Divine Economy Theory Cures The Disease Of Statism.

Whether humankind realizes its potential or not the equilibrium forces are always actively a part of the world that humans dwell in and experience. Those diseases that afflict humankind eventually will be cured – as soon as humankind learns enough about the disease and how to cure it and about the wonders of being freed from the disease. Statism is one such disease.

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Risk And Uncertainty Are Not The Same.

There is uncertainty in the human world because of imperfect knowledge.

Risk is a direct consequence of the most limiting factor in the economy – capital. If there was no limit to capital, if it was not scarce, there would be no risk up front and if there was no limit to capital even the risk of failure – loss instead of profit – would have little impact on motivation other than lowering self-esteem!

But capital is the limiting factor in the economy and because it is scarce the risk of using it improperly – for either unproductive or relatively unproductive endeavors – is real and imposing. Uncertainty comes into the picture because deciding where and how to use capital requires a reliance on imperfect knowledge.

The alertness of the entrepreneurial spirit plays a vital role in ameliorating this imperfect knowledge problem via awareness and ideation. And then having peaceful and cooperative relationships around the world lowers cultural time preferences which increases the willingness to save and that makes capital more plentiful.

The power of the equilibrium forces that operate in the economy effectively implies that there is an omniscience, an omnipresence, and an omnipotence beyond the ken of human perception and comprehension that needs to be trusted, rather than interfering with it. The divine economy theory sheds light on all of these.

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Entrepreneurial Spirit, Discovery, Originary Interest, And Theory.

The entrepreneurial spirit which leads to discovery does not necessarily translate into an act of entrepreneurship. In a sense it is like savings, it can exist or it can exist as capital. Capital is the active form of savings.

To assume away the entrepreneurial quality of discovery because it has not yet combined with the bearing of risk is like assuming away savings as the origin of capital because sometimes it does not serve as capital.

This brings time preference into the discussion. Time preference is part of the human reality and it is a natural outcome of originary interest. Discovery is directly related to originary interest since it explains why people take action in the present. Humans do, indeed, place a high valuation on the present. High time preference of a degree that approaches instantaneous does not make irrelevant time preference theoretically.

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Subjectiveness, Happiness, Competition, And Excellence In All Things.

It is true that each person makes choices for themselves, knowing themselves (inside and out!) and this subjective decision-making is done in an effort to bring about or increase happiness. There is an effort made to improve one’s circumstances and align them with what is valued subjectively. This striving for betterment is like the athlete who wants to perform better in a competitive spirit to achieve at a higher level, to be more satisfied and happier. This striving for higher degrees of excellence is part of a natural competitive drive for happiness; in alignment with what is valued subjectively.

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The Market Process is Competitive, Entrepreneurial.

It is in the competitive market where the entrepreneur plays a critical role. Paradoxically, as it happens, the market process is competitive because it is entrepreneurial. Market information is acquired through the experience of market participation. And entrepreneurial action is taken in response to the changes that occur in the market data, assuming that the changes are detected. So it is that prospective decisions of buyers and sellers at every step in the production process are subjected to this competitively alert scrutiny.

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Entrepreneurs Step Forward And Bear The Uncertainties.

Why are there unnoticed opportunities? One reason – imperfect knowledge. For example, resource owners and consumers are often passive in the very dynamic economy. What ‘unnoticed opportunities’ means is that there will necessarily be more efficient ways to coordinate transactions in the resource and product market. Whoever steps forward as an entrepreneur and bears the uncertainty inherent in the market will be the one who is in the position to capture these opportunities.

Moment to moment any market participant can become an entrepreneur or not, either now or later, or over and over again. And even though economic roles are multiple – yet still they are distinct. For instance, resource ownership and entrepreneurship are completely separate functions; nevertheless the same person may be an entrepreneur, a resource owner and a capitalist and yet still perform these functions independently.

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