Illuminating Economics

Where is the light switch to turn on the light so we can navigate through the Dark Ages of economics in which we are living?

What better way to gain focus than to use a lens made with precision and which accurately does two things:

  1. Provides such clarity that all things economic can be examined from all directions.
  2. Completely exposes the flaws, the fallacies, the superstitions, and the destructiveness of statism.

Implied – going from the dark to the light – is leaving the darkness that is causing such great suffering and instead benefiting from true economic science, the light of which honors subjective human beings.

Of course, this means leaving behind the superstitions which have burdened economic science for a long time. These economic fallacies continue to linger and the only sensible way to deal with them is to let them disappear into their own darkness of ignorance.

An illuminating new technology is the best and most powerful way to completely dissociate true economic science from the darkness of economic ignorance and its corollary – political corruption.

Now is the perfect time to gain freedom of thought and action by becoming acquainted with this new economic technology. It’s free, it’s illuminating, and it brings great clarity. Check it out.

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Use of the Empirical Method in Economics is at Best Irrelevant.

Bert had good intentions! He thought he was being diligent and practical, plus he dedicated a significant amount of his time to these tasks that he valued. To be honest, he pretty much knew what the outcome ‘should’ be but thought it was proper to follow a method which he could then use to substantiate his declarations. Such is the plight of the empirical economists. The use of empirical methods in economics is like catching the wind with a hammer!

First of all, since humans are subjective and they value any and all things – material and ideal – subjectively, there is no way to represent the subjective choices and decisions by the use of a point of data. Even an exchange made in the market – the buyer exchanges money for a product – cannot be a piece of data. If the two things exchanged were perfectly equal what would be the point? One person values what they get more than what they give up or else there would be no exchange. A data point has no information about the double inequality of value that occurs at the time of an exchange.

And secondly the real world is dynamic and not static. In other words, even if the fallacy of economic information contained in data points is ignored, the empirical methodology can at best be irrelevant. First the data is collected, then it has to be interpreted. By who? With what objective? All of the sudden someone is introduced into the process for the purpose of interpreting the data. This person is a so-called ‘expert’ but more accurately, this person is an ego-driven interpreter of the data with an objective in mind.

In other words, the data cannot even get to the next stage without the interjection of an ego-driven interpreter.

But if we ignore the bias and corruption of this practice there is still another absurdity associated with empirical economics. What about lag time? The so-called data was collected at a different time and place which no longer exists in the real world. Whatever the conclusion is derived from fallacy upon fallacy is no longer relevant!

Yet this is what the State and its central-planners inflict on people as ‘remedies’ for the ills which were – in fact – created by the errors of earlier charlatans using empirical economics.

The alternative and scientifically-valid methodology is subjectivism as is used by Austrian economists and economists in the classical liberalism tradition.

Here is a great resource to help you learn more about this scientifically-valid methodology.

Here Is A Microeconomics Definition Emphasizing Entrepreneurship.

Jenna wakes every day and along with going through her routines she pursues her goals. She has long term goals but also she spends much of her time each day sorting through life’s tests and trials and her memories of experiences throughout her life, all with the purpose of moving forward. She is functioning in the realm of microeconomics.

One definition of microeconomics is as follows: it is a study of how individuals discover and react to information in the market as part of their division of labor to produce and to earn income, so as to meet their personal desires for goods and services.

·        Each experience in the series of knowledge gaining experiences is more competitive than the preceding period.

·        In other words, we are constantly searching for ways to make things better for ourselves.

·        And since competition and entrepreneurship are analytically inseparable these experiences act to stimulate our entrepreneurship.

·        That is very good news indeed since releasing our potential, by changing our entrepreneurship from latent to active, leads to prosperity.

If you want to explore further this soulful microeconomics go here.

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.

Are you tired of Visionless Economics? See what else is out there.

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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.

Are you tired of Visionless Economics? See what else is out there.

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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.

Now there is a free email course (5 lessons) to introduce you to the divine economy theory.

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