"Diverse Harmonic Balance"

Our economic model should emulate a natural system.

Contents:

Purpose:
From Atom to Economics:
Change.
The Economic Model is Flawed.
Value Revised.
Final Conclusion:

Purpose:

"Diverse Harmonic Balance" (DHB) presents a framework for understanding and
determining effective choices in complex systems. This document aims to show
our economic model should emulate that of a natural system.

From Atom to Economics:

There are forces which can explain at a fundamental level most if not all we
see and experience. We often fail to frame the argument correctly. Properly
framed, the various forces align in a hierarchical dependence; each one
based on the next. They are all connected and built on the previous
advancement. A clear progression arises and relationships between them
become clearer.

Who could perceive that something so complex as economics as simply an
extension of the atom?

Atoms allow for molecules, which allow for cells, which allow for neurons,
which allow for the synapse. The synapse provides for behavior. Behavior
provides for society which provides for economics.

Born states:

"Causality postulates that there are laws by which the occurrence of an
entity B of a certain class depends on the occurrence of an entity A of
another class, where the word entity means any physical object, phenomenon,
situation, or event. A is called the cause, B the effect.

"Antecedence postulates that the cause must be prior to, or at least
simultaneous with, the effect.

"Contiguity postulates that cause and effect must be in spatial contact or
connected by a chain of intermediate things in contact." (Born, 1949)
http://en.wikipedia.org/wiki/Causality

Change

Behavior is shaped by the environment and survival is instinctive.

"The desire to stay alive is an instinctive one, built into the psyche of
the organism. The organism will seek those elements of its environment that
will enhance its chances for survival. These include food, water, oxygen,
and periods of rest to allow the body to repair any wear and tear on the
tissues. Alternately, it will avoid or evade those elements that might
reduce its chances for survival. Such dangers include predators, starvation,
dehydration, asphyxiation, and situations that can cause damage to the body.
These seek or avoid drives influence the behavior of organisms: iron seeking
bacteria will move toward magnetism, gnus will migrate hundreds of miles to
find new pastures, a human will resort to cannibalism; an amoeba will flow
away from an electric current, an antelope will run from a lion, a human
will obey a killer or withstand torture." -Taking Advantage, The Biological
Basis of Human Behavior
http://www.wsu.edu:8080/~taflinge/biology.html

Society and Economics provide new and profound environmental agents of
behavioral change.

"Humans live in an extremely complex society. Thus, self-preservation is a
much more complicated proposition than among other animals. Eating to
satisfy hunger is more than just finding proper vegetation or hunting;. To
deal with the complexity, human society has become, to a large extent, an
economic one." -Taking Advantage, The Biological Basis of Human Behavior
http://www.wsu.edu:8080/~taflinge/biology.html

Interaction with new environmental factors requires modifications in human
behavior.

"Of course, this means the life has to change as well, to match the new
conditions. If it doesn't, it dies." -Taking Advantage, The Biological Basis
of Human Behavior http://www.wsu.edu:8080/~taflinge/biology.html

Conclusion 1: The economic market place is the new savannah. Our lives are
governed primarily by market forces created by economics principles. Where
we once may have worshiped and been primarily shaped by the elements of
nature, we now worship and are primarily shaped by the forces of economics.

The Economic Model is Flawed

The economic model is based on a flawed premise.

"When civilization [population] increases, the available labor again
increases. In turn, luxury again increases in correspondence with the
increasing profit, and the customs and needs of luxury increase." - Ibn
Khaldun, 1377

It presumes, growth is the measure of success.

"Now it is generally recognized that economic growth also corresponds to a
process of continual rapid replacement and reorganization of human
activities facilitated by investment motivated to maximize returns. This
exponential evolution of our self-organized life-support and cultural
systems is remarkably creative and flexible, but highly unpredictable in
many ways.

http://en.wikipedia.org/wiki/Economic_growth#Origins_of_the_Concept_and_Theories_of_Econom
ic_Growth

The growth model produces a greed effect...

"Greed has an extremely negative connotation for most people. It conjures up
images of Ebenezer Scrooge and Shylock, chortling over their gold and
ignoring the plights and miseries of others. However, it is actually the
gathering of resources, the more the better. Biologically, for any organism
that is successful greed is good." - Richard F. Taflinger

http://www.wsu.edu:8080/~taflinge/biology.html

.. and considers it a sign of health. (ie., Growth is a Measure of Success)

"The real GDP per capita of an economy is often used as an indicator of the
average standard of living of individuals in that country, and economic
growth is therefore often seen as indicating an increase in the average
standard of living." -
http://en.wikipedia.org/wiki/Economic_growth#Origins_of_the_Concept_and_Theories_of_Econom
ic_Growth

It is well known natural systems do not operate this way.

"A system is defined as a collection of interacting objects. The Earth and
its atmosphere defines the Earth system. A system consists of three basic
elements: (1) a functioning set of components, (2) a flow of energy which
powers them, and (3) a process for the internal regulation of their
functioning called feedback. Most systems tend toward a state of equilibrium
where system inputs are balanced by system outputs. Though natural systems
change over long periods of time, on the scale of a human lifetime they
appear to be static. In reality, the state of natural systems oscillates
around a mean condition - a state known as dynamic equilibrium." (Trewartha,
et. al., 1977). -
http://www.uwsp.edu/geo/faculty/ritter/geog101/textbook/earth_system/natural_systems.html

It is already understood the model is flawed.

"The flaws of GDP may be important when studying public policy, however, for
the purposes of economic growth in the "short" long run it tends to be a
very good indicator (in the very long run it is greatly distorted by the
large changes in relative prices and sectors in the economy). There is no
other indicator in economics which is as universal or as widely accepted as
the GDP." -
http://en.wikipedia.org/wiki/Economic_growth#Origins_of_the_Concept_and_Theories_of_Econom
ic_Growth

Conclusion 2: Greater thinkers than I have missed the obvious or proceeded
to perpetuate a myth of "greed is good". The premise is obviously false. The
deception is for profit and the fallacy a fraud!

Value Revised

If the premise of growth is flawed and the measure of economic value is
growth, then the measure of economic value must also be flawed.

"The economic value of something is how much a desired object or condition
is worth relative to other objects or conditions."

http://en.wikipedia.org/wiki/Value_%28economics%29

The signs are many that the system may be in danger of collapse just as a
building designed outside of the limits of natural law is bound to fail
sooner than if it had been within the bounds of natural law. Massive amounts
of resources might save the building but when something falls outside of
natural law, its sustainability is reduced.

To determine economic value, sustainability must be included.

Final Conclusion:

The economic market place is the new savannah. Where we once may have
worshiped the elements of nature, we now worship the forces of economics.
Our lives are governed primarily by market forces created by economics
currently in conflict with natural law.

The construct of economics as the new hunting ground, is completely
artificial and a product of our making. It is not necessarily within the
bounds of the natural law from and for which we were designed. We are not
necessarily designed to thrive within the bounds of an artificial construct
unless the construct falls within the bounds of natural design from which we
came.

Our economic model should emulate that of a natural system. The correction
is to revise the nature of economic value to include sustainability. Natural
systems reward "Diverse Harmonic Balance".

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