Divine Economy Science Shows That All Paths Lead To God.

Even though the natural sciences require a different methodology than the social sciences the parallels are instructive. Since human action is the essence of the social sciences and since humans make decisions subjectively the appropriate methodology for the social sciences is subjectivism. The appropriate methodology for the natural sciences is empiricism.

In the natural sciences the micro analysis uncovers greater and greater mysteries filling the unbiased observer with awe and wonder. Likewise the natural scientists who are striving for an understanding of macro worlds - the 'universe' if it can be delimited by such a puny word - find themselves overwhelmed and reduced to complete bewilderment at the glory of the infinite. These two ends of the natural science path lead to a love for the Creator.

In the social science of economics there is a parallel experience. This is especially evident now that the divine economy theory is available to all those seeking a deeper understanding of purposeful action by spiritual beings.

At the micro level there is the discovery that all things, material or ideal, have value because they are the reflection of the attributes of God. Human beings are irresistibly drawn to these names of God because our 'operating system' functions according to the decree - created in His Image. Even if persons are completely devoid of faith in God they, nevertheless, are attracted to the presence of these attributes in the things that they value. Hence all economic value originates in the evidences of these essences. At this micro level the refinement of these virtues constitutes wealth.

At the macro level in the divine economy theory there shines the long-recognized concept of equilibrium. Equilibrium is beyond our comprehension. However, since humans are imperfect they are always functioning in a world of disequilibrium, with the tendency towards equilibrium. This mysterious and marvelous force, known as equilibrium, has a new definition. 'Divine economy' is the equilibrium force and in divine economy theory it is identified as a divine institution that is part of the human creation.

The economy exists because humans exist. Humans seeking after truth - knowledge - is what drives the economy always towards equilibrium and that is what brings prosperity, the grace of God. Human interference, called intervention, is always a corruption of this divine institution - the divine economy. Unquestionably, the finite can never comprehend the infinite. Intervention restricts the flow of information and always causes injustice and disunity.

Science, when the methodology is correct and when the bias of atheism is discarded, is a path that leads to God.

A Divine Microeconomy Theory Slowdown!

As I mentioned in my other blog I will be giving much of my attention over the next few months to writing the third book in the series of four books dedicated to the divine economy theory.

I will try to stay alert to microeconomic issues and I will occasionally provide theoretical insight from the viewpoint of the divine economy theory.

Economic Value In Divine Economy Theory.

Before I begin I have to comment on the degree of importance currently placed on empirical economics and those who are convinced that it has merit. The mantra of these empirical economists: "If only the computers were faster and the bits of data were more precise!" For example, in the Boston Globe the following statement appeared: "Chairman Ben S. Bernanke is pushing the "factor model" program -- so named because it reduces everything from home sales to mining capacity into a few weighted averages for making predictions."

It is no wonder why there is a big void in economic understanding for most people.

At the center of the divine economy theory is the human being, not some automaton. The human reality at the core has all its potentialities. Primary among these is the spiritual reality understood universally as "created in His Image." That 'image' granted to every human being is manifested as the appearance of the attributes of God, such as beauty, trust, power, and love, to name a few.

Just like a moth cannot help but be attracted to light, every human being acts purposefully in ways that express some form of these attributes. Likewise, every human being is attracted by the appearance of these attributes in others, and in things. This attraction is another way of describing the idea that humans know what is valuable to them.

Ultimately everything that has value satisifies a need that somehow brings one of the attributes of God closer. Such an understanding is useful for all: those entrepreneurs seeking to discover what people value, those producers seeking the best ways to produce what people value, and those 'consumers' who benefit from the knowledge that the things we value are simply evidences that we are on a spiritual quest, true to our human reality.

Back to economic value. The object does not contain value. Therefore data cannot document value. For example, a car has value because it satisfies our quest for attributes that further our journey. It is also unlikely that the attributes that I seek in the car are exactly the same as that of another person. Each of our journeys is unique.

