities. Their success will not only depend on their ability to generate their own power independent of the larger grid but their ability to trade surplus power to the larger grid as well as cooperate with fellow resource based economy settlements via HVDC smart grid network. As mentioned earlier in the article, regardless of whether one's policy requires more municipal autonomy/localism, municipal collaboration, or centralization, these emerging electrical platforms facilitate any proposal. However, our focus here is infrastructural ability of say, 10-30 small RBE cities to act in a synchronized political unison even if separated by hundreds or thousands of kilometers. Much like transnational corporations achieve certain critical mass with economies of scale, smart grids will allow spread out political experiment social units to reach economies of scale with collaborative energy use.

Regardless of where a person stands on the political spectrum, it appears that a political faction that makes best use of modernizing the electric grid first will begin to dominate in the market of ideas.

Wages in a Resource Based Economy

Compensation in resource based economy will be underlined by energy accounting



The main question that technocrats all over the world are asked is "how will we get a herd of 7 billion monkeys to transition away from the current fiat monetarist system towards a real economy based on resource and electrical energy quantities? How will they be motivated beyond promise of self-aggrandizement and greed?"

Simple answer is that transition to a resource based economy will involve all the same gimmicks used by rulers since the dawn of civilization: greed, fame, honors, and promise of some inequality (although much more reasonable and controlled than currently). Some key differences from the present system are an ever rising safety net baseline to meet basic needs of the populace and compensation in material/energy backed units. Late 20th century methods of artificial scarcity management, central bank printing presses, and Soviet rations have run their course.

Here is one basic outline among many: ( sidenote: The Pragmatist is not an unofficial media arm of any existing technocratic organization even if I provide a link to a wonderful technocracy video introduction at the top right corner of the blog. Check it out! There will be many competing energy accounting and resource accounting systems in the coming decades and they will begin to converge in basic themes eventually.)

1) 10 wage compensation levels with level 1 wage as guaranteed minimum income and level 10 wage as maximum income (10 is used here for metric system style simplicity, it could very well be 6 or 8). There are physiological limits to how equal humans are but there are also physiological limits to how unequal they are. One human receiving no more than 10 times the amount of reward, living space, fame, and electrical output is about right. No human, no matter how strong or gifted is more than 10 times smarter, stronger, productive, "better", than the weakest (multiply IQ of 20 by 10 as an example).

2) At the age of consent everybody starts as a level 1, receiving say, 10,000 units of electrical energy as a basic living stipend (in addition to minimum level 1 modular housing unit, level 1 simple food ration, and provision of equal baseline education and healthcare for all). A level 10 would receive a stipend of 100,000 electrical units to do with as he/she pleases since amount and increase in top compensation is pegged to level 1 baseline.

3) Although transition period may involve brief return to deflationary "sound currency", income eventually will be provided in amount of electrical energy available to you for a certain amount of time. For example, a level 3 person may get 30,000 units of energy a year or 576 units a week. If he or she doesn't spend these 576 units that week on art supplies (or additional non-stipend clothing, grooming supplies, level 8 rare food, etc) then the units don't roll over. They "expire" and return to communal use to provide extra kick for energy intensive infrastructure projects. Nobody could thus hoard up or create a banking lending system with their saved up energy within the common grid. Obviously on the side shenanigans can be done with off grid energy supplies and batteries but common grid can be easily kept separate from it. A person trying to compete with common grid and create "energy banking" would be like a mom and pop store creating water/food banking. The energy wage system is a communal and very macro safety/incentive net.

4) Societal honors, social pressures, education, societal attention, and better mating opportunities are the incentive to educate yourself further to qualify for higher wage level compensation. Some may prefer to marry or have sexual relations with apes of only certain levels just like currently. It is relatively easy to create social mechanisms to encourage personal growth, especially when basic needs of shelter, good nutrition, and healthcare are met (one just has to look at how people are compelled to improve themselves and pursue various non-graduation/non-wage related interests on some of the better college campuses).

