ECONOMY
Generalities :
The economy can be defined like the whole of the social consequences of our individual Catalysis of Fuzzy Entropy.
Sometimes systematized by work, our activity may manage to put in concrete form the Realized Fuzzy Entropy:
- real: a manufactured object,
- virtual: a service, for example the mail service.
An economy is characterized by its organization of exchanges of goods and services.
These possibilities of exchanges begin with barter, always used, but not very practical. Goods and services were then equipped with a numerical value. The thermodynamic units of Fuzzy Entropy were thus largely preceded by heterogeneous units, the currencies, arbitrarily defined but in scriptural forms recognized by all.
We continue to use their scales of value that made possible the development of a major tool, the accountancy.
Are economic growth and Gross Domestic Product (GDP) related to Kinetic Fuzzy Entropy?
Could Capital, sometimes palpable, be considered as an indicator of Realized Fuzzy Entropy?
Could Cash flow be considered as an indicator of Kinetic Fuzzy Entropy?
We have given value to work, even sometimes considered as sacred. A historical recognition of our role of Entropy Catalyst? The unemployment, which deprives us of this role, would be "this terrible rest which is that of social death". (P. Bourdieu)
An alive being disappears rather quickly after its reproduction period ; this additional life span, in free wheel, is not taken into account by the evolution. (ref 70) Except for the humanity where the prolongation is significant, particularly for the women. Our oversized brain going on, does the human Fuzzy Entropy production benefit of the seniors' cultural contributions in the artistic, philosophical, religious, scientific fields?
Some also raised the beneficial role of the grandparents in the education of the children ; Sf accounts perfectly for that :
- continuity in the preparation of the young people to their future role of Catalysts,
- better assiduity of the parents at work, especially of the mother, and increase in production of Fuzzy Entropy.
When signing a contract of recruiting to make goods or to assume services, an employee promises to produce sufficient Kinetic Fuzzy Entropy to increase the scriptural stocks of Realized Fuzzy Entropy of his employer. In return, this one promises to give him a fraction, sometimes not easily negotiated, of these scriptural stocks. Until the pay day, the employee is giving credit; he is creditor and the company is debtor.
More generally, the credit has an essential role in our modern economy ; a debtor declares himself good Catalyst and promises to produce sufficient Kinetic Fuzzy Entropy to increase the scriptural stock of Realized Fuzzy Entropy of a creditor ; a bet on even more Realized Fuzzy Entropy, and which, without us to astonish, was always gained statistically to date, in spite of some bubbles bursting. If the credit did not exist for centuries, a small present car would probably cost the price of a light helicopter. The credit was rare in the Middle Age, where the harness was more expensive than the horse. Sometimes a bubble bursts and allows the economists, who had envisaged it but were inaudible before, to propose remedies. For example, to go out of the last crisis triggered by the "subprimes", one of them concludes: ”growth is the only solution. To support the demand is essential, without feeding a new credit bubble”. (ref 106) Growth of what? of the Fuzzy Entropy, of course.
May we consider clearing or merchant banks, and their environment of stock Exchange specialists, like Derived Catalysts of Fuzzy Entropy? Centralizing and keeping accounts of the two preceding indicators, and others, they would accelerate circulation and treatment of the financial information.
The bank credit fits immediately in the model: banks lend money to you in exchange of a future payment. They register on your account the fiduciary sign of a fraction of their representative reserves of Realized Fuzzy Entropy. You obtain means of prolonging a Chain (see definition) by Kinetic Fuzzy Entropy. The bank counts that the exchange value of the future Realized Fuzzy Entropy will be sufficient to ensure the return on investment.
Japan has a difficult period, companies and private individuals make a fuss about borrowing. (ref 123)
Incidentally, would the Italian Rebirth have existed without the Medici's bank? From that time, emergent artistic emotion is there as ever, even if art is now less preoccupied by the beauty. But isn't the Realized Fuzzy Entropy more obvious behind what became the "market" of art? In many Art review money appears everywhere.
Is Sf behind companies when they must continually create short lived products to lower the costs by scale economy, or perish?
The people safety requires the reliability of some manufactured goods, such a car ; then, it has a comparatively long life span. Always to ensure the continuity of the production equipment, governments often grant renewal premiums for the private vehicles, under the condition they go for scrap.
Is Sf behind consumerism when, six months after the sale, only a negligible part of the material used in production is still in service (ref 17)?
