Sunday, November 10, 2013
Principals of economics
Peter E. Pflaum - Golden Globe -
The Synergy Network
RE: Principles (Laws)
There are five powerful principles that work in Economics,
Management theory, Education, Politics and all human
activities.
1.)
There is no free lunch
2.) Entropy increases
3.) Human activity is Goal Directed (even harmful actions have the hidden goal of the death instinct )
4.) Sharing creates Synergy
5.) Human activity must conform to the laws of nature
If these principles are understood, the world makes sense.
From Blaine's Kindergarten report:
Exhibits self control
Shows self Confidence
Shows independence and self-reliance
Displays patience
Assumes Responsibility for own actions
Obeys quickly and cheerfully
Follows directions
Observes rules
Takes care of Classroom materials
Works with perseverance
Works Neatly
Uses time wisely and completes tasks
Enjoys Kindergarten
Manages clothing
Respects rights of others
Plays and works well with others
Shares willingly and takes turns
Uses good manners
Exhibits appropriate behavior
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Peter E. Pflaum Ph.D. * THE_SUFI_METHODS
wiredbrain@gmail.com
"Mankinds' moral sense is not a strong beacon light,
radiating outward to illuminate in sharp outline all that it
touches. It is, rather, a small candle flame, casting vague
and multiple shadows, flickering and sputtering in the
strong winds of power and passion, greed and ideology. But
brought close to the heart and cupped it one's hands, it
dispels the darkness and warms the soul." James Q. Wilson
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Peter E. Pflaum - Golden Globe -
The Synergy Network
RE: Shadow Prices, shadow values:
Economics is the study of human activity. Historically the
first question was about wealth. (
The Wealth of Nations).
Spain had great "riches" from the Andes. "Riches" were not
wealth.
The importation of gold created a confusion between
wealth and money. (and inflation) Wealth is productive
capacity. Production creates riches, but productive capacity
produces wealth. P and PC P = the golden egg (riches) PC =
a magic goose = productive capacity. (Covey, Seven Habits of
Effective People)
Now if you look long term - very long term the productive
capacity means taking care of your goose. If you kill the
goose, for short term profits you loose both riches and
wealth.
The second economic question had to do with distribution
(Das Capital) - Production requires cooperation - long term
systems - like the Keiretsu (formerly the Zaibatsu ) (MITSU,
23 members, Mitsubishi. 28 members - Sumitomo - 21 members,
Fuji - 29 members, Sanwa Group, 39 members, Dai_icki, 45
members, Deutsche Bank-Daimler-Benz, and Hatachi has 688
members in the family, Toyota 175 and 4.000 associates. With
in self-owning industrial groups, distribution questions can
be settled in a tribal way with cooperative between workers
and owners.
There were called cartels.
The problem with American Capitalism was instability due to
over production. Too many firms making to much.
Rationalization by people such as Morgan and John D.
allowed market stability, long term planning, and vast
capital growth. But public policy didn't like the "robber
barons" and they did not fit classical economic theory.
Keysian demand stabilization was a response to the great
depression.
The war did us no end of good.
The activities of Japanese groups is stability, long term
growth, cooperation, good relationships, rather than profits
- as a bottom line.
Their values are different therefore
they act different. American firms in the need to produce
those golden eggs (quarterly profits) had produced a sick
goose.