Chapter 4 Reflections on Economics
The economy is the competition of dimensions
Fortunately, the interests can be multi-dimensional, a single dimension must have a loss and a win, but multi-dimensionality can have a win and a loss, and the whole is a win-win situation. Pen ~ fun ~ pavilion www.biquge.info
Conflicts of interest are natural. Nor do benefits come out of thin air. Loss is the only way. For example, when people collaborate in the production of bows and arrows and hunting, the prey increases, and the interests of the group increase, but in the larger system, the interests of the animals decrease. This goes unnoticed. This is in fact an enhancement of the ability to plunder beings on the same level as oneself
Profits grow and fade, so speed matters. For example, the speed of human and animal reproduction is the embodiment of the relationship
In fact, the theory of division of labor is not wrong, the division of labor originates from the exchange capacity, the development of the division of labor is the result of the increase in the number of transactions, and the transaction has a cost, so the division of labor will not be infinitely subdivided, it stops at the degree of division of labor where the marginal benefit of the division of labor is equal to the marginal cost of the transaction, so as long as the division of labor can reduce transaction costs, the division of labor will be further refined.
The economic system is essentially a predatory tool, and through the division of labor, the relationship within the level is strengthened (interdependent) so that the dimensionality is reduced, but it still competes with other individuals in the same dimension, which causes the potential difference of dimensions, such as the concentration difference makes the matter migrate to the side with the lower concentration on its own. Dimensional wars and victories
Exchange equals the cycle
Cost equals resistance, or conversion rate
The marginal quantity, which gradually converges in the cycle, because this has a cost, i.e., there is a loss or resistance. As a result, an unstable equilibrium can eventually be reached. The marginal quantity determines the distance, i.e., the degree of convergence
The distance is equal to the number of times
The Nash equilibrium is an embodiment of the principle of the shortest path
The size of the granularity is related to the determination of the boundary, and at the same time it can be assumed that the structure of the sublayer tends to compete with each other, and eventually the particle becomes smaller
Economic property rights are such boundaries
Mutual relations are regulated through the relationship between costs, prices, and profits
Separated inputs and outputs, farmers and workers, even if the net value is 0 or even negative, are profitable. This results in the transfer of information, and the utility of different units can also be stable
The magnitude of the probability must reach a threshold before it can be observed
Production maximization can be like a locomotive pulling development, but the development of the network level is delayed, which will cause losses for individuals. Of course, this is probabilistic, but no one can guarantee that it is not you, so it is understandable that conservative measures are implemented
Overall, an increase in efficiency means a leap in the hierarchy, which increases the demand at the same level. Individual demand decreases, but the number of needs increases, and overall increases. It's just that there is a dislocation in reality, and people may not be able to wait for it, and this is also a kind of elimination mechanism. Opposition or a kind of Nash equilibrium
The division of labor and cooperation make the maximum effect of each margin and maximize the overall efficiency. Machines increase efficiency and force people to move in different fields, which increases the total welfare of society as a whole, but for individuals it is abandoned, and people have inertia
The efficiency of the private sector is higher than that of the government, which is a matter of granularity, and the small ones can be iterated more times, thus being closer to E and more efficient
The waste of resources leads to other levels of benefits that make the overall balance, such as inefficient funding in exchange for loyalty
There is no free lunch, and there is a price to be paid for any expenditure, but these costs come in a variety of forms. Sometimes they have different effects on the individual, which results in a certain marginal benefit. But for the group, it's a stable break-even again
The important thing is the growth rate, a large enough growth rate that allows us to enjoy the standard of living in the future, and to enjoy the future in the future, and the infinite cycle continues, which is the perfect mechanism that we expect. Because we're far from the limit
At the same time, there may be a half-life problem, and a certain concentration may have a longer effect, but this is of the first order. If the infinite order in the flow system is considered, it should be roughly equivalent. But the existence of realistic attrition rates makes it still valid
Direct benefits can be observed quickly, but indirect benefits are likely to be ignored, but when the network is large enough, the effects can also be observed quickly
That is, the collapse of possibility, concentrating on one point, making a possibility manifest or express with great probability. This is often a topic we can discuss, as if nothing is going to happen, and no one cares about the possibility of dying
Another dimension of the government's efficiency, doing practical things, that is, what you can see, what you can't see is its profit margin. The question of evaluation criteria
The coupling system formed by the forces of two different directions is interconnected and combined in two dimensions, but in fact it is multi-dimensional, so there is a residual quantity in the calculation of two dimensions, which is the driving force of the system. Giving it different weights in this dimension is the source stream of genres
Demand is better than purpose, which optimizes resource utilization
Public facilities are necessary, which can be seen as a certain conversion rate, i.e. resistance. It is a mechanism that ensures the stability of distribution
Supply is demand, but it is just the different expressions of different objects in different time and space, two-dimensional transformation
The increasing variables are explicit and the decreasing are implicit, but they are all based on the flow process to reach conclusions
The dynamic work is the dependence of the network, so that there is no relatively stable constant, can only be distributed, but interact with each other, in the balance of movement continues to expand, this is the proliferation of the network, in the flow of probability tends to form the shortest path, so that some probabilities become surplus and are excluded to re-enter the market, that is, the network to build a new path. As long as it is necessary for the network structure or the speed of specialized expression is higher than a certain level, it can exist stably. Of course, this process will be repeated over a long period of time
Any measure is good or bad, because it is in a network, and the network is connected by different probability paths at the same time. We can only analyze and take measures according to the specific situation, and try our best to make them produce relatively large effects, which must be excavated from psychological expectations and evaluations. His honey and my arsenic are an example of this
The minimum wage is equivalent to cutting down a part of the market or going underground, which is beneficial to certain groups of people in the short term, making them vested interests, and in the long run, it compresses the job market and forces some people with low productivity to be excluded. In fact, the smaller the granularity, the higher the resource utilization, as if e is the limit.
Short-term interests do not conflict with long-term interests, but for individuals they are different, they are greedy, they want to have both, and they are a minority who can do so, but they are often examples that motivate everyone to imitate
Profit-oriented production, that is, adjusting various proportions, is also a negative feedback adjustment mechanism
The answer is not necessarily implicit in the description of the problem, each solution is a problem of another level, and in this infinite stacking process, according to the principle of fixed points, there is always an eigenvalue, that is, a level that a certain level can represent a level
The change of part of the proportion will bring about the change of the overall network, which is not equal proportional, even if the delay effect is not considered, its relative proportion will change, if it exceeds the average increase ratio, it will cause a certain potential difference, which can attract capital to enter
The social division of labor brings about an increase in granularity, that is, the strengthening of connections, which is full of indirect relationships in the constructed network, which makes the importance of proportion reflected, which ultimately promotes the increase of absolute numbers.
Regulation is good for vested interests, but not for class mobility, which leads to solidification and aging
Wealth is the eigenvalue of a social network, which, like energy, is relatively fixed and conserved, and is only associated with a different range of systems. Money, on the other hand, is a relatively variable network, and its proportions are true measurements.
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