Difference between revisions of "Physical economics"

Revision as of 21:58, 8 March 2016

Introduction

Energy motion in the economy

The life is a result of the energy activity. This is love and hate within a mental area, and the physical energy within a physical area. As the human society (which is not an ant colony) generally could not be organized on the basis of the family love, so the economy as a whole is organized on the basis of the physical (material) energy, i.e. the commodity-money relations. The risks of the crises could be reduced by fitting the economic pseudo-laws into the natural laws of nature in the proposed model, which is based on the CSS.

Money is the physical energy (calories, kW ∙ h, etc.), which should replace the petrocurrency and other abstract currencies including the precious metals and stones. The accounting is performed by a conventional instrumentation, if it is possible technically. This idea is not new, it has been introduced before V.A. Efimov, and it is supported by many persons.

Both the elitism and liberalism inevitably lead to the social chaos (revolution, war, extremism).

Law

The right to personal and private property applies to all the products, which are made by the human and machine labor. The land and the underground resources are not subject to sale and to rent, because they are not created by humans, and therefore they are distributed by the state (social) planning. The energy is not created by people, but it is only extracted by them, and therefore it should be partly distributed among them for free (see below). The super enrichment happens due to the unequal distribution of the natural and labor resources.

The personal land plots are subject to tax: \[Land\;value\;tax = \frac{area}{total\;area}\times total\;cost\;of\;protection\;and\;defense\]

Money

The capitalist banks are issuing the money like an inexhaustible light of Kabbalah from a single center through a hierarchy of the intermediaries. The money must be issued as the interest-free loans, the repayment rate of which should be comparable with the consumption rate of a natural energy. \[Rate\;of\;loan\;repayment = \frac{debt\;value}{total\;value\;of\;all\;debts}\times total\;generated\;power\] Any person can give the loans, but only from his own funds. The law of conservation of energy requires a payment of the interest on loans as a share of the debtor profit (an Islamic "credit" Musharaka). The banks must get their income only from the government budget. The insterest rate of the bank deposits (the passive accounts) should be zero. A typical scheme is:

A buyer of a product takes a loan, the lender of which is the seller. The product is pledged to the debt payment. The bank only accompanies this deal.

The cash can organize a simple agriculture, where the main energy source is food, and the manufacturing widely uses the manpower and fuel-free machines. The bank cannot arbitrarily convert the cash and non-cash resources. The cash money supply is provided by the state reserve warehouses, where the food is exchanged for money.

The cash supply limitation helps to resolve the following issues:

• Food shortages, because the food is purchased principally for cash.
• Crime (corruption, etc.), because all the major payments are non-cash and can be tracked.

Production

The goods and services are supplied on the basis of a private initiative to meet a demand. The competition is possible. The strategic planning is a recommendation.

The supply and demand balance is mainly achieved by the feedback from a consumer to a producer. This feedback controls the production with prediction of a trend. It should be noted that the traditional capitalist economic growth and the consumption growth is not required in this case. The list of goods is modifying rarely and their level of consumption can be predicted with a great accuracy. The abnormal fluctuations in demand (e.g. a massive buying of goods by the speculators) must be investigated in each individual case.

Examples of predictors:

• Power of the food industry based on the total population and the female population of childbearing age.
• Power of dairy based on the available calcium, vitamins and the number of pregnant women.
• Power ratio of the crop and livestock production to balancing the vegetative and animal protein.
• Fraction of the fish within the animal farming based on the lack of vitamin D.

The intersectoral balance is a calculating of amount of the products, which mutually require each other as the raw materials. The planning parameters are:
\(x,\;x_{out}\) is a vector of produced and output products respectively;
\(S\) is a matrix of dependencies:
\(S_{ii}\) = 1
\(S_{ij}\) is the need for a product \(i\) to produce a product \(j\).
The system of linear equations to find a produced products vector \(x\):
\[S^{-1} x=x_{out}\]

Cost

The unlimited freedom of the market pricing should be limited by the natural laws. This eliminates the need for the exchanges, the stocks and similar pricing mechanisms. The market trade was brought into the life of the Indo-European peoples by the Phoenician and Arab merchants, and also by the Jewish moneylenders, moneychangers and jewelers with their cult of gold and diamonds.

\[\mathbf{Basic\;cost}\;of\;goods\;and\;services = energy\;costs\;for\;production\;and\;delivery\;to\;a\;consumer\]

The accurate measurement of the costs is technically difficult, and therefore the suppliers and the consumers are bargaining within the measurement error.