This is why subjectivism not empiricism is the correct methodology for economics. Despite what has been done up to now in economic science it is time to reorient. We have now entered a new era in economic science and the divine economy theory is the launching pad!

Divine Economy Theory And Democritis (c.470-c370 BC)

Of course I am also identifying the early contributions to the classical liberalism tradition but if words can be understood as a standard conveyor of meaning there are also glimmerings of divine theory from these early years.

Murray Rothbard gives the honorable distinction - of being the father of subjective value theory - to Democritis. He quotes Democritis as saying "The same thing" may be "good and true for all men, but the pleasant differs from one and another."

The second half of this statement demonstrates that people make decisions as individuals with unique needs and values, that is, subjectively.

The first half of the statement hints at a universal truth that defines the human operating system. What was a hint is now a known concept. The hinted at universal truth is that all human beings are created to know and love God whether conscious of it or not.

What the divine microeconomy theory proves is that it is the appearance of the attributes of God in every good and service that makes them desirable. All value in the human world manifests itself in the economy and the economy is a divine institution that connects the means and ends according to the 'truths' sought by the human reality. The human reality can be summed up by five words: purposeful action by spiritual beings.

Contrast this understanding with the glimmerings from 2376 years ago. In one way there is not much difference but in another way there is a vast difference. The spiritual understanding of how the world operates as elucidated by the divine economy theory moves economic science away from its infancy and towards its maturity.

Empirical Economists Forecast Worse Than Meteorologists!

When I was in college I took a meteorology class. One project was to use complex mathematical models to predict the effect of different objects on the microweather. How would a shift in wind direction alter the effect of a stationary object such as a tree on the microweather? These models were designed with great detail to incorporate the laws of physics to the 'infinite' degree.

What this proves is that meteorological events are extremely complex even at the microlevel. Is it any wonder why the daily weather forecasts (a macro event) are educated guesses? The weather forecast record demonstrates this fact.

Now consider the fact that these meteorological forces lack the ability to 'change their minds!' Humans change their minds all the time and that is their God-given right. Even if humanity operated as inanimate forces the forecasts would seldom be correct, as shown by the above meteorological example. But humans do not behave in a way that empiricism requires. We make decisions subjectively!

Why should we rigidly impose an incorrect methodology on the science of economics rather than simply using a methodology that is compatible with human action? Subjectivism uncovers universal principles of human action and it supports the use of human logic to describe the uncertain future, the present circumstances, and the cause and effect of past events. One of many examples of the accuracy of the subjectivist methodology can be seen in a book by Murray Rothbard entitled "America's Great Depression."

Empirical economists are worse forecasters than meteorologists not simply because of the extra complexity of the system but because the appropriate methodology for social sciences is subjectivism not empiricism. The empiricists' equations do not even have the firm foundation of physics to validate them. Exposing them as interventionists is an inevitable outcome of the divine economy theory.

Divine Economy Theory Q&A #3: How Is The Intense Competition Faced By Businesses Divine?

Out of frustration some have called it a 'rat race!" A far cry from divine!

What we have to understand is that competitive entrepreneurship is part of human nature. And what we have to understand is that humans value those things that satisfy their essential nature, ultimately their spiritual nature.

It is no small task for the business owner to identify the attributes of his or her product that attract the buyers. As this is discerned the goal of the entrepreneur is to find a way to improve the delivery of this attribute either by product quality or quantity or by price or by the conveyence of information. Each entrepreneur is trying to accomplish this. The competitive entrepreneur also seeks ways to overcome the constraints of limited capital. Not all options are available even if discovered.

This does not offer much solace to a business that is suffering. Even in a divine economy there is no guarantee that an entrepreneur/producer will succeed (in serving the consumer). One thing is for sure though, in a divine economy there will not be competition from businesses that use the corruption of the interventionists to gain an unfair advantage.

Once this corruption starts it poisons the whole economy. Anyone who acts like intervention is beneficial is closing their eyes to the disruption it causes. It undermines society in so many ways. For example it replaces trustworthiness with sleaziness.

