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.

Twitter @DivineEconomy

https://www.rebelmouse.com/Bruce_Koerber/

http://bruce-koerber.squarespace.com

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s