It means the state should play a dominant role in the economy, in particular by controlling commercial activity Everything the citizens of Arakis produce belongs to the Emperor and It decides what to do with it and who profits from it. The government directly supports favored companies orcorporations and inhibits competition. They typically do this through tariffs subsidies and regulations that restrictwho is allowed to participate in commerce. The company responsible for melange is CHOAM aka the honorable union for the advancement of mercantilism in which the emperor has directorship.

Adoption of Mercantilist Economic Policy

It's year 10,191, and human beings have spread out and colonized planets throughout the universe. On the planet Caladan, Duke Leto of the House of Atreides is preparing to leave for his new position as the governor of Arrakis, a desert planet with valuable resources of melange, a spice drug that is extremely popular with wealthy people. Leto and his family, including his concubine, Jessica, and his son, Paul, suspect a trap by their rivals, the Harkonnens, led by Baron Harkonnen. Leto decides to settle on Arrakis because of its rich supplies of melange, despite warnings from his men.

The Setting

Contradictorily, spice(the most expensive thing in the universe) is only found on Arrakis.Still, much of the Arraken population is materially poorer than a lot of people alive on earth today.  The reason is the political system in Dune: Imperial Feudalism which means the entirety of society is controlled by a private political party and since the territory is vast, some power, in this case, is delegated to Dukes and Barons. The people of Arrakis, are also not legally allowed to own productive land or keep the proceeds of their work.

The government

Nothing is more useful than water: but it will scarcely purchase anything.A diamond on the contrary has scarcely anyuse-value but a very great quantity ofother goods may frequently be had inexchange for it.

He who controls the spice controls the universe.

On the Atreides home planet of Caledon water is everywhere there are vast oceans rivers and rainstorms so the people living there can consume a lot at virtually no cost.  On Arrakis, although water is extremely scarce, it's expensive. Even wet towels from the palace are sold to Fremens with whatever moisture that can be wrung out of them. This is a fantastic lesson on subjective value.

Model of internal logic in storytelling

The average price of a good or service is not based on the amount of labor or the cost of the resources required to produce it. It's a function of supply and demand value changes depending on individuals desires and preferences and it's based on the availability of whatever it is that they want relative to how many other people happen to want the same thing at the same time For eg- if you are thirsty and have a bottle of water, you are very less likely to give it to me or maybe charge a lot of money. On the other hand, you might have 100 bottles and may just give them to me for free.

Economic values are subjective

Leto's main plan is to enlist the Fremen, the tough natives of the Arrakeen desert, as soldiers and advisers but he's betrayed by one of his own soon after arrival, and Paul and his mother, are left to fend for themselves. Eventually, Paul and Jessica come into contact with the Fremen, a group of people native to Arrakis. Paul learns more about his heritage and psychic abilities and even meets his love interest, a Fremen woman named Chani. The remaining members of the Atreides family soon join forces with the Fremen to take back Arrakis and avenge their family.

The Plot

As a result of the policy, the people of Arrakis have no purchasing power with which to flood their entire planet with water food, and other resources they could have easily acquired in exchange for their magicalspice. In a world where individual rights are universally respected, we would see a multitude of property owners who become entrepreneurs, who genuinely create value for others which ultimately enrich the lives of even more consumers, and equally importantly everyone wouldbe allowed to keep the income they have legitimately earned using it to improve their own lives as they see fit

