Ego-Driven Interpretation And Ego-Driven Interventionism Spawned The State.

The origin of communism stems from heretical Christianity. Several early clerics succumbed to their own ego-driven interpretation, which lead them to conclude that property within the city-states should be common and these clerics embarked on social experiments of communism. From these origins came other ego-driven interpreters, trying their hands at replication. Later on, ego-driven interventionists came upon the scene and to them the need for a religious foundation dropped out yet pursuance of the perverse ideals of communism continued.

The emergence of the State and its prejudice of nationalism stems from the breaking of the Covenant of Muhammad. The epoch of human civilization that received the Dispensation of Muhammad cradled within itself the inherent characteristics of nationhood. Muhammad verbally appointed Ali as His Successor but once the Covenant was violated the means to carry out the true nature of the nation disappeared precisely during this epoch of fundamental nation-building. Instead of having a divine civilization characteristic of the time of nation-building what emerged was an ego-driven alternative. The energies released for the betterment of human civilization were used instead to gain power and led to the formation of the State. Thus we entered into a period of history where, instead of a divine civilization, the highest attainment was the darkness of nationalism.


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Why Are We Living In The Dark Ages Of Economics?

The flow of knowledge is optimized in an unhampered market economy – nonintervention – simply because of the finite nature of humans. Humans are neither omnipresent nor omniscient. The market suffices.

All economic intervention is essentially ego-driven since anyone claiming to know what is best is deluding himself or herself and such an act lacks moral authority and impedes the flow of knowledge. The equilibrium force that brings harmony and balance and reciprocity is part of God's creation of humans as social beings. To seek an ego-driven solution to an ego-driven interpretation of the problem instead of understanding the divine nature of the economy is the reason why we are living in the Dark Ages of economics.

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The Intended Condition Of The Human Spirit And The Economy.

There is a difference between free market economics and the divine economy theory although both fit within classical liberalism. In free market economics there is recognition of the tendency towards equilibrium. In the divine economy theory that tendency has to do with the refined definition of the ontology of the natural law as it pertains to human beings. Human beings are not only physically and intellectually human but another aspect of their uniqueness is that they are spiritual.

This aspect of their created nature opens new vistas about the significance of the tendency towards equilibrium. Humans are not perfect but the acquisition of perfections is continually ongoing. This condition of imperfection and the state of disequilibrium are parallel, and so too, the perpetual advancement of civilization associated with the tendency towards equilibrium parallels the ever-unfolding possibilities of human perfections.

There is a mirroring quality between the human spirit and the unhampered market economy. It is the natural and intended condition of both the human spirit (via liberty and justice) and the economy (via the market process) to be unhampered (uncorrupted by ego-driven interventionism). Glory be to laissez-faire and to its moral justification - the economy is divine.

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Interventionism Interferes With The Grace Of God.

If you are familiar with the history of classical liberalism you will know that there was a time within that tradition when the belief in God did not contradict the scientific investigation or the scientific discoveries. As a consequence of the strong scientific discoveries made in the natural sciences using empirical methods there were internal and external pressures put on the human science disciplines to try to replicate this precision and accuracy, and this 'physics envy' did two things:

1. It pushed the adoption of empirical methods despite the fact that humans choose and act subjectively,
2. It galvanized atheism in 'science.'

To the first point: the literature is vast showing that subjectivism is the appropriate methodology for the human sciences and that the subjective methodology is really the only truly scientific approach for the human sciences, and that the use of empiricism is racked full of fallacy upon fallacy - making both its foundation and its normative findings either trivial or arbitrary or even bizarre when it is applied to the human sciences..

To the second point: the idea of 'wertfrei' science is noble but science is always supposed to push the boundaries. If there is difficulty capturing the essence of the object of study that is supposed to indicate a challenge to the reach of science rather than an insurmountable boundary. For many reasons, historically and philosophically, the spirit of the classical liberalism tradition was mostly abandoned even among the subjectivists as part of the quest for wertfrei science. In effect, for most, the harmony of science and religion was considered an insurmountable obstacle and so a choice was made which can be said to have galvanized atheism in science.

