Economics in a Context of the Fundamental Principles
Cracow University of Economics (CUOE), Rakowicka 27, Kraków 31-510, Poland
Economy can be justifiable discerns as overpowering flows of the abstract ability of doing work called capital in economics and energy in physics. The Sun energies concentrate in human capital via the Earth organic life and processes of photosynthesis. Then through processes of labour the human capital is transferred to products. A level of intense capital is a factor influencing an exchange value of the products. Thanks to constant inflow of the Sun energy the economy is none zero positive game, where the most participants can win. It manifests by an economic constant p = 0.08 [1/year] that expresses natural economic potential of growth. This constant is the indispensable factor changing the initial capital, which is influenced by the three subsequent variables: the constant p, diffusion rate s, and ratio m, representing labour and management. One of the essential tasks of the economics is moderating of these games in order for achieving a state close up to social justice, where the most of the participants are the winners. Considering economy as capital flows one can ask about mandatory fundamental principles for economics. It is noticeable that at least three laws established in physics create scientific framework for economic considerations. The first is a statement that capital does not arise from nothing. The second is that all concentration of the capital spontaneously diffuses, provided the diffusion is not congested by aimed action. The last relates to law of the least action, which points out requirement of optimization. Contemporary economics are different than sciences since some macroeconomic theories admit violation of the fundamental law as the capital conservation. It is a fact when the Central Bank creates paper money known as cash for commercial banks use. In correct way money arises only as equivalent of labour done, as abstract pay receivable and of course payable. Therefore present money creating procedures leads to financial instability.
Presentation: Oral at 4 Ogólnopolskie Sympozjum "Fizyka w Ekonomii i Naukach Społecznych", by Mieczyslaw Dobija
See On-line Journal of 4 Ogólnopolskie Sympozjum "Fizyka w Ekonomii i Naukach Społecznych"
Submitted: 2008-12-16 12:51 Revised: 2009-06-07 00:48