ABC Economy

1. Summary

There have been many kinds of social systems or ideologies: feudalism, capitalism, socialism and so on. All the ideologies are directly or indirectly related to economy: how to produce by people and distribute products among people.

ABC is just another social system: ABCISM.

• The motto of ABC is "you should never entrust to human what can be done by machine."

• ABC knows who has what talents and what machine can produce what products how much etc.

• ABC is to find out how to organize humans, real estates, natural resources, machines, technologies etc. to achieve the economic goal of the society.

2. ABCISM

Two approaches on how to apply ABC onto a society or a nation.

• Input based - Focusing on how to utilize current resources to maximize outputs.

• Output based - Focusing on how to restructure both current and future resources to achieve economic goals.

Actually, ABC is the combination of the two approaches.

1. Basics

Humans, lands, machines and so on are resources, and resources are limited. ABC is to find out how to organize current resources to get maximum outputs.

• A citizen has one or more talents, and a talent can produce one or more products. So, a citizen can produce one or more products.

• Product has price.

• A resource can be consumed in one or more usages. For example, water can be used to grow crops or bathe or drink etc.

• An acre of land can yield one or more crops such as grains, fruits, vegetables etc., and crops can feed humans and livestocks.

• A machine can produce one or more products.

• A vehicle such as cars, ships and airplanes can can move humans and cargoes.

Again, the quantity of resources in a society is limited: the number of citizens, the size of land, the number of cars and trains, the length of roads and railways etc.

ABCISM is to select just one combination of resources to maximize revenue. But, there are astronomical numbers of possible combinations of resources. How to find out just one combination which maximize production or revenue? Machine Learning comes here.

Let's assume a city in Jejudo, South Korea with 200,000 citizens of which 100,000 are employed by the city, and the other 100,000 are students. Each employee has one or more talents to do works, and each students has talents to be one or more professions.

As the world is one economic bloc, the city don't have to produce all kinds of products it consumes. It just need to yield enough revenue to buy those products from the world.

So, the answer is simple. Each employee had better have the most profitable jobs, and each student had better become the highest income professional which his or her talent permits.

Based on data such as "National Occupational Employment and Wage Estimates"[Link];

• Collect data on the most profitable works of each employee can do, and the most profitable professions each student can learn. See ABC Campus for detail.

• Determine what kinds of facilities, machines and systems are necessary for employees to do their desired works and for students to obtain their desired knowledges and skills.

2. Advanced Calculations

Let's assume one of the most profitable profession is a plastic surgery, and more than a half of the citizens have more or less talents to be surgeons. Is it desirable for all of them to be plastic surgeons? If the related law of the nation where the city belongs to permits, and if the city of plastic surgery is a profitable model, then why not? However, for most of the world, that's not probable.

Then, what is the number of plastic surgeons which can be most profitable to a city or a nation? How can they be competitive to those in other cities such as Seoul, Korea? How many are software developers necessary? How many education professionals?

It's quite difficult to calculate the exact number of each profession in the city. So, let's start from zero basis.

3. ABC Economy

There are about 50 million population in Korea.

The first step is to calculate the number of each profession essential to the operation of the nation, Korea. It needs a number of hairdressers, cooks, doctors and so on. It's not so difficult to calculate the number of each, and can be easily adjusted afterwards.

1. Globally Competitive Industries

The next is to determine what industries the nation will be competitive in the world. No country can be competitive in all industrial fields. A few probable fields which Korea can be competitive are:

• Tourism and leisure

• Medical services

• Higher and Advanced Education

• Research & Developments

• Softwares & System Architectures

• Online Banking and Financial Services

• AI and Robotics

• Automation and Autonomization

Let's assume the above fields are the main industries of Korea for the next several decades.

2. Exporting Industries

Let's define what is competitiveness: Providing the same quality at a lower price. The first is quality ,and the second is price.

Good food comes from good ingredients. Likewise, the quality of a product comes from the quality of labor. So, the first principle is to give jobs to those who can handle them.

When some time have passed after a nation's adoption of ABC, ABC will;

• Calculates a probable size of the industries or employments which can maximize the GDP of the nation, Korea.

• Establish one company for one industry.

• Have data on who can does what kinds of work how much and how well.

• Select some people among the 50 million population, and classify them into several groups, each group for each industry or company.

• Recommend each group of people with each company for them to join and work.

3. Domestic Industries

Some industries are mostly for domestic markets. Some of them are;

• Medical industry

• Primary & secondary education

• Housing

• Roads

• Utilities such as water and electricity

• Foods

By the same process as selecting works for exporting goods and services, ABC selects some people among the 50 million population of Korea to engage in those domestic industries. Again, just one company for one industry, regardless of those for domestic or global markets.

4. Restructuring

As said, most citizens are employed by the nation, Korea, as it establishes one company for one industry. The competitiveness of a company and its employees can be easily evaluated via various techniques. If not so competitive, it's necessary to restructure the company, either increase or reduce the number of employments etc.