Tem42 comments on Estimate the Cost of Immortality - Less Wrong Discussion
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Money (AKA the free market economy) is a way of allocating resources efficiency. The alternative - a command economy - is where some central agent decides how resources should be allocated.
By using money and buying and selling goods and services, we are already pooling our resources. The money thing is a way to decide what we should do with them, where decisions are made by people choosing to spend money on one thing rather than another.
This is true -- but the example as given assumes no centrally managed economy. It's just a case of everyone independently deciding to maximize paperclips.
We have moved away from a complex allocation system to a simple one. It doesn't matter if you use money -- the relevant aspect of the situation is cooperation.
Of course, I may be reading to much into "everyone decides". But I'm assuming if they all 'decide' to do something because they have a gun to their head, then the downside is obvious.