The divine economy theory advances the science of economics in the wertfrei tradition and in the classical liberalism tradition and yet it embraces the harmony of science and religion!

That said, I am not going to go into detail about the proofs in the divine economy theory in this blog entry. There is plenty of information about that subject.

The purpose of this blog entry is to explain how interventionism interferes with the Grace of God. The reason laissez-faire is optimal is because the limited human mind can never fully comprehend the infinite nature of the market processes or the subjective nature of the choices made by the billions of humans on this planet over the time horizon. The economy is a unique and divine institution that facilitates the voluntary social cooperation that is beneficial to everyone and only when the flow of knowledge is unimpeded by any and all interference by the ego-driven interventionists can its full potential for the transformation of human civilization be realized.

The economy is a gift that reflects the actions and choices of all of humankind. It is there for the service of humankind. When it is free to operate as an unhampered free market, implied in the term 'laissez-faire', then the grace of God touches everyone and civilization becomes truly civilizing!

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Savings, Time Preference, And Spiritual Orientation.

Good economics is the opposite of the nonsense of debt and spending. The very best school of economic thought is Austrian economics which is built upon the foundation laid by Menger and Bohm-Bawerk, Mises, and Rothbard, and which recognizes the subjective nature of human decisions. One aspect of the subjective decision-making that humans make has to do with the future.

Time preference and savings are part of economics and economics is, broadly speaking, the study of human action. One of the laws of human action that is understood apriori is that humans prefer to have now what is desired rather than at some time in the future. This is what the economic term of time preference represents. Of course it is subjective so the degree of preferring now to the future changes for an individual and across individuals for many reasons and over time. In societies where humans are no longer just barely subsistent it manifests itself in the economy as savings which in turn becomes capital and becomes a part of the capital structure. The capital and the capital structure transform the level of productivity in the economy in a manner that meets the hopes for the future that is inherent in the time preference of that society.

As examples, if one society fears war and inflation in the future the time preferences would be very high and under those conditions saving makes little sense. If another society is at peace with other neighboring societies and the value of its money is appreciating because of the effects of increasing productivity then the time preference is relatively low and the tendency to save would be greater. Not only is time preference an indicator of the anxiety or tranquility of a society but it also directly affects the amount of savings which then affects directly the potential for transformation since it affects the capital and the capital structure. In other words, the peaceful  society will be more prosperous and the people in that society will not only have more goods and service available but will also have put aside money as savings which will enable them to be able to purchase and enjoy these new and wondrous things.

Now suppose the peaceful and prosperous society has a significant number of people who become less attached to earthly pleasures because of a changed spiritual orientation. In the present they will not need as much as before and this means that their time preference decreases. This translates into more savings and more capital to enter the capital structure. The capital and the capital structure is what transforms the economy and that transformation always is in the direction of serving the consumer. What goods and services will best serve the increasing number of these spiritually motivated members of society?

None of this can be known ahead of time. What is known is that societies in the future will look different from the one we know and at some point in time those societies will be significantly different from anything we imagined.

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Human Subjectivity - Rights And Responsibilities.

Every human being is unique and their experiences are unique which is testimony to their subjective nature. Humans are subjective beings!

Yet at the same time there is a universal structure of logic that is uniquely human. It is a structure constrained by time - the future is unknown - and which makes sense of the world in terms of cause and effect. Experiences are perceived and combined with perceptions remembered from past life experiences and analysis proceeds logically in the context of cause and effect and conclusions are drawn. The logic is always in operation and it leads to a logical conclusion based on the unique subjectively perceived experiences.

This description of the rights of human beings, ultimately, validates the whole process. In one sense - in the sense of rights - everyone deserves this validation.

