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I've always wondered this ... I recall fleeting references to the lack of a money system in TNG (something about abandoning the quest for material wealth), but was it ever explained why and how and when that came about? Is there a canonical explanation? And, what motivates them in that case -- why go to work if you're not getting paid and obviously, don't need to be paid because there's no money to buy anything? Were all the main races moneyless?

Servitor
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    Stardestroyer.net's "The Economics of Star Trek": http://www.stardestroyer.net/Empire/Essays/Trek-Marxism.html –  Jan 29 '11 at 08:22
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    @fennec: You can hardly expect objectivity from an essay found on a site dedicated entirely to proving that Star Wars is superior to Star Trek in every possible way. The simple truth is that all economic systems we are currently familiar with are based on dealing with the problem of the management of scarcity in basic resources, and Star Trek's replicator technology nullifies this fundamental problem. Whatever economic system the Federation uses is neither capitalist nor communist because both are now too irrelevant to take seriously. – Mason Wheeler Jul 08 '11 at 23:46
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    I think it would be very interesting to have a series or movie focus on life outside of Starfleet in the Federation. I suppose there have been several episodes that at least brushed against it, but they shy away from the hard economics of how materials and land are distributed in the Federation. Was Picard's vineyard on land that his ancestors owned for generations? I imagine they could have accumulated it when other people were leaving Earth for other worlds... land on Earth is going to increase in value until there are less people on it, either by cataclysm or colonization of other worlds. – pmiranda Feb 10 '12 at 15:46
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    It's the uniforms. No pockets, so you have to go cashless. :) – geoffc Jan 21 '11 at 01:59
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    @MasonWheeler Of course it's not objective, and it has a fair bit of propaganda (after all, it's written as if by an imperial officer of the invading Empire :)). But his points still stand - there's no fault in those. And there's still plenty of scarcity in the Federation - the replicators are heavily used in Starfleet, but there's plenty of evidence that they're not all that common in Federation as a whole, and they still need raw materials. I expect they'd be most useful for making stuff like integrated circuits - tiny and difficult to manufacture. And you can't replicate a house. – Luaan Oct 26 '16 at 15:07
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    @MasonWheeler "all economic systems...are based on...management of scarcity in basic resources". This is still true in the Federation, it's just that the replicators remove scarcity of physical items. The new scarcity is in unique creations, be they artworks or new hologram programs. The scarcity in the federation is one of manpower. You can duplicate a starship, but who is going to keep it from breaking while you are out exploring? Who designs the new generation of tech? Who keeps everything running? I now own 20 starships: who crews them, when my crew can create their own starships? – Mark Ripley Jan 01 '17 at 15:47

14 Answers14

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The best explanation comes from Picard in Star Trek: First Contact. He explains that in the future, humans have moved beyond the need to acquire goods and seek to better themselves.

Trip in ST:ENT also gives a good summary of how this came to be. After having made first contact with the Vulcans, humans realized that there was much more to the universe than themselves. Within 100 years, war and famine were resolved on Earth.

Also, Gene Roddenberry was most likely a communist. ;)

While Gene Roddenberry had a general idea of where he wanted to go with the Star Trek universe, most likely he did not feature commerce because he was interested in putting pure sci-fi stories on screen (think of some old episodes and how close they are to old pulp sci-fi). So in essence, (and to reconcile with Zypher's excellent answer), we could say that the Star Trek Universe is as much cashless/commerce-less as it is toilet-less (you never see the bathrooms). In other words, it's not.

However, (most) humans are not driven by the acquisition of goods. A look at some key moments of the timeline gives us a clue as to how this change comes about:

  • 2026-2053: World War III - 600 million dead, many governments destroyed. By that point, we can assume most people were more concerned with day-to-day survival in a somewhat nuclear wasteland.
  • 2063: Zefram Cochrane converts a nuclear missile into the first human-made warp-capable vessel, the Phoenix. Him going to warp speed attracts the attention of a nearby Vulcan ship, who come down and introduce themselves.
  • 2151: The experimental ship Enterprise begins exploring space beyond the Solar system, after a century of rebuilding humanity, during which famine and war are eradicated. All under the watchful eye of Vulcans.
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  • If you had to be a communist in the USA, the 60's would have been a good period to be so. – MPelletier Jan 21 '11 at 02:14
  • Zypher provides an excellent counterpoint, I would say. My DS9 is weak :( – MPelletier Jan 21 '11 at 04:40
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    Heck, when Scotty got a phaser running on the Constitution in "The Doomsday Machine", Kirk said "you just earned your pay for the week". As far as Picard's comments go, I liek to think of them as coming from the military version of the "ivory tower elitist" being somewhat out of touch with how things work "on the ground". Nothing necessarily BAD, just not in Picard's realm of expertise. – David Feb 08 '11 at 13:03
  • @David: I'd take Mudd as a prime example that not all humans are un-greedy in Star Trek and that there is, in fact, currency and that it matters to some. – MPelletier Feb 08 '11 at 15:12
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    The funny thing is that Warp drive discovery, the basis of everything that followed, was completely monetary driven. Oh sweet irony! – Ryan May 24 '11 at 02:40
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    Found other references to money. In Encounter at Farpoint, Dr. Crusher wants to buy fabric and asks for it to be billed to her account on the Enterprise when it arrives (not the exact wording). – MPelletier Sep 14 '11 at 04:15
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    and in encounters with Ferengi merchants, people readily use cash to pay various goods and services, so currency exists, even if it's not often used in trade between humans at least (most likely some form of electronic commerce takes care of most exchanges, something we're moving towards even now). – jwenting Sep 30 '11 at 08:24
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    also there were independent freighter families, at least in ST:Enterprise. You can be sure that they weren't risking life and limb against priates for "the greater good". – Xantec Oct 05 '11 at 02:22
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    Roddenberry was definitely radically progressive. But I think that's what makes Star Trek so unique. It doesn't show the future as just the 20th/21st century with futuristic technology, or show some post-apocalyptic future like 90% of modern sci-fi. Roddenberry tries to project the cultural evolution of humanity over the next few centuries based on historical trends. And historically, societies become increasingly progressive: sexism/racism/homophobia->tolerance, plutocracies/oligarchies/monarchies->populism/egalitarianism, etc. – Lèse majesté Nov 11 '11 at 17:15
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    Technically, you did see a toilet...in ST V during the prison break. They're also on the blueprints for the starships :-) – Bart Silverstrim Jan 24 '12 at 20:50
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    There were no toilets on the first enterprise. There was ONE on the blue prints of the SECOND enterprise. – StarPilot Apr 19 '13 at 03:38
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    Gene wanted a bright future where humanity was in a good place. He felt that humans obsession with wealth is what caused most of its heartache and was a primary reason humanity hadn't come together to fix the world's problems and become super advanced. So for humans to advance, there had to be NO MONEY AT ALL. Later writers could not comprehend how people could then get things (like fabric) so currency always crept back in. He disapproved of such, but rarely stopped it or made the writers change their scripts. – StarPilot Apr 19 '13 at 03:41
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    I owe you 5 bars of gold plated latinum for that answer (I hope the irony of this comment is noticed in regard to the question.) – xXGrizZ Jan 25 '14 at 02:09
  • In TOS "Trouble with Tribbles" there is definitely commerce going on, the merchant guy is trying to sell tribbles! – Organic Marble Feb 14 '15 at 04:23
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    @Ryan This is actually well in line with the Marxist ideology Roddenberry obviously liked quite a bit - the "capitalist" destroying capitalism by developing The Ultimate Machine and thus allowing true socialism (later renamed to "communism") to take place (though the replicator is certainly a better fit for TUM than the warp drive; maybe it was one of the technologies acquired through trade with ETs?). The real irony is that Marx would call Roddenberry a utopian who has no business talking about true socialism, because no man can imagine socialism :P – Luaan Mar 20 '17 at 09:12
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    I think the attitude to commerce and money is more like: “Sweet! I accomplished this big feat for the Federation! Oh and I made some money too.....cool. Anyways, big feat!!!” Money has left humanity’s central focus as a controlling motivation behind self-improvement. – MissouriSpartan Jan 24 '20 at 17:06
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There was definitely a money system in the Star Trek Universe. It was a credit based system (heck even the monetary unit was called a Federation Credit).

You especially saw this in the DS-9 series where it played a more prominent role (as well as the Ferengi) in the store. Even today we are moving to this type of system with debit and credit cards, although cash is still a valid form of currency. Also, you should keep in mind that most of these series where set on Military vessels where there is much less need to have money at all.

Even though they were in a time of post scarcity there was still uses for money - which are outlined in the above mentioned wikipedia article.

These uses boil down to:

  • A bartering tool between the United Federation of Planets and other governments
  • A means of internal budget allocation in the United Federation of Planets
  • A way for Federation citizens to barter for objects that cannot be replicated
Mark Rogers
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    Also, depending how seriously you take J.J.'s Trek as part of canon, ... in the bar in the beginning, Kirk tells the bartender "her [Uhura's] drink is on me". This implies that Kirk is going to pay for her drink, which implies currency of some sort, ergo, NOT a cashless society. – eidylon Sep 03 '11 at 18:55
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    It's a cashless society in all the ways that matter. Today we may use credit cards, but our society is still based around the accumulation of wealth. Whereas, the societies of the Federation aren't driven by capitalism. You still need an economic system for distributing resources, so credits are used as currency for trades and measuring the relative value of resources & services. But the credits each Feddy citizen is allotted is probably based on their needs (family size/number of dependants/where they live) rather than occupation/rank. – Lèse majesté Nov 11 '11 at 17:23
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    Even in DS9, it was mentioned that money was used but not so much by the Federation. I'd have to hunt down the episode, but I do remember Sisko once holding over Quark's head the possibility of charging rent for his bar... with the implication that they hadn't been charging him all along. But there definitely was a Deep Space 9 economy, and Quark was an economic leader in that community. At the end of the series, it could be interpreted that the Ferengi Alliance is heading in the economic direction of the Federation's cashless economy. – Goodbye Stack Exchange Jul 17 '12 at 05:51
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    There is also the line in the Genesis introductory video in Star Trek 2, where Carol Marcus asks Starfleet to fund further research. Presumably this refers to some sort of resource allocation, as you say. – Paul D. Waite Feb 13 '15 at 22:57
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"Star Trek's replicator technology nullifies....scarcity"

Not so. This conversation is a rite of passage for any Econ major. While many things would cease to be scarce, when you get down to brass tacks, a replicator is not nearly as disruptive as you might think.

First of all, the replicator needs power to operate, so everything associated with traditional energy generation has to still happen. Even if that is super-duper anti-matter power, someone is still having to design, create and manage that to some extent.

Second of all, someone has to be designing the intellectual property represented by the replicator patterns, ala Thingiverse. People might do small things for free, but something complicated like a phaser, for example, would require a significant outlay of time and effort, which are scarce.

Third of all, there are certain goods whose scarcity is utterly unaffected by all this, most of all real estate.

Fourth, all of human services which are non-manufacturing are still subject. Even if you can get a holographic doctor, what about artistic performances and works? Maybe robots come into play here, but as long as human beings are the customers, to a certain degree human beings are going to be providing the services. Historians? Teachers? Research scientists?

Fifth, clearly there are items which are beyond the scale of replication. DS9 was stuffed to the gills with cargo ships...presumably what the cargo ships are transporting is not replicatable, or at least not economically so.

Consider if you had a replicator right now, and could replicate any object. Irrespective of the market value of the object (replicating diamonds, for example), is there an object you could manufacture that could pay your rent / mortgage? Probably not.

The replicator would be a great boon and represent a tremendous increase in wealth for all society, but people would still have jobs, money and commerce.

It always seemed to me that it wasn't that the Federation had evolved beyond commerce, but that it was immensely, unimaginably wealthy. When you're immensely wealthy, you can pretend that you're beyond material concerns - when you're poor, it's clear to you that you're not.

Chris B. Behrens
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    Excellent answer, very well and clearly explained. – eidylon Sep 03 '11 at 18:57
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    "presumably what the cargo ships are transporting is not replicatable, or at least not economically so" - Right on. There are several things known to be completely unreplicatable - antimatter, for instance. Even for replicatable items, replication is often implied to yield an inferior product; it's passable, but replicated food or drink won't taste as good as the real stuff, and other replicated organic matter has detectable differences (it's unlikely a replicator could exactly reproduce an aged antique Stradivarius violin, although in one TNG episode it's implied violins are possible). – KeithS Oct 28 '11 at 18:03
  • So, even with replicators in existence, there will always be a market for the real thing; real musical instruments hand-beaten or hand-carved, real sporting equipment (especially collectibles like Sisko's baseball memorabilia), real Scotch or blood wine (Picard's family are vintners for example; if the replicated stuff could compare they wouldn't be bothering), real Kava roots, etc etc etc. – KeithS Oct 28 '11 at 18:12
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    This concept is just another step on a long curve of automation that began with the industrial revolution. When a product makes the leap from being producible by automated means, you see a drop off in both price and quality - BECAUSE the product is so much cheaper, people are willing to tolerate a lower level of quality. In some products, the quality level recovers to the level of hand-craftsmanship, but in others, it never has, not even all these years later. For those products, good enough is good enough - but that doesn't preclude a more limited demand for higher quality versions. – Chris B. Behrens Oct 28 '11 at 20:34
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    Replicators don't nullify scarcity of all things, obviously, but it nullifies scarcity of most things to the point where the average person wouldn't have a need to model their life around the accumulation of wealth. That may be hard for some people to understand right now, but even in our capitalist societies, there are many people who work for free. The only reason more people don't do this is because everything still costs money (food, housing, education, transportation etc.). But automation, replication, and cheap energy eliminates much of this. – Lèse majesté Nov 11 '11 at 17:33
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    This is an exceptional, extra-cannon answer! Your third point is quite provocative: how does one come by better living spaces? Does everyone get a place on the beach or does it come through some other, non-monetary privilege? Your fourth point is good as well. While it's true that people are willing to work for more than money in the future (even now - look at open-source software), what about those only capable of doing more menial jobs, such as mining or construction (both exist in-universe)? What do they work for? – Chad Levy Nov 17 '11 at 04:37
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    +1 Excellent answer. Note that DS9's cargo ships may well have carried replicatable cargo; DS9 is a fringe outpost providing trade routes for several major non-Federation (and hence non-replicator-based) powers. – Tynam Dec 17 '11 at 01:10
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    So what you're saying is that with enough money, communism works? – Michael Brown Feb 06 '12 at 02:25
  • This is actually a Big Question in Economics, and a topic about which entire books, indeed, entire careers have been made. The short answer is no - natural experiments like East and West Germany and North and South Korea show that the problem with Communism is, per se, Communism and not any extrinsic factor. The long answer is that, given a certain amount of decentralizing and grafting with a free market system, like you see in China, you can, unfortunately, maintain the despotic nature of a Communist system for a long time, at the very least. – Chris B. Behrens Feb 06 '12 at 14:51
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    Your second point, at least, is null and void due to the open source movement, with things like Ubuntu (well, linux in general), Firefox, LibreOffice, and others. There will always be people around who are willing to work on large projects in their spare time. And likely even more of them around in a "bettering yourself" society like the Federation. – Izkata Jan 06 '13 at 07:26
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    Open source hasn't replaced all commercial software. And not all open source software is free. People will always have material problems, and solving those problems will always make it easier to do extended intellectual work. Having those problems solved means that the time doesn't have to be SPARE. – Chris B. Behrens Jan 06 '13 at 15:37
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    Energy is the primary unit of measure with replicators. It takes at least e = mc2 of energy to make an item, plus the intellectual property involved (the blueprint/info on how to build it). Star Trek's energy sources are the same as ours--- solar, nuclear, etc. They have to make their antimatter--- which wastes a great amount of energy--- and then use that as a STORAGE MEDIUM of energy (ie, fuel). Where do they get that antimatter? Various energy sources, such as solar, tidal, wind, nuclear (fission and fusion), geo-thermal, and other sources are all canon. – StarPilot Apr 19 '13 at 03:50
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    This means their economy is primarily energy unit based. A federal credit is equal to a certain amount of energy. The fact that it is also traded to non-federal entities just goes to show the utility of money. – StarPilot Apr 19 '13 at 03:51
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    Arthur C. Clarke said "in the future the unit of currency will be the kilowatt-hour". – Chris B. Behrens Apr 19 '13 at 03:56
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    "is there an object you could manufacture that could pay your rent / mortgage?" Sure, a house. If compared to today's "not the same, but kind of" analog in 3D printing, small houses can be assembled for roughly $5,000 USD (indeed, five thousand dollars). Let's play by your rules and assume only the cost changes; forgetting property tax/insurance/etc, $5,000 over 20 years at 5% interest is something like $30.50/mo. Even a 5-year loan is just over $92 a month. The problem with the 'Econ 101' argument is that it assumes too little social restructuring in the face of a paradigm shift. – Stick May 15 '14 at 14:57
  • But everyone else can manufacture the same house, so you're back in the same boat. That is, UNLESS the way that you manufacture houses is particularly valuable - you're an artisan homebuilder. – Chris B. Behrens May 15 '14 at 16:49
  • FWIW, gold-pressed latinum is canonically not able to be replicated, which is why the Ferrengi use it as currency. One of the novels had a roommate of Wesley find a way to bypass that restriction, triggering a response along the same level as if we found a way to mass-counterfeit paper money, but only temporarily (it was essentially "fairy gold" and transformed back) and as a book, it's non-canonical. – FuzzyBoots May 15 '14 at 18:20
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    Taking these one by one:
    1. Design is done so that need not continue. Building additional sources is dependent upon need.

    2. For brand new things, yes. However in a universe where all of your needs are taken care of a certain amount of people will research things just because it's interesting. IP no longer matters because, well, money is no longer needed. The only thing necessary might be maintaining attribution of the discovery.

    3. There are around 200 billion solar systems in this galaxy. In universe, they can build facilities to live pretty much anywhere. Land is no longer scarce.

    – NotMe Oct 08 '14 at 15:27
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  • Artists create because they want to - which is why you currently find a bunch of them on the streets. Historians/Teachers = computers. Research Scientists - see #2 above.

  • I can find no real reason for that except that the writers felt they needed to move cargo around. In this case those ships don't reflect the reality of the situation... Unless they are stuffed full of replicators...

  • Going further: I wouldn't have a mortgage or rent if I replicated my own house. The bank wouldn't own it, I would. The whole idea of "ownership" would likely change radically.

    – NotMe Oct 08 '14 at 15:28
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    Land, per se, is not scarce. Land that is close to desirable development is. Land, per se, is not scarce NOW. – Chris B. Behrens Feb 13 '15 at 22:04
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    @Izkata You're missing the point. Open source / free software isn't free. It's still scarce. It still needs labour. It still needs distribution. It still needs documentation, training. If one person decides to help with Firefox, he can't use the same time to also help with Linux. That's what scarcity means - you can't eat your cake twice. Just because the end product isn't sold for money doesn't make it free - it still means you didn't create something else instead, a typical case of opportunity costs. – Luaan Oct 26 '16 at 15:15
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    @StarPilot Not for Star Trek's replicators. They don't create matter at all - they reassemble it. That's why they still do agriculture and mining - they need the raw materials. And even in manufacturing, replicators aren't used everywhere by far - they're very prominent on Starfleet starships, but those same ships aren't replicated (though presumably, there are plenty of replicated parts they are constructed from, though not exclusively). And they're perfect for starships - better to carry raw materials you can shape to any replacement part than thousands of spare parts. – Luaan Oct 26 '16 at 15:18
  • @Luaan Note that the second point I was responding to was the simple-vs-complex difference. My examples are complex things the answer says are unlikely due to their complexity, compared to simple things. – Izkata Oct 26 '16 at 16:09
  • @Luaan Also see this question, which quotes from the TNG Writers' Technical Manual - replicators can do direct matter/energy conversion, but it's presumably less efficient than reusing existing matter. – Izkata Oct 26 '16 at 16:11
  • @Luaan, it is canon that they do create matter through energy conversion. Transporters scan, break down matter into atoms, convert the atoms to energy, "beam" that energy to the target location, convert that energy to matter, reassembling the "beamed" item atom by atom, rebonding the atoms it broke up, and end up with a near duplicate of the original item beamed. Replicators do part of this process: They take a given target pattern, pull energy off their source, create matter atom by atom, bond them into the correct patterns, and create a near perfect copy of the original target pattern. – StarPilot Nov 10 '16 at 11:20
  • @Luaan it was later they updated the technology that allowed replicators to "use raw material" to short cut the extreme energy of building each item purely from energy. This advance is credited to the Spock while he was serving as science officer during TOS. It was just one of his many little personal projects that he kept himself busy with while they were boldly going about the galaxy. – StarPilot Nov 10 '16 at 11:25
  • @StarPilot The truth is, it's a rather silly idea to make something from energy if you can make it from matter. Especially when you use antimatter reactors to "create" that energy - you're just wasting huge amounts of energy converting matter to energy to matter again, even using fusion and fission to convert iron to whatever you want would be more efficient. But you're right, there has been loads of changes between TOS and TNG in the capabilities of Earth and the Federation, as well as their economy, culture etc.; the two are very different universes. – Luaan Nov 10 '16 at 12:21
  • @Izkata: "There will always be people around who are willing to work on large projects in their spare time." True for some projects but not for all projects. Just try to open source your stopped up plumbing. Everyone want to be a game tester but fewer are willing to learn C to write them. There will always be tedious but needed projects that will require more of an incentive than love of that sort of work to be completed. Thus the need for money or some other form of payment so they are done. – Mark Ripley Jan 01 '17 at 16:02
  • @MarkRipley Not to mention that everyone thinks they want to be a game tester. The actual job is rather tedious and very hard. People want to play games, and there's certain appeal to playing a game before anyone else or playing different versions of the game as ideas are fleshed out and discarded. The recent "early access" phenomenon quite clearly shows the appeal can quickly disappear, despite the fact that many early access games seem to have a much higher quality than even some properly released titles :) – Luaan Mar 20 '17 at 09:29
  • Here's a fun bit about this: http://www.nationalreview.com/article/445938/jobs-prosperity-capitalism-should-focus-latter. – Chris B. Behrens Mar 23 '17 at 14:28
  • @Luaan You have to carry that material around on a starship or have the storage space available on a space station. That's why they usually just go straight for the energy to matter route in ST, in all generations of that universe. Because of limited space available. They effectively get more storage space by using replicators which only use energy. Remember, the smaller the ship, the smaller the warp field needed to move it. The smaller the warp field, the less energy it takes to create. – StarPilot May 12 '17 at 13:57
  • @Luaan Planetside facilities, on the other hand, will likely have large amounts of space available for storage. They are likely to use the less costly form of replication, drawing from raw material and using that in the process of recreating a desired target object. As for cargo ships moving goods--- items that aren't replicated would be considered "luxury" goods. Vegetables grown "naturally" in a garden and shipped to worlds that have limited local agriculture would be considered "luxury" over the same vegetables spat out in a replicator. Think organic versus industrial farming. – StarPilot May 12 '17 at 14:01
  • @StarPilot And that's where you're wrong. Matter is as condensed as energy gets under normal circumstances, and very easy to manipulate (just put it in a box). Federation spaceships use matter-antimatter reactors for power, which have a lower energy density than normal matter (since about half of the energy is lost as neutrinos), and their fuel is very volatile and hard to handle. The main problem you have with is having the right materials, but that's solved with the transmuting replicators anyway - you just use the most convenient form of matter and change it to whatever you need. – Luaan May 13 '17 at 07:22
  • The intellectual-property-cost argument is flawed, I believe. Once you have a working model, it will spread quickly and, if very good, become ubiquitous. In these circumstances, innovation will be slow, and standard, uniform models widespread. As for innovation, economic rewards are not as applicable in a post-scarcity economy, so presumably social rewards (reputation and/or status, for instance) would become the dominant motivators. And after all, once most needs are taken care of, what else are you going to do with your time? Born innovators gotta innovate. – WhatRoughBeast Mar 15 '19 at 02:11