The Functionality Of The Skeletal Structure.

 

 

In this form the functionality of the model begins to emerge. It has a dynamic nature. Every point is relative to every other point and every understanding gained causes movement, advancing civilization.

To continue to improve the functionality of the model more scientific elements of the economy are added. These economic elements were discovered by great thinkers in the tradition of classical liberalism. These certain points of focus are added to the skeletal structure as intermediary potencies. That is what is coming in the next blog entry!

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Skeletal Structure Of The Divine Economy Model.

            To the model we then add reciprocity and symmetry (Diagram II B). From now on you will notice arrows on both ends of the lines to represent reciprocity and symmetry. The element of reciprocity adds the dimension of mutual exchange. Another way to describe what happens during an exchange is to see exchange as the fulfillment of the double inequality of wants. I want what you have more than what I have and you reciprocate those feelings, therefore we exchange.

Proportionality and relativity manifest themselves in the world via the element of symmetry. For example, as transformation within the economy increases the other vital elements of the economy also increase and the economy as a whole increases. The model now becomes:

 

 

MORE THAN LAISSEZ-FAIRE, pp. 13-14.

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Anatomy Of The Divine Economy

 

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The Conceptual Divine Economy Model.

The Conceptual Model

Now I will introduce the divine economy model to you. As the model is presented; its interconnectedness, reciprocity and symmetry will be discussed. One analogy that may prove useful is that of a complex organism made up of components that are more or less differentiated. Ourselves, we are made up of systems and organs and tissues and cells. Likewise the divine economy model has universal laws, foundational elements, concepts, and principles.

            The center of the model is its reality and essence, summed up using the words ‘divine economy.’ These two powerful words clearly state the vital perspective of this model. These two words efficiently convey the source and the dominion. The implication here is far more magnificent than laissez-faire which merely suggests ‘not to meddle.’ The implication here is that the economy is above and beyond our human understanding and that it can be and is corrupted by human intervention alone.

The divine economy is both pervasive and subtle and its dominion reaches everyone in their daily affairs. It is basic and connected to the necessary acts of every man and woman and by its conveyance of information it allows people to function.

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The Code Of The Divine Economy Model.

The Code

            Shortly I will begin to present to you a graphical representation of the divine economy model. But before we begin examining the model we will want to understand the conceptual basis of what is called the Cartesian coordinate system. In mathematics the applications of the two dimensional coordinate system and of the three dimensional coordinate system appear to be very empirical. Despite being used mostly for empirical work the Cartesian coordinate system is not restricted from more conceptual applications, as proven when it is expanded to higher dimensions, for example, the fourth dimension, the fifth dimension or even to the nth ‘degrees of freedom.’

            I take advantage of the conceptual potentialities of the Cartesian coordinate system and use it as a part of the design of my subjective model. Just as the higher dimensions are abstract I make all of the dimensions of my model abstract. Referring to the Cartesian coordinate system, Bernhard Rieman in 1854 described the value of this abstraction: “Abstract studies such as these allow one to observe relationships without being limited by narrow terms, and prevent traditional prejudices from inhibiting ones progress.” In my model the two dimensional system is subjective or ‘abstract’ as is the third dimension and the fourth dimension and the fifth dimension, in other words, my model is five dimensional.

MORE THAN LAISSEZ-FAIRE, pp. 11-12.

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Trusting Equilibrium Brings About Refinement.

         There is only One Being omniscient enough to see all that happens in the market matrix and only One Being that is not wholly dumbfounded by what human minds see as uncertainty. The economy is divine, it is God’s.

The economy provides channels through which the grace and bounty of God flow. According to the divine economy theory, the economy (itself a divine institution) is reciprocally a part of the human operating system. The sooner we learn this and trust this the sooner we can learn how to use this institution to bring about peace and justice.

The divine economy is here for our benefit. It forces us (acting man) non-coercively and by the tendencies of the forces of equilibrium to refine ourselves internally (heart and soul, spirit and intellect), and externally (human and non-human resources). And so it is that the equilibrium forces referred to in this book as the ‘divine economy’ direct our refinement.

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The Hidden Order Of The Voluntary Free Market.

The divine economy is not separable from human civilization, nor is it separable from the advancement of human culture at the individual or societal level. The divine economy operates in accordance with the Will of God and it is a vehicle for the expression of the will of man. The implication of the divine economy is that there are laws and that there is order.

The power within and without the divine economy is beyond our grasp. Yet throughout history men have sought to grasp it. Examples throughout history abound. For the short while and ephemeral period that the power-hungry clutched the economy their illusion of control corrupted them, and the economy became distorted and diverted, leading to the suffering of many both near and distant. Ultimately the destiny of mankind was slowed by their intervention. Quoting Rothbard:

“The hidden order, harmony and efficiency of the voluntary free market, the hidden disorder, conflict and gross inefficiency of coercion and intervention — these are the great truths that economic science, through deductive analysis of self-evident axioms, reveals to us.” [4]

MORE THAN LAISSEZ-FAIRE, p. 9.

