Interventionism Often Is "Forced Development."

As I mention in my book, DIVINE ECONOMY And Its Real World Economic Principles, interventionism is an ego-driven corruption of the economy. Most often interventionism is due to ignorance of the divine nature of the economy. This ignorance emboldens the interventionist to try to 'fix' the economy.

With regard to fixing the economy: At best it is naive to think that all of the consequences over time can be foreseen. At worst it is a blatent disregard for any consequences other than the ones faced by a favored group for the immediate future.

"Forced development" is a descriptive term that exposes this sleight-of-hand. Resources are coercively extracted from the whole and channeled towards a particular project which is then held up as 'progress.' It may even appear as progress but almost any project that has forced funding and use of coercively extracted resources will appear to be successful. It is not difficult to see that this 'progress' is ego-driven and it is not difficult to see that this is the first appearance in a whole series of corruptions.

Eminent domain is an example of 'forced development' as is the current hotly debated coal-based power plants issue in Texas.

It should come as no surprise that politicians and their cohorts are the primary advocates of 'forced development.' Concurrently, these are the same ones who operate as interventionists, and who corrupt the economy by their ego-driven ignorance of the divine economy.

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The Divine Economy Theory Will Greatly Serve Mankind.

The divine economy theory does not affiliate itself with any particular religion, it is the ultimate outcome of each divine revelation. The dispensation ushered in by each revelation from God bears fruit, culminating in a divine civilization. The workings within that divine civilization rest upon the divine teachings about the spiritual essence of fellow human beings, and the trust in God.

Since human action has the potential to be guided to be in line with the Will of God, a divine civilization can emerge that operates by using means to attain ends. If the means are evaluated and chosen according to the guidance given for that Dispensation then the economy is a divine economy. Of course the ends chosen are also influenced by the Word of God for that Day of God.

This is where economic science can contribute a great deal. It is independent of any religion yet it can identify the source of value and it can examine the different means to determine which ones serve everyone with justice. This is how the divine economy theory will greatly serve mankind.

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Divine Economy Heals The Addiction To Interventionism.

The following analogy sheds some light on the subject of the contemporary economy.

The objection to stopping intervention is the fear of the consequences. Consider the life of an addict. It is the pain and suffering and the fear of separation that makes an addict lose the self-discipline needed to begin the healing process. If pursued though, not only does the healing process take place within the individual but across all of the social interactions.

This is the same with the divine economy. In its sick and addicted state the immediate horizon of abstention looks painful, with suffering and plenty of negative consequences. Just like with an addict the current level of intervention is no longer sufficient so with each increased dose there is more and more separating and corrupting of the economy further from its natural state. The economy is corrupted and distorted and so are all of the social interactions. Look around and it is easy to see corrupted, distorted social interactions!

Until the addict decides that the loss of one's true self is no longer acceptable the addiction continues. The strength to recover comes from the desire to honor and cherish one's own reality. This realization and discovery is often connected to a spiritual awakening.

At this time in history when the divine economy theory is just emerging there is a general ignorance. My task is to raise the awareness about the divine economy so that it can become a source of strength to counteract all the concerns about the negative consequences of withdrawal from interventionism. The healing process is very exhilarating. And the state of freedom from addiction is natural and optimal. In the case of the economy it is divine!

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Recession Viewed In The Divine Economy Model ©.

The slowly creeping news is that we are approaching a recession. Numbers and talk accompany this worrisome phenomenon.

Since those who deserve the blame portray themselves as the physicians combatting economic woes there is little truth to what they say.

The simple fact is that the economy is a divine institution subject to corruption by the meddling of ego-driven interventionists.

It is now time for this alternative viewpoint to become known. This alternative viewpoint has a name and that name is the 'divine economy theory.' Although it is still in its infancy it can expose and dispose of the fallacious economics currently relied upon.

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The Divine Economy Model ©.

Here is the Divine Economy Model ©. What I want to impress upon you is the 'justice/unity' axis and its identity which is labeled 'Nature and Role of Knowledge."



As knowledge is acquired it stimulates the desire for more knowledge and this process then moves the axis to the right.


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Divine Economy And An Ever-Advancing Civilization.

Soon I will begin using graphics to facilitate the understanding of some of the economic concepts but the use of words to present logic is still very, very powerful and it will remain the main vehicle for the conveyance of meaning.

