Tuesday, April 25, 2006

The Divine Economy Will Eventually Purge Itself From Interventionism.

Since the divine economy is a system of justice there is no room for cheating in the divine economy. Bypassing the real mechanism of the economy with artificial data is a type of deception and it is cheating.

The real mechanism of the economy is the market process. It is real because it is the expression of people: what they want, where and how much. The market process is this exchange, it is this communication. If all of this information that is communicated leads to an outcome that is deemed incorrect by someone (in their normative assessment) then the interventionists 'rear their head' to modify the market outcome.

On the surface it sounds 'reasonable' to modify the outcome but let's look a little deeper. Who is this 'all-knowing' person or entity that knows more than the collective wishes expressed in the market process? Consider this: the choices made by market participants takes into account their personal history and assets. Their choices may convey information about their savings which then passes along information about their ability to buy and their desire for goods in the future. If someone arbitrarily alters the market outcome but does not know the reasons why the market process went that direction, then they are disregarding information that the market participants consider important.

No one is saying the market process is perfect, in fact it is always in disequilibrium, but it cannot be improved on by ego-driven interventionists who think that they know more than the dynamic expression yielded through the market process. Think of the market process as a means of communication. Prices represent the words in the market process language. Economic calculation is the meaning of the words. Knowing the meaning of what is being communicated is interfered with if words (prices) are rendered meaningless, as would be the case if someone outside the conversation changes their meaning.

Intervention disregards and distorts prices. It parasitically uses the prices generated by the market process, but if carried to its ultimate end there will be no real prices and the economy will cease functioning.

Why do we tolerate the ego-driven interventionists? They do not understand how economic calculation works, and yet they arbitrarily claim that they know what, where and how much for you and me and for everyone else on the planet! Rest assured the divine economy will eventually purge them from the system, which is nothing but justice. Knowledge about the Divine Economy Model © will be a part of this healing process.

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