Saturday, November 04, 2006

Divine Economy Theory Q&A #2: Isn't Competition A Form Of Intervention?

What a very powerful question! This is difficult to answer in a brief blog entry.

First of all we have to understand competitive entrepreneurship. This is not well understood since it is different from what is presented by contemporary economics (which is afflicted with empiricism).

Competition in the animal world is survival of the fittest, one side loses and the other wins. In the social world of human beings who function by searching for and discovering information competition plays a different role. There is always a striving for improvement but once that occurs information flows in many different forms and in many ways. These improvements eventually reach everyone. An unimpeded, unhampered economy conveys the information most quickly, and importantly, with justice. An economy shackled with interventionism tries to direct information to those favored almost exclusively, which is clearly an injustice.

And now I will address the word "entrepreneurship." It is not some managerial skill acquired after going on to get an MBA! It is the state of being alert. All humans have this potential. In most it is latent and in others it is active. Those who are striving for improvement are on the lookout and if they discover the opportunity to bring about improvement they will act. Often capital is required since capital is the most limiting factor in the economy.

Now to answer the question: Competitive entrepreneurship is a part of the human operating system. Discoveries are sought and information about these discoveries flows because discoveries are fervently being sought in an unhampered economy!

Intervention is when someone assumes that they can comprehend the consequences of their action (across the board) on every person on the planet and over time. Intervention necessarily interferes with the flow of information which means that it also interferes with the competitive search for discoveries that occur naturally in an unhampered economy (since it is a divine institution).

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