However there are also responsibilities. Human beings are not only subjective but they are also intelligent and spiritual beings. Part of their nature according to natural law is that human beings are capable of abstract thoughts which enables them to be able to discover truths and laws. The entrepreneurial spirit that is inherent in humans as an alertness is either latent (in potential) or active and manifests itself as the independent investigation of the truth.

Validation of everyone's conclusions as a right without the exercising of responsibility is the world of moral relativity and it is flawed, and obviously it is irresponsible, and ultimately it is destructive of human civilization.

There is no outside, external force that has any moral authority to make humans act responsibly. It is a matter of whether the entrepreneurial spirit is activated by its surroundings. The best environment for the entrepreneurial spirit is the free flow of knowledge, unimpeded by manmade institutions (one example is rigid traditions). The State is the most vicious of all impediments.

The validation process that is most becoming for human beings is the one where each individual takes responsibility for testing the conclusions derived from their application of logic to their subjective experiences. Testing involves using reason and justice to compare their conclusions with the findings in science and religion.

This is no small responsibility because not only does it require the individual to use the independent investigation of truth upon their conclusions but also upon science and religion. Science and religion are not universally agreed upon and so it is necessary to siphon through these also to find what is true and what is not. Once the truth within science and the truth within religion are found then the conclusions drawn from subjective experiences and logic can be tested and truly validated. This validation is the responsibility of each person. Being a human and fulfilling that great station - being a human - is a process that has unlimited potential, for all intents and purposes!

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Materialism, Counterfeiting, And Ideology!

There is the mirage of needing constant technological advancement driven by the phantom of the artificial stimulus of credit (not from capital/savings) but this is a characteristic of materialism. Absent the disease of materialism the infinite advancement of the human potential (acquisition of virtues, for example) is equally or even more valued than mere technological advancement.

Having a counterfeit culture within a counterfeit society nourished by counterfeit money that props up counterfeit education and counterfeit news supporting a counterfeit rendition of history results in a perspective that is not much different from ideological materialism.

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Economy As The Means.

Economics is defined well, and done in a manner that everyone can understand. Within the classical liberalism philosophy - which recognizes that humans are subjective - the succinct definition is as follows: Economics is the study of the means to attain the ends chosen.

To get to the heart of the matter of economics and the economy - going beyond a mere recognition of the meaning of the words in the definition - requires logic and theory.

Only because humans exist is there an economy. The economy is the result of human action and so the economy came into existence - in potential - at the time that humans came into existence.

What is important to consider is the nature and reality of the human being. Humans are not perfect yet they are capable of always becoming more perfect. This is best described as a divine nature - the ability to emulate all the Names and Attributes of God. And yet the economy is the result of human action which means that the economy not only has the same potential of reflecting the degrees of human perfection but it also provides a feedback loop that potentially stimulates the perfecting processes.

What can be gleaned from this is that an All-Knowing God, Who created human beings, gave to them an institution that we call the economy, which is the perfect means for humans to organize themselves practically and prosperously.

As part of economics - the study of the means - it is fully recognizable that the economy is the means, the perfect means. No wonder laissez-faire has such a strong explanatory power. Actually laissez-faire is not fully understood until the economy is understood as a divine institution. In other words, all human intervention into the economy corrupts and disrupts because human knowledge is finite and cannot comprehend that which is infinite, like the omnipresence and omniscience and omnipotence of the market processes going on in the economy.


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Is Economic Equilibrium Like Equilibrium In Nature?

What is different about economic equilibrium is the fact that the economy exists because humans exist and humans are physical, intellectual and spiritual beings. Most do not realize or recognize that the highest of these is spiritual; intellectual is higher than physical and spiritual is higher than intellectual.

Since economic equilibrium is tied to the economy and since the economy is a reflection of human action and humans are 'created in His Image', the equilibrium has a divine aspect. As an example, an affinity between people can be physical, intellectual, emotional, and spiritual; all of these are less than perfect expressions of the concept of absolute love. Equilibrium, like love, is very powerful - yet it is beyond our full comprehension - and yet it is real. Ego-driven intervention (no one can claim to understand all the implications of any intervention on all of humanity across the entire time horizon) is a corruption of the economy. If the intervention stops, all of the corruption will be purged and then the economy will be a true source of prosperity and justice.

