Capital is heterogenous.

The steps between raw resources and consumer goods are at least as diverse as those that occur in an ecological system. Think of the overwhelmingly numerous levels in the food chain, even in a simple pond ecosystem. These diverse steps transform resources into products and then products combine with resources or other products to yield the consumer good or service. Unless the raw resource is actually the consumer good, capital is needed to fulfill the production.

Capital is heterogenous with regards time and with regards structure. It is unfathomable to grasp this intricate latticework. Understanding the basic properties of this heterogenous latticework is sufficient since it is these properties and principles that clearly indicate that deliberate disturbances from outside the system are always harmful.

In the divine economy model it is the nature and role of knowledge to effectively send signals that reflect the order that is compatible with peoples' choices, and it is the alertness of entrepreneurs that leads to the discovery of how best to direct the capital structure over time.

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Transformation is a dynamic process!

It is not realistic to view the economy in a static state or in a state of equilibrium. Equilibrium is an ever-present tendency that is never attained, and the element of time is absolutely and relatively critical when looking at the dynamic, real world economy.

Once we go beyond the present we enter into the world of uncertainty. Empirical economists try to eliminate uncertainty by designing static models. This is a duplication of the same error made when the subjective nature of human beings is removed "for the sake of science." Neither are scientifically appropriate or necessary since the subjectivist methodology incorporates both time and its uncertainty, and human action and its subjective nature.

It is no wonder that the empirical economists ultimately recommend measures that are interventionist and lead towards socialism. Without allowing time and its uncertainty into their models they neuter capital. Consider how serious is such a flaw! As shown in the divine economy model, 'capital and its structure' is the fundamental element that leads to transformation. And since transformation is a dynamic process, static model methodology again cannot contain it.

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The market is a process!

The market is a process that serves the whole of mankind in a similar way as language. It is the vehicle that transmits vital information and consequently brings about order. It is the social expression of all of the purposeful actions taken by human beings.

The market represents a potential in the same way that human beings have a glorious potential. The only way for the market to move the system closer to its ideal is for human beings to make advancements in their divine nature which would then be reflected in the market. Any illusory efforts made (intervention) to refine the market, that does not come from a change in human potential, causes some kind of destruction.

By the definition of the divine economy, as seen simply in the divine economy model, it is not possible to separate the divine nature of human beings (their birthright) from its expression in the market. The market then brings about order in the world. In a real sense, the order in the world ultimately expresses the maturity, implying to a large extent the spiritual maturity, of mankind.

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Justice and unity are the poles !

Opposite poles attract! Poles that are opposite each other can be seen as inversions of each other or thought of as mirror images - one cannot exist without the other. So it is with the poles that are a part of the divine economy model.

The poles that serve to define and bind together the divine economy model are unity and justice! These are powerful laws, for a lack of a better word, that are necessarily a part of the divine system which has at its heart the divine creature, the human being.

Of course we are talking about potentials. We are talking about the potential of the human being, and we are talking about the potential of the system.

The axis that connects these poles is 'the nature and role of knowledge' which is expressed most fully when free from interference. Since it is a divine system there is the need for trust in God, else, the imperfect knowledge that is also a part of the human operating system will cause injustice and/or disunity.

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Whatever allows the free flow of knowledge serves the economy best.

At every instant we take in information that comes from observation or deliberate research and this influx of information is knowledge. Even if it is misunderstood it still becomes part of our knowledge base for the time being until we learn otherwise. I like the use of the word "otherwise" because it includes the word 'wise.' Wisdom is knowledge that has gone through this process and is aligned with reality.

For all individuals knowledge is ever-present and readily accessible. The nature of knowledge is that it is ever-present and readily accessible. The role of knowledge is to satisfy the need to know. This loop of the nature and role of knowledge is self-sustaining if unimpeded.

In the divine economy model it is the axis of the "nature and role of knowledge" that all things revolve around. Whatever allows the free flow of knowledge serves the economy best.

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Entrepreneurs are the actively alert agents in the economy !

Human beings are irresistably human beings. Just as there is the law of gravity in the natural world, in the human realm there is an irrepressible law for human beings to perceive. We are perceptive. As it happens, if someone perceives that circumstances can be improved then action is taken along those lines.

Although there is this ability to perceive, as part of the human operating system, yet it is either latent or operating within a small sphere in most people. There is, however, a small percentage of people who are actively seeking the opportunities that appear throughout the domain of scarce resources and across the time horizon, and who serve to bring to fruition what is needed to meet the unlimited needs and wants. These individuals are entrepreneurs, the actively alert agents in the economy.

In the divine economy model, latent and active entrepreneurship is the matrix out of which come sparks generated by the active entrepreneurs and leading to an energizing of all of the economic processes.

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The Subjective Nature of Free Will.

The complexity of the economy is beyond human comprehension. How could it be otherwise since the simplest deliberate actor in the economy is a human being, an extremely complex entity. Human beings are divine creatures, both in nature and in potential. How can the mystery of the human characteristic of 'free will' be fathomed? The mystery of the exercising of free will by one individual is wholly independent of that same human right that another exercises.

The only way to truly honor these 'human rights' and to begin to comprehend them is by recognizing their subjective nature. The subjective nature of humans is the starting point in the divine economy model. In the model this subjective nature is identified as foundational and is labeled as "human spirit" from which purposeful action emanates.


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Structure and Time Define Capital !

Everything has structure, of whatever type, and structure is an enabling potency. In the world of existence that we humans dwell, time is another factor. For instance, every day the sun rises and time is recognized as a part of life. These two, structure and time, are strongly evident components of the economy and their intermingling is what defines capital.

Just as we recognize that there is an infinite variety of structures in all of creation it is true also that the capital needed for producing all of the products that people desire, it too, is diverse and various. And that does not even take into account the time element. Some production processes are short and others are lengthy. The capital structure is really an infinitely intricate latticework of both structure and time and it is also dynamic.

The complexity of the capital structure may divert attention away from its purpose and function. In the divine economy model it is the transformative element. Just as individuals seek transformation, all of the factors that are a part of the economy are irresistably and subtly transformed, ultimately serving the needs of those earthly 'images' of the Creator - human beings.

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Property Rights are Human Rights!

There are underlying laws in the physical world, such as gravity, and these are discovered and mastered by objective methods. Likewise there are laws that operate in the human sphere that pertain to the intellectual and to the spiritual processes and these are discovered by the methodology of subjectivism. For example, the idea that there are human rights is subjectively derived and confirmed yet perfectly valid. It turns out that the mirror image of human rights are property rights. The very foundation of the divine economy model is anchored in these subjective laws that are part of the human operating system.

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The Divine Economy Cannot Be Separated From The Human Operating System.

There is order in the world. We see it in the mineral world, in the vegetable kingdom, in the animal world, and in the human reality. The inherent order that is a part of the human world is essentially part of its "operating system." Order is one of the four underlying foundations described in the divine economy model. The intermediary potency that describes how order emanates from the divine economy is the market. The market serves mankind in an analogous way to language. It is the means of communication in the economy! The market is vital since it would be contrary to reality to separate the divine economy from the human operating system. The divine economy and its communicative element, the market, are essentially parts of the human reality.

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The Launching of the Divine Economy Consulting Blog!

Today is the beginning of the Divine Economy Consulting Blog.

What you will find on this Blog are applications of economic principles into the Divine Economy Model.