Economic freedom to enrich lives

Frank Herbert’s sci-fi novel “Dune” is a literary masterpiece filled with illuminating insights. In anticipation of the upcoming movie release, this episode of Out of Frame explains why the fascinating world constructed by Herbert is not only a great story, but also surprisingly sound in terms of philosophy and economics. Ultimately, “Dune” demonstrates how systems of mercantilism and feudalism create crippling poverty, when systems based on private property and free trade do not. ______________________________ FOLLOW/SUPPORT US: Support Out of Frame on Patreon or SubscribeStar:  https://www.patreon.com/OutofFrameShow https://www.subscribestar.com/outofframeshow Join our Discord: https://discord.gg/RKc4AcGQ9k Watch our newest video, "Everything You *Really* Need to Know About Dune": https://youtu.be/ZmNzbhM4BSQ Sign up for our mailing list and never miss an episode again: https://fee.org/oof-newsletter Check out our podcast, Out of Frame: Behind the Scenes: https://www.youtube.com/channel/UCiS5rEmhnLwo1IG9bgr19Og Follow us EVERYWHERE! https://linktr.ee/outofframefee ______________________________ CREDITS: Written by Sean W. Malone Produced by Sean W. Malone Edited by Michael Ozias Asst. Edited by Jason Reinhardt ______________________________ LINKS: -- Marginal Utility -- https://fee.org/articles/to-be-a-happy-person-understand-marginal-utility/ https://fee.org/articles/value-cost-marginal-utility-and-bhm-bawerk/ https://fee.org/articles/eugen-von-bhm-bawerk-a-sesquicentennial-appreciation/ https://fee.org/resources/bhm-bawerk-for-the-citizen/ -- Capitalism -- https://www.empireonline.com/movies/news/dune-story-enough-is-enough-exploited-cultures-exclusive-images/ https://movieweb.com/dune-2020-oscar-isaac-anti-capitalist-environmental/ https://www.jacobinmag.com/2021/08/dune-herbert-science-fiction-conservatism -- Paradox of value -- https://en.wikipedia.org/wiki/Paradox_of_value https://www.investopedia.com/ask/answers/032615/how-can-marginal-utility-explain-diamondwater-paradox.asp https://www.youtube.com/watch?v=e7S8jWh6AEs -- Mercantilism -- https://www.investopedia.com/terms/m/mercantilism.asp https://www.econlib.org/library/Enc/Mercantilism.html https://www.economist.com/free-exchange/2013/08/23/what-was-mercantilism

Discover the world of business and economics.

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Frank Herbert’s sci-fi novel “Dune” is a literary masterpiece filled with illuminating insights. In anticipation of the upcoming movie release, this episode of Out of Frame explains why the fascinating world constructed by Herbert is not only a great story, but also surprisingly sound in terms of philosophy and economics. Ultimately, “Dune” demonstrates how systems of mercantilism and feudalism create crippling poverty, when systems based on private property and free trade do not. 
______________________________
FOLLOW/SUPPORT US:

Support Out of Frame on Patreon or SubscribeStar: 
https://www.patreon.com/OutofFrameShow
https://www.subscribestar.com/outofframeshow

Join our Discord: https://discord.gg/RKc4AcGQ9k

Watch our newest video, "The 1970s are back. Yaaaayyyy.": https://youtu.be/pYnpnB0dj5s

Sign up for our mailing list and never miss an episode again:
https://fee.org/oof-newsletter

Check out our podcast, Out of Frame: Behind the Scenes: https://www.youtube.com/channel/UCiS5rEmhnLwo1IG9bgr19Og

Follow us EVERYWHERE!
https://linktr.ee/outofframefee
______________________________
CREDITS:
Written by Sean W. Malone
Produced by Sean W. Malone
Edited by Michael Ozias
Asst. Edited by Jason Reinhardt
______________________________
LINKS:

-- Marginal Utility --

https://fee.org/articles/to-be-a-happy-person-understand-marginal-utility/
https://fee.org/articles/value-cost-marginal-utility-and-bhm-bawerk/
https://fee.org/articles/eugen-von-bhm-bawerk-a-sesquicentennial-appreciation/
https://fee.org/resources/bhm-bawerk-for-the-citizen/

-- Capitalism --

https://www.empireonline.com/movies/news/dune-story-enough-is-enough-exploited-cultures-exclusive-images/
https://movieweb.com/dune-2020-oscar-isaac-anti-capitalist-environmental/
https://www.jacobinmag.com/2021/08/dune-herbert-science-fiction-conservatism

-- Paradox of value --

https://en.wikipedia.org/wiki/Paradox_of_value
https://www.investopedia.com/ask/answers/032615/how-can-marginal-utility-explain-diamondwater-paradox.asp
https://www.youtube.com/watch?v=e7S8jWh6AEs

-- Mercantilism --

https://www.investopedia.com/terms/m/mercantilism.asp
https://www.econlib.org/library/Enc/Mercantilism.html
https://www.economist.com/free-exchange/2013/08/23/what-was-mercantilism

FEE focuses on introducing freedom as a life philosophy to newcomers in the youth audience, striving to bring about a world in which the economic, ethical, and legal principles of a free society are familiar and credible to the rising generation.

Economic values are subjective

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