Many long years ago, a political science professor educated me to the law he termed the “revolution of rising aspirations.” By that, he meant that once people learned what was possible, they always wanted more. Once they had a bicycle, so to speak, they wanted a motor scooter, and then a car, and then two. The downside of rising aspirations is that, being aspirations, they’re insatiable. No matter how much most people have, they always aspire to more.

This tends to create problems in a modern industrial society, especially when combined with a mass-production society and “economies of scale,” where the more of a good is produced, the lower the unit cost [up to the limit of the equipment], and the more profit per unit [again, up to the limit of the equipment and assuming you can sell that many]. This structure leads to decisions that are often uneconomic for society as a whole as well as inappropriate.

Take hamburgers. A fast food restaurant must pay for the building, the equipment, the insurance, and the staff before it sells a single hamburger. And there’s very little difference in staff time and effort between creating a single patty hamburger and a triple colossal cheeseburger deluxe. Likewise the difference in the costs of ingredients is not nearly so great as the difference in the prices that the restaurant can charge. So… in terms of profits and pricing, the restaurant has every incentive possible to maximize the sale of its most expensive — and most caloric — burgers. Is this to the advantage of the health of the consumer? Is it the best use of resources overall for society? I’d say not, but it does maximize profits, and that’s the bottom line.

Now… apply that same model to automobiles. For years, everyone associated with the automotive field has known that “big” cars and SUVs had sometimes twice the profit of smaller and more efficient automobiles. Americans could get “more car for each dollar” spent on a large vehicle, and so long as fuel prices stayed low, the operational costs didn’t dissuade them, and the automakers made higher profits. As a practical matter, not everyone needs a three-ton SUV to commute one person to work, but the short-term profit motive, low gasoline prices, and production economies of scale resulted in American manufacturers concentrating on “big” cars. Then when the 1970s gasoline crunch and high prices came along, they were anything but prepared… and they lost market share, most of which they never regained even when big cars became popular again. Now, with the latest gas crunch, the gas-guzzlers are sitting on the dealer lots, and Ford has posted a quarterly loss of close to nine billion dollars, and Toyota looks poised to become the largest automobile manufacturer in the world.

Because people aspire to more, they want bigger hamburgers, bigger or more luxurious vehicles, and since bigger is easier and more profitable in an “industrial” economy than truly better or what is appropriate, more and more resources get wasted, because “economies of scale” don’t allow for great diversification. Yes, you can get a car in a range of colors, and trims, and limited and set accessories. Try getting a four-door, four-wheel drive, fuel-efficient, moderate-sized SUV with a stick shift. You can’t, not in the good old USA. That’s because economies of scale aren’t all that economical in meeting anything more than cosmetic ranges of choice. They’re a form of one-size-fits-all with cosmetic cover, and that’s not suitable for the future.

Why? Because over time, one size does not fit all needs and requirements — except maximizing profits. It’s also wasteful and inefficient in terms of resources, and those who espouse the approach are ignoring the growing problems facing the world today created by the unrecognized conflict between “economies of scale,” the revolution of rising aspirations, and the law of appropriateness.

For years, my wife has been irritated with various educational bureaucrats and politicians who mandate broad and sweeping policies and laws that are highly inappropriate to what she does. I’ve seen the same thing occur time and time again in environmental and economic regulations and in corporate planning. And most of it arises from trying to fit everything into the same mold, or as my wife puts it, failing to understand that “one size does not fit all.”

When an educational bureaucrat decrees that all classes taught in a university must have the same cost/credit hour efficiency, he demonstrates that fallacy of assuming one size fits all. Science classes need more equipment, and that’s more costly per credit hour than lecture classes in literature or economics or political science… or business. Many music classes require one-on-one instruction. They can’t be taught effectively any other way, and that’s “inefficient” because it doesn’t fit the old industrial/business model of economies of scale.

In nature, evolution has demonstrated over millions of years that there is an “appropriate” size for every ecological niche. If a predator gets too big for its prey, it becomes extinct. Prey that’s too large or too slow does as well. In nature, one size does not fit all, nor do aspirations that exceed one’s abilities.

