Substantial And Specific Feedback

2019-01-17T18:34:36.000Z Honest Cash
Response to "RE: Honest Cash VS" by JonathanSilverblood

Hi, thanks for the response.  Actually I had planned on mentioning your response about bitbacker but somehow I failed to work it into my story.  

The economist Scott Sumner recently blogged about the films of 2018.  He doesn't usually blog about films, he usually blogs about economics.  I'm interested in both topics so I replied to his entry and mentioned a few of my favorite shows.  I also told him about Honest Cash.  And Cent.  

Even though I'm interested in economics and films, I am not equally interested in these two topics.  I am far more interested in economics.  This is because the best economic system will produce the most valuable supply of films, and books, and music, and food, and clothes, and… everything.   

The question is… how should Sumner divide his limited blogging time between economics and film?  In order to make the most informed decision, he has to know how much value each topic creates for his readers.  Patreon would not supply this incredibly useful information, but Honest Cash would.  

If Sumner started blogging on HC, then how we divided our money between his topics would accurately reflect how we want him to divide his time between them.  Maybe his stories about film would receive a lot more money than his stories about economics.  This wouldn't force Sumner to write more stories about film, but at least he would be able to make an accurately informed decision.  

Here's an accessible critique of socialism…

"The management of a socialist community would be in a position like that of a ship captain who had to cross the ocean with the stars shrouded by a fog and without the aid of a compass or other equipment of nautical orientation." - Ludwig von Mises, Omnipotent Government

Patreon is like a compass that is only half effective.  It would inform Sumner how much value his content is creating, but it wouldn't inform him which of his content is most valuable.  This means that it is very unlikely that he would go in the most valuable direction.  Chances are good that the amount of time that he spent blogging about film would be either more than, or less than, his readers truly preferred.  

Like I said, if Sumner was on HC he wouldn't be forced to cater to his readers' preferences, but at least he would know what they truly are. So would all the other writers.  In a market you're welcome to not pick up the $100 dollar bill just sitting in the middle of the sidewalk, but if you don't, it probably won't sit there for long.  

"Likes", retweets and views can certainly provide some feedback, but these can only reveal how popular some content is.  They can't reveal how valuable it is.  Value is a function of sacrifice.  Spending money is a sacrifice.  

A good market will allow consumers to provide producers with substantial (ie monetary) and specific feedback.  Patreon is not a good market.  The feedback is substantial but not specific.  HC, on the other hand, is a good market.  The feedback is both substantial and specific.  HC's compass is far more accurate than Patreon's.  

Let me know if this makes sense.  But in any case, the proof is in the pudding.