[4] Murray N. Rothbard, Man Economy and State, second edition, Scholar’s Edition (Ludwig von Mises Institute, 2004), p. 1124.

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Subjectivist Methodology Allows The Merging Of Science And Religion.

          What is incredible is how the subjectivist methodology of classical liberalism allows the merging of science and religion. This subjectivist methodology can be used to discern the essential laws that apply universally to human beings when they are at the threshold of action, whether that act is an act of faith or a material act. These universal laws ultimately underlie our quest to know and to understand.

We are educated and we make advancements by the insights gained during our quest for understanding. In the realm of faith our souls progress and our nature becomes more divine. In the material realm we become more tuned in to how our interconnectedness with others can bring prosperity and how we benefit personally from that prosperity.

It is not something that we may even have to consciously make decisions about. It becomes, in a sense, just a realization. This parallels a statement attributed to the British mathematician and metaphysician Alfred Whitehead, as quoted by Hayek, “Civilization advances by extending the number of important operations which we can perform without thinking about them.”[3]

MORE THAN LAISSEZ-FAIRE, pp. 8-9.

[3] F. A. Hayek, The Use of Knowledge in Society, The American Economic Review, Volume XXXV, Number Four, September 1945: p. 528.

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Happiness Is Subjective And It Drives Purposeful Action.

Since human beings act purposefully the power to make the divine economy manifest rests with each individual. It rests; it resides, and becomes evident in these individual actions. Mises writes:

As long as a man lives, he cannot help obeying the cardinal impulse, the elan vital. It is man's innate nature that he seeks to preserve and to strengthen his life, that he is discontented and aims at removing uneasiness, that he is in search of what may be called happiness. [2]

            The power to make the divine economy manifest comes from the invisible world of thought and reason and enters the visible world through purposeful action. Since no action occurs in a vacuum each action becomes a part of the educative matrix of all actions, all of which follow the same subjective processes.

MORE THAN LAISSEZ-FAIRE, p. 8.

[2] Ludwig von Mises, Human Action, Fourth Revised Edition (San Francisco: Fox & Wilkes, 1996), p. 882.

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The Progress Of Humanity Depends On The Free Market.

The divine economy has the power to awaken us to our own potential, which finds expression in service to one another and to our loving Creator. That is why the progress of humanity, even for us as individuals, depends on a free market. Likewise, the discovery of the merits of the divine economy depends on the educative process — significantly derived from the market experience itself — from which proceeds the ever-advancing progress of humanity.

            The critical need is to bring all of these processes of the divine economy into the realm of science. Here the groundwork has already been laid by the great minds who have described the methodology of subjectivism and who have expounded upon praxeology—which is the study and logic of human action. This great scientific heritage pays tribute to monumental thinkers such as Thomas Aquinas, Carl Menger, Eugene von Bohm-Bawerk, Ludwig von Mises, Friedrich von Hayek, and Murray Rothbard. From their work and the work that continues along these lines there is a scientific foundation that provides the tools needed to test and to advance the understanding of the processes at work.

MORE THAN LAISSEZ-FAIRE, p. 8.

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Transforming Power In The Structure Of The Economy.

Like all institutions the economy has the appearance of structure. Its structure in its pure form is the market, free from political intervention. The closer the economy is to a free market the greater its capacity to be a full expression of a divine economy.

            Remember that there is interplay between the human actors and the market itself. There is a commingling of these two divine entities and both benefit from this dynamic process of discovery. Also there is a transforming power in this divine encounter.

This transforming power is perhaps the most essential element of the divine economy. There is a divine power — the power to transform the resources bestowed upon us into goods and services and which then enables us to serve one another as a tribute to our loving Creator.

MORE THAN LAISSEZ-FAIRE, p. 7.

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Economy Is A Reflection Of The Spiritual Maturity Of Humankind.

The state of affairs at any point in time reflects the spiritual maturity of mankind and the corresponding condition of the economy. As mankind, as a whole, matures he increasingly cares for himself and for others. The economy always fully serves at the level it is capable of as an institution with divine potential, but unfortunately it has historically been significantly constrained by human intervention.

MORE THAN LAISSEZ-FAIRE, p. 7.

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Decentralized Planning To The Nth Degree In The Divine Economy.

Human planners of the economy are hopeless failures and can be more aptly described as oppressors. In the real economy (the divine economy) there is a ‘central planner’ who is all-knowing and all-seeing and perfectly just. It is God.

God is the creator of the economy as a human institution and His design allows the fullest expression of human diversity. In the divine economy there is decentralized planning to the n^th degree, where n represents each individual or business entity that is actively interacting within the market process. The economy changes as the human race changes and yields its promised fruits conditionally — depending upon whether the current state of affairs exists as either a hampered or an unhampered market.

