Updated: Jan 25
In Memory of Walter E. Williams, deceased on Dec. 1, 2020.
The butterfly effect is akin to the reality of economics. Chaos theory is big with economic ignorance. "In chaos theory, the butterfly effect is the sensitive dependence on initial conditions in which a small change in one state of a deterministic nonlinear system can result in large differences in a later state." - Wikipedia (focus on the explanation, not the source, don't get distracted by a minute variable. The explanation does the job). Let us move on.
This represents the dangers of ignorance in relation to the economic framework of our ecosystem. To deviate from this creates imbalances in the economic ecosystem. Because an efficient economic framework is rooted in natural law, life demands balance. (there lays a primary argument for Gold in our ecosystem).
Ying & Yang
Life & death
Dark & light
Happy & sad
Pain & pleasure
Bad & good
Debit & credit
This goes also back to the original principles of alchemy of equivalent exchange. So many more examples exist, from physics to math, to chemistry and accounting. Economics also needs this respect of intellectual thought and scientific pursuit.
"Equivalent Exchange is the principle that limits alchemy's infinite potential. It's a simple concept: something cannot be created from nothing, and so in order to obtain something, something else of equal value must be lost." - www.cbr.com/fullmetal-alchemist-the-law-of-equivalent-exchange-explained/
This relates back to the principles of production and consumption. Want to eat? well produce cash and then pay for the food to consume it. In math equations and solutions, balance is a necessity. Principles of efficient economic dynamics must abide by these rules of natural law. Just like the flow of water in a river, our economic vessels need healthy flow through for efficient mobility of resources. Human selfish interests and ignorant ideologies often are the creators of blockages in the system's economic vessels. That is when we observe economic problems as we can observe in 2020.
Knowledge about the nature of economics is a necessary condition for humans to understand and centralize within their behavioral framework. This will spill over into their actions, better compounding a positive economic outcome. The necessity comes from our need to aim to establish the parameters of the ecosystem within the reality of our collective framework, kind of like establishing the parameters of a game in order to play it properly and have a chance at winning. In this case, in a healthy economy, there is no one winner, but many winners, and that cycles with innovation and time. Understanding these parameters maximizes the purpose of each action taken by an individual. We can better weigh our actions relative to their potential outcomes. Better cost analyses are performed with every conscious action - sort of like economic enlightenment. Whether poor or rich, the same game is being played, the only true difference exists in which framework is being put forth, based on the luck of which environment one comes into existence (culture based on time and place). This is why a healthy economic ecosystem must focus on opportunity (not outcome) to help elevate each man to find reason and purpose in their economic pursuit through life.
The economic game breaks down into 3 actionable classifications;
1) production of resources
2) consumption of resources
3) allocation of resources.
These 3 economic actions are where humans must focus to maximize their utility and economic expansion. Efficient application of these actions is the game played by all economic entities, whether you are a human or a business, or another form of species on earth. Understanding the dynamics of these actions is critical to playing an economic game. You have 3 forms of actions to choose from in every second of your existence.
Just being alive requires you to CONSUME calories as a child to PRODUCE physiological growth, and then you must ALLOCATE your time by learning and understanding as much of the game as possible. Ideally, we want the collective people to be conscious of this to have a maximized output potential, at both a collective and individual level. Take into account the reality that school does not produce this conscious economic output in humans. This is where the argument comes in as to why schools currently are not a good place to allocate your time in relation to most fields of study. Time is a natural physiological resource that respects the law of scarcity hence why we seek to give value to every second of our conscious lives as humans. The principle natural law of scarcity is the very causality of that human intent. As the principles of alchemy, or any other basic mathematical principle, balance is key for human actions to produce a desired outcome in reality. Therefore there is a cost associated with attaining a desired outcome. It is reality, and it is hard, but it is necessary. This allows fairness for all who are trying to play their own game within the collective system.
Consumption without production is a deviation from that law. This is where the principles of socialism and progressive left fail, they want to consume the resources produced by others, bypassing their own need to allocate their own resources for their own consumption. They consume without production. Others as a consequence must now work and allocate more of their own resources (time, energy & money) to offset their lack of production. This produces an environment where we get an expanding dependency on the production of others. . This suppresses the economic output of hard working and purposeful people. This then yields minimized innovation and problem solving productivity, because the economic power and resources of productive individuals are re-allocated towards the consumption of non productive individuals. We are fueling the marginalization of productive people, who pursue risk at far greater rates to serve the betterment of others.