It takes principled determination to counteract intervention in these dark days of economic ignorance. Hopefully the understanding that all value comes from the consumer seeking after the attributes of God, expressed in various ways in products, will give the edge to competitive entrepreneurs educated in the divine economy theory.

The "Divine Microeconomy Theory Can Answer Your Questions" Series!

I am adding another instructive tool to this blog. I will continue to describe the divine economy theory at the micro level and I will continue to address contemporary microeconomic issues. Additionally I will answer your specific questions, sort of a compendium of frequently asked questions (FAQ).

Divine Microfoundations of the Divine Economy Theory.

In consideration of the work being done to uncover the relationship between the economy at the micro and macro levels I have adopted some of the terminology currently used in the economic journals and literature. I like the word 'microfoundation' as it is used which is to indicate that the microeconomy provides a foundation for the macroeconomy.

What is missing in the contemporary approach is the new definition of equilibrium as described in the divine economy theory. Also missing is use of the subjectivist methodology which creates a bridge between two previously dissociated aspects of human consciousness - science and religion.

This is not surprising since the divine economy theory is just emerging and is known by few.

Without going into any more detail in this blog entry, suffice it to say that I feel comfortable using interchangeably the term 'divine microfoundation' and the term 'divine microeconomy.' By adopting this term I assume that some empiricists will take a look and that some atheistic subjectivists will also become curious.

"Microfoundations of Macroeconomics" in the Divine Economy Theory.

It appears that one of the hot topics in the economic journals is "microfoundations of macroeconomics" and work along these lines catches the attention of distinguished bodies of scholars. Pioneering work in "microfoundations of macroeconomics" contributed to the awarding of the 2006 Nobel prize in economics to Edmund Phelps.

The dominant slant in the economic literature is to present research that uses the empirical method meticulously, in this case, to further refine general equilibrium macroeconomics.

But there is a new theory that also contributes to the "microfoundations of macroeconomics" effort. So new that this blog entry may be the very first direct connection between the divine economy theory and the microfoundations of macroeconomics.

There are notable differences up front. The divine economy theory does not use the empirical method. It uses subjectivism since its origins are from the classical liberalism tradition.

In the divine economy theory equilibrium is re-defined. The powers and tendencies of equilibrium are still there but they are regarded as beyond human understanding. Instead what is given the attention is disequilibrium, which describes the real world experiences of humans.

Continuing this line of reasoning, there is no real separation between micro and macro. It is just looking at the same economy from different perspectives.

The exciting discovery that emerged from using the divine economy theory, and which was first documented in the scientific literature of economics in 2006, was the origin of all economic value. It turns out that all economic value directly or indirectly originates from the appearance of the attributes of God in the purposeful action of human beings. This is a groundbreaking and monumental discovery and serves as a launching pad for the future development of the divine economy theory.

This is also the seed of the "microfoundations of macroeconomics." Maybe a distinguished body of scholars will take notice.

Divine Microeconomy Methodology Replaces Fallacious Empiricism.

The reason we are now entering a new era in economic science is because the divine economy theory is capable of bridging economic science and religion. And although the divine economy theory is groundbreaking, nevertheless it rests upon the firm foundation of classical liberalism which has roots going back to the sixteenth century and perhaps even further back, all the way to the thirteenth century.

Despite this long-standing tradition of economic thought, which is distinguished by its methodology, most of contemporary economics ignores the method and the contributions of classical liberal thinkers. This is not a mere accident, it is intentional.

In a nutshell, the origin of economic empiricism comes from 'physics envy.' Early social scientists tried be recognized as scientific by imitating the methodology of the natural sciences. We are talking about the mid-1800's. Not coincidentally this is when the world political theatre took on the character of a power grab. Emerging on a scale never seen before in history were the ego-driven interventionists. Those who could justify this intervention were granted a portion of the dominion - thus enters the 'professional' economist with all their accompanying empirical economic tools.

Thankfully the divine economy theory destroys all the fallacies of empiricism. First of all it uses subjectivism as its methodology. In other words humans are allowed to exist as real and acting and sentient beings rather than as points of data.