In DIVINE ECONOMY And Its Real World Economic Principles the idea that the uncorrupted economy would be self-sustaining and in motion in a positive direction, that idea, is presented as an "ever-advancing civilization."

There are many ways to substantiate this. The way I choose now is the use of the 'justice/unity' axis of the Divine Economy Model ©. The axis identity is 'the nature and role of knowledge.' It follows that as long as human beings act like human beings, knowledge necessarily increases and knowledge serves to lead to further increases in knowledge.

If we assume movement to the right is positive (an accretion) then the 'justice/unity' axis continually moves to the right. This represents an ever-advancing civilization.

Intervention sends the 'justice/unity' axis backwards!

The truth of the matter is that it is God's Will that human civilization is ever-advancing! If we stop limiting the divine economy by our feeble-minded human intervention into the economy all of humanity will prosper.

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How Representative Is The Divine Economy Model © ?

Hopefully everyone realizes that models have limits. But so do words! The Divine Economy Model © offers another perspective which enhances the understanding of how the economy works and it enables us to grasp concepts that are somewhat difficult to describe using words alone.

Consider the painter and the painting. Although the painting is likely to stir the emotions and thoughts of its admirer it still represents only a fragment of the vision of the painter. The painter attempts to capture the vision but cannot contain it on a canvas.

Likewise, the Divine Economy Model © exists in a physical, graphical form and it has parts that are defined as dynamic for the sake of expanding its realism but, in no wise, does it come close to the infinite grace of the divine economy.

That said, the Divine Economy Model © is a vast improvement over what else is out there. It is founded upon classical liberalism principles which means that humans are recognized as subjective creatures so it is far superior to the plethora of empirical models. It is also based on the divine nature of the human reality which then launches economics into the future. Who knows what knowledge will unfold as the theory of the divine economy moves us forward?

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Divine Economy Theory Has Classical Liberalism Roots.

Science is always moving forward. Most often this is a subtle process yet sometimes the forward movement is accelerated. It remains to be seen if economic science progresses slowly or rapidly now; now that there is this new avenue for advancement, which I call the 'divine economy theory.'

Regardless of the future, the 'divine economy theory' emerged from and is compatible with classical liberalism. What this means is that the 'divine economy theory' rests upon their common pillars of property, freedom and peace!

From the viewpoint of the 'divine economy theory' as represented by the Divine Economy Model © it is clearly stated that property rights are the mirror images of human rights. As such there is no excuse for any violation of property rights.

Likewise the 'divine economy theory' clearly demonstrates that human intervention into the economy is a corruption. This is a sure guarantee of freedom since it is only under the condition of freedom that the economy can reach its potential.

It follows then that when human rights are protected and when there is freedom that the outcome is peace. The Divine Economy Model © demonstrates this by its axis of justice and unity supporting the nature and role of knowledge.

To continue the metaphor, the roots of the 'divine economy theory ' are classical liberalism. The buds are just beginning to open and soon there will be leaves and flowers. The fruits that will be produced in the future will be sweet and can be described as an ever-advancing civilization.

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Eminent Domain Has No Place In The Divine Economy!

If you or someone you know has felt the oppression of the application of eminent domain it is not just a physical setback. It is much more significant! Floating around are terms like tangible and intangible. These do not address the very essence of property rights which is that property rights are human rights.

Can anyone at any place on earth or can any spokesperson speak frankly the words - without serious reproach from a civilized world - the words that say that violating the human rights of someone is perfectly OK if it helps others to acquire wealth?

Eminent domain laws that enable the violation of property rights are laws that violate human rights. When the lawsuit proceeds through the legal system and the rationale for compensation is ultimately set forth the question that needs to be up front and in the open is this: "Is there a price that can be placed on your human rights?" Followed by: Is the violator of your human rights willing to face "crimes against humanity" charges?

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A Short And Sweet Entry About the Divine Economy!

What is true is that the economy is one whole and that what I have contributed to economic science is the beginning of the scientific literature exploring what I refer to as the 'divine economy theory." This is an embryonic science at this point in the history of mankind but it is organic and connected intimately to the human reality. That is the reason it is viable and that is the reason why it will be fruitful.

