thought experiment-colony

[billwald]

Say a near by planet is found that is like North America in 1500 but without sentient beings. An agricultural colony is started consisting of 500 single men and 500 single women. They are given chits for 2 years of basic foods which is also sent, along with a kit of basic tools and supplies for each person similar to what the homesteaders would take with them in the 1800's - a wagon, oxen, and whatever.

1. How many would die of starvation in the first 2 years?

A new currency would be used in the colony - the klink. Each person is given an equal quantity of klink.

2. Would the economy grow faster is each person was initially given 100 klink or each person was given 10,000 klink?

3. Propose a method of introducing additional currency into the colony as the population grew.

 

[Jeremiah the Bullfrog]

1. How many would die of starvation in the first 2 years?

I don't not believe that any would die of starvation within the first two years. However, after that I cannot say. It depends on how well you plan ahead.

2. Would the economy grow faster is each person was initially given 100 klink or each person was given 10,000 klink?

I do not believe that it would make a difference. If for example you were to start out with 100 klink then the colonists would probably divide them up into some type of fraction, say for example hundredths. Then each hundredth klink, lets call them a kernel, would have the same relative value as one klink if they were to start with 10,000 klinks. Therefore, I do not believe that it would make a difference which amount of money that they started out with because there would be the same amount in circulation. However, each kernel would have be equal to 1/100th klink if they did that.

Propose a method of introducing additional currency into the colony as the population grew.

This is the hard part. I believe that for each time a child begins to contribute to the gross colony product they should introduce 100 klink into circulation so that each person can always have 100 klink available in currency at any one time. However, in reality that is not practical so, I would introduce 100 klink each time that a child turns 16.