What I believe in is a firm economic foundation. Something a country, a nation, can build the next level on. There are traditional Economic fundamentals that need adhering to for this to occur. Looking to our current crisis we can see what we did 30 years ago is impacting today. This means we need to be mindful of what we do today because it will be impacting on our economies in 30 years time. The first example is of borrowing from our children.We are sitting in one of history's worst economic crises and few people have not been affected with most people heavily affected. Economic cycles occur and are part and parcel of economies, but these chronic recessions are from system failures, deviating from the fundamentals.The US of A is the world's leading economy. What it does affects the rest of the world who continually keep an eye on it's situation if they want to get ahead. Needless to say much of the world can and have independently gone to pot on their own.



Wednesday, December 6, 2017

The Fundamental Reasons Economic Models Fail

The traditional use of large groups of people in economics has arisen because the use of individuals is impractical and small groups appear erratic. The practice of using large groups has proven flawed. The use of large group works for a limited scope of stress, however outside these limits the change in the nature of the groups will cause them to fail.  Using this allegation most economic models in this field are thus flawed when shifting into the chaotic outside parameters.
A society is made up of many subsocieties, each with an individual identity, and therefore a different set of values and with a different mix of triggers.
What has been determined is that each society has two identities, one normal Omega, passive condition, and one Alpha under stress. These identities have similar, if not identical values where the main difference between Alpha and Omega status is the ranking of the core values.
A nation, in a time of relative calm will have a good level of cohesion with a minor level of dispute. The same nation under duress would trigger reactions in it’s subsocieties that would then adopt Alpha values that may well conflict and pull apart a previously amicable relationship.
It is very difficult to understand relationships of groups within a society particularly when those groups react differently to different stresses. It is easier seeing this as changing identity where all societies have a dual identities. Thus there is an essential need for further planning and deeper understanding of the makeup of dual identities. The danger lies in excluding the situational dichotomy of groups, in national planning. This will mean economic models will fail when the economy shifts outside the normal parameters and stresses start changing the foundation of all models, the group.
Thus it is imperative to use economic models that allow for the subsociety Alpha/Omega dynamics that would otherwise look irrational.
Delamination is a phenomenon that has been with mankind since prehistory. Whilst Delamination is mostly a detrimental issue, there are some very positive aspects where a break away occurs enabling multiple societies to grow on their own and excel without burdens of other societies slowing them down.
It is seen as detrimental when resources are divided and contested, frequently being allocated according to power rather than optimal use. Where the contestation is based on economic competition it remains healthy. When allocation is based on power, through greed, it becomes a negative imposition on the growth of economies.
It shares dynamics linked to cohesion but it is as an important factor as the separation gives freedom for evolving identities and greater diversity reducing stagnation, shuffling the mix and the formation of new interactions. The detrimental aspect is the loss of interaction and a segregation that becomes suppressive with reduced productivity and increased poverty.
Delamination occurs throughout a multitude of planes and is arises from many differences from racial to religious, from economic to geographic. It occurs in all societies.
The understanding I have is that the delamination needs attending to, monitoring and shepherding, constantly allowing separation where a country benefits and either easing differences or forcing bonding where the greater society is to benefit.
As the field of “Economics” is the best measure available to measure social behaviour the aspect of “Social Delamination” shows how this field has failed in the past and continues to fail society so long as emotions are the main consideration of politics, with increasing use of micro controls. It is occurring more often as a failure to correctly implement Economic theory rather than the theory being at fault.
The study of the Building Industry is indicative of the danger of the multiplier effect in both a positive and negative connotation. It highlights the narrowness of the band where models work.
The Economy is in a state of flux and instability that is a mix of social uncertainty, changing status being multiplied through industries such as finance and the building industries that in turn feed back into the effect.
This is avoidable by taking the Alpha and Omega identities into current models and wealth linked back to the property industry.


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