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The Divine Economy Model © And The Divine Microeconomy Model ©.

Even though the economy is seamless it still is useful to look from different perspectives in an attempt to understand the economy better. That is the reason there is a tremendous wealth of understanding that has come already and will continue to come from the examination of the Divine Economy Model © and the Divine Microeconomy Model ©.

The natural evolution of these models followed the process of deduction, from general to specific. The Divine Economy Model © was developed first and was published in 2005. The Divine Microeconomy Model © followed shortly afterwards and was published in 2006.

They are linked yet distinct. They are independent in their applications yet they are based on the same foundation of property, freedom and peace.

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Entrepreneurship and the Divine Economy Model ©.

How does latent entrepreneurship match reality and how is it modeled in the Divine Economy Model ©?

Although human beings are seekers they still have lull periods. They may be fatigued, hungry, thirsty, oppressed, burdened, ignorant, self-absorbed, sick, pre-occupied, overwhelmed, unencouraged, as well as other possible afflictive conditions. Keen-sightedness is the precursor of being active and entrepreneurship is the step taken to bring about improvement.

Each person exhibits latent and active entrepreneurship throughout the day and throughout life. This is represented in the Divine Economy Model © by making the model three dimensional. The economic elements of the model are seen as being submerged in the milieu of latent and active entrepreneurship.

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Use the Divine Economy Model © To Prescribe Remedies.

The Divine Economy Model © is not without the power to prescribe remedies for the economic ills and woes confronting mankind. Its foundational elements of property rights, the market, capital structure, and the freedom to act are what bring about prosperity.

The remedy administered removes the acts of intervention which prevent the flow of information and knowledge. It is also essential that property rights are seen as human rights and are protected by the justice system.

The power of equilibrium is far greater than all the intervention combined and so, when intervention is seen properly as an affliction, equilibrium forces will quickly purge the economy and return it to its natural state - that of the divine economy. What is meant by 'divine economy' is a cooperative and advancing civilization that reflects and supports the needs and desires of the people of the world.

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The Heart Will Be Labeled As The "Divine Economy."

Imagine the economy as an organism. The heart will be labeled as the 'divine economy' and the blood which circulates is the 'nature and role of knowledge.' Capital structure is the skeleton. Capital itself is the foodstuff that nourishes.

To continue the analogy: the feet supporting our organism in its movement represents its property rights. Its ability to stay balanced (its own equilibrium) comes from the market. Its awareness of its surroundings comes from its entrepreneurship.

This is not just any organism, it is a human being and so it has spiritual capacity. The will to act and to transform itself and its surroundings in its endless search for its Creator represents and defines the human spirit.

The divine economy is a composite and sum of its parts. In fact it is greater than its parts and it has qualities that are multi-dimensional, unquantifiable. Nevertheless, its nature is like that of its parts, meaning that the inherent divine capacities of each human being contributes to the whole, expressed as the divine economy.

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My book publishing hiatus is over, partially.

I now have my second book, DIVINE MICROECONOMY - A Tapestry of Human Virtues, published as an eBook. I am still trying to get the website going to sell my second book online automatically. Therefore I am still occupied and unable to write daily or even as frequently as I would like.

Also I have started a second blog, Divine Microeconomy Consulting (http://divinemicroeconomy.blogspot.com), to parallel the concepts set forth in my second book.

Capital is a Part of Every Thing in the Economy!

When a tool is used or when a fork is used it is true that we forget that these are capital goods. They represent intermediary goods, goods that facilitate. They are now so well integrated into our lives that they are assumed to be final goods themselves, appearing side-by-side with our other final goods.

The important point that I am making here is that capital is infused into every good that we use or consume. The distinction of being a capital good becomes one of relativity. Some intermediary goods are obviously capital goods since they are early in the production cycle.

Capital is so vital an element in the economy that it is simply inseparable. It is like trying to separate you from your intellect or from your personality or from your soul! This is the premise of the Divine Economy Model ©.

Those who deride capitalism may have a good reason since they do not make the distinction between capital and the corruption that comes from intervention. Corruptions such as corporate and political cronyism exist in a system of intervention. These are the parasites on the capital in the economy. As parasites they are seen closely associated with capital but they are an affliction not an outcome.

