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. Statistically, it leads to the productivity-wage gap.

If there is profit-maximization, then there should be:

  • tax-maximization (or rent-maximization)
  • wage-maximization
  • donation-maximization (or grant-maximization).

That would be fairer.

Asker How does Pantrypoints reduce profit maximization naturally?
Pantrypoints

By using bilateral points instead of money. For example we will use:

  • Pointtax to increase goverment revenue (rent)
  • Trade Points to increase wages (wages)
  • Social Points to increase donations

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.

A profiteer who succeeds in “leveraging” arbitrage will earn huge amounts. But it means that the 3 other classes were starved. This starvation manifests as a crash or financial crisis later.

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.

Adam Smith wrote this as fellow-feeling or sympathy in the Theory of Moral Sentiments, which is the foundation of The Wealth of Nations.

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, for the ‘public’ transactions such as commercial transactions between strangers.

For private transactions, or those between friends or known customers which are non-taxable, we are prototyping implementations that even have basic Sales, Ordering, Moneyless Point-of-sales (POS), Customer Relationship Management (CRM), Inventory, and Human Resources system.

We call this Pantrypreneur.

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

Pantrypreneur can’t do Accounting, Material Requirements Planning (MRP), Product Lifecycle Management (PLM), Logistics, and E-commerce because these require the money system.

However, the system will be able to do world trade, as a separate platform called 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.

It requires member countries to have a common interest that overrides national interest in order to create a single pool that fully integrates their economies with each other. Think of it like small robots creating a giant robot, just like Voltes V, Voltron, and the Constructicons combining to create Devastator.

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 by combining economies as one, as equals, right?
Pantrypoints Yes. The pool system harmonizes and simplifies free trade agreements and makes currency crises obsolete.
Asker How do I sign up?
Pantrypoints You can register in the waitlist or send us an email at [email protected] or [email protected]
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, as Pantrypreneur prototypes, that are being used now by small businesses.

The idea is that those businesses will use our points-system to survive and gain market share during the stagflation. This will then create a points-network via Pantry Hub that is more resilient than the money economy.

The Hubs then connect with other Hubs via Pantry World

Asker So Pantrypreneur, Pantry Hub, Pantry World, and Pantrylitics all facilitate an integrated economic system that scale globally and work with or without money?
Pantrypoints Yes.
Asker How do you plan to scale it with just volunteers? Have you looked for investors?
Pantrypoints

We tried to find investors, but they couldn’t understand how it works. Nor did we have the manpower to build the complete prototype immediately.

So we developed it without any support and realized we didn’t need investors. Instead, we need creditors.

Each creditor will lend to a volunteer who will grow a Pantry system in the creditor’s city of choice. This will support that city’s economy to prevent it from collapsing, and thus very indirectly support his own money-investments.

This will let the system scale quickly, which is needed after the China war.

Asker How will a moneyless system pay back the creditors?
Pantrypoints

Our system allows monetization by selling goods and services for money. The money-revenue will then pay the interest of the loans, but will never pay back the capital.

This is similar to public debt which will never be paid off. The US has a 30 trillion debt but no one expects it to be paid off because it is the base of the economy itself. The important thing is for the GDP to be much higher than the debt in order to allow interest payments.

In our case, the value of the points economy must be higher than the value of the money debt. The money revenue from sales should of course be higher than the interest payments. This is what we are working on.

For example, Creditor A will ‘park’ his money in our Points-banking system to establish a Pantry system for City A. He will get interest revenue while he has nothing to invest on. After he finds an investment opportunity, Creditor B will park his money to ‘replace’ the money taken out by Creditor A.

Asker So it’s like using the money-economy to build the points-economy?
Pantrypoints

Yes.

The goal is to grow the points-economy because it also means that common interest will grow and selfish-interest will shrink. This is because the moral system is imbued in the points-system.

This will then lead to less corruption, crime, racism, conflicts, war, etc. and hopefully lessen global warming.