The involvement of the new information technologies in the overall productivity is still discussed (~ +2% for the best, the United States); they are currently only one Fuzzy Entropy Derived Catalyst among others, even if of great future by their function of regulation. Moreover to date, nobody noticed a reduction in the number of officials. Let us notice that information technologies consume already ~10% of the world energy production. The Jaguar of Cray consumes 7 megawatts/h/year, out of cooling system. (ref 115)
Would Entropy gravity be the engine of the globalization?
Economy and Justice :
Would the magistrates' decisions go overall in the direction of economic development ; so in the one-way Kinetic Fuzzy Entropy? (Ref 61)
Cases study, drawn from the column "justice" of the local today's paper.
case 1 – a delivery man, manoeuvring back his truck, crushes a 88 years old woman. He is discharged.
case 2 – A driver crushes a 87 years old man on a pedestrian crossing.. She is given a suspended prison sentence of four months, one year of suspension of licence and 200 Euros of fine.
case 3 - a contractual Post office clerk steals money of customers' accounts. She is given a suspended prison sentence of six months, and a two years testing period.
case 4 - a father abuses his three children sexually. He is given a prison sentence of thirteen years, an obligation of a five years socio-legal follow-up, and a ten years suspension of civic, civil and family rights.
Is the apparent disproportion of these punishments justified? The answer is yes.
case 1 – there is homicide, but a delivery man is an effective Catalyst. He uses an energy greedy vehicle by his frequent stops, and delivers products useful for the Fuzzy Entropy Chains. His victim, octogenarian and pedestrian, could not be so effective any more.
case 2 - offense and sentence are comparable to those of case 1. The judgement of the case 1 is not fortuitous.
case 3 - an unjustified personal enrichment means a Realized Fuzzy Entropy without cause. The accused was tempted by a opportunity of Kinetic Fuzzy Entropy to which she did not have right. This right returned to customers, whose actions had led in recognized states of Realized Fuzzy Entropy, materialized by money. Does the Collective Efficiency Factor require the continuity of the Catalysts Chains of Fuzzy Entropy? Continuity that leads to the regulation of the action drive?
In societies where Fuzzy Entropy Catalysis was soon strong, did the ownership law codify the continuity of a Chain, long ago. However, let us mention in passing a difficult file: the patent right (ref 134 and 135) Truism, the deprivation of his right to action would be the first cause of suffering for a prisoner.
In our example, the regrettable intrusion of a not approved Catalyst in customers' Chains, leads to a heavier punishment than if the defendant had crushed somebody.
case 4 – children get serious behavioural problems, and for life, when involved in incestuous intercourse. If the situation does not change, their future of effective Catalysts is compromised. Later, if they have children, they may reproduce the paternal behaviour from which they suffered.
The Collective Catalyst would be penalized for an unpredictable duration.
Press recently noticed that pedophilia becomes the major crime.
By the way:
1 - a suspended sentence does not decrease the Efficiency Factor Sf.
2 – the social strata disadvantaged by a weak Sf, are over represented in prisons.
3 - although supposed directed by Fuzzy Entropy Field(s), Evolution tolerates offences. This objection was raised by my daughter. The recurring problem of the Good and the Evil? Is Entropic Field sometimes stronger than rules? Among the possible models to be dug: the "Prisoner's Dilemma", where the interest to cooperate is not an obviousness? (ref 33)
4 - in the suburbs, young French are reduced to the role of consumers, (ref 55) moreover limited. They find less work than the others and are likely less to become effective Catalysts. Do they say that they have the capacity of it by putting fire, brutal and spectacular transformation of energy?
Do they attack the schools because those would guard the students, with the strong support of the parents, more than they would form future Catalysts? Long ago, studies showed that a pupil loses his concentration after forty minutes of lesson, and less at the following hour if he's seated eight hours per day. He is physically there and he keeps still but his mind is elsewhere, he daydreams.
From where the official report of OECD: no correlation between the daily time spent on a bench and the school results. (ref 71)
Miscellaneous :
Is advertising a Derived Catalyst of Fuzzy Entropy? Let us quote the promotion of consumer credit and of branded goods, now compulsory everywhere under penalty of rejection by the group. A friend of mine told me that a nephew, which he drives sometimes to the school, asks him to stop at 300 meters of the establishment, and finishes on foot. Thus, he avoids the possible redoubtable gibes on the not recent car of his uncle. A current reaction among schoolboys, since used as selling point.