MORE THAN LAISSEZ-FAIRE, p. 7.

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The Market Is A Unique Instrument Of Human Expression.

The “single mind” that has all knowledge does find expression in this new concept of a divine economy. It happens through the instrument (the market) nestled within the divine institution (the economy) bestowed upon mankind. In other words, the unique instrument of human expression that forms as the foundation of economics is the market.

Human planners of the economy are hopeless failures and can be more aptly described as oppressors. In the real economy (the divine economy) there is a ‘central planner’ who is all-knowing and all-seeing and perfectly just. It is God.

MORE THAN LAISSEZ-FAIRE, p. 7.

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All Actors In The Economy Have Only Partial Knowledge.

There are those who object to the imperfect knowledge of the actors, insisting that they would have made a better decision if they had perfect knowledge. This objection is certainly naïve and contrary to the real world. Human beings are neither omniscient nor omnipresent. They cannot grasp all that came before nor do they know the future with certainty. All actors in the economy have only partial knowledge.

MORE THAN LAISSEZ-FAIRE, p. 6.

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Relative Perfection Is Our Potential. Same With The Market.

It is clear then that subjective values are within the realm of economics. When an exchange does occur it is based on the knowledge-at-hand by the actors—the buyer and the seller. The knowledge-at-hand is relative and imperfect, yet at the same time it is fully coordinated within time and space. In other words, it could not be made more perfect as evidenced by the willingness of both the buyer and the seller to consummate the exchange, free of any coercion to do so.

MORE THAN LAISSEZ-FAIRE, p. 6.

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The Market Is A Divine Institution That Emerges Spontaneously!

Granting that the economy is divine implies the following: that the actors are seen as expressive agents of the will of mankind, that there is no omniscience within the realm of human policy-making that can even minutely compare to the divine expression inherent in the market, and that the market is not a product of human design. The market is a divine institution that emerges spontaneously from human action. It is a social institution that forms for the sake of production. The market is the time and place where the convergence of all of this useful information transpires and where it is discovered.

MORE THAN LAISSEZ-FAIRE, pp. 5-6.

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Updating Laissez-Faire With The Divine Nature Of Human Beings.

How do we know what the uncorrupt economy looks like unless it is seen as having a pure form? Those who recognize that the economy operates perfectly well independently hold “laissez-faire” up as the pure form. But they have not made any connection to the divine nature of the human being as an essential identity. This is a new thought and is worthy of consideration.

MORE THAN LAISSEZ-FAIRE, p. 5.

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Economy Deteriorates When Corrupted By Interventionism.

We must sort out the reason for the burdening or weakening of the institution (the economy) that serves to bring about our betterment. Understanding human nature sheds some light on the subject. The will to choose the higher perfections versus choosing the imperfections of our lower nature is at the crux. It turns out that ego-driven intervention is the best economic example of humans exercising their lower nature. Just as metal oxidizes and becomes corrupt, so too the economy deteriorates when it is corrupted by intervention.

MORE THAN LAISSEZ-FAIRE, p. 5.

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Modern Economy Carries Cumulative Effect Of Human Actions.

What is the current condition of the modern economy? It is true that the modern economy carries the cumulative effect of human actions taken over time. Errors from economic ignorance have accumulated, consequently along the way unnecessary burdens have been added. These add weight and bulk, since after all, the burdens are cumulative.

MORE THAN LAISSEZ-FAIRE, p. 5.

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Cumulative Human Actions Bring Us To The Modern Economy.

Although rudimentary in the early stages of development, the early actions taken by primitive human beings were very much of the moment and yet they were also important agents of transformation. Notice the dynamic here — the spontaneity between the act and the transformation — a dynamic that conveys great meaning. One does not exist without the other and yet each spark of interplay reveals new possibilities. It is then this cumulative effect of human actions and the subsequent transformation, taken throughout time and across time, which brings to us the modern economy.

MORE THAN LAISSEZ-FAIRE, p. 4.

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Humanity And Economy Evolved Together!

The origin of the economy is intricately intertwined with the origin of man, which is ancient and even still a mystery. It taxes all the discerning powers of historians and archeologists to discover the origin of man. Why does this veiled past have anything to do with the economy? The premise of this book is that the economy is a uniquely human institution and that without the human being there would be no such thing as the economy. Speaking in these terms it is obvious that they both appear and evolve concurrently.

MORE THAN LAISSEZ-FAIRE, p. 4.

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Divine Economy Theory Is For This Era Of Human History.

The fact that the divine economy theory is now discovered is evidence that we are in a new cycle. At the same time this new cycle has a nature about it that requires a new theory. Reciprocally then, the discovery of the divine economy theory and the need for the divine economy theory are both important in this cycle, in this particular era of human history.

MORE THAN LAISSEZ-FAIRE, p. 2.

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