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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 12 2012: I have been unable to respond due to personal issues. First, I am not concerned with the reputation or legality of Rockefeller. The United States of America passed the Sherman Anti-trust act to prevent corporations replacing the government as the primary source of political power.
    In pursuit of the original idea and the discussion of it I would like to propose a few observations.
    1) Money is energy. money is a unit of exchange, and so is a photon. Mass and Energy are inextricability linked in physics. logically there would be a similar relationship between money and property. The problem comes in (IMHO) when we consider that very little of the "money" in the world is backed by a direct property relationship. If we analyse the structure of value creation it starts with labor. This is the famous adage "Time is Money!" It is indeed. What, if anything would be the E=MC2 of economics? What is the real value of a unit of currency?
    2)Gravity. The force of attraction (or repulsion) that exists between two blocks of captial. What would be the economic equivilant of the Gravitational constant?
    3) Entropy. This must apply to economics but needs to be codified. This would also lead to the laws of thermodynamics

    I use a term "capital velocity." I use it to relate to the number of times that a unit of currency (value not actual printed cash) changes hands in a given time frame. I believe that this is an important consideration. Much of my ruminations center around a connection between micro and macro economics and building a basis for a new understanding of a socio-economic system that can help define the future of our world, not justify its past. Again Thank you!

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