If executed perfectly, I imagine this removes all incentive to make money, since you can't obtain any more stuff with more money. It wouldn't even be nicer water. Trading is cut off from ability to accomplish anything. This kills the economy.
All these theories have been tried one way or another. The only one that works is the free market, because the free market is the only one that relies on people being selfish.
Any system that relies on unselfish behavior fails.
That's a little happy fairy tale with extra sparkly fairy dust on top but what all that free markets have given us in practice is misery, despair, war, destruction and environmental catastrophe.
Capitalism is “the astonishing belief that the nastiest motives of the nastiest men somehow or other work for the best results in the best of all possible worlds.”
P.S. It doesn't help of course that "free" markets are never really free because they are very quickly taken over by the "nastiest men" etc. and the last thing those people care about is freedom, particularly that of the markets they make their money from.
See for instance the subject of ticket touts. There is no free market in online ticket reselling because the entire market's cornered by bot farmers who buy tickets in bulk automatically the moment they are made available and leave none for anyone else. "Free" market, my sweet little hiney.
And btw, in the UK the same thing happens with driving test slots:
the shortage of driving test slots is entirely the fault of inefficient government bureaucracy. people are rationally responding to the scarcity by using bots.
if the supply of tests were allowed to rise naturally to meet the existing demand, this problem wouldn't exist. we are only in this situation because the government artificially limits the supply.
this is a very common pattern where people get upset at high prices but are completely incurious as to where the shortage really comes from.