In the natural world, everyone contributes. In the natural world, the only true time one doesn't need to produce any results and tangible resources is when they are a child. That alone burdens many parents, but imagine a whole system where even adults are incapable of producing themselves. How can the government promise anything when it depends entirely on the productive nature of the economic ecosystem in which they operate. This trend is exponentially expanding with millennials and younger generations. There lays a dark economic reality that could create an implosion from within, like a star. This creates economic gaps and significant dynamic problems within the collective ecosystem.
Becoming economically responsible, for ourselves and for the collective is a necessary condition for a healthy ecosystem. You can then compete in the game that all species play; producing, consuming and allocating resources to exist and have a sustainable existence. Once adulthood is attained with the correlated mental development and understanding, we can truly go play in the ecosystems game taking our own lives into our hands, becoming responsible. Help yourself, and you will help the collective. Obviously there will be a spectrum on which people understand these principles, but at least the foundation is focused on in terms of learning. This will produce individuals who better understand the game parameters, and with that foundation, the collective ecosystem's output expands. There are significant economic problems, and its lack of understanding is a primary causality. It is as though we are fish who do not realize we are in water.
To give deeper context, lets break down the 2 primary forms of resources that humans pursue and consume through economic actions.
1st form - The first form is physiological resources. Breaks down into 3 primary categories.
A - Our genes (a mixed gene pool, the offspring of 2 other set of genes - our parents). That's why strong genes survive, because the nature of evolution deems it a successful and necessary behavior of sustainability. To avoid cancers, or have healthy babies and ensure strong future human offsprings, we want to maintain strong genes. It is a necessary condition in reality for healthy and productive outcomes, especially as a species. This one is important at a collective level to ensure a long lasting species.
B - Our body (to grow, have healthy organs, muscles, bones and proper consumption of food resources to produce a desired physiological output - overall health)
C - Our mind
These are resources that the mind seeks to accumulate and retain. It drives much of the human purpose. Much of Maslow's Hierarchy of needs falls within the pursuit of the physiological-mind resources driven by the mind's psychology.
Many of these mind's pursuits yields the creation/facilitation of new neural network connections to better process short term data being received through our nervous system for it to better penetrate into the long term hemisphere of our human brains
2nd form - The second form is natural/tangible resources.
Things such as property, money, precious metals, commodities (rice, sugar, milk, gold, oil, silver, wood...... and the list goes on), food, clothes, businesses, collections (cards, wine, coins, books, stamps).
Most of what we consume or allocate our time and energy towards producing as humans. With the application of the mind (physiological resource - humans produce incredible innovative and technological solutions- which serves the betterment of mankind's progress and ascension to apex status). Ever realized that tech requires commodities to function and exist.
Cultures and historical problems did a lot to shape that innovative development of humanity. This was accomplished through the application of mental energy to solve problems and innovate utilizing natural resources.
The printing press
The first spear
The first shield
The first sword
The first gun
The first boat
The first man made Fire
The first telephone
The list goes on endlessly................................
We as humans, a form of living species on earth are playing by natural law, since there is a common reality shared by the collective, set in stone by the premise of scarcity. When we observe reality, no matter the species, no matter the timeline, the commonality in behavior is found at the mean of an economic purpose.
Life is finite; our very existence as a human is scarce. That limited time gives every second consumed value, at least from a living organisms perspective. Again, subconsciously or consciously, that is the common game of organisms.
Quotes by the late Walter E. William
> "If one person has a right to something he did not earn, of necessity it requires that another person not have a right to something that he did earn."
> "There is no moral argument that justifies using the coercive powers of government to force one person to bear the expense of taking care of another."
> "Government has no resources of its own…government spending is no less than the confiscation of one person’s property to give it to another to whom it does not belong."
> "We don’t have a natural right to take the property of one person to give to another; therefore, we cannot legitimately delegate such authority to government."
> "My definition of social justice: I keep what I earn and you keep what you earn. Do you disagree?...how much of what I earn belongs to you--and why?"
> "No matter how worthy the cause, it is robbery, theft, and injustice to confiscate the property of one person and give it to another to whom it does not belong."
> "The better I serve my fellow man…the greater my claim on the goods my fellow man produces. That’s the morality of the market."
> "The act of reaching into one’s own pockets to help a fellow man in need is praiseworthy and laudable. Reaching into someone else’s pocket is despicable."
> "Politicians have immense power to do harm to the economy. But they have very little power to do good."