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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 7 2012: [response to Krisztián Pintér re: illegal...]
    As I understand it, in some cases actual coercion was involved but mostly the acts consisted of forcing other companies and individuals to merge with him, sell out to him, or face being run out of business. I regret that the details of the period have left memory but the information is available I'm sure. I do understand that to a degree this is somewhat controversial in nature. The laws did not exist then that do now, the reason for my comment that those methods would be illegal now, not then. However it was largely due to Standard Oil that the Anti-trust laws came into being.
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      Jul 7 2012: coercion? i have never heard about it, and it is unclear how could a company coerce anyone. threatening of driving out of business is not illegal. the more successful company always drives less successful businesses out, that is normal in a market economy.

      standard oil was successful because of continued innovation.

      more on the issue:


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