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Whilst small and medium-sized enterprises often have to operate highly efficiently to survive in today’s competitive environment, the economy as a whole appears increasingly inefficient.

The parallel production of similar goods, planned obsolescence and the neglect of fundamental human needs are hallmarks of market logic. How much longer can an economy afford this? Especially as this overproduction and the global transport of goods – often manufactured in low-wage countries – rely primarily on fossil fuels.

Since the advent of global digital connectivity, the question arises as to whether markets are technically even necessary any longer for social coordination. People could communicate their needs directly via the internet, producers could respond immediately, and digital systems – including democratically controlled AI – could help to coordinate production in a way that is needs-oriented rather than purchasing-power-oriented.

What, however, would remain as an incentive for companies to fulfil their role in providing for people? Without prices, without competition, without the pursuit of profit?

Surprisingly, what remains is not less, but something far more fundamental and pure. Research into intrinsic motivation (in particular the self-determination theory by Deci & Ryan) shows that three basic psychological needs remain, which would then have an even stronger effect than they do today:

1. Social recognition and status (the need for connectedness)

Even without money, a new form of ‘social capital’ emerges immediately. Anyone asked to make something receives direct, non-commercial appreciation. The motivator is not the selling price, but the fact that one is needed.

If your neighbours ask you to build a device because you’re the best person for the job, that’s a powerful emotional reward. This feedback would be a pure, unfiltered ‘helper hormone rush’, because you can see immediately how your own product solves a real problem.

2. Pride in craftsmanship and mastery (the need for competence)

The drive to design something perfectly, beautifully, durably or particularly cleverly is deeply rooted in human nature. Without the pressure to cut costs or build in planned obsolescence to generate repeat purchases, the joy of problem-solving itself would come to the fore. The engineer or designer would not ask, ‘Will this sell?’, but rather, ‘Is this the best solution for you?’ This is pure intrinsic mastery – comparable to an artist who paints not because the painting will be sold, but because it has to be created.

3. Creative autonomy (the need for freedom)

You might think that without a market, creativity would die because there would be no competition. The opposite is true. Freedom would then consist of being able to freely choose the path to meeting that need. Although the brief may be ‘Build me a roof’, how it is built – and which innovative materials or designs are used – is left to the entrepreneur. This creative freedom is an extremely powerful motivator – often more so than keeping up with competitors.

4. Reciprocity and interpersonal obligation

In a market-free, purely needs-based society, a network of mutual favours would emerge. When businesses produce purely on demand, a direct relationship is formed between producer and recipient. The motivation to do outstanding work is then fuelled by the natural human need not to betray the trust placed in one. One does not produce for anonymous ‘customers’, but for specific people whose faces one knows.

So what would be lost?

The urge to invent products of little use simply to promote them. The motivation to create dependencies or stir up artificial needs would disappear completely, because it would no longer serve any purpose in this system.

What would remain and even grow stronger?

The very essence of human drive: curiosity (What else can I learn to help better?), care (How can I make your life easier?) and pride (Look, I’ve managed to do this for you).

In this fictional scenario, entrepreneurs would no longer be businesspeople, but problem-solvers with the soul of a craftsman. Their drive would be no weaker than it is today, but even purer and more immediately satisfying – for success would not be measured by an abstract balance sheet, but by the happy feedback of a single person whom they have just helped.

The question remains: How can we transcend the market?

Berlin, 1 July 2025

Eberhard Licht              simple at economy dot nu