….it occurs, it is implemented at an ending, summing and terminal expression point of the entire economic and legitimate productive process. Hence it is also the ending, summing and terminal expression point for the current economy’s old paradigm and its most chronic problematic realities of individual income scarcity, systemic monetary austerity, lack of flow and chronic inflation. This point IS therefore also a tipping, turning, pivoting and fulcrum point from which enough policy effect can completely invert these problematic realities.
Signatures of paradigm changes: inversion, transformation, all but the most antithetical structures in the body of knowledge, human system or area of human endeavor in which the new paradigm applies remain virtually the same and yet the character of the body of knowledge etc. is completely changed. The actual operation that brought about the paradigm change has always been simple but its effect has always been profound.
R: Economics is not a science because it assumes anything that is called money to be an accurate measure (quantifier) of value. It is as if the hard sciences (chemistry, physics etc.) picked up any random stone at hand wrote kg on it and declared it a Kg or any random stick off of the ground and called it a meter, measured with it once, threw it down, and picked up another without any calibration to perform the next measurement Money currently exists as a unit not a standard any scientist can easily explain this.
Without trace-ability to a common standard there is no science. Science and demonstration repeat-ability require a bonafide standard calibrated to a definition. Not some misunderstood relic managed by elites for predatory purposes dragging along problems of distribution, dead-weight loss due to included debt,randomly imposed taxes and quasi-calibration manipulation.
Current money not only doesn’t work for efficient markets, it also does not work for scientific analysis. Economists need to admit their sunk costs and get back to the basis of their discipline. The problem is not getting gullible students to trust economics as science but to actually do science.
Everything starts with an accurate exchange of value between one buyer and one seller with a standardized money as the quantifier of the transaction. You know your model works when it can be repeated millions of times consistently in the real world.
That is science.
I really, really like everything you say in that post. The only problem is that it doesn’t recognize the shortcomings of science and the consequent necessity for wisdom/paradigm perception/the integrative ethic in order to habituate awareness of essence in pursuit of knowledge and the deeper truth.
And that recognition/tipping point in economics and money systems is where we all are presently at. We have to look for the way to change scarcity and austerity to abundance, balkiness to free flow and domination to graciousness….and the point of final exchange as you correctly point out is the place to contemplate because “you’ll know your model works when” its policy effect at a tipping/pivoting/summing/ending point “can be repeated millions of times consistently in the world” and it transforms scarcity and austerity into abundance, balkiness into free flow and domination into graciousness.
The actual operation that brought about every paradigm change has always been simple, as in an inversion of current realities, but its effects are always profound. (inversion of the position of the earth and the sun, from nomadic existence to homesteading-agriculture, from monopoly control over salvation to a direct and individual relationship with god, from handwriting to technology and machine production….or elite public or private monopoly control of money to an ethic of direct democratic distribution of same and from Debt/Burden/Additional Cost Only to Monetary Gifting within a digital debt based money system.
RL: +reestablish” is a presumption. I never found economics of much value, so nothing to reestablish. It is a propaganda ploy.
VM: Hear hear!
As to Dave’s comment, I believe that, under radical uncertainty, there is no truth whatsoever. And economics is not to establish or approach the truth – it is just a poor prelude to making human decisions. Or even not that.
Thank God, I am not an economist. I am an engineer-economist, a toolmaker. Somebody has not to talk about paradigms and assumptions and values but to make (pneumatic?) hammers, hoping that the age and arthritis of the decision-makers would make them sufficiently cautious.
DT: Bob, “Here here!” from me too, though the propaganda ploy was to re-label Aristotle’s “chrematism” (money making) as “economics”, and Shannon’s “noise” as “radical uncertainty”.
Vladimir, thank you for triggering an interesting line of thought. I too am an “engineer-economist”, a tool-maker, but in the English sense of the word ‘engineer’: neither a Russian materialist maker of hammers nor an American driver of steam engines but “an interpreter between the philosopher and the working mechanic who needs to understand the language of both”. A comparison of American and English steam engines suggests enlarging the c.1800 definition I quoted to include art as well as functionality and reliability, and I wonder: have you not heard a writer described as a “wordsmith”?
As a child I aspired to be a writer, while more conscious of art in illustrations, poetry and music. As a youth I was taught to use not only a hammer but a soldering iron and frequency analysis, though personally my real interest was in engines, electronic circuits and mathematical patterns. In my twenties I was gifted a correspondence course in writing which I still have, though it wanted me to write what readers wanted to hear, not what needed to be said. To cut a long story short, I became a writer concerned with the experimental development of functionality, reliability and elegance in the use of computer languages, but still found managers interested only in “today’s” functionality.
