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.

Follow me on Twitter @DivineEconomy

For more information go to my newly renovated website.

If you know of anyone interested in ethics and economics,
or liberty and justice, please send them this link:
http://divineec.ipower.com/2/