Update March 2020: The economic crisis years have finally begun, as predicted!
Our next prediction is a massive inflation hitting at year X, marking the second part of The Great Stagflation
Nothing can be more absurd than this doctrine of the balance of trade. This doctrine supposes that when two places trade with one another, neither of them loses or gains if the balance be even. But if it leans in any degree to one side, that one of them loses and the other gains, in proportion to its declension from the exact equilibrium. Both suppositions are false. A trade which is naturally carried on between any two places is always advantageous, though not always equally so, to both.
It is always the people’s interest to buy whatever they want the cheapest. This proposition is so very obvious that it is ridiculous to take any pains to prove it. It could never have been questioned had not the sophistry of merchants and manufacturers CONFOUNDED THE COMMON SENSE OF MANKIND.
Economics was formalized after the marginal revolution of the 1870's. Back then, the world was undeveloped, so a supply-dominant monopolistic resource allocation system made sense. But after everyone who needs a car or an iPhone already has a car or an iPhone, then such a system naturally creates more problems, especially for the environment which has to supply the raw materials for those cars and iPhones.
Core beliefs in Economics such as profit maximization and equilibrium have led to boom and bust, best seen in the the Roaring 20's boom and the 1930's Great Depression bust. The failure of DSGE during the 2008 Financial Crisis shows the absurdity of Economics.
Economists, therefore, should not be surprised at recurring economic crises because their very teachings propagate them. In fact, it would be very surprising if there would be no crises while Economics is being taught in schools.
Well, not really. The problem is that money is a number, like a particle, whereas value is a feeling, like a wave. This wave-particle duality then creates problems:
Having a lot of money gives the ego power over other egos, giving a feeling of superiority to the monied-ego, leading to arbitrary actions which encroaches on other egos, creating injustice and eventually, evil.
A dirt-poor evil bum can hurt a few people, but an ultra rich evil man can hurt so many.
SORAnomics uses the effort theory of value, facilitated by agreements which can store wave-data as ethics and ego-data, which is then processed by SORA Match in order to prevent injustice and the growth of evil. This prevents democracies from degenerating into tyranny and aristocracies from slipping into oligrachy, in Plato-speak.
If you work for 1 hour in exchange for $10, then your work-information generated in that hour will be overwritten by the $10-money-information, just as a particle is bumped off by another particle. You don't remember most of what you did in every day of the first month of your first job, but you remember your first salary amount very well.
In contrast, a labor-for-labor system would retain all the information* about that labor, allowinig precision in labor-allocation.
Why hire a plumber and a carpenter to fix your kitchen sink and dinner table, when you can just hire one guy that has experience in both?
Prices can only be assigned by the mind relative to the current moment and place. This is why asset prices fluctuate far more than wages or most commodities. Money doesn't work for things that have a not-so-obvious-value (wave-value) like:
Economics has no way to accurately put a price on the future effects of such things, but SORAnomics has, through relativistic effort-valuation and resource credits.
Capitalism wants profits but destroys the environment. Communism wants social justice but destroys freedoms.
SORAnomics brings real wealth through Adam Smith's Wealth of Nations and social justice through The Theory of Moral Sentiments, achieving the original goals of both Capitalism and Communism.
Economics is based on Physics as proven by the extensive use of Calculus and the removal of Moral Philosophy during the mid-19th century. Prior to that, Economics was called the Political Economy which was largely based on law, morals, and not math which can be dismal.
Economics was created by Paul Samuelson from MIT which is a physics school. In contrast, David Hume and Adam Smith came from University of Edinburgh and Glasgow which had a balance of arts and engineering. We continue this by not only developing the metaphysical theories, but also the apps to implement them.
Classical economics has a lot of models that never saw the light of day. We bring them back to replace those created by modern economics. The models above come from actual economic data and are not merely theoretical. When combined with data science, these new models gain a predictive ability that is lacking in Economics.
In 2015, our model predicted an anomaly occuring in Q1 2018 which turned out to be the Bitcoin bubble and the 2018 correction. The model predicts a much bigger crisis in a specific year between 2019 to 2030 and this is what we are preparing for (actually, the model has specified a year in our submitted paper, but since revealing the future changes the future, it's better to make it ambiguous). Our models work in the real world because they are based on actual data and not on the desired data.
It's going to be a long one and things will not get better anytime soon, so we hope you've heeded our warnings from 2015 and spent the pre-crisis years 2016-2018 preparing
It gives the same importance to the profit-motive, wage-motive, and tax-motive to create harmony with business, workers, and government, very different from Economics which only favors the profit-motive.
Crunching economic data from the 13th century up to the present by hand was a lot of work, so we're creating the system to automate it through ISAIAH or the Impartial Spectator Automated Intelligence Aggregation Host We love philosophy, but we love engineering too!
SORAnomics will use the SORA system of servers to feed essential economic data to a central analytics portal in real-time. It will use Purchasing Power instead of GDP, and grain values instead of currency values to sustain economies even during a financial crisis, as the main implementation of the effort theory of value. It can render information asymmetry obsolete since everyone can have access to the same information.
Do you need to know the global GDP right now, or find out how good or bad your economy is doing each day? Find them all on our portal!
The Physiocrats invented the economic table 250 years ago to trace the supply chain in order to create a cohesive economic system to rival the money-based and arbitrary Commercial (mercantile) system. The Commercial system won and became Economics and e-commerce. Our system brings back the Physiocrats' ideas in order to prevent the trade wars and environmental destruction created by Commercialism just as it did 250 years ago.
Do you want to know if your tofu was sourced from the Amazon's destruction? Or if your smartphone is contributing to war in Africa? Or how you can quickly rebuild your supply chain after a natural disaster? The economic table can help.
Economists can be converted to SORAnomists to work on each decentralized economic node, instead of working for centralized finance, research, or the public sector as is the usual career path in Economics. We estimate that one SORAnomist is needed per 100,000 population and will have an objective-subjective skill set. The objective being represented by Data Science to process the data and DevOps to extract, transform, and load or serve that data. The subjective being SORAnomic science and the moral philosphy on which that science is based. In contrast, Economics is mostly objective, lacking a proper moral foundation.
A global population of 7 billion people, would need 70,000 SORAnomists, or double the staff of Facebook
A bank's core competency is the trust and security that it provides for storing precious things. SORA evolves these stores of value as transactions to turn banks into transaction clearinghouses.
Adam Smith's decentralized economic system integrates seamlessly with the decentralized democratic system proposed by his best friend, David Hume, which we call Social Governance (SOGO).
The problem with democracy is the same as the problem with money: freedom has no moral quality attached to it. A democratic system could spread goodness, but also could spread evil at the same time. This is easily seen in real news versus fake news and in good officials being elected along with corrupt ones. Our regulated democratic model has a dual morality system baked in, to better make sure that goodness is spread while evil is checked.
SORAnomics is a child science of Social Superphysics which is a branch of Superphysics, which is our implementation of David Hume's Science of Man
Physics uses the caveman technology of fire-combustion called rockets through Newton's Third Law of Motion in order to propel objects. Superphysics, on the other hand, will use a variation of quantum enanglement to phase objects in and out of different space-times. If SORAnomics is meant to create rapidly-deployable economic systems on earth and other planets, then Superphysics is meant to create the technology to actually travel to those planets. New planets also have new diseases and so Medical Superphysics is there to determine the nature of new diseases quickly to either avoid or cure them faster.