Entrepreneurship In The Early Stages

Take a look at this YouTube video (“I, Pencil” video), this classic tale of how the economy works, and notice how there are entrepreneurs serving at every single step along the way even though the steps in the process are innumerable!

Watching this video will get you in the generous mood to praise the division of labor and the entrepreneurial spirit that drives this whole process from its humble beginnings all the way to the end. But the video also makes it evident that the division of labor and the entrepreneurial spirit are vital and powerful everywhere, either directly or indirectly, across the entire time horizon. Talk about roundabout production! Without capital these processes would come to a standstill. Think about that the next time someone who is indoctrinated in the ideology of statism misrepresents the importance of capital.

It is never too late to understand how the magnificent market process works. If, at every point along the production of every good and service, people understood the beauty and potency of the market process then all of humankind would greatly benefit – nay – the difference would be so monumental that it is almost incomprehensible. The human potential is immense but since we are living in the Dark Ages of economics that potential is miniscule in comparison to what is our inherent birthright. In that sense the people in the future will look back at these times and see the pervasiveness of economic ignorance.

What the entrepreneurial spirit has produced and what can be discovered by those who are entrepreneurial is the theory that can infuse a higher degree of purposefulness into human action. As a result of entrepreneurial discovery a new economic theory based on new economic models (which represent a new economic technology) has dawned on the horizon. Those entrepreneurs who alertly seek a better understanding of the market process will discover this theory. As this new theory is applied at each and every step the degree of social cooperation will improve almost exponentially.

This is the reason why entrepreneurship is in the early stages, but also, as this heightened understanding of the economy is applied to all stages – including the early stages – the miracles of the economy that were highlighted in the “I, Pencil” video will transform the actors (all humans), the activators (the entrepreneurs), and the economy. That is part of the reason the difference will be exponential.

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The Entrepreneur & Civilization.

“It doesn’t happen that way!” is what his friend kept telling him. Whether it was dressing for a special occasion or helping a neighbor with a boundary issue or finding answers to some financial questions, none of these just happen on their own or are magically resolved externally. This is the difference between being active and being latent, and in a way, this is the difference between being ‘awake’ or being ‘asleep’.

What is civilization, where does it come from, and who is responsible for it? Unfortunately, in these – the Dark Ages of economics – people have been lulled to sleep by the ideology of statism and so they sit back and expect that civilization is some external phenomenon. This disease of thought and spirit will not lead to the external appearance of civilization but rather to the extermination of civilization by the ego-driven institution – the State.

Society building is the essence of classical liberalism. The wonders of subjective human beings naturally seeking voluntary cooperation is the touchstone of human civilization. It is what allows ethics and economics to evolve together to bring to fruition peace and prosperity.

What is vastly different about classical liberalism is its appreciation of the divine aspects of civilization and of the agents of action – human beings. The reason this is vastly different from the current approach to ‘civilization’ is twofold:

1.     Within the ideology of statism there is confusion about the power and importance of religion. Because religion is misunderstood and maligned it is set aside and ‘civilization’ is externalized and handed over to the State.

2.     Within the ideology of statism the spiritual power and purpose of individuals is diminished to an insignificant speck making entrepreneurship much more difficult, and when those with exceptional abilities step forward often they are either maligned or lured into the ways of the civilization created by statism.

There is reason for optimism. First of all, the human spirit is indomitable which means that its inherent nature to independently investigate the truth will make all aspects of life open for examination. For example, the concept of social entrepreneurship shows this drive but quickly it falls under the persuasion of statism. That same aspiration taken farther – to the point where civilization without statism is pondered – will lead to the breathtaking discovery that the best means for transformation of individuals and society is to bypass or surpass statism, and to refuse to succumb to its corrupt influences.

Here is the gist of it all: the entrepreneurial spirit is the driving force of the economy. Within the shield and shelter of classical liberalism – in which the entrepreneurial spirit fully honors the divine character of individuals and of civilization – all things originate from the ground up from individuals and among their peers; in their households, in their neighborhoods, in their villages and towns, in their cities. Those societies which are the most prosperous and peaceful will be emulated and this is the process of an ever-advancing civilization.

