Socratic FAQ

Asker What is Pantrypoints?
Pantrypoints It’s a points-based economic system that implements the system proposed by Adam Smith in “The Wealth of Nations”.
Asker What’s wrong with the current economic system?
Pantrypoints It’s based on selfish-interest. This leads to marginal utility and ‘diminishing returns’ which then leads to the concept of profit maximization within Neoclassical Economics.
Asker What’s wrong with profit maximization?
Pantrypoints

Adam Smith says that a society has 4 classes: rent-earners, wage-earners, donation-earners, and profit-earners.

Profit maximization over-feeds the profit-earners that it starves the other 3 classes. This leads to governments with huge debts, workers needing to work 2 or more jobs, and research not getting funded.

If there is profit-maximization, then there should be tax-maximization, wage-maximization, and donation-maximization. That would be fairer.

Asker How does Pantrypoints reduce profit maximization naturally?
Pantrypoints

By using bilateral points instead of money.

Unlike currency which is multilateral and can be amassed quickly, points are bilateral and takes time to build up. This prevents leveraging, and emphasizes primary arbitrage over secondary arbitrage.

Modern economics goes for the latter arbitrage as ‘buy low, sell high’. The problem is that ‘buy low, sell high’ is exactly what causes crashes and originates from selfish-interest.

Asker What is your alternative to selfish-interest?
Pantrypoints

Common interest.

It means people think about society more and give importance to the society instead of just caring for the self.

Asker How does Pantrypoints push common interest over selfish-interest?
Pantrypoints

Through the bilateral points system.

The bilateral nature creates a chain of transactions that traces the supply chain. This chain is what the Physiocrats called the Economic Table. It will give real-time information to policymakers on the flow on an economy, as well as the blockages that stifle the circulation of value.

Asker Why can’t this be done with the current money-system?
Pantrypoints

When you buy something with money, the transaction might not be recorded because the seller just wants to get your money and not provide any information about the transaction. This is why tax evasion and avoidance are very common in money-systems.

Even commercial receipts just list the seller and the item sold. They have no information on the buyer and how he got the money to pay for the item.

Asker So Pantrypoints has its own evasion-resistant taxation system?
Pantrypoints Yes, we call it Pointtax where people pay with their productivity at their own pace. This reduces budget deficits while making taxation easier, aligning with Adam Smith’s taxation maxims.
Asker So Pantrypoints has a transaction system and taxation system rolled into one platform?
Pantrypoints

Yes.

We are prototyping implementations that even have basic Sales, Ordering, Moneyless Point-of-sales (POS), Customer Relationship Management (CRM), Inventory, and Human Resources system.

Asker Is there anything that can’t do for businesses?
Pantrypoints

It can’t do Accounting, Material Requirements Planning (MRP), Product Lifecycle Management (PLM), Logistics, and E-commerce.

However, it will be able to do world trade, as Pantry World. This is because global free trade is one of the biggest features of Adam Smith’s system. All parts of the system are actually geared towards making free trade possible, with or without money.

Asker How will Pantry World solve problems with the global supply chain when it doesn’t do logistics?
Pantrypoints It will solve it indirectly through Pool Clearing.
Asker What’s Pool Clearing?
Pantrypoints

It’s a trade system proposed by EF Schumacher wherein the trading countries act as one ‘pool’ that coordinates their foreign trade to maximize efficiency.

This is very different from the current world trade system established by Bretton Woods wherein the United States has a superior position in world trade with the US dollar as the international reserve currency.

Asker So Pool Clearing is supposed to end trade wars, right?
Pantrypoints Yes. It’s also supposed to harmonize and simplify free trade agreements and make currency crises obsolete.
Asker How do I sign up?
Pantrypoints You can register in the waitlist.
Asker Who maintains these apps?
Pantrypoints We have a volunteers who test and contribute to maintain them. So please don’t expect them to be bug-free yet.
Asker When will you have the proper apps done?
Pantrypoints It depends on the customer or stakeholder. We have a few apps that are being used now. But these are for private business and not for the general public.