Four Analogies of Social Distribution Mechanisms: Four Thought Experiments

AbstractThis paper presents four stylized thought experiments that model distinct social distribution mechanisms under simplified assumptions—fixed money supply, no borrowing, perishable goods, and hierarchical or egalitarian income rules. The exercises are grounded in a behavioral axiom: humans possess an enduring propensity for spontaneous ranking games, manifesting as upward comparison and downward discrimination, which persists even when material needs are satiated.· Experiment 1 models a pure market economy with tiered income shares. It demonstrates that currency flows net from lower to upper tiers, causing progressive purchasing-power exhaustion and eventual system halt.· Experiment 2 introduces a dual‑track “currency + mirror points” system, where points are deducted on income and added on consumption, with points redeemable for goods but not convertible to cash. The analysis asks whether absolute cash‑less or point‑less states occur and whether the system can circulate indefinitely.· Experiment 3 begins with tiered output shares and then forces all survivors to equalize production at the lowest per‑capita level from the previous day. It shows that even with equal income, ranking competition shifts to “less work for same pay,” driving total output iteratively downward toward the starvation threshold, culminating in collective extinction.· Experiment 4 simulates a redistributive tax‑and‑welfare scheme (two tax brackets) that creates pure consumers (non‑producers) once tax accumulations reach a threshold. It illustrates how unconstrained creation of consumption‑only groups erodes the production base and leads to aggregate imbalance, while also highlighting the infeasibility of precise tax calibration to dynamic supply‑demand equilibrium.The final question asks which of the four systems can sustain itself permanently. The answer is uniquely Experiment 2, as the points–currency mirror mechanism prevents net currency drainage and maintains a balanced circulation loop, enabling perpetual operation without external interventions. The paper thus offers a formal, axiom‑driven comparative framework for evaluating distributional sustainability, with implications for monetary design and institutional resilience.Keywords distribution mechanisms, thought experiments, purchasing power, ranking games, dual‑track currency, sustainability, economic collapse, tax‑welfare trade‑off