I'll again hit the equilibrium point. The force behind the equilibrium tendencies can be thought of as the grace of God. In other words, when we mature to the point where as a society we trust in God then all things will be 'regulated' by the grace of God. This is why laissez-faire is the correct economic system even though most of those who espouse laissez-faire do not know why it works so well! Of course everything in the economy is connected to human action and so the equilibrium forces work through the social cooperation of humans.

Are we interested in treating the symptoms or the disease? Humans have finite knowledge yet are ego-driven enough (or allow the ego-driven) to arrogantly make decisions about things that are infinitely beyond their comprehension (the effects of economic intervention on everyone on the planet over the entire time horizon) and which as a consequence necessarily have to result in innumerable injustices.

God created humans as part of a beautifully and infinitely complex love, and God also provided the perfect institution for social cooperation (the economy), and for the flow of the grace of God. Since this is the best means for human civilization to progress towards perfection it makes no sense to go in some other direction (which is sure to be less desirable) just because we see some of the hardships which are necessary for humanity to overcome in order to make progress. Besides, there is no moral authority to intervene in the economy.

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Equilibrium Is An Inherent Part of The Economic Reality.

Equilibrium is a reference point; it is always in operation; and it is unknowable to the human mind and therefore it cannot be directed. Yet it can be anticipated! Those who understand that the economy falls within the broader study of the science of human action (praxeology) have the wisdom to anticipate the corrective forces at play in the equilibrium tendencies.

Equilibrium can be recognized as the powerful force that is at work in the world as part of the functioning of human action. The only moral and rational 'policy' or directive is to stop interfering with the equilibrium forces and allow the grace of God to operate - unconstricted by the vain imaginings of humans (especially the so called 'experts').

Discovery of praxeological laws are not confined to the specialized field of economics yet there are many who attempt to segregate and objectify economics and thus to examine only one aspect of human thought and action, which is undoubtedly an artificial approach. Sometimes segregating economics is a useful tool, sort of like ceteris paribus, but it never resembles reality and so it cannot be thought of as an improvement over a more holistic analysis.

As evidence, when the equilibrium tendencies are severely disrupted by interventionism not only is the economy severely disrupted but so is ethics and so is justice! If reflectively it helps to mentally take a step back to think about the inevitable tendency of all things towards equilibrium - even if the equilibrium 'position' itself is movable - then deducing from that new perspective will show the inseparability between the economy and ethics and justice.

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The Economic Methodology Of "Know Thyself" Bridges The Divide.

There are those who doubt that economics and religion share anything; and then there are those who see economics and religion as compatible. One way of approaching this issue is to recognize that both economics and religion are in pursuit of "know thyself."

If you examine the history of classical liberalism you will find that by using Aristotlean logic it was discovered and clearly elucidated that there is "natural law" and from this stems "natural rights." If nothing else this is a perfect example of the exploration of "know thyself" and for centuries it was pursued in an intellectual atmosphere of mutualism between economics and religion.

From this tradition and this foundation came also the understanding that humans are subjective which is of major significance since, in order to advance the human sciences, an appropriate methodology - one that recognizes human subjectivity - would have to be applied. The empiricism of the natural sciences is invalid under the circumstances of subjectivity.

Since the purpose of scientific investigation is to gain understanding and knowledge, and since in the human sciences the object of study is the human, it can be unequivocally stated that the resulting scientific discoveries help us to "know thyself."

And this goal and outcome of "know thyself" is the exact goal and outcome that is pursued in religion. Contemplative reflection of powerful insights is definitely another way to discover what it means to "know thyself."

It is important to recognize all of the resources that are available to us. Few people (and no economist) would venture to say that having fewer means to attains the ends ("know thyself") is the best way.

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