Those are lessons that an intelligent species should learn, but will we?

While I may not be the only writer to do so, I’m certainly one of the very few to present the taxation problem from the viewpoint of a ruler in a fantasy novel. For those interested, the character is Creslin, in The Towers of the Sunset. The entire issue of taxation, both in fantasy worlds and in real worlds, seems to be stereotyped in terms of “taxes are bad for the poor and too low for the rich.”

The problem with this viewpoint is that it tends to ignore the entire reason for taxes, which is to raise revenue in order to provide services for the society as a whole that it would be uneconomic or impossible for the majority of individuals to provide for themselves. National defense is often cited as one of those services, perhaps because it’s fairly obvious that very few of us could afford to build or buy even one aircraft or tank or ship. Other obvious “communal” services are road-building, water and sewers, ports, harbors, and canals. And some services, once regarded as best provided privately, are now considered public in most industrialized nations, such as education, old-age income security, banking regulation, food and medical oversight and regulation.

The underlying problem with taxation is that people have differing levels of income, but many of the services provided are the same, regardless of income. Each individual generally gets the “same” amount of national defense, roads built, availability to water and sewer or education as any other. And given socio-economic trends, often certain services are used disproportionately by those who have little or no income and pay little or no taxes. Thus, even with a “flat” percentage tax, in essence a certain amount of redistribution of social assets takes place. With a “so-called” progressive income tax system, where those with greater income pay a higher share of taxes, even more income and asset redistribution takes place. And when one adds in programs to aid the poor and disadvantaged, or direct subsidies to businesses, an even greater amount of redistribution occurs.

Now… even in fantasy novels, when taxes or tariffs are discussed, usually they’re imposed by the evil ruler, and they’re far too high. What’s overlooked in fantasy and reality is that taxes are in essence fees for services provided, and the social question becomes who pays how much for what, and who receives what in return for what.

The United States is running a massive deficit, financed these days primarily by the Chinese, simply because we have voted for more services than we are willing to pay for, including funding an unpopular war and income redistribution through Social Security, Medicare, Medicaid, and various welfare programs, not to mention farm and other “corporate” subsidies [not to be confused with tax concessions, which are NOT income redistribution, whether they are justifiable or not]. Oh, every American will say, “I don’t mind my taxes going for ‘X,’ but I don’t think we should be spending on ‘Y’ or ‘Z.'”

In The Towers of the Sunset, Creslin is faced with the unenviable problem of needing to raise revenue to build and pay for enough of an armed forces and navy to defend his people against outside attacks. If he taxes too highly, he will destroy his young nation’s economy, and if he taxes too little, he won’t have a nation left. But, at least, as the head of a ruling council, he didn’t have to deal with trying to explain to every citizen why he or she all couldn’t have more in services than they wanted to pay for.

There’s a very personal side to the Red Queen’s Race, and that’s what happens to individuals. For example, to people like my wife. As a professor of music and an opera director, she’s theoretically on a nine month contract — except theory is far different from practice. Admittedly, instead of working the 60-80 hour weeks, and weekends, she works during the school year, she’s only working 40 plus hours pretty much every week of her “vacation,” just to handle all the aspects of her job that don’t fit into the year, as well as: (1) counsel incoming freshmen during the three one-week sessions the university has scheduled in order to compete for students; (2) develop three new courses to help implement the new degrees offered by the University and the Music Department; (3) write the two scholarly papers due before school starts again in August; (4) track and assign incoming students; (5) develop the ground plans, staging, and rehearsal schedules for the coming year’s opera productions… and about ten other things, all during her theoretical vacation. She’s far from the only one at the university. In fact, dozens of them all laugh, and not cheerfully, at what they call “the myth of the nine month contract,” because it really amounts to the equivalent of a 25% pay cut, or 25% more in work for no more pay.