And the most important new discovery that comes from the divine economy theory is that all value comes, directly or indirectly, from the appearance of the attributes of God in the form of purposeful human action. It is fallacious to imagine that value comes from government or from any of the intervention devised by the ego-driven interventionists or their cohorts serving as economic advisors.

This combination of the subjective methodology of classical liberalism and the new discoveries found in the divine economy theory turns contemporary economic literature and the 'economic profession' upside down.

The Divine Microeconomy and India.

Unabashedly I call out to India for two main reasons: it is basically English-speaking and because it has a rich spiritual foundation.

My books, DIVINE ECONOMY And Its Real World Economic Principles and DIVINE MICROECONOMY - A Tapestry of Human Virtues, are written in the only language that I know and that happens to be English.

For social change to occur there has to be movement of a critical mass and so I have identified India as a potentially important catalyst. Since the divine economy theory is in English and since the majority of people in India can read English there is a latent potential there. With the large population of India there is also the possibility of the presence of a critical mass.

India represents a powerful catalyst in a state of latency until there is an emergence of the cry for the justice of the divine economy theory. This potency is exceptional since India has a culture that has strong ties to spirituality. The people of India will be thrilled and find great delight from the discovery that it is the attributes of God that can scientifically be proven to originate all value. They will readily recognize that spiritual practices bring prosperity inwardly and outwardly!

Please hear my call, India, to be the catalyst that the world needs to free itself from the shackles of interventionism. Be the catalyst by learning about the divine economy theory and implementing it.

Interventionism Even Penetrates The Divine Microeconomy.

Let's look at how interventionism penetrates the economy to its core, which is - each and every one of us. The act of intervention at the macro level sooner or later affects and alters the market process in a way that prevents the accretion of value in the economic system.

Each act of intervention distorts the message communicated via the language of the economy. It is difficult to discuss a single cause and effect because of the cumulative nature of interventionism. Consequently the effect is best seen as a cumulative response.

For example, greed is a cumulative response that becomes manifest once a behavior becomes recurrent. If that behavior is done only once, the one and only expression of that tendency may be simply a selfish choice. A selfish choice is not far removed (in fact it is merely a subjective act) from a normal human behavior.

Now superimpose on this tendency the cumulative effects of interventionism, for example, the change of purchasing power that results from inflating the money supply. Pushed to get it now since the purchasing power is going to decline also pushes the individual to skew towards a negative expression, namely greed, of an inherently neutral human quality.

This is only a brief and introductory exposition about how intervention not only corrupts the divine economy but it also corrupts the divine microeconomy!

Materialism, Recession, And The Divine Microeconomy.

It is very difficult to identify what is the cause and what is the effect. Has materialism come about because economic science was void of a spiritual basis; or has economic science developed void of a spiritual basis because humanity was afflicted by materialism?

One outcome of materialism and a science that is confined to the constraints of materialism is intervention. Intervention is the manipulation of the economy by an entity with some degree of coersive power. Its purpose is to direct the economy. Only an ego that is inflated can assume to know what is best for everyone. If the interconnectedness of everyone is not understood then combine economic ignorance with an inflated ego as part of interventionism.

The application of short-sighted and limited knowledge upon a divine institution such as the economy has repercussions. One of the most spoken about repercussions is recession but beware, because the cause and cure spoken about is given from the perspective of materialism and/or economic science that is void of a spiritual basis.

Divine economy theory seamlessly blends the economy at the micro and macro level. This 'ego' that I spoke of is harmful at the micro and the macro level. It is the ego which prevents the continual refinement of the virtues which then prevents the accretion of value in the economic system. And the 'ego' at the macro level corrupts the divine economy bringing afflictions such as recession.

The Ever-Advancing Divine Microeconomy!

We humans are always seeking refinement. Case in point is my effort to continually improve the presentation of the divine microeconomy. For instance, I am beginning to introduce graphics to facilitate understanding.

The word 'cumulative' describes the state of knowledge of each individual at every point in time.

