A Planned Democratic Non-Market Economy is a highly sophisticated, technologically-driven economic system designed to provide universal basic needs while rationally and sustainably allocating scarce resources and rewarding skilled labor, without relying on money, traditional markets, or profit motives.

The Core Economic Mechanism

 Initial System: The economy relies on bilateral, multilateral, or unilateral agreements (barter) for international trade (resources for knowledge, knowledge for resources, etc.), supplemented by gifts of resources and knowledge.

* The Flaw Identified: A pure barter/agreement system lacks a Unit of Account, making rational economic calculation (determining fair trade value and efficiency) impossible on a global scale.

Hybrid Unit of Account and Artificial Intelligence

To ensure fairness and efficiency, the economy requires a non-monetary, standardized measure of value: the Hybrid Unit of Account. This unit is calculated by a powerful Artificial Intelligence (AI) which manages the entire system by solving the massive Input-Output (I-O) Matrix in real-time. The Hybrid Unit has three components:

1. Labor Time | Measures the human effort required (Socially Necessary Labour Time).

2. Embodied Energy | Measures the non-human energy cost throughout the entire production lifecycle (from extraction to delivery).

3. Natural Scarcity Index (NSI) | Measures the cost of resource depletion (based on reserves, extraction difficulty, and environmental impact). |

The Citizen Incentive and Distribution System

* Distribution: Basic (non-luxury) goods are provided for free to citizens through a government-set quota and allocation system.

* Vouchers & Incentives: Labor Vouchers are used only to purchase luxury items or consumption above the basic quota.*

*Enforcement: The incentive to access these prioritized luxury items (and the threat of job loss/losing priority) is proposed as the primary mechanism to ensure managers and workers submit trustworthy data to the planning AI.

Administrative Burden & AI Capability

* AI's Role: AI is deemed theoretically capable of managing the I-O matrix and the complex Hybrid Unit calculation, overcoming the computational limits that failed historical planned economies. It would also utilize automated sensors (IoT) to verify data inputs.

* The Trade-Off: The system shifts the administrative burden from managing social and market failures (poverty, debt, price volatility) to managing the computational challenge of the Input-Output Matrix and ensuring data integrity across the entire economy.

Download the files below for a detailed explanation of what a Planned Democratic Non-Market economy is and the steps to transition.