Capital exists because people have a vision for the future. Capital is what fulfills that vision. Capital goods are the steps taken in that direction. It is not critical that we recognize a fork as a capital good. What is critical is that we stand tall and boldly counter the biases about capital that are being promulgated in this age of economic ignorance.

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The Ego-Driven Interventionists Are the Cause of Disease.

When the interventionists have the license to meddle in the economy they demonstrate their ignorance and their intentions. Their lack of understanding of savings is a perfect example.

However, savings is not difficult to understand. It is the choice to consume later. So there is a very small difference between consumption and savings. It is simply the time frame that is the difference.

Saving is a personal choice made by each person, assuming that we have the freedom to make our own choices. While our savings fulfills the desire we have to consume later it also can earn a return, so it most often becomes capital.

Why are the interventionists opposed to savings? It is because they have allied themselves with political expediency. As the long term vision inherent in a monarchy was replaced with short term democratic cycles it became expedient for politicians to intervene to discourage savings. They may not be still be around in the long run so they want to make a splash now to satisfy their egos. They want consumption to happen now.

Consider the consequences of an artificially low interest rate set by an act of intervention. Savers feel discouraged. The incentive is to spend more now than they would have if they knew the real interest rate. This shorting of savings represents a consumption of capital!

The Divine Economy Model © makes it clear that the capital structure that is built upon savings is the cause of transformation. That is how vital savings is. That is why intervention is so destructive.

The current political systems and structure feed on interventionism and are parasitic to the economy. Eventually the people of the world will see the ego-driven interventionists as the cause of disease. At that point the healing will begin and the divine economy will enable everyone to reap the benefits of prosperity.

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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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The Divine Economy is a System of Justice!

The basis of civilization is the contract. I am not talking about signing on the line necessarily. I am talking about the implied contracts that are a part of all human cooperation. The contract represents a trust, a trust that all parties are trustworthy. Those who are trustworthy will prosper and they will contribute to the advancement of civilization. Those who are not trustworthy will quickly be outcasts and will need to either change or become depraved.

As you can see the divine economy is a system of justice. The divine economy is a contractual society. It functions in a way that encourages trustworthiness.

It is the contract that becomes a defining entity for the betterment and advancement of human civilization. It is binding and has the capacity to be defined and refined with exacting precision. The degree of precision necessary all depends on the requirements of the situation.

Every arrangement made has this contractual nature. I can promise my friend that I will come and give him a hand moving some furniture. I can borrow money with the promise to pay it back. I can expect that employers pay employees and that the employees show up and do their job.

It is this contractual society that can be refined and which will bring about justice.

There is one standard, not one for people and a different one for government. This duplicity is where our present-day civilization falters. Combine such duplicity with the government as the holder of the reins of the justice system and it becomes clear how perversely favored government becomes. This is an injustice.

The justice system needs to be made independent of government and it needs to hold all parties accountable to the contracts. If areas of agreement are murky then the contracts need to be defined with precision.

The most powerful starting point for the renovation of justice is to define property rights as human rights and to continually refine the property right contracts.

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Capital Structure Extends as Far as Transformation Allows.

Consider the time structure of an organism like a tree. It starts as a seed. It becomes a seedling and then a sapling and then it begins to take on its structural identity. It continues to mature and it yields fruit.

Now consider capital and its structure. It starts as savings. It becomes investment and then it enters the production process which gives it a structural identity. Part of this identity is the time frame of the specific production process. Does it yield products immediately or does it yield products in a roundabout manner? Regardless, capital is an essential part of structural maturation.

In the divine economy model the capital structure extends from the womb of the market process, where it is acted upon by the exercise of entrepreneurial alertness, all the way to the outer reaches of production and as far as tranformation allows.

The capital structure of the economy is like the plant ecology of a forest. There are many different types of plants of great variety in size, shape, rigidity, function and longevity. All play an important role and all operate according to the principles of symmetry and reciprocity. Similarly, capital is heterogeneous and it, too, is an intricate latticework.

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What is the Pure Rate of Interest?

The ideal is purity. Is it attainable? Is it understood?

To answer these two questions as it pertains to the pure interest rate the answers are: "Not really" and "Hardly," respectively!