The characteristic alertness of entrepreneurs is the key, and in these – the Dark Ages of economics – it has to include penetrating the smoke and mirrors of the ideology of statism.

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The Soulful Microeconomics of Disequilibrium

There is soul food and soul music and the advice to do things that are good for your soul. There is also soulful microeconomics!

That which cannot be seen not only has tremendous potential but it is also quite revealing about how best to scientifically investigate.

Some would say that the human soul is glorious and magnificent but who has ever seen it? Analogously the values subjectively given to all goods and services by each and all of the people in the world cannot be seen.

When an exchange takes place the buyer values what he gets in the exchange more than what he exchanges for it and the seller values higher what he gets in return. It is incorrect to say these are equal because if they were merely equal there would be no reason to exchange. The price agreed on is sufficient for exchange but that is all it indicates.

What is hidden is the value and it is disgraceful for economic science to simply pretend that the two things in the exchange are equally valued.

And so you see, if you are unwilling to recognize that the unseen and hidden have tremendous potential for helping to advance scientific understanding then most of what is meaningful is simply and erroneously disregarded.

There are three major differences between this book – The Human Essence of Economics – and any other and all other microeconomics books:

1.            The source of subjective valuation is identified.

2.            The real world is what we are interested in and it is recognized as always being in dynamic disequilibrium.

3.            Primarily, it is the searching entrepreneurial spirit that drives the economy.

Look around. Compare this approach with any and all other books about microeconomics and also compare it with the real world that you live in. That will be reason enough for you to prefer this book over others and that will be reason enough for you to be intrigued about its contents.

You can buy The Human Essence of Economics at Amazon.com or if you want to read the first two chapters just to make sure it will be fascinating to you then grab this free resource.


Is Economic Equilibrium Similar To Equilibrium In Nature?

What is different about economic equilibrium is the fact that the economy exists because humans exist and humans are physical, intellectual and spiritual beings. Most do not realize or recognize that the highest of these is spiritual; intellectual is higher than physical and spiritual is higher than intellectual.

Since economic equilibrium is tied to the economy and since the economy is a reflection of human action and humans are ‘created in His Image’, economic equilibrium has a divine aspect.

As an example, an affinity between people can be physical, intellectual, emotional, and spiritual; all of these are less than perfect expressions of the concept of absolute love. Economic equilibrium, like love, is very powerful – yet it is beyond our full comprehension – nevertheless it is real.

Ego-driven intervention (no one can claim to understand all the implications of any intervention on all of humanity across the entire time horizon) is a corruption of the economy. If the intervention stops, all of the corruption will be purged and then the economy will return to normal and be a true source of prosperity and justice.

I’ll again hit the equilibrium point. The force behind the equilibrium tendencies can be thought of as the grace of God. In other words, when we mature to the point where as societies we trust in God then all things will be ‘regulated’ by the grace of God. This is why laissez-faire is the correct economic system even though many of those who espouse free market/laissez-faire do not know why it works so well!

Of course everything in the economy is connected to human action and so the equilibrium forces work via the social cooperation of humans.

Are we interested in merely treating the symptoms or in treating the disease? Humans have finite knowledge yet are ego-driven enough (or allow those who are ego-driven) to arrogantly make decisions about things that are infinitely beyond their comprehension. For example, it is beyond human comprehension to know the effects of economic intervention on everyone on the planet over the entire time horizon, and as a result of this feeble knowledge, all ego-driven intervention necessarily causes innumerable injustices.

God created humans as part of a beautifully and infinitely complex love, and God also provided the perfect institution for social cooperation (the economy), and for the flow of the grace of God. Since this is the best means for human civilization to progress towards perfection it makes no sense to go in some other direction (which is sure to be less desirable) just because we encounter hardships which may be necessary for humanity to overcome in order to make progress. Besides, there is no moral authority to intervene in the economy.

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Slander And Calumny Violate Property Rights.

Elizabeth had been working diligently at her job for about ten months. It was her second ‘real’ job and she was gaining new skills and confidence. Ostensibly it was her political views, but other factors like envy and jealousy made her subject to slander and calumny with the goal being to prevent her from being given more responsibility at the workplace. If we assume that Elizabeth is being misrepresented most people would think that she should have a way to protect her reputation.

