Precision And Accuracy In Economics.

Question: Where is the difference in the meaning between precision and accuracy most pronounced?Answer: We see it in science.

First let us look at the physical science of chemistry. Measured to the exact milliliter you added a catalyst to the beaker and then began to heat it. The desired chemical reaction did not occur despite the precision of your measurement. The amount used was precise but it was not accurate. You should have added at least 25% more of the catalyst.

Now we will move to a human science – economics.

Great is the difference between those who use empiricism and those who use the methodology of subjectivism! Clearly the empirical economist confuses precision with accuracy and even their confidence in precision is misguided. The empirical economist trusts that his or her data point is precise and accurate. First of all, it cannot be accurate because a human choice cannot be encapsulated in a point of data. Even a price paid for something means that the item purchased is worth more than the amount paid for it. No one buys something if it is not valued higher than what was given in exchange for it. And since human valuation is subjective, dynamic, and always at variance the empiricist’s data cannot be precise.

Imagine the precision of your interplay in the economy. You go to the gyro food truck and buy the combo – a sandwich and a drink. That is precisely what happens every time a combo is sold. Remember, there is no guarantee that what appears to be a pattern will continue. The owner/entrepreneur must be ever-vigilant and willing to serve the consumer.

The economics of human action that uses the methodology of subjectivism recognizes the market process as precise but not necessarily accurate. Each and every voluntary exchange is exactly that – a voluntary exchange – and that is precisely what it is. The exact wish is consummated by the voluntary exchange and this precision occurs over and over every time.

Since human knowledge is always imperfect and the economy is always in disequilibrium there is an inherent inaccuracy but what we are talking about is relative rather than some unattainable absolute (as if there was perfect knowledge) which means that the accuracy is pretty good and certainly better when there is no intervention distorting the market process signals.

In true science both precision and accuracy contribute to greater understanding, and science advances as a result. As science advances it contributes to the well-being of civilization.

Imagine the disastrous consequences if the science of chemistry merely pretended to know the difference between precision and accuracy. We are living in the Dark Ages of economics because what is passed off as economicshas neither precision nor accuracy.

Contact me since you are interested in the art and science of economics.

Structure And Time Define Capital.

Everything has structure, of whatever type, and structure is an enabling potency. In the world of existence that we humans dwell, time is another factor. For instance, every day the sun rises and so time is recognized as a part of life. These two, structure and time, are strongly evident components of the economy and their intermingling is what defines capital.

Imagine an intricate latticework: a beautifully woven silk fabric made by a skilled artisan or an amazing spider web sparkling with dew. It is all connected and bound together, which is one way to visualize the structure of capital. Another day, another tapestry and another freshly woven web – different over time, accommodating the changes over time. The dynamic intricate latticework of the capital structure emerges from the market process and yet neither its breadth and depth nor its appearance along the time horizon can be fully comprehended by the human mind. Nor does it need to be!

So it is, just as we recognize that there is an infinite variety of structures in all of creation it is true also that the capital needed for producing all of the products that people desire is diverse and various. And that does not even take into account the time element. Some production processes are short and others are lengthy. The capital structure is really an infinitely intricate latticework of both structure and time, dynamically.

The complexity of the capital structure may divert attention away from its purpose and function. In the divine economy model it is the transformative element. 

The divine economy model shows that just as individuals seek transformation, all of the factors that are a part of the economy are also irresistibly and subtly transformed, ultimately serving the needs of those earthly ‘images’ of the Creator – human beings – you and me.

Contact me if you are interested in the art and science of economics.

Property Rights Are Human Rights!

There are underlying laws in the physical world, such as gravity, and these are discovered and mastered by objective methods. Despite gravity the eighty or so hot air balloons at the National Balloon Classic in Indianola, Iowa took flight and bedazzled the onlookers and spectators, not because they know how to stop gravity but because they had the materials and the skills to use other physical laws within the confines of the atmosphere to offset the force of gravity.

Likewise, there are laws that operate in the human sphere that pertain to the intellectual and to the spiritual processes and these are discovered by the methodology of subjectivism. For example, the idea that there are human rights is subjectively derived and confirmed yet perfectly valid.

I have never encountered any person who did not know that life is a creative enterprise involving mind over matter, with energy directed towards finding ways to increase happiness and satisfaction. It is understood that this is the human condition. This is not doubted although it is not always achievable. If there are obstacles imposed these are viewed as attacks against human rights.

It turns out that the mirror images of human rights are property rights. The satisfaction and happiness striven after are step by step increases in ownership of those things that are viewed as valuable even including ideal things like peace of mind. In this instance a person attains a degree of contentment and does not want that possession attacked or taken away.

The very foundation of the divine economy model is anchored in these subjective laws that are part of the human operating system. Imagine anchoring the ship of human endeavor with human rights and property rights. That is a strong mooring that will withstand the storms of life!

Contact me if you are interested in the art and science of economics.

Property Rights Are Human Rights and Human Rights Are Property Rights.

Possession of property precedes and supersedes theft. Theft is the violation of property rights and human rights. Once it is better understood that property rights are human rights then what is now inept defense of property rights will be made strong and universal. Of course that means that the Dark Ages of economics must come to an end and that will happen when the plague of statism is cured.

The Difference Between Economics And Statism.

