Economics is the study of transactions.  Transactions are a response to scarcity. If there was an infinite supply of everything we would not have to make choices. How much is allocated and where it goes is mediated by means of transactions. Transactions form the structure of choice. Choices are made on the basis of competing values. A transaction is an exchange of assets. Assets are things with value. In a transaction something of value is exchanged for something that has greater value. If we value money more than most other things our choices will favour obtaining money. Everything is a choice but all choices have costs. It is crucial that when a choice is made we are fully cognizant of all the costs the choice entails.

Economics is based on and assumes the existence of a free market. This is a conceptual meeting place where buyer and seller can conduct business without interference from regulatory bodies. The free market has never been a practical option for Capitalism. The free market requires all external interference be eliminated. Only when each person is free to buy or sell or refrain from taking part in a transaction is the real price of goods and services established. However, once government regulations became the norm power imbalances became endemic. Regulations always serve to benefit one party to a transaction more than the other. Capitalism has not been able to eliminate regulations because the capitalist economy is could not survive without constant government protection. Rationalism eliminates government controls and creates a level playing field. Rationalism ensures the person creating a cost pays the cost. This is vital for a Free Market economy. Because injustice is the avoidance of costs which Rationalism eliminates the need for government oversight is eliminated.

 

The Rules Of Reason:

  • In a free and equitable market responsibility and authority are equally balanced.

  • The single cause of civilizations collapse is a mismatch between responsibility and authority.

  • A person who seeks responsibility must seeks ways to enhance their authority.

  • Authority is the measure of ownership and responsibility a measure of its fullness.

  • When authority and responsibility are mismatched ownership takes on a corrupted form.

  • Social change ultimately can be reduced to a transaction.

  • All true choices are transactions in that they are composed of competing values. Something of lesser value is given up in exchange for something of greater value.

  • Transactions must reflect ethical ownership.

  • Social change exists in the value created by ones transactions.

  • The strength of ones ability to effect social change is based on the value of ones transactions.

  • Ones potential is equal to the value of the assets one owns times the ownership quotient. This factor is derived from the balance of responsibility and authority in managing assets. If responsibility and authority are not in balance the administration of assets will be inefficient and thereby their potential to effect social change will be much reduced. This is why very rich people often do very little for the earth. They have assets but little responsibility.

  • The greater the imbalance the lower the ownership quotient and the less possible it is to translate the ownership of assets into social change type transactions.

       

 

 

 

 


Economics