Star Trek Economy: From Latinum To Federation Credits...

Of all the science fiction on Star Trek, perhaps the most confusing element of it's utopian future is the economy, from Federation credits to latinum. Star Trek famously introduced a 'post-scarcity' future where citizens of the Federation no longer use money nor need to work in order to live. However, from the use of Federation credits to the Ferengi's favorite currency, latinum, the need for money in storytelling has confused this concept. The Star Trek storytellers have avoided addressing this specifically in canon, but through context, the economy of the Federation can be figured out. There are a lot of scientific concepts in Star Trek that are both fantastical and difficult to understand. Warp drive, for one, doesn't technically break the laws of physics but is far more fantasy than reality. Transporters also have a logic to them, even though it's a fair debate if every time Kirk and the gang beam down somewhere they aren't, technically, dying and being reborn. Yet the one scientific concept Star Trek storytellers often avoid is how the economy of the Federation works. The characters often say they no longer "use money," yet they still use modern economic terms and, whether it's Federation credits or gold-pressed latinum, there is still currency. So how does it all work? It's never fully explained in the Star Trek canon, for good reason. The development of the United Federation of Planets, or at least the United Earth, as a currency-free zone stems from Gene Roddenberry's vision of the future. When developing Star Trek: The Next Generation, he became much more committed to the idea that his utopia was a post-capitalist one. (Though the Great Bird of the Galaxy himself was so concerned about his money, he brought his lawyer onto the studio lot with him.) Still, he created the Ferengi, originally hated by fans, as a harsh critique of the "Greed is Good" mentality of 1980s America. Still, with inferences in the shows and films, a picture of what the Star Trek economy looks like starts to form. What Federation Credits Are in Star Trek and How They Are Used... In most cases, life in the Federation is fairly easygoing. Earth is often described as a paradise, where private property still exists. Benjamin Sisko's father has a restaurant in New Orleans that he owns, but he apparently doesn't charge his customers. Both Captains Kirk and Pike own houses, too. Kirk had one represented in the Nexus in Generations, which he told Picard he "sold years ago." Christopher Pike has a horse ranch in Strange New Worlds' series premiere, where Admiral April comes to recruit him back to command. Of course, Picard has his family's vineyard, which consists of a large house and a sizeable wine-production operation, too. However, life in Federation colonies from The Original Series era into the 24th Century where life is considerably harder. They are often seen asking Starfleet for supplies and other material help in episodes across the series. Since they are on the periphery of Federation space, they may use Federation credits to do business with non-Federation peoples. In the classic "Trouble With Tribbles" episode, Cyrano Jones sells one of the furry creatures to Uhura for Federation credits. Antagonist Harcourt Fenton Mudd had a bounty in Short Treks listed in Federation credits and was caught in The Animated Series selling "love crystals" for 300 credits each. The credits are likely just that, a measure of value that non-Federation members can use to pay Federation merchants or colonists for goods and services. Amass enough Federation credits, and one could purchase a replicator or even a starship. In TNG's Season 3 episode "The Price," Picard is there to offer a lump sum of 1.5 million credits for control of a stable wormhole in the Barzanian Republic, along with a yearly stipend of 100,000 credits. While they may be used internally, it seems these are mostly for doing business outside of the Federation. Gold-Pressed Latinum Is the Alpha Quadrant Currency of Choice... Latinum Denominations 1 brick conversion unknown 1 bar 20 strips 1 strip 100 slips While the Federation offered a bounty for Harry Mudd, even their own people didn't want credits. In the Short Treks episode "The Escape Artist," Tellarite bounty hunters wanted their payment in latinum. The substance was valuable in the Alpha Quadrant, particularly to Ferengi merchants. In its natural state, it was a silver liquid like mercury but was often pressed in gold (considered a mostly worthless substance on its own). This currency was created for Deep Space Nine and slowly defined over the series' run. There were other currencies, such as the "isik," but latinum was, quite literally, universal. Latinum had several denominations: slips, strips, bars, and bricks. Values weren't consistent, as 100 slips equal a single strip, and 20 strips equaled a bar. Though, bars seemed to come in varying sizes, whereas bricks were of a consistent size and shape. When not suspended in gold, latinum was usually measured in grams and kilograms. In the DS9 episode, "Who Mourns for Morn," a mouthful of the liquid was supposedly equal to "100 bricks" of the gold-pressed stuff. On DS9 there was no mention of Federation credits, and Starfleet conducted their business with the Ferengi, the Cardassians, and, presumably, the planet Bajor in latinum. It's unclear if latinum cannot be replicated, like the rare dilithium crystals that power warp drives. Yet, even if it could, the Federation likely wouldn't allow latinum replication. If they did, the introduction of the rare material would upend the economies of the non-Federation planets. It's unclear if the Federation mined latinum themselves or if they merely accepted it as payment so they could use it to pay non-Federation staff on the Deep Space Nine station, like the Bajoran security guards or the Starfleet guests at Quark's bar. In Star Trek IV: The Voyage Home, Kirk makes it clear twice that the Federation is already no longer using money by the late 23rd Century. Star Trek: Discovery and Strange New Worlds have introduced the idea of a "matter synthesizer," which is just an early form of the 24th Century's replicators. They are why the Federation and Starfleet can no longer care about money. These magical devices can create food, clothing, and just about anything else someone can think of seemingly out of thin air. Star Trek: Voyager made it clear conservation of mass still applies, as the crew of that ship had "replicator rations." People's most basic needs are met via this device, though it's often stated that non-replicated food just tastes better. The economics of Star Trek are deliberately vague, more about the idea of a post-scarcity world than the reality of it. While it makes for some confusion when drilling down into the economic theory of it all, it works for the show. The people in Starfleet or civilian service don't have to work to survive, but they seem even more dedicated to careers than the most office-obsessed corporatists in the 21st Century. ~ Story by Joshua M. Patton.