Evolution and Economy

[ZenitYerkes]

A simile:

Darwin's principles

1 - Variation: In the same environment, in the same species and even in the same families there are differences between individuals.
2 - Adaptation: The environment poses a series of problems to which the individuals' traits must have the solutions to. Those who can't adapt to the environment die.
3 - Competition: Resources are limited, and only the most capable of getting them will survive. Those which can't, perish.
4 - Heritage: Those who manage to survive share the "trait solution" with their descendants.

These are the principles on which the natural selection process is based on. I might add another one:

5 - Immunisation: Humans are the only species so far able to stay indifferent to this process; for they don't need to have this solutions in their nature, but can work them out through reasoning.

Just to put an example, imagine giraffes with a shorter neck, grazing in the steppes of Africa. One year the environment gets more arid than usual and the lawn disappears; but the trees remain. Taking in count not all individuals in the same species are the same: those who have a longer neck than the rest and, therefore, eat the leaves -survive. Those with a shorter neck die, for they can't simply eat.

These surviving giraffes with a longer neck reproduce; being their descendants born with a bit longer necks than the previous generation. As the environment got more and more arid, giraffes eventually could only eat from trees and therefore, only those with longer and longer necks survived.

Let's apply this to economy.

Darwinian Economy

1 - Variation: For the same market, in the same service, there are differences between companies; also, the employees' skills are different from each other.
2 - Adaptation: The market poses a series of demands and problems the companies and employees must have the solution to. Those who can't supply this demand properly, close.
3 - Competition: Both the resources needed and the demand is limited, and only the most capable and competent will manage to get them. Otherwise, they close.
4 - Heritage: The "solution tactics" to the problems the market poses are transmitted and copied. Old tactics and skills become obsolete and useless.

5 - Immunisation: Instead of closing or living in poverty, companies and people who can't compete are helped by the government through welfare benefits.

It's still the survival of the fittest.

Making this simile... I wonder, should we let the "economic selection" act freely?