There is an identity within the divine economy theory that strongly anchors human rights to each individual. That identity is “human rights are property rights and property rights are human rights.”

We are living in the Dark Ages of economics and one of the evidences of that is the weakening of property rights and therefore human rights. With the predominance of the ideology of statism around the world all property rights are subject to the whims of those who use the State to achieve their goals.

This is why property rights are always dwindling rather than being refined and further refined so that they can become more and more useful and powerful. The weakening of understanding of property rights has many far-reaching consequences, one being the weakening of human rights.

When people see the world through the colored lens of the ideology of statism they confuse human rights so much that they actually turn towards the violator of property rights/human rights as the arbiter. Under these circumstances property rights/human rights are politicized, in other words, there will not be justice.

Punishing slander and calumny is a function of a system of justice. I am not saying that the system of justice that most depend upon in the United States  is “functional” but rather that if that is the ends sought (Punishing slander and calumny is a function of a system of justice.) then pursuit within society needs to be towards finding the best means.

It is not difficult to imagine a system of justice that would prevent all such fraud but that system will not be a State-controlled monopoly. There will have to be at least some other alternatives available.

We are back to the example of slander and calumny. Damages have occurred as a result of the slander and calumny. Those who deliberately damage the property rights/human rights of another must realize that there are negative consequences for such ill deeds.

In the short term probably the best means to secure justice is to defend oneself with facts, appeal to the decency of the righteous, counter to the best of one’s ability the propagandistic nature of calumny, and seek justice through a civil trial by a jury of peers.

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Bad Economic News Is Hiding The Good Economic News!

Overturning rocks reveals critters and some slime and holes and fragments of disintegrating things which make the exploration interesting but I am far more interested in what is happening above all of this.

When looking around at the framework of all of the economies around the world much of what is seen and unseen is bad economic news. Sure there are examples of greataccomplishments and discoveries by entrepreneurs but true entrepreneurs (the ones not connected to politics) are facing very difficult circumstances and unless they are fortunate enough to have exceptional flexibility even their contributions to the good economic news is fragile.

Unless you are very naïve it is obvious that the reports provided by the governments around the world are doctored to appear rosy for political reasons.

Keen to the changing patterns and keen to the nuances within those patterns, there is a macrocosm that dwarfs all of the darkness. As the darkness recedes there is something fresh – the stirring of a spring breeze.

The good economic news that is hidden yet able to be quickly shared, and its impact felt universally throughout the economy, is the appearance of a new economic technology that has the power to eradicate the true disease of the economy.  Knowledge is always the best means to counter errors that are systemic.

And so, just in time, the basic framework for economic knowledge has been fortified and made whole. The books in the series about the divine economy theory powerfully cure the disease of statism. The models that are made known in these books represent the new economic technology and that is the good economic news that will dwarf and rectify the unpalatable bad economic news that seems to be dominating the human psyche in these, the Dark Ages of economics.

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Totally Unrealized Consequences Of Statism.

Anisa is looking around with an entrepreneurial spirit and sees ‘road blocks’ here and there and she is fully aware that the flow of knowledge is atrophied and at the same time she knows that what does trickle through is tainted by all kinds of distortions. She prays for the healing of the plight of humanity!

It is goes without saying that in the Dark Ages of economics the processes and knowledge that are economic are relatively absent. Economics is the study of the means to obtain the ends chosen.

When the world is steeped in the ideology of statism the only means examined are those which fit within the spectrum of statism: from fascism to communism. This defies the purpose and beneficence that the science of economics can bestow upon human civilization.In other words, there is no functional economics in the Dark Ages of economics because people have been taught the myth of the State.

Human civilization does not need a coercive, parasitic third-party to make progress. That is a total myth. Humans voluntarily socially cooperate and that is what characterizes the peace and prosperity of an ever-advancing human civilization. This is unrealized in the Dark Ages of economics.

Now it is obvious why the State controls the ‘education’ and media: to prevent the peaceful and prosperous means of social cooperation from being studied side-by-sidewith the totalitarian means of the State. True economics would quickly expose the depravity of statism.

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