If there is a failure in the type of knowledge that is acquired, that is not the fault of economics, but rather it is more accurate to ascribe such a failure to religion.

The divine nature of human beings, driven mostly by the spiritual and intellectual powers, makes inherent the condition of being a 'seeker.' The One sought will be sought in the dust if it cannot be found in the heavens! Materialism is the outcome.

But once the secret is known - that the source of all wealth is the acquisition of the attributes of God - the sum of the whole will always be getting greater. This is represented in a diagram called the Maturity of Mankind.

The higher ideals and values are expressed at the microeconomy level by refinements in human character. These refinements are virtues that attract the seeker (fellow humans) because those virtues are highly valued. In fact these virtues are the source of value, or at least its first appearance in the realm that economic science can reach.

The Micro Part Of The Economy is Human Action!

Human potential is wondrous, and guess what, we are hardly even aware of how wondrous it is. This happens to be one of the reasons that the divine economy theory is just newly born. To say it is in its infancy is possibly an overstatement.

The task is to try to understand human action. The missing ingredient, which has now been added, is the divine nature of the human reality. This ingredient has not been missing in religion but rather it has been missing in scientific economics. The subjectivist methodology used in the divine economy theory makes it possible to include the divine nature of humankind in its praxeology.

By nature humans acquire knowledge. By divine nature humans acquire knowledge about what others value. Whether aware of it or not the object sought appears to possess something that increases the wealth of the attributes of God. Maybe the object brings glory or power or cleanliness or flexibility or understanding.

Human action is directed towards the means to attain the ends. But this action creates a new reality, a person with new knowledge ready to perceive again its surroundings. This advancement is continuous and cumulative.

In summary, the micro and macro foundations of the economy are, thus, ever-advancing. This is a maxim of the divine economy theory.

Bruce Koerber - Divine Economy Theorist

 

Virtues and Service in the Divine Microeconomy Model ©.

As was mentioned at an earlier date, the Divine Microeconomy Model © has internal components that have a directional pattern. One example was the movement from cause to effect.

What is true about human action is that action takes place as a result of the circumstances and the perception of those circumstances. What this means is that the effect may then stimulate an action which then causes an effect! This is a self-sustaining cycle.

The Divine Microeconomy Model © has internal components that have a directional pattern and that also represent our continual refinement. On the left is 'virtue' and it manifests itself directionally on the right in 'service.' One of the outcomes of service is the acquisition of virtues and so again we have this cycle of advancement.

This is why the potential for human perfection is infinite!

Cause And Effect In The Divine Microeconomy Model ©.

Human action and how it manifests itself is what we are talking about. Inseparable from human action is the origin and essence of the human reality.

In the Divine Microeconomy Model © there are two parallel patterns. These patterns have a directional nature to them. For example, let us say they flow from left to right. With that visualization in your mind, overlay cause on the left and effect on the right, and again overlay east on the left and west on the right.

If my guess is correct you are wondering about the east/west pattern. It is symbolic! It is symbolic of the way Revelation comes from God. It is born in the east and it spreads and bears fruit in the west. That is the pattern and it is part of human reality. Since this model includes the spiritual nature of humans this pattern is a vital part.

Now consider cause and effect. All human action proceeds in this manner. But because this model recognizes the divine nature of human beings the origin of the cause is traced back even further.

For example, when an individual goes to a job interview with a clean appearance the cause and effect may be thought to be: 'clean appearance' leads to 'job offer.' However, the Divine Economy Model © permits a more insightful understanding, one that is compatible with the divine nature of the human being. Cleanliness is an attribute of God valued by humans since they are created in His Image. It has value and if it is manifested it brings value into the world.

This is why the divine economy theory is so powerful and illuminating!

Human Virtues Are A Part Of Divine Economy Theory!

Although the Divine Microeconomy Model © is simple relative to reality, it is still quite a complex model. However that does not mean it is difficult to understand or to follow.

Because of its complexity I cannot use words alone to describe it as a whole very well and that is the reason I use a diagram. At the same time because of its simplicity I can present it to you piece by piece fairly easily.