In “hammer” terms, it was as if, having advanced from making horse shoes to wrought iron gates, most people saw only the gates, not works of art and reliability achieved by simplicity and ease of maintenance.
The engineering is in the design, but the product is only as good as the materials it is made of: i.e. the prior engineering of the iron works or programming language. As an “engineer-economist”, therefore, I have always tried to understand what I was doing before trying to to do it, but had to live with people pooh-poohing all I have aspired to and to a large extent achieved: an elegant, meaningful, reliable and human form of economy using honest money. “Working mechanics” may like to be told what they have to do, Vladimir, but blueprints involving new processes may be of little use without retraining.
Me: Vladimir and Dave,
I have always enjoyed the art of your posts.
“Thank God, I am not an economist. I am an engineer-economist, a toolmaker. Somebody has not to talk about paradigms and assumptions and values but to make (pneumatic?) hammers, hoping that the age and arthritis of the decision-makers would make them sufficiently cautious.”
Yes, except I would place the word ONLY after the word values. Therefore it becomes and integration of opposites.
“Working mechanics” may like to be told what they have to do, Vladimir, but blueprints involving new processes may be of little use without retraining.”
Yes, that describes the problem of new paradigm perception very well.
A paradigm change is not the end of discovery, but it is the beginning of an extremely progressive and permanent gain in human knowledge. There is no end to history only an ascension and deepening of our understanding of it via wisdom-paradigm change.
The key to wisdom-paradigm perception is developing an integrative mindset toward opposite concepts coupled with an inclusive scientific method. Iconoclasm is a good first step toward paradigm perception, but is ultimately inadequate because it keeps the mind focused on and only within the old paradigm.
It IS a monetary economy and a monetary economics can re-establish its scientific chops if it understands that the goal of FREE FLOW is best accomplished by finding the fulcrum point where the flow of costs, prices and the expression of its deepest and most chronic problems are terminally statistically expressed and STOPS for all consumer items and services, and then applying a simple accounting and mathematical operation of equal subtraction/discount and addition/rebate as a policy at that point that benefits all agents individual and commercial.
These integrations of opposites-wisdom operations (flowing and stopping) (rate of flow-calculus and final statics) (individual and commercial) are the keys to the paradigm change everyone here is desiring.
And of course the world not being an entirely rational or ethical place additional regulations will be necessary to guide and protect the resulting progressiveness of the paradigm change.
FS: Money is a convenient but simple indicator, which is why it is used. The classical labour theory of the value of production is valid empirically and underlies why macroeconomic analysis is partially successful when based on money which is acting as a proxy for labour-based value.
R: Money as a measuring tool is also very easy to corrupt. It is important to remember that money can only be used to determined an exchange value(price) of a specific item at a specific instant of time. If employed with the intention of good faith by all parties it is very accurate.
The other definitions of value (labor, use etc.) are not accurately measurable and can only be priced by extrapolation to a similar exchange value. While helpful in understanding and visualizing the factors that affect value they are no good in assigning a price to an item. Money is still necessary, Good money if you want to do business and bad money if the goal is to steal.
“The other definitions of value (labor, use etc.) are not accurately measurable and can only be priced by extrapolation to a similar exchange value. While helpful in understanding and visualizing the factors that affect value they are no good in assigning a price to an item. Money is still necessary, Good money if you want to do business and bad money if the goal is to steal.”
Correct. And retail sale being the aggregation of all costs for every item or service is THE macro-economic metric and significance that emerges….IF one actually looks at it. Otherwise they fall back into never ending and obscuring complexity.
Retail sale, its macro-economic significance and an integrative mindset I refer to as paradigm perception enable one to see possible policy potentialities clearly and logically.
Of course there is no end to history and the world is not an entirely rational or ethical place so some sovereign regulations and sanctions, as with any system and even for paradigm changes, will also be necessary, but cogniting on the economic and policy ramifications of the point of retail sale is the invention of the telescope, the discovery of the moons of Jupiter and of the ellipse of economics.
Would you provide link that describes your theory. I can’t understand why all prices don;t have to be accurate. I have seen it in the past but have misplaced it.
Thanks in advance.
Me: My blog is wisdomicsblog.com
It is mostly a chronicle of my postings and their evolution over the last couple years. Most of my theory of the new paradigm Wisdomics-Gracenomics can be deciphered within that non-linear course with some concentration. I am close to boiling it down into a non-tome e book that I will self publish and promote. That will include some of the insights I have garnered from my study of the signatures of paradigm changes themselves like for instance this one which is guaranteed to drive the unfortunately scientisitc nuts: Everything adapts to a new paradigm….not the other way around. That doesn’t mean that further insight within a new paradigm is not possible it simply means that a paradigm change is by definition a huge, significant and obviously progressive event…and that humanity (so far) has never regressed back and away from.