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LIQUID LABOR

The Embodied Productivity Race of the 2020s

My Research Essays on the U.S.–China Contest for the Time Bank of Machines


III. CORRUPTED DEMAND

Hedonist-Driven Demand and the Entropy Tax

Date: December 2025 · From: The Liquid Labor Research Group

Introduction: The Problem of Corrupted Demand

Hedonist-driven demand is "Corrupted Demand." It is demand for comfort, not capacity. This creates a fundamental problem: if we allow unlimited consumption of trivialities, we risk starving the Architect (Scientist/Engineer) of the resources needed for civilizational advancement.

The question becomes: How do we prevent the Hedonist from consuming the entire energy budget on VR simulations while the Architect tries to launch rockets?

I. The Economic Consequence of Corrupted Demand

In a money economy, the Hedonist bids up the price of trivialities (status goods), sucking resources away from the Architect. Money is value-neutral. It thinks a $100 pair of digital sneakers is "worth" the same as $100 of Fusion Research.

  • Money: "Both generated $100 of GDP. They are equal."
  • Physics: "False."
    • The Sneakers consumed low-entropy energy and turned it into high-entropy waste (status signaling). Net Negative.
    • The Fusion Research consumed energy to create a mechanism for infinite future energy. Net Positive.

The Distortion: In a money economy, the Hedonist bids up the price of trivialities (status goods), sucking resources away from the Architect. In an Exergy economy, the "Entropy Tax" punishes the waste. It makes the digital sneakers "expensive" (in terms of social credit) because they waste energy without building capacity.

II. The Entropy Tax: The Mathematical Guardrail

To prevent the 'Corrupted Demand' you fear (where we just build endless digital distractions and ignore space), we introduce a policy variable: The Entropy Tax (τe).

We define 'Corrupted Demand' as energy spent on Low-Entropy Reversal (trivialities) vs. High-Entropy Reversal (civilizational survival).

The Policy Rule:

CostHedonist=Energy Cost×(1+τe)\text{Cost}_{Hedonist} = \text{Energy Cost} \times (1 + \tau_e)
CostArchitect=Energy Cost×(1Subsidy)\text{Cost}_{Architect} = \text{Energy Cost} \times (1 - \text{Subsidy})

The Mechanism:

The Hedonist pays a surcharge on their massive energy consumption (the "VR Tax"). That surcharge directly subsidizes the "CapEx" of the Architect's fusion plants and rockets.

The Flow:

That surcharge directly subsidizes the "CapEx" of the Architect's fusion plants and rockets.

The Result:

The Hedonist's "corrupted" desire for a massive energy grid inadvertently funds the infrastructure that the Architect uses to leave the planet.

III. The Entropy Surcharge in Practice

We cannot allow the Hedonist to burn the entire planetary energy budget on VR simulations while the Architect tries to launch rockets.

The Mechanism: A progressive tax on Energy Intensity.

  • Tier A (Survival): Basic residential power (Ascetic level) = 0% Tax.
  • Tier B (Productive): Industrial power for manufacturing/farming = Low Tax.
  • Tier C (Hedonic): High-entropy consumer burns (luxury travel, massive personal compute, decorative energy) = Exponential Surcharge.

The Outcome: The Hedonist pays a premium for their lifestyle. That premium directly subsidizes the "CapEx" of the fusion grids and spaceports. The Hedonist funds the Architect.