This blog entry will be about the contents of the two-dimensional planes that are within the three dimensional model which was originally published in 2005 as the Divine Economy Model ©.

Each plane holds within it an array of human virtues that I arbitrarily assigned to it, yet I based that assignment on the kindred nature between each virtue and the spiritual elements of its plane. These virtues are universally valued by humans and human action is always directed towards the acquisition of them.

For example, modesty is assigned to the plane of Law/Order. Joyfulness is in the plane of Human Spirit/Transformation. And helpfulness is in the plane of Justice/Unity.

That sounds simple enough. Once the dynamics begins the model then encompasses the very complex. The Divine Microeconomy Model © has power because it helps us to understand the infinite nature of the divine economy and it serves as a means to further understand divine economy theory.

Look At The 'Divine Economy Theory' At The Micro Level!

The seamlessness of the economy is worthy of the utmost respect. Nothing is honored more highly in this newly emerging thought - which I refer to as the "divine economy theory." The 'divine economy theory' is ultimately a product of earlier contributions to economic science by the great thinkers in the classical liberalism tradition.

The micro level examined in the Divine Microeconomy Model © is simply the extension of deductive logic. After starting at the general and proceeding to the specific, the micro level is reached. Once there human action is explored and its essence recognized!

The Divine Microeconomy Model © Discovers The Origin of All Economic Value!

In the Divine Microeconomy Model © the complexity of the human being is reduced to a three dimensional model composed of six planes. These six planes are packed full of human virtues.

The dynamic nature of the model comes into play through the manifestation of these attributes over time and relative to fellow human beings.

This makes it possible to apply the Divine Microeconomy Model ©, for instance, to see how education affects a human being.

Of great significance is the discovery of the source of all economic value itself. The Divine Microeconomy Model © proves that all value originates from the expression of the attributes of God inherent in all human beings.

The Divine Spark Within Us Drives Us Towards What Is Better.

There is a divine spark within us that drives us towards what is better. Of course circumstances are relative yet the inherent operation of this divine spark is universal.

The issue of education is important because someone who is ignorant may seek what is better in the wrong direction. Just like it is important to know what is the best way to cure a disease it is also important to know how to exercise human virtues. This is especially true and monumentally important now that we know that the source of all value comes from the presence of these attributes of God.

No matter where a person is or no matter what their circumstances the acquisition and application of human virtues will create value and begin the process of prosperity. Now consider how revolutionary, rather how evolutionary, this is!

What Is The Source And Origin Of The Economy?

It is important to examine more closely the idea of the 'wellspring of the divine economy.' From where does the economy spring forth? What is the source and the origin of the economy?

This question is like the discovery of infinity in both directions in the natural sciences. Things continue to get smaller, far beyond our comprehension, and things continue to be expansive beyond our ability to fathom.

Similarly, the origin of the economy is attributed to the value of an acquired degree of a human virtue in the direction of the minute and yet it is also from the Will of the Fashioner, the Creator, in the direction of the grand.

The wellspring, in either direction, has as its source the divine nature of the human creation. Refinement and perfection of human virtues is the seat of the appearance of the divine microeconomy. The power of equilibrium, which rests upon the flow of knowledge and information to serve the needs of humanity, is the seat of the appearance of the divine economy at the macrolevel.

The microeconomy is connected to our hearts.

Today is the day! It is the day that marks the beginning of a clear connection between the economy and the expressions of the human spirit. This is why religion plays a key role. Religion is what educates us about our inherent beauty and teaches us about the attributes of God.

Now is the time to recognize the harmony of science and religion.The economy is a reflection of us. If we act in a degraded manner the economy reflects it. However as we acquire degrees of perfection in human virtues, which is our birthright, the economy mirrors those divine qualities.

The divine microeconomy begins with and within each of us.Value, then, is attributed to whatever our work is, as we offer in our work a degree of those noble traits. Acquiring higher degrees of perfection adds value and carries forward civilization. This is the beginning of value and this is the wellspring of the divine economy.