Economic Systems — What Gets Traded and Who Gets Rich
Economics is the substrate of power. How exchange is structured determines who has power and what conflicts are inevitable. This skill expands Pillar 2 (Economy) from cultures-societies into a full design methodology.
The Five Questions
1. What Is Scarce?
Scarcity determines value, which determines power. Resource scarcity (water, metal, fuel), fantasy-system scarcity (magic costs life force), knowledge scarcity (literacy restricted), labor scarcity, or post-scarcity (Banks' Culture — eliminates economic conflict, shifts drama to status and meaning).
2. How Is Value Exchanged?
Barter, commodity money, fiat currency, debt/credit, gift economy, reputation economy, soul/essence currency (Gladstone), labor tokens. Each system implies different cultural values and power structures.
3. Who Controls Production?
Feudal (land owners), mercantile (merchant class), plantation/extraction (colonial), communal (Le Guin's Anarres), fantasy-system-mediated (mage-aristocracy), corporate (cyberpunk).
4. How Does Geography Shape Trade?
Resources cluster geographically. Chokepoints create power. Trade creates cultural mixing. Trade routes shape alliances.
5. What's the Relationship Between Wealth and Power?
Can you buy office? Does power create wealth? Can fantasy ability generate wealth? The answer shapes the entire political system.
Innovative Currency Systems in Fiction
| Work | Currency | Why It Works |
|---|---|---|
| Gladstone's Craft Sequence | Soulstuff | Economic transactions become existential |
| Sumner-Smith's Towers | Magic as currency | Magical gift = wealth; ungifted = homeless |
| Banks' Culture | Post-scarcity | Eliminates economic drama; forces character drama |
| Bear's Eternal Sky | Trade route control | Trade is money, money is armies, armies are power |
| Le Guin's Dispossessed | No property, labor-based | Economic system IS the thought experiment |
Anti-Patterns
- "Medieval gold" default — no one asks where gold comes from or why it's valuable
- Infinite adventurer wealth — no inflation, taxation, or political consequences
- Everyone is a farmer except protagonists — functional economies need artisans, merchants, clergy
- Magic exists but doesn't affect economy — every fantasy element has economic implications
- Trade without trade routes — goods appear in markets with no supply chain
Relationship to Other Skills
- Cultures-Societies: Expands Pillar 2. Faction Design: Factions form around economic interests. Geography-Ecology: Determines resource distribution. Magic-System-Design: Fantasy system's economic implications must be traced. Extrapolation Engine: Run cascading consequence drills on economic axioms.