But they’re certainly not the only ones with this kind of problem. There’s a doctor I know well, who’s a surgeon and a researcher, as well as a department head, at a major medical center and who spent the last year carrying not only her job, but that of her non-existent assistant [also a doctor’s position], because budgetary constraints meant holding off filling the position for a year. The director of human resources at a major chemical company has told me that the company is always juggling these issues, because of cost and resource constraints.

Certainly, the effect has also hit the fiction publishing field. Writers whose work has won critical plaudits have been forced to move to small presses… or not have their work published at all because of the ever-increasing pressure for efficiency and profitability. Other writers are told that certain kinds of books can’t be accepted because they’re unlikely to meet expected financial and sales goals.

All across the United States, those in management and professional positions are finding themselves handling both their jobs and those once held by subordinates. Middle management positions have been trimmed everywhere, in the name of efficiency. But the work load hasn’t been cut anywhere close to commensurately. On a other economic levels, everyone has heard about all the renegotiated salaries across industry after industry, from pay cuts for pilots and flight attendants, to bankruptcy-forced pay cuts, to the replacement of full-time employees with part-timers without benefits. In fact, the only area where this hasn’t hit is CEO compensation, which for the moment seems to remain above the effect of the Red Queen’s race.

And the bottom line still remains… run faster, because running as hard as you can only leaves you in the same place.

In Lewis Carroll’s Alice Through the Looking Glass, which is, incidentally, a classic tour-de-force, the Red Queen tells Alice that running as fast as she can will not take her anywhere. To get anywhere, she must run even faster. The concept of “the Red Queen’s race” crops up occasionally, and Isaac Asimov even wrote a story with that title.

Today, unfortunately, I see western society developing along lines that make a Red Queen’s race all too likely. What do I mean?

A few examples might help. It’s widely known and often cited that working Americans take much less vacation time than people in any other industrialized nation, and the amount of vacation time taken continues to decrease. Yet, the real earnings of average Americans, after adjustment for inflation [and that adjustment, as I’ve noted earlier, does not take into account the full amount of inflation] have actually decreased in recent years. Now, the easy answer, and the one that the demagogues of the left quickly invoke, is that’s because all the “excess” goes to the “rich.” Some of it does, but one could confiscate the amount of “excess” and redistribute it across the population, and it wouldn’t change the overall picture much, and not for long. Spread across the population, those hundreds of billions of assets of the “truly rich” might increase family income by a few thousand dollars — for all of one year, because you can bet that sort of confiscatory taxation would drive those individuals right out of the country. On the other hand, the demagogues of the right claim that the problem is that the government taxation steals money from the productive and gives it to the unproductive. And while it is indubitably true that the U.S. tax system redistributes income, the United States is far less redistributive than most European countries, and the recipients of that redistributed income generally spend every last cent on buying goods and services from others, often creating more income than is “taken” for society as whole.

Yet “real” wages are tending to decline. Why?

First, we’re in a global economy, and now that technology and education are more wide-spread, other countries can produce many goods more cheaply. How are Americans compensating? They’re working longer and harder, rather than reduce their standard of living. Now that cheap credit is vanishing, and the piggy-bank of home equity has been deflated, they’re dipping more into savings and retirement.

Second, energy costs are rising, and that will squeeze U.S. businesses — and employee compensation — even more.

Even so, the Red Queen problem doesn’t lie mainly in income, but in resources and outlays, and it’s exacerbated by our vaunted technology. For example, two hundred years ago, if you got cancer, there wasn’t anything to be done, and you died. If you had congestive heart failure, not all the doctors in the world could do anything, no matter what your wealth might have been. Today, an “average,” run-of-the-mill cancer treatment can easily exceed $200,000 a year. Already, annual Medicare expenditures alone exceed $200 billion, and health care costs are increasing more than twice the rate of other services, and that doesn’t factor in private health care costs or the ever more expensive drugs and treatments.

Likewise, in the past travel and transport were limited, as were goods. The result of the industrial revolution, technology, and globalization is that more and more of the world has the ability to buy more and more goods and services… but the total of those goods and services is limited. Call it, if you will, Malthusian economics, postponed, delayed, and modified, but Malthusian nonetheless.