5) The rise of maximum income wage is tied to rise in minimum income stipend to create incentives for strongest people to improve conditions for the whole herd. Thus if level 10 leadership builds enough new power source infrastructure to raise the amount of electrical power they give themselves from 100,000 units annually to 200,000 units annually, the provision of minimum stipend for level 1 people will also double from 10,000 to 20,000. This way, the gifts of the strongest create a real and automatic trickle down. An enterprising level 10 living in a house 10 times larger than level 1 house may ask his or her level 8-10 colleagues to contribute their energy towards a new experimental project or an idea.

6) This is very easily calculated by seeing and tracking the total amount of electrical energy available within relatively decentralized global "energy Internet" power grid. Amount of energy flux density within any given area is readily seen as well as deficiencies by relating the energy amount to population per square kilometer. Energy accounting is thus the base of the resource economy superstructure. Calculating energy production and distribution is essential for all other material production, material rationing, and distribution. This is a no brainer and rapid construction of new and better energy sources will be the primary societal and leadership task of level 10 people.

7) Electrical compensation is tied to the amount of schooling that was needed for the task and amount of hours spent on the task. Thus a level 10 after years of training, has to work the entire 20 hour workweek until retirement at the age of 40 (yes those aren't typos, think about the technology enabled progress in leisure time that occurred over the last 100 years from 16 hour workday turning into 8 and so on).

8) To repeat, 20 hour workweek and retirement at 40 (with a generous stipend to almost match the wage level) to allow fresh talent to take control in a fast paced 21st century environment where exponential progress in technological gadgets, implants, biological and pharmacological augmentations makes late retirement a danger to the whole planetary herd. Gerontocracy at all levels is a public safety risk of enormous proportions. The elderly should be comfortably and rapidly retired with allowances for extra talented ones to continue working without societal coercion that presently exists (like losing a home). A level 5 would work 10 hours a week correspondingly. We should see surprising amount of volunteering at this stage of human development by people who are restless to utilize their training after years of school. We already saw rise in mass scale volunteering in Anglo-American space in 1960s-2010s period and in Soviet space in the 1920s-1950s period. If there is a grand exciting societal construction project, a new wave of volunteering will automatically be generated considering the new 21st century incentive structure, safety net support, and moral encouragement.

9) Level advancement can also be provided as honors for certain heroic tasks, extra special inventions, contributions to the herd, etc. This can be democratically decided to prevent corruption. Corruption itself at political level greatly reduced by systems such as examination with democratic popular input for highest scoring candidates. 

10)  Systematic targeting of land monopolies that currently exist in the form of landlordism to prevent too much centralization in energy production and distribution and to eliminate last remnants of feudalism. Modification to underlining land ownership structure from private to communal  is essential to prevent creation of unhealthy regional patchworks where areas with access to harder energy supplies (fission reactors) are able to browbeat neighbors. Eventually, with enough globalization and agreement on level 1 stipend standards for continents, some agreement needs to occur on global level 1 stipend goals.

Upon closer examination, none of this is utopian since controlled inequality and greed/sex based reptilian brain incentives are preserved. If one appreciates the sheer technological potential that humanity is looking at with transhuman augmentation, nanotechnological mass production, AI, AND if one understands that the time horizons we're looking at stretch into the 2050s, THEN the simple replacement of monetarism with more rational energy accounting described above is definitely not utopian. Current 2012 living standards enjoyed by more enlightened human wage slave plantations of Japan, Scandinavia, and Germany would have sounded similarly rather "utopian" to people in the 1850s. Yet we don't have to wait till 2150s due to the technological progress in means of production and distribution continuing to accelerate.

Some unanswered questions

"So will level 4 person get 4 times the food or 4 times the quality of the food or combination of both? Will shelter and food on higher levels also be provided on a stipend basis or will the additional electric units will be required to pay for it? What happens to rich people and their mansions currently? I can already visualize ways to abuse the system, what do we do with the shameless scoundrels? I certainly would like to spend my annual 50,000 units after my 10 hour workweek not on a level 5 shelter but maybe on three level 1 shelters in different sectors and a new kitty cat and maybe 2 cars instead? Can I forgo a stipend in clothing to get more energy units and what happens if..."

It is... too... early... for that.... First it is important to understand why we're on this road to begin with.