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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


************************************************************

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

************************************************************
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.

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