The pure interest rate underlies the market interest rate. The market interest rate includes risk, intervention effects, and the impact of these on the cultural time preference. Eliminating intervention and its impact on risk and its impact on the cultural time preference leads to a fairly close approach to the pure interest rate.

Most people see a number that represents the interest rate, and that is all they care about. It is unfortunate but true that there are two layers that have to be removed before most people can see beyond the numbers. First, the interest rate is a price and it serves as a means of communicating about the availability of savings. Monetary intervention is like lying since it communicates the wrong information.

Second, the interest rate is a vital link between the present and the future and so it greatly ameliorates the inherent uncertainty. Without this link functioning well, uncertainty increases. Intervention expands and intensifies uncertainty.

What the pure interest rate represents is an ideal that clearly shows the extremely harmful effects of intervention. In contrast to interventionism the pure interest rate conveys trustworthiness and advances the economy in accordance with peoples' time preference.

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Athletes, Explorers and Profit Seekers are Noble!

What is the difference between profit and loss? The difference is the correct decision made about a future event! Because of uncertainty there is always risk involved in decisions.

What are some analogies to profit and loss? If I am an athlete I choose a difficult and often grueling lifesyle to master enough skill to be the best. What if I lose the competition?

If I am an explorer I am trying to find the object of my quest? Not every explorer succeeds.

But if I am the best athlete and I win the medal or if I am the explorer and I make the discovery, am I scorned as evil and labeled with unpure motives? No! The same human quality is being exercised by all of these noble individuals. The profit seeker is aspiring in a field of endeavor just like the athlete or the explorer.

To scorn profit seeking degrades our human reality just like scorning an explorer would degrade our human reality. If an explorer uses methods considered uncivilized (for example, the early American explorers used native people to facilitate their explorations) the 'institution' of human exploration is not denigrated. The ignorance of the explorer is recognized as the historical condition and is seen as a weakness, but the idea of exploration as a noble deed is always held up.

To be just the same 'rule' needs to be applied to profit seeking. The profit seeker can always be refined and made more perfect but the idea of 'exploration' for profit opportunities needs to be justly seen as a noble and exalted deed.

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The Purchasing Power of Money is an Indicator of Economic Disease.

Power is at your fingertips! That is the reason for having a medium of exchange. It is by the means of a medium of exchange that the barriers that exist in barter disappear.

With this powerful tool - money - the market process accelerates and all types of exchanges flourish. The language of the market then functions at a high level leading to much coordination and cooperation. Money has purchasing power!

This is the condition of the economy when it is 'healthy.' This is the way the divine economy works.

But then we have entry into the system by ego-driven interventionists who have as their objective to 'correct' the economy in their favor. One of the symptoms of this disease - interventionism - is the loss of purchasing power. Its ramifications are greater than just a decrease in purchasing power since it also causes discoordination, and it causes partisan bickering rather than cooperation.

Therefore the purchasing power of money is an indicator of economic disease or of economic health. In an economy free from intervention the purchasing power of money is always increasing, as depicted in the Divine Economy Model ©.

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Blog Slowdown as Next Book Approaches Completion.

I am in the final stages of writing my second book and so I have less opportunity to write my blog contributions. Please browse some of the earlier ones during this lull. I will write a few, perhaps once every 3 or 4 days for the next week or two.

The Productivity of the Capital Structure and of Property Rights.

Productivity is easily recognizable as an economic concept and it receives much attention. In the Divine Economy Model © productivity has been placed in a quadrant the boundary of which is defined by capital structure and property rights.

In this context productivity comes to life. The means to improve productivity is capital and the structure of capital over time and across the spectrum of economic production. Equally as influential upon productivity is the existence of property rights. If my efforts are rewarded I will be more productive, it's as simple as that.

Additionally, the Divine Economy Model © places productivity in the domain of transformation and law. Of course productivity leads to the transformation of something from one degree to the next but it also stirs a sense of accomplishment and stimulates further creative acts. Finally, as the law protecting human rights (and its most important manifestation - property rights) becomes more ideal there will be a corresponding increase in productivity.

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Property is the Standard Indicating the Degree of Interventionism.

The most primal ingredient of the economy, according to the Divine Economy Model ©, is the recognition that property rights are human rights! The economy exists only because human beings exist. That sounds simplistic but it far more profound than that.