The cost of the defective (worn-out) products is determined by a conventional subtracting the repair services cost from the initial cost.

The leasers are paying a normative magnitude of wear and are compensating a damage caused by them.

\[\mathbf{Cost\;of\;food\;and\;energy\;sources} = basic\;cost + energy\;value\]

The food producers have to share the food value, which is given by the nature, with the food processors, who do not add any calories to a feedstock. Thus, a more natural food, which is usable even in its raw form, may be more profitable for its producer. For example, the cereals, which require the bakeries and the distilleries (see "Bread and alcohol") for the final products, must be displaced along with the alcoholism.

The energy suppliers have to share the energy value with the manufacturers and distributors of the goods, which have a negligible energy value. The most profitable manufactured goods are the converters of energy into any functions (transport, telecommunications, etc.), because these goods permanently require an energy for their operation. The profit of producers depends not so much on the quantity of goods, but rather on their quality and durability. Therefore, the overproduction is suppressed, and amount of the toxic waste to landfill is decreased.

The rule of free heat. The increase in total energy consists of the useful work and the useless increase in temperature and/or entropy. The thermal energy of an object does not give any energy value to the object and is excluded from the economy. Examples:

• Object heated by the natural (Sun, geothermal) or artificial means.
• Fuel or waste to produce heat only. For example, the food and wood energy values cannot be compared.
• Working substance of the heat engines (exhaust gas, steam and hot water).

\[Fuel\;cost = cost\;of\;production + heat\;of\;combustion\;– heat\;discount\]

The fuel-free electricity (solar, wind, hydro, etc.) is cheaper than electricty from the thermal generators. The price competition saves the non-renewable fuel resources.

The state receives a share of electricity for free as a tax.

Social services

The wage of workers, employees and experts (including teachers) = personal energy consumption + share of an energy value. The shares are set by an agreement of all the employees and partners.

The governmental health care is funded from the common insurance fund, which is filled by the voluntarily insured people. Each person pays the power of his physical strength (full by default). That is, the doctors gain their profit from the healthy people, and the patients bring them only losses. The social pensions are paid from the same fund, individually choosing the optimal ratio of costs between treatment and pension. Thus, the doctors are not so much interested in the treatment, but rather in the prevention and health promotion of a growing population.

The general nurture and education are the services, which are paid from the budgets of a family, a company and the government. The governmental nurture and education provides the minimum social security. The modern technology allows the independent people to get the self-education and the tele-education. The training effectiveness depends on the feedback level from a student to a teacher, and not only on the tests, but also on the answers to the vital questions.

The information is not a commodity, and it is freely available, if the source had given it voluntarily. The rewards to artists and scientists should be paid by the arbitrary persons (sponsors, fans, etc.) without a taxation, because this activity is not directly related to a natural energy.

Reference data

Conclusion

The advantages of this system are:

• The initiative belongs to the consumers and the real producers, who even give the loans to each other. The financiers and the officials perform just a technical functions.
• The super enrichment of the energy suppliers is difficult, because a proportion of the energy sharing is known, and the interdependent partners will seek to divide the energy according to their labor costs.
• The stability of prices for the electricity and the housing services.
• The limited pricing prohibits a profit from the people's misfortunes (an accident, a natural disaster, etc.), which are accompanied by a large increase in demand for any product or service. The demand only stimulates the supply.
• The single currency, which eliminates the exchange rates between the currencies.
• The minimum wage provides a living wage for a particular category of people, which does not allow starvation and also motivates any productive activities.
• The manufacturer in competition seeks to minimize the base cost (cost of production), and provides also the necessary quality and quantity of the goods and services.
• The food prices are almost stable, because the food energy value is constant.
• The pharmacology is not so profitable for the doctors as in the market economy.
• The absence of the paid information products reduces the profanation of art and science by some merchants (Bill Gates and others).

The disadvantages of this system are:

• Everyone has to work really and honestly, because a passive income from a rent is not so significant, a credit is risky, and any gambling is minimized.
• Inevitability of the "black" market with a free pricing of the goods that have an excess demand.