Update March 2020: The economic crisis years have begun, as predicted!
Our next prediction is a massive inflation hitting at year X, marking the second part of The Great Stagflation

SORANOMICS

Classical economics meets modern data science


The study of SOcial Resource Allocation (SORA) based on Adam Smith and David Hume, using the effort theory of value
The marginal revolution enshrined wrong ideas. After that, the problems began.

WRONG

Society fights itself
Value is objective
Money is wealth
Pleasure is the sole goal
The self is more important
Life is for accumulating things

RIGHT

Society works together
Value is subjective
Money is not wealth
Peace of mind is the goal
Society is just as important
Life is for achieving goals

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.

Wealth of Nations Book 4, emphasis added

Economics was formalized after the marginal revolution of the 1870's, as the direct descendant of Mercantilism which believed that money is wealth. This belief continues today as the 'liquidity preference' advocated by John Maynard Keynes.

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.

The natural price is the LOWEST PRICE that a dealer can sell his goods.. The natural price is the central price to which ALL PRICES are continually gravitating.

The company complained about the cheapness of consumption and the encouragement given to production. These are PRECISELY the two great effects promoted by political economy.

Simple Wealth of Nations, Book 5, Chapter 1, emphasis added too

Money is the root of all evil

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:

  • the unseen labour being done by a rainforest in cleaning the air
  • the health benefits of eating a vegetable
  • the inventions that will only have impact after long and costly research

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.

Everything in the world is purchased by labour.. In general, the dearness of everything, from plenty of money, is a disadvantage which attends an established commerce. It limits commerce in every country..This has made me doubt the benefit of banks and paper-credit, which are so generally esteemed advantageous to every nation.

David Hume, On Money
Stop the burning!

Want to end the Corona virus? End the war against the Amazon

The economic decline in 2020 came from the corona virus which came from the war against the Amazon which began in 2019. This is similar to the Spanish flu which came with World War I and ended after that war ended. Therefore, ending the destruction of the Amazon is the best way to end the virus. Without it, the virus will merely mutate, rendering current vaccines ineffective.

This proves that moral philosophy is superior to the sciences of economics and modern medicine, just as prevention and proper maintenance is always better (and cheaper) than cure or repair. SORAnomics has moral philosophy baked in just as Adam Smith and David Hume were primