It's year 10,191, and human beings have spread out and colonized planets throughout the universe. On the planet Caladan, Duke Leto of the House of Atreides is preparing to leave for his new position as the governor of Arrakis, a desert planet with valuable resources of melange, a spice drug that is extremely popular with wealthy people. Leto and his family, including his concubine, Jessica, and his son, Paul, suspect a trap by their rivals, the Harkonnens, led by Baron Harkonnen. Leto decides to settle on Arrakis because of its rich supplies of melange, despite warnings from his men.

The Setting

Leto's main plan is to enlist the Fremen, the tough natives of the Arrakeen desert, as soldiers and advisers but he's betrayed by one of his own soon after arrival, and Paul and his mother, are left to fend for themselves. Eventually, Paul and Jessica come into contact with the Fremen, a group of people native to Arrakis. Paul learns more about his heritage and psychic abilities and even meets his love interest, a Fremen woman named Chani. The remaining members of the Atreides family soon join forces with the Fremen to take back Arrakis and avenge their family.

The Plot

On the Atreides home planet of Caledon water is everywhere there are vast oceans rivers and rainstorms so the people living there can consume a lot at virtually no cost.&nbsp; On Arrakis, although water is extremely scarce, it's expensive. Even wet towels from the palace are sold to Fremens with whatever moisture that can be wrung out of them. This is a fantastic lesson on subjective value.

Model of internal logic in storytelling

The average price of a good or service is not based on the amount of labor or the cost of the resources required to produce it. It's a function of supply and demand value changes depending on individuals desires and preferences and it's based on the availability of whatever it is that they want relative to how many other people happen to want the same thing at the same time For eg- if you are thirsty and have a bottle of water, you are very less likely to give it to me or maybe charge a lot of money. On the other hand, you might have 100 bottles and may just give them to me for free.

Economic values are subjective

Nothing is more useful than water: but it will scarcely purchase anything.A diamond on the contrary has scarcely anyuse-value but a very great quantity ofother goods may frequently be had inexchange for it.

Contradictorily, spice(the most expensive thing in the universe) is only found on Arrakis.Still, much of the Arraken population is materially poorer than a lot of people alive on earth today.&nbsp; The reason is the political system in Dune: Imperial Feudalism which means the entirety of society is controlled by a private political party and since the territory is vast, some power, in this case, is delegated to Dukes and Barons. The people of Arrakis, are also not legally allowed to own productive land or keep the proceeds of their work.

The government

He who controls the spice controls the universe.

It means the state should play a dominant role in the economy, in particular by controlling commercial activity Everything the citizens of Arakis produce belongs to the Emperor and It decides what to do with it and who profits from it. The government directly supports favored companies orcorporations and inhibits competition. They typically do this through tariffs subsidies and regulations that restrictwho is allowed to participate in commerce. The company responsible for melange is CHOAM aka the honorable union for the advancement of mercantilism in which the emperor has directorship.

Adoption of Mercantilist Economic Policy

As a result of the policy, the people of Arrakis have no purchasing power with which to flood their entire planet with water food, and other resources they could have easily acquired in exchange for their magicalspice. In a world where individual rights are universally respected, we would see a multitude of property owners who become entrepreneurs, who genuinely create value for others which ultimately enrich the lives of even more consumers, and equally importantly everyone wouldbe allowed to keep the income they have legitimately earned using it to improve their own lives as they see fit

Economic freedom to enrich lives

Frank Herbert’s sci-fi novel “Dune” is a literary masterpiece filled with illuminating insights. In anticipation of the upcoming movie release, this episode of Out of Frame explains why the fascinating world constructed by Herbert is not only a great story, but also surprisingly sound in terms of philosophy and economics. Ultimately, “Dune” demonstrates how systems of mercantilism and feudalism create crippling poverty, when systems based on private property and free trade do not. ______________________________ FOLLOW/SUPPORT US: Support Out of Frame on Patreon or SubscribeStar:  https://www.patreon.com/OutofFrameShow https://www.subscribestar.com/outofframeshow Join our Discord: https://discord.gg/RKc4AcGQ9k Watch our newest video, "Everything You *Really* Need to Know About Dune": https://youtu.be/ZmNzbhM4BSQ Sign up for our mailing list and never miss an episode again: https://fee.org/oof-newsletter Check out our podcast, Out of Frame: Behind the Scenes: https://www.youtube.com/channel/UCiS5rEmhnLwo1IG9bgr19Og Follow us EVERYWHERE! https://linktr.ee/outofframefee ______________________________ CREDITS: Written by Sean W. Malone Produced by Sean W. Malone Edited by Michael Ozias Asst. Edited by Jason Reinhardt ______________________________ LINKS: -- Marginal Utility -- https://fee.org/articles/to-be-a-happy-person-understand-marginal-utility/ https://fee.org/articles/value-cost-marginal-utility-and-bhm-bawerk/ https://fee.org/articles/eugen-von-bhm-bawerk-a-sesquicentennial-appreciation/ https://fee.org/resources/bhm-bawerk-for-the-citizen/ -- Capitalism -- https://www.empireonline.com/movies/news/dune-story-enough-is-enough-exploited-cultures-exclusive-images/ https://movieweb.com/dune-2020-oscar-isaac-anti-capitalist-environmental/ https://www.jacobinmag.com/2021/08/dune-herbert-science-fiction-conservatism -- Paradox of value -- https://en.wikipedia.org/wiki/Paradox_of_value https://www.investopedia.com/ask/answers/032615/how-can-marginal-utility-explain-diamondwater-paradox.asp https://www.youtube.com/watch?v=e7S8jWh6AEs -- Mercantilism -- https://www.investopedia.com/terms/m/mercantilism.asp https://www.econlib.org/library/Enc/Mercantilism.html https://www.economist.com/free-exchange/2013/08/23/what-was-mercantilism

Stashed ideas

The Politics and Economics of Dune

Even if the economy is growing, income inequality and stagnant wages can make people feel less secure as their relative status in the economy diminishes. Behavioural economists have shown that "our status compared to other people, our happiness, is derived more by relative measures and distribution then by absolute measures. If that’s true then capitalism has a problem.

As poverty is relative (and in many societies a matter of comparison rather than an absolute fact), inequality leads to inevitable social disruption. If that is something that the ones who hold the reins of wealth and power do not feel empathic about, it might become something that they will feel fearful about. The same type of discontent led to oppressive regimes around the world, either ideological (such as communist ones) or simply conjuctural (every military dictatorship); it is easy to destroy an unfair system, much harder to replace it with a fair one.

The cost of inequality

It's done so much for human well-being, but it's far from perfect. Will capitalism as we know it evolve into something new?

Policy

Why the next stage of capitalism is coming

In 1964, US President Johnson declared war on poverty. He stated that the wealthiest nation on Earth should be able to beat it. Yet, up to that point, the US had no official measure of poverty and no statistics on its scope, form or changing nature.

The US war on poverty

Poverty refers to not having enough money to buy necessities such as food, shelter and clothing, to maintain a minimally adequate life. In the mid-60s, the government drew up an official method for counting poor people: It examined the annual costs to purchase a minimally adequate diet for a certain sized family, then multiplied that number by three—one third for food expenses and two thirds for all other costs.&nbsp;

Counting the poor

<ul><li>Most analysts believe that the official poverty line is very conservative as today's families must spend more on things other than food. For example, since the 1960s, housing costs have increased by 800%. </li><li>Some sceptics believe that the multiplier should be raised to four or more.</li><li>In 2011, taking into account the differences in the cost of living across the country, an alternative poverty measurement standard was developed.</li><li>The EU defines poverty as the percentage of the population whose income is less than half of the median income.</li></ul>

Other measures of poverty

To solve a problem, you need to understand its scope. Inaccurate measurements, such as the federal poverty line, can minimise the extent of a country's poverty level. Research shows that approximately 60% of Americans will live below the poverty line for at least one year of adulthood. To win the battle against poverty, we must first recognise the poor before we can hope to win the fight against poverty.

Why measure poverty is important

Newer measures of poverty may do a better job of counting America's poor, which is necessary to helping them.

Poverty in 2021 looks different than in 1964 – but the US hasn't changed how it measures who's poor

An easy way to look at consumerism is that marketers and advertisers have perfected tactics to get us to buy things, even if we don't need them. But American consumerism is also built on societal factors. We try to keep up with the Joneses, whoever they may be. Sociologist Juliet Schor, an author of books on consumerism, wealth, and spending, thinks marketers have less to do with what we want than our neighbours, coworkers, or people we follow on social media.

The root of consumerism

<ul><li>The development of mass production made it possible to produce things cheaply enough so that the majority of the population could afford them.</li><li>&nbsp;In addition, the automobile industry introduced the moving assembly line that created a significant decline in costs.&nbsp;</li><li>Another development was the start of the modern advertising industry and consumer debt.</li></ul> Consumerism declined during the Depression and the war, but in the 1950s, the model picked up again.

Consumerism can be traced back to the 1920s

Scholars answer this question in different ways. Economists assume that goods and services provide well-being and psychologists think it is part of human nature that ties back to evolutionary dynamics. But the contemporary consumer society is more likely the result of the growth of unequal social structures. For a number of people, it's about consuming to their social position. For example, those with a richer reference group tend to save less and spend more, and those with a more modest reference group tend to save more even if their wealth increase.

Why we buy more than we need

Increases in equality can give rise to competitive consumption - the idea that we spend because we compare ourselves with our peers and what they're spending. Our society is structured so that our social esteem or value is connected to our ability to spend. The inability to consume affects the kind of social value we have.

Competitive consumption

<ul><li>In the postwar period, we had residentially-based reference groups. So it was your neighbourhood where the people had similar economic standing. Houses tend to cost roughly the same amount within an area.</li><li>The next big thing that happened is more married women going into the workforce. That changed the reference groups because they go from a flat social structure in the suburbs to a hierarchy in the workplace.</li><li>Then there is the impact of media, especially social media.</li></ul>

How we pick our "reference groups"

While men seem to dominate particularly big purchases, women are more responsible for everyday purchasing such as food and apparel. Looking at data from marketers, you see a disproportionate amount of spending done by women.

Women and consumerism

Black consumers are no different from white consumers. Although they spend on different things, there are not two types of consumers.  The dynamics of black consumers are partly driven by racism. Middle-class and upper-middle-class blacks will have to spend more on wardrobes to avoid being stigmatized in the retail environment.

Black Americans consume similar to white consumers

<ul><li>Down-shifters decided to work less and consume less. They wanted to take control of their time and are willing to make that trade-off.</li><li>The minimalist movement is connected with financial independence, and the FIRE movement - financial independence, retire early - that is becoming mainstream.</li><li>The buy-nothing groups are big now. They have an ethic of anti-consumerism.</li></ul>

Anti-consumerism is growing

A sociologist on why people buy too many things.

Why do we buy what we buy?

<ol><li>Accountability - The government and private actors are accountable under the law</li><li>Just Law - The law is clear, publicized, and stable and is applied evenly</li><li>Open Government - The processes by which the law is adopted, administered, adjudicated, and enforced are accessible, fair, and efficient</li><li>Accessible and Impartial Justice - Justice is delivered timely by competent, ethical, and independent representatives and neutrals</li></ol>The four universal principles constitute a working definition of the rule of law. These were developed in accordance to internationally accepted standards and norms.

The Four Universal Principles

Self Improvement

The four universal principles were further developed in the below factors:<ol><li>Constraints on Government Powers</li><li>Absence of Corruption</li><li>Open Government</li><li>Fundamental Rights</li><li>Order and Security</li><li>Regulatory Enforcement</li><li>Civil Justice; and</li><li>Criminal Justice</li></ol>

World Justice Project Rule of Law Index

The rule of law affects us all regardless of where we are or where we live. It is the foundation for communities of justice, opportunity, and peace -- underpinning development, acountable governments, and respect for fundamental rights.The rule of law correlates to higher economic growth, greater peace, less inequality, improved health outcomes, and better education.

How the Rule of Law Matters

The four universal principles of the rule of law, how we measure it, and what it means for you.

capitalism

The Setting

The Politics and Economics of Dune

DENISE STANLEY

Why the next stage of capitalism is coming