The human spirit expresses itself, and that expression then comes into existence. This replicates the creative power of God (known as "Be and it is") since 'we' are created in His Image. This is why the economy originates with the human. To carry the profound implications further, this is also why the economy is divine, because human beings are divine.

But the point of this posting is property. The status of property rights is tremendously significant. Property is the standard of measurement used to determine the degree of interventionism. It is the indicator showing how far we have gone towards socialism, and towards totalitarianism.

In the divine economy all intervention is a corruption. Interventionism is an act that robs the property rights from someone somewhere. It is an injustice and it is a violation of human rights.

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Immeasurable Importance of Immeasurable Time Preference!

Mortality, our connection to our earthly existence, is what makes time a scarce resource. Our constant perception that time is omnipresent makes time a dominant element in the economy. Yet despite this very obvious importance of time the concept known as time preference appears as a major economic determinant only in classical liberalism.

In a sense time preference is self explanatory. Because of time we humans prefer things now rather than later.

The subtle significance of time preference is that the future is bridged to the present. Future goods can be given present value, ultimately as a result of time preference. The willingness of people to finance any efforts that are not immediately, palpably fruitful depends on the degree of confidence there is in the future (as expressed in time preference).

Now comes the reason time preference is disregarded by empirical economists - it is not directly measurable! It is reflected in the pure interest rate which is also not directly measurable! Those 'economists' who are after convenience rather than seeking to understand time preference leave the scientific arena without discovering its significance.

The whole world of capital and capital structure came out into the open to those patient, probing economists of the classical liberalism tradition because they sought to understand time preference.

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Imperfect Knowledge is an Economic Truth Extraordinaire!

The exciting aspect of imperfect knowledge is that it is a relative condition. It is always a relative condition, the economy is always in disequilibrium, and human beings are always imperfect but striving for higher degrees of perfection.

This is what makes knowledge so powerful. It is what resolves the critical aspects of our imperfect knowledge. Knowledge is the ingredient of the economic matrix that plays the role of overcoming our condition of imperfect knowledge.

It is by way of knowledge that order, transformation, unity, and justice become operational, according to the divine economy model. Knowledge is what serves as a foundation for law. And most vitally it is knowledge which is acted upon! The action then generates more knowledge (and exposure to more imperfect knowledge) which drives the perpetual cycle onward towards perfection!

As you can see 'imperfect knowledge' is not something that should be removed from economic models to make them manageable. Imperfect knowledge is a wonderful and glorious part of the human reality. The divine economy model rests firmly on the notion that humans are imperfect, striving for perfection.

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The Consumer is King in a True Democracy!

There is a flood of rhetoric about democracy but that ideal can never be achieved in the political arena. The true democracy is the free market, where each person's purchase is their vote. Those productive members of the community who provide the people with what they want get the most votes. If someone who has served in the past takes the people for granted, serves their own interests without regard to the community, they will stop receiving business (votes).

The beauty of this vision of democracy is that it is a blend of a monarchy and a democracy, in a way. There is a king, someone who is sovereign. It is the consumer who is sovereign. Which means that the same voice of the people (democracy) is the voice of the king!

In a free market all prices are determined from the subjective values of the consumers. The producers use this price information, seeking the votes (purchases) by making the products that people want. They do what the king(s) requests!

It is clear from the divine economy model that intervention into the economy runs counter to democracy and fosters corruption and advances socialism. Socialism and its precursor - interventionism - makes the consumer a peon, dethroning the king.

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Leisure is a Very Productive Pursuit!

Once basic subsistence is exceeded, human beings aspire to higher goals. One of these higher goals is the enjoyment of life called leisure. It is incorrect to think of leisure as unproductive because when a person does something that they enjoy they are likely to be very productive in that pursuit.

Leisure, it turns out, plays a significant role in transformation and so the effect it has on human capital cannot be discarded. All of a sudden leisure looks like a very productive force in the economy!

When we leave behind normative economics and recognize that the human operating system is praxeological and universal then we can begin to appreciate how the divine economy works as an expression of the human spirit. Leisure is a very important expression of the human spirit. Honoring the different forms of expression by finding how they fit into the divine economy model is a useful mental exercise that leads to a greater understanding of economics.

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The Contractual Nature of the Medium of Exchange.