Here’s a thought: economics is the study of the means to attain the ends chosen. There is nothing in that definition of economics that is compatible with statism.

Where to begin? When economics is completely misrepresented in the ‘education’ pushed forth – to thoroughly anesthetize the people who ‘learn’ within the system of the State-funded and State-controlled media and ‘education system’ – then the best place to begin is by giving the true and exact definition of economics. Economics is the study of the means to attain the ends chosen.

Again we need to find the starting point: it is me and you! Economics is me and you choosing the ends and then choosing the means to attain the ends.

This is in sharp contrast to the ‘economics’ pushed in the ideology of statism. Look at the ends chosen: the ends are the ones chosen by the State and any deviation from those ends are either ostracized by the same State-funded and State-controlled media and ‘education system’ or coercively attacked.

Now we will look at the study of the means. In true economics all means are studied with the objective being to compare and contrast and to analyze to find the best means. This is very far from statism. In statism the only means allowed to be examined are the variations of statism.

What true economics quickly and powerfully can do is show the better means to attain any and all virtuous ends. None of the better means have any of the characteristics of statism.

In essence only if the ends chosen are totalitarianism and oppression would the various means of statism be the best.

So what is the difference between economics and statism? Economics exposes statism as an extremely poor means to attain any and all noble ends.

Contact me if you are interested in the art and science of economics.

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Coin Clipping Before the Lifetime of Muhammad.

History is full of instances where gold and silver coins were “clipped” in an attempt to steal wealth from someone else. Since the monies adopted in markets worldwide were commodity monies they were valued based on the weight of the precious metal contained in the coin. If these coins were accepted on a visual basis instead of the more cumbersome weight basis theft could occur without detection.

When Muhammad came to usher in the age of nationhood the scale of this theft became much greater, potentially.

Had the Covenant of Muhammad not been broken then nationhood would have been the crowning glory of the next period of human history but since that Covenant was broken, instead of nationhood humankind was afflicted with nationalism. The ego-driven interpretation that broke the Covenant of Muhammad ‘laid in waiting’ until nations formed during this period of human history. Then it became the underlying driving force behind the emergence of the ideology of statism.

A naturally peaceful and voluntary means of cooperation was chronically undermined. Government increasingly became the State. The State also – by its perverse nature – undermines another naturally peaceful and voluntary means of cooperation – the market economy.

With great variation around the world the irrepressible tendency of nation-forming in this Age ushered in by Muhammad took many forms and patterns. But the seed of the ego-driven breaking of that Covenant germinated in each form of these man-made governments. The germinated seed of this weed – ego-driven interpretation – grew slowly or quickly into the State.

What fertilized the growth of this weed – the State – was ego-driven intervention into the economy. All intervention into the economy by the State extracts the wealth of the people to sustain and expand the growth of the State. As the State grows so does its perversity and its lust for wealth extraction.

In the 19th century coin-clipping took on a whole new dimension as the State succeeded in adopting fiat currencies. The ties to commodity monies were severed and with no weight basis to expose the theft it became almost impossible for people to detect the theft.

The ego-driven interventionists have this powerful tool to fuel all the rest of its ego-driven intervention and to spread the ideology of statism, passing it off as ‘education’.

Two things that the ego-driven do not and cannot control: the all-powerful equilibrium forces of the economy; and the end of the Age of nationhood!

Contact me if you are interested in the art and science of economics.

What Is The Next Great Scientific Breakthrough?

There are underlying laws in the physical world, such as gravity, and these are discovered and mastered by objective methods. The natural sciences of chemistry and biology and physics all use empirical methods to discover laws and as these are discovered and applied human civilization advances. For example, as scientists probed the various characteristics of silicon and explored its electromagnetic attributes and its abundance and ways to purify it technologies emerged, and emerged quickly, that monumentally changed the lives of people all over the world. I am in awe of all that we have at our fingertips.How many of us think about how quickly the natural sciences changed the world once the appropriate methodology was learned and was used to learn even more about the natural sciences?

The next leap in scientific advancement, destined to change the fortunes of humankind is the realization that there are laws that operate in the human sphere that pertain to the intellectual and to the spiritual processes, and the next great scientific breakthrough is recognizing that these laws are discovered by the methodology of subjectivism. No one can deny that humans are subjective. Rather than probing deeper to scientifically understand this reality those who dogmatically adhere to the empirical method as the only scientific method try to force a square peg into a round hole. Instead of amazing progress – like when the appropriate scientific methodology was applied to the natural sciences – we see the blight of materialism and countless other afflictions. Using the appropriate scientific methodology will quickly lead to solutions that will advance civilization.

Let me give you an example: The idea that there are human rights is subjectively derived and confirmed yet perfectly valid. This is not the outcome of empirical experimentation.

One step further: It turns out that the mirror image of human rights are property rights.

If you were to venture a guess: What percentage of people – supposedly educated since they went through the school system – have any idea that there is a scientific methodology specific for the study of the human sciences?

One of the great advancements in human sciences – like the way the natural sciences changed the world once the appropriate methodology was learned and used – will carry us forward to an ever-advancing civilization.  The divine economy theory is one application of the methodology of subjectivism that can be used to discover scientific laws and apply them. You will find that the very foundation of the divine economy model is anchored in these subjective laws that are part of the human operating system.

Contact me if you are interested in the art and science of economics.