Definition of Subjective and Solidarity Econmic Theory |
SSET 03 - DEFINITION of Having defined economic science and presented the Introduction to Subjective and Solidarity Economic Theory (SSET 02), we now preceded to define the latter as:
The relevant considerations, of this proposal defining are:
It is feasible to notice that this new economic theory presents new scenarios, terms, questions, answers,… (paradigms?),3 that we synthesize like this:
We can synthesize the difference of the new Subjective and Solidarity Economic Theory (SSET) with the other known theories, in which its constructive foundation is the theory of subjective value (utilities), unlike the known ones that are sustained, or are contaminated,8 in the theory of objective value. That is, while one based on values, the others pretend to do so through quantities (prices). Then, given that the current economic institutions emerged under the theory of objective value, is that the economic objective value, is that the economic necessities “require” the calculation of officials to regulate quantities-prices (currency-interest, etc.).9 The SSET makes clear the reason, and the consequences, of such interventions, which undermine the natural laws of the economy: Reasons: the alteration of the causal order that goes from the value to the prices (v → P), by the factual order that goes from the prices to the value ( P → v). 10 Consequences: results far from of the evolutionary optimum, which implies lower efficiency and equity in the economic necessities. All this new Subjective and Solidarity Economic Theory is elaborated from economic goods and the two natural laws that govern their behavior. Carlos A. Bondone [1] The same evolutionary process of physics: from the absolute time of Newton to the relative of Einstein. [2] This is de the goal that S. Jevons could not reach. [3] According to Popper, it is a characteristic of any new theory ―a challenge for scientists and academics. [4] It is defined in the Subjective and Solidarity Economic Theory (SSET) as a general equation of the marginal utility of wealth. [5] See Chapter X in Subjective and Solidarity Economic Theory (SSET) . [6] It is defined by the Subjective and Solidarity Economic Theory (SSET). [7] Which defines the optimal evolutionary of economic state. [8] This is the case of the Austrian current of thought, which did not understand the essence of Menger´s marginal subjective value, which led them to discuss in the field of prices. They were not conclusive ―for ignoring the essence of marginal subjective value ― in discarding: the supply and demand curves, the theory of interest –the temporal preference denies value to time―, the theory of currency, the theory of distribution, etc…. etc. I humbly estimate that it was because they has not noticed the presence of relative values, an essential tool for understanding in its full dimension the theory of subjective value ― ¿for lack of the use of mathematics? [9] The legislative, executive and judicial task must ensure the freedom of the individual, not hinder their calculations. [10] The factual order refers to the calculation of values, which is made from the observed prices. The economists-officials, entertained with the calculation, they believe are making economic life efficient and equitable, because they have been trained in these theories.
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