War and Inflation Violate Property Rights

If people can trust the future they will have lower time preferences which will amplify the transforming capability of capital. There are very specific interventions into the economy that strongly influence the level of trust. If there is a tendency to choose war as the main or even as a viable alternative to diplomacy then the lessened trust that such an act engenders atrophies the economy. Or if there is a medium of exchange that can easily be debased by a central bank (for example, when there is a fiat currency) then the horizon of the time preference shortens, stifling prosperity. Both of these acts of intervention — war and inflation by the central bank — violate the property rights of humanity.

Those things that foster trust and trustworthiness need to be given particular emphasis as part of the learning process in the education system. The pivotal nature of property rights needs to be made crystal clear.

Divine Economy Theory Policy #6: War and Inflation Violate Property Rights

Policy Statement: War and its exorbitant costs and its associated destructiveness, and inflation of the money supply by the central bank, are unacceptable violations of property rights and those who try to impose either of these should be held accountable by legal means. Authority to take these actions (war and inflation) needs to be specifically assigned so that there is specific and definite accountability.

The legal liability for such acts needs to take precedence over the act itself. The government-created veils of self-protection and inculpability need to be removed so that property rights can be protected.

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Econometricians Pretend That Mathematics Has Solved For Infinity.

The divine part of the economy is its infinite nature – incomprehensible to the human mind – yet fully capable of grace and justice when freed from the ego-driven interventionists.

This does not square with the use of mathematics in mathematical economics. Mathematicians have never solved for infinity. Whatever the supposed answer is just simply add one and the futility of their plight is as evident as the Sun at midday!

Yet the mathematical economists try to hide behind their incomprehensible and nonsensical equations and formulae in an attempt to exalt themselves, giving the false impression that they have an authoritative interpretation. These claimants are ego-driven interpreters whose glory is to empower the ego-driven interventionists.

Because of the divine nature of the economy – its infinite character – there is no moral authority for interventionism. The mathematical economists cannot provide the necessary foundation for interventionism any more than mathematicians can solve for infinity.

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Education About Entrepreneurship

The purpose of educating people about entrepreneurship is basically to encourage and foster the acquisition of the skill of discernment. This comes from learning about the learning process in humans. The more discernment and alertness there is in the market the more quickly knowledge will flow and the more quickly will it be acted upon. This leads to an advancement of the market process and to prosperity. If the market is in an inefficient condition the solution is to do a better job of educating people about entrepreneurship.

 Divine Economy Theory Policy #5: Education About Entrepreneurship 
Policy Statement: A rational policy would be to encourage all providers of education to acknowledge the role of entrepreneurship in advancing prosperity and to teach any and all skills that help to make people discerning and alert.

See this policy in the greater context here.

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Economic Equilibrium In The Austrian And Divine Economy Theories.

There is less virtue in science when it is static and it is never the desire of the champions of science that their contributions be seen as the final contribution to its advancement. Just like it was before their contributions, science had reached a certain plateau where most of their contemporaries dwelt until the explorer began the trek towards a new summit.

In contrast to the empiricism-dominated economic ‘science’ the Austrian school never accepted the interpretation of equilibrium given by their contemporaries. Actually empirical economists have to use equilibrium to provide a framework so they can apply econometrics. In a sense the whole empirical construction depends on the assumption of equilibrium and it will necessarily crumble into a heap of nonsense if the concept of equilibrium is removed. Sensing its total self-destruction the gate-keepers of empiricism cannot allow query into the subjectivist approach. Right there – the fear of inquiry – demonstrates extremely poor scientific method.

In the Austrian school of thought equilibrium is viewed as a mental construct that never really exists and so it is not needed to make economic analysis. The real condition in the economy is disequilibrium tending towards equilibrium. As succinctly stated by Murray Rothbard “The final equilibrium state is one which the economy is always tending to approach.” These tendencies reflect the actions of humans as subjective beings with uniquely functional human qualities, the effect of which can be understood further by praxeology.

The divine economy theory advances economics further by broadening the ontological foundation that fits into the natural law as it pertains to human beings. Not only are humans physical and intellectual but also spiritual which then has significance with regards to equilibrium. The equilibrium forces that create the tendencies spoken of by Rothbard are not randomly a part of Mother Nature. The equilibrium forces are part of the economy and the reason is because the economy only exists because humans exist and humans are spiritual in addition to physical and intellectual. By ignoring or being unaware of the spiritual nature of human beings the balancing and harmonizing potency of equilibrium is falsely deprived of the inherent motive force since human action is purposeful. In other words, the equilibrium forces are also purposeful, not dissociated from the special station of human beings in the world of creation.

Equilibrium as a force and the appearance of disequilibrium in the economy are fully within the realm of scientific exploration and the realm of advancing comprehension but it does require a dynamic approach to science. Our ability to test validity should make us willing to welcome claims of new discoveries because we can make reasoned judgments, that is, as long as we do not act as if science is something static.

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Enforcement of Property Rights

Corollary to having well-defined and refined property rights is the strengthening of the legal system such that it can effectively enforce property rights. The best means to protect private property rights is to strengthen the role of private providers since there is often a conflict of interest when the State is involved in protecting private property rights. Both the definition of property rights and the ability to enforce property rights are currently very weak, even weaker than they were 100 years ago.

Divine Economy Theory Policy #4: Enforcement of Property Rights
Policy Statement: A rational policy would be to initially begin enforcing property rights at the level of the individual, and then to learn how best to refine property rights from these efforts. Within each community this right and responsibility exists and needs to be given due attention. The proper role of government is to protect its citizens from fraud or acts of violence by enforcing property rights, however, competition by private providers of legal protection will ensure that the best means of enforcing property rights is always available.

See this policy in the greater context here.

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Market Forces Will Moderate Business Sizes

Arbitrary regulatory designs and vain imaginings of bureaucrats always fail. In contrast, when decisions are made fluidly in response to the forces in the market then those who express their needs naturally as part of the market process are served quickly, efficiently, mercifully, and with justice. The size of firms – that can serve the people best – is one of the manifestations of this justice.

Divine Economy Theory Policy #3: Market Forces Will Moderate Business Sizes

Policy Statement: A rational and just policy would be to remove the institutionalized barriers that prevent property rights from being protected, and to remove the special privileges that artificially protect any entity from the equilibrating forces of the divine economy.

See this policy in the greater context here.

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The Right of Secession

It is time to bring back into common use – in our language – a term that is understood in the classical liberalism tradition. That word is subsidiarity. It is the necessary complement to federation. Without subsidiarity even the logic of federation is thwarted, thus becoming potentially tyrannical. The guarantee of the maintenance of the balance brought about by the complements of subsidiarity and federation is the right of secession.

Divine Economy Theory Policy #2: The Right of Secession

Policy Statement: A rational policy would be to develop discovered law in such a way that a jurisdiction would not have to accept any intervention that a larger jurisdiction tried to impose upon its economy.

See this policy in the greater context here.

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