Money can actually more aptly be described as a medium of exchange. By this description it can be seen that money facilitates the exchanges that take place in human life. It is by this indirect method that people can get what they want, and they can sell what they have to offer, without worrying about matching commodities. It is an advancement over barter.

Historically the commodities that were recognized to have value universally and that were easy to transfer to others, these were the commodities that served as mediums of exchange. The tendency towards having a universal medium of exchange narrowed the field to one or a very few commodities.

A medium of exchange represents a contract. The medium of exchange has value inasmuch as the contract is honored. Ever since its beginnings the best of the mediums of exchange were measurable and verifiable.

The justice on which the divine economy model is based assumes trustworthiness. Laws need to be strengthened to protect the contractual nature of the medium of exchange.

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The Divine Economy Model is Compatible with Human Action.

The mid-1800's was a revolutionary time in so many ways and all branches of science leapt forward with new and wonderful discoveries that occurred during and since that period. In economics the breakthrough concept that surfaced at that time was the concept of marginal utility.

Decisions are made at the margin, in other words, humans consider the improved condition that will come from a good or service and compare that to the improvement from a unit of other goods or services.

This concept did not guarantee progress in economic understanding though. Two major errors lead most astray. Empiricists assumed cardinal relationships between units and they tried to avoid the subjective nature of human decision-making by assuming empirical valuation. Their models are void of the essence of the nature of the human being.

The divine economy model incorporates the concept of marginal utility, based on the theory of subjective valuation, which makes the model compatible with human action. This brings a bright and hopeful realism into economic science.

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The Divine Economy Model Uses the Subjectivist Methodology.

Since each person is unique there is only one person who can decide what is best. Each of us has that right and responsibility for our own self. When we act purposefully, exercising our right and responsibility, we do so based on our knowledge - our expertise - about one subject. That subject is ourself.

Subjectivism is based on an acknowledgement that this is how human beings behave. Whatever value a person places on something is derived from their own personal likes and dislikes ranked ordinally relative to other things.

Since humans make decisions subjectively the appropriate methodology for the social sciences is subjectivism. Using the subjectivist methodology leads to the discovery of universal laws that can then be used to understand the economy. The divine economy model is based on subjectivism and it carries forward the classical liberalism tradition.

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Willingness to Work is an Act of Transformation.

What really seems to be taken for granted is the fact that we are created and created unique. Consequently the purposeful action that irresistably comes from us may - as a result - be seen as ordinary or even further denigrated to a loathsome state where purposefulness is seen as sheer drudgery!

Time for a reality check! Our reality is truly noble! We are created unique which leads to division of labor and all its bounteousness.

This is where the willingness to work finds its proper station. Each of us has something remarkable and unmatched to bring into this world. Doing so is a way to express thanks to God. In the divine economy model the willingness to work is an act of transformation and it is an expression of the nobility of the human spirit.

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Division of Labor Brings Us All of These Things!

Noone out there can pretend to imagine that they could have everything that they use daily by making it themselves. Who can put together a computer, make clothing, produce foodstuffs, discover new medicines, and compose and perform inspiring music, not to mention the plethora of other tasks that we take advantage of?

Each human being is created unique and when that potential becomes expressed through purposeful action something comes into existence that is also unique. It may be a new way of doing an ordinary task which leads to greater productivity, which then frees up resources that are used to make new things. Or it may be an act that leads directly to a new and unique product or service.

We all are the beneficiaries of this aspect of God's grace. Our God-given uniqueness leads to division of labor; and division of labor brings about the tremendous bounty of goods and services that we (perhaps) take for granted.

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Price Theory is the Study of the 'Language' of Economic Order!

Order in the world cannot exist without a bridge between the individual and society. Human beings are social beings. Order is the outcome of cumulative expressions of value across the whole. It is directional and representative.

The communicative vehicle used to convey value is price. If I value something more than the person who sets a certain price and I value it more than other things then I buy it. Everyone does this, and this is like a language telling those who are listening how to order things.

Price theory is a study of this 'language.' Pursuing this analogy further it is the entrepreneur who listens most skillfully and it is the capitalist who publishes what the speakers ask for. Another use of the analogy makes it clear that the reason a 'planned economy' cannot work is because that would be the same as outlawing the use of words and then expecting the language to function.

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