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Gravitational Economics

(Note: I do not posess a formal education, please refrain from pedagogical attacks as I am "unarmed.") It begins with a friend in college 20 years ago, he speculated on the idea of the "Black Hole Theory" of money. Simply put it deals with entrenched capital or "Mattress Money" and its effect on the economy. The reference was to the black hole that money seems to fall into in society when, for example, individuals with capital hoard it and prevent its circulation, hence "Mattress Money." His general idea was that an individual with hoarded money still effects the flow of capital around them. Money must flow in order to have value. My thought turned to physics. Black holes affect space around them but are invisable. Gravity makes this possible.
"The wealthy get wealthier, the poor get poorer" This expresses the general view of the flow of capital. I believe that some of the equations found in the field of physics could be adapted to analyze this and understand the dynamics. Money is governed by the principle of gravity. This is not just capital gains, investment or interest or any other mechanism for static capital growth. This would be an analysis of the movement of money through society and its effect. For example: the wealthy are constantly being courted. This may involve gifts or significant discounts (or free) products and services. This would constitute the "pull" of capital gravity on people, activities and money. This could be viewed as an extension of the "Canadian Disease" (an economic term). While I understand it, I have not the skills to realize it.

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  • Jul 6 2012: Sadly they don't and the only reason why is that we live in a society that is founded on predatory principles. This is not limited to economics but is seen most clearly there, and in war. Just try to complain about not having a home or enough to eat and see what happens. Authority by force of threat is slavery repackaged. This is not designed for a Twenty-First century, global, technological society. It is not sustainable. The discussion that we are all having, whether we know it or not, is how the future will be shaped. I suspect that it only works one way, just like the universe, and if we get it wrong, we will pass away from the world.

    I believe that there is a path open, but it requires new thinking. I believe that the fundamental value that underlies economics is the hours of a human life. One way or the other it comes down to that. For those of you that still think kindly of John Maynard Keynes, the fundamental generation of wealth occurs from the bottom up, not the top down. In the U.S over the last several decades an unusual phenomenon has occurred, productivity. This is how Keynes is subverted. In the 1960's there was much talk of the future in which workers would labor less, produce the same, earn the same and have greater free time. Many nations actually moved in this direction. But here, productivity was converted into wealth at the top, leaving Americans working much harder, earning no more and having no time whatsoever. It hasn't worked out so well.

    Finally, the thrust of my original proposal dealt with a more organic and sustainable understanding of the economics of society. I then observed that capital seems to behave in a manner similar to gravity and thought that pursuit of this line of reasoning could be informative. There have been many such theories in recent years. Perhaps its time to look for a new kind of economics. War with mars is not an option, neither the exploitation of THEIR workers. Its just us and we are all on this planet
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      Jul 7 2012: Hello Thomas,

      I agree with what you describe here yet I am pessimistic that this 'new kind of economics' will be able to transform out of the given state without 'force majeur'.

      The given ideology of 'continuous growth' can not sustain on a planet with limited resources, yet just a view are willing to step back to see this 'bigger picture'.

      I am afraid, almost convinced, that he 'current system' got to hit the wall, badly, before it is able to transorm. Not because of 'understanding', because of a lack in option to continue.
      • Jul 7 2012: Part of the problem is perception. Continuous growth can happen as our economic system is transiting to a virtual model with, essentially, virtual products. Add to that the emergent economies, micro-finance, crowd sourced funding and freelance, internet based employment and the bottom up dynamic is in place. The sustainable model (if you count trends that are not of "western origin.") is developing and the understanding is that a more democratic distribution of wealth (resources) is part of that model. As to the "Singularity-Class" technology, considered that 1/3 of the human race has a cell phone.
        Your pessimism is not only well founded but highly advisable. The future is potential only until manifest. As far as hitting the wall, we have, and it has had an impact. This is why the forces of autocracy are fighting so hard in the U.S. and Europe, they feel they need to. Thank you very much for your thoughts on the matter.
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          Jul 7 2012: Hello Thomas,

          as the 'western' concept of value relies on scarcity, the concept of continues growth becomes obsolete in a virtual model. This actually is the source of the creation of 'intellectual property', to keep the good old habits and the world as it is. This mindset has always stopped societies to transform towards a rich public domain and common wealth and is doing anything to keep it that way. If it comes to 'intellectual property' the best advise I have for those who claims them is 'then don't go public!'. Stay at home with your ideas, stay at your own property and let the public 'die' in unawareness of your mind. Yet don't force them to bend around your intention to make a buck... This may sounds tough for economic liberals, yet in a digital, virtual world without scarcity the intention to also create it 'yirtually' reveals itself... This is a long topic to discuss about... :o)
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          Jul 7 2012: Hello Thomas,

          In case you have not seen it so far, here you can find an interesting video collage by Kirby Ferguson on this topic, called:

          Everything is a Remix

          Part 1: http://vimeo.com/14912890 *The Song Remains the Same*
          Part 2: http://vimeo.com/19447662 *Remix inc.*
          Part 3: http://vimeo.com/25380454 *The Elements of Creativity*
          Part 4: http://vimeo.com/36881035 *Sytem Failure*

          Part 4 summarizes the very meaning of what ideas are meant to be to which I highly agree.

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