Let us quote also the e advertising and the rise of an efficient specific format: the promotional links. (ref 58)
The price of bottled water is of two orders of magnitude higher than that of tap water, at equivalent quality. Economically incomprehensible, except if we admit an increased production of Fuzzy Entropy in packaging and diffusion for the bottled water.
In our market economy, the cost of fuel remains always below the market price, the price that buyer will agree to pay? Why?
More generally, why useful energy is so much subsidized (ref 23)?
To grant to a city the privilege to organize Olympic Games, juicy for its companies, the Steering Committee currently asks for a security to the concerned State. This demand consolidates the application of a not written rule: privatization of the profits, nationalization of the losses. Rule accepted without much dispute by the never consulted external taxpayers.
If a comfortable return on investment is guaranteed for the concerned companies, the Steering Committee does not guarantee that the ethical quality of the spectacle will be close to the Olympic ideal.
An other triumph for Fuzzy Entropy: "I buy dustbin-bags at the supermarket ; cashier gives me a plastic bag in which I put my dustbin-bags. What I am doing first when returning at home? I open the plastic bag ; I take a dustbin-bag and put it in place in the dustbin ; and which is the first thing that I throw to the dustbin? The plastic bag in which I had packed the dustbin-bags". (Humorist Jean François Derec) All is said. (ref 62)
What to think of the Club of Rome, and its provocative voluntary "Zero Growth" (1968)? The economy of Japan stagnates, like recently that of Argentina. A "full stop landing" or a "stop and go".
Let us notice that Collective Sf takes into account the figure of the population, and thus the fall of the birth rate in some countries, a phenomenon that affects Collective Catalyst itself.
Sometimes, robbers snatch handbag from old ladies; on average one by week in the Lyons agglomeration. Mishap that often finishes at the hospital when victim is clinging on her possession. The couturiers, sometimes called "creators" (!), (why not "alive gods"?) could show all the resources of their genius when launching the fashion of multi-pockets ladies' coats. They would gain there the gratitude of grannies and of Social security. Unthinkable? Yes, they would endanger the industry of the mode accessories.
The 2008 - 2009 crisis :
Shareholders usually require profit rates with two digits for their investments. The application to the finance of elaborate mathematics leads to a disconnection of these return rates and those of the increase in the world wealth, measured by the GDP or others. Many hedge funds survived to the subprimes crisis and the financial leverage will continue to be used. (ref 110) A return to the past is excluded, in spite of the fears of the public opinion, which sends back its interrogations to politicians, who grope and wonder about:
- the strong persistent growth rates of some Asian countries, unequalled in the history,
- the returns on investment of some financial funds, with the best yields ever seen ; we speak of 15%, and sometimes much more.
The foreseeable effects of the crisis were put under the carpet by colossal public debts; will they support the economic development like the private debt does since centuries? or on the contrary, will the debt charge plunge us in a stagnation of long duration, and may be an uncontrollable inflation?
Demagogue governments try to act on the allowance of the bonus in finance, for example ; easily circumvented constraints.
Largely evoked everywhere, known rules would guarantee a less chaotic future :
- to return to a form of separation between bank of deposit and banks of businesses,
- to limit the deposit banks to their historical trade, the loans with the companies and the private individuals,
- to impose on a bank an own capital level such that it covers any exposure to the risks,
- to limit the size of a bank, possibly by forcing it to split, that was made in other fields, in order to avoid the penalty of the "too big to fail" to the community,
Unfortunately, the crisis promotes the concentrations of financial establishments and the emergence of mastodons.
The governments try to evaluate the validity of these rules, at a social and economic high cost, without managing to decide. Especially, they try to act in disorder, whereas only a world regulation would have a chance to be effective in front of resistance of the financial worlds, stubborn and now organized. (ref 112)
Must we conclude that the mode "accelerator-brake-accelerator" would be the economy actual normal working? Is economy a too young science, faced with a relaxation or avalanche system? (see Definitions page) Or regulation rules under consideration would be counter-Entropic?
Without surprise, Entropic Gravity should get the economy started again. After all, our "Trente Glorieuses" (from ~1950 to ~1980) were an inflation period.
But let us consider the situation with detachment, during a year at least, to try an incidence estimation of this new deal on what should interest everybody: the Fuzzy Entropy production.
The crisis would start again a reflection on the decrease. (ref 116)
Will economic research be able to progress without to concern itself with concept of Fuzzy Entropy Catalysis?