The real Red Queen’s race is the one that has been around since the beginning of civilization — and one whose effects have been largely mitigated or delayed in the industrialized west for the past century or so. Simply put, we have now reached the point in the development of our civilization where it will shortly become obvious to all levels of all societies that, technology and ingenuity notwithstanding, we cannot physically provide the very best in health care, commodity goods, services, housing, and food to every individual, or even to a sizable fraction of our populations.

Yes, we will be able to provide health care for most problems for most people, but not the range of life-extending and cancer-controlling and other extensive procedures for everyone — just for a comparative few. Yes, we will be able to provide fuel for transportation, but not fuel for four billion personal vehicles [a rate roughly half the U.S. average applied to the entire world, and if you think I’m being unreasonable, just look at the rate of growth of motor vehicles in China]. Yes, we will be able to provide housing, but not the 2,400 average square footage per house for U.S. new housing. And since the United States will be competing in a world market for energy, food, goods, and services, we won’t be able to isolate ourselves from these effects the way we have in the past.

Welcome back to the Red Queen’s race.

Readers of science fiction and, in particular, fantasy often read about the evils of zealotry in fictional worlds, and how it destroys people. Likewise, we in the “enlightened” and industrialized world, particularly the western world, tend to look down on the Islamic “zealots,” and to ignore anything they say which doesn’t agree with our view of the world. Now… don’t get me wrong. I am not an apologist for the excesses of Islam, nor do I have any desire to live in a culture dominated by any version of Sharia, but we tend to forget that western industrialized culture also has its zealots. In particular I’m referring to the far right-wing, the business-model-is-best, policy wonks, politicians, and bureaucrats.

Earlier, I mentioned how the failures of airline deregulation could be traced to the fact that those structuring the deregulation failed to understand or even consider that the industry doesn’t fit into a free market because there are far too many geographic, economic, and structural barriers to free and open competition. But those facts were brushed aside, and now travelers face the possibility of transportation purgatory every time they enter an airport.

Just the other day I read that some economists were re-thinking the “free-trade” ideal, and the idea that free trade was always a blessing. In fact, this group concluded free trade might not necessarily be good for some developing nations, good as it might be for the rest of the world. Then, there are the educational bureaucrats who have been attempting to restructure education on a “business basis,” which results in institutions competing for students on the basis of popularity, the increasing easiness of courses and majors, and in the watering-down of curricula and the continued pressure to increase class sizes to gain economies of scale. Whole departments have been abolished in institution after institution because enrollments were not economic, all with little consideration about the educational role of a university — supposedly its purpose.

We face a tremendous oil crisis today in the United States because the “free-market” policies of our government continually discouraged investment in alternative fuels and in more efficient automotive transport, and it’s likely that at least one of the Big Three automakers will go under financially because a tacit reliance on the economic assumption that cheap oil would always be available, which encouraged U.S. automakers to concentrate on more profitable gas-guzzling huge SUVs and trucks. Yes, that was economics — short-term economics, because in consumer goods, the marketplace reflects the “now,” not the future. That’s just one of the problems with unfettered “free-marketing.” The readjustments when the economics change can be catastrophic, something the advocates of the “business model” fail to point out.

The problem is really fairly simple to describe: Not all aspects of any society fit the “free-market” mold, because while truly free markets are certainly efficient, first, not all societal actions fit into a free market, and, second, sometimes that vaunted free-market efficiency is brutally inhumane and uncivilized. Yet, anyone who raises those issues seriously and suggests that at times regulation and control of activities on a non-economic basis might just be necessary and justifiable risks an ire and scorn from the high priests of the market not all that much different in tone than non-believers in an Islamic nation risk from their high priests — except that in the United States, the market high priests only want the power to sever people from their jobs and benefits when either is “un-economic,” as opposed to severing people from their heads, which is highly possible in the more theocratic Islamic regimes.

In either case, however, just as in too many fantasy novels, the high priests are far more interested in the purity of their beliefs than in the practical welfare of their people, and in that sense, there’s not all that much difference between in the approach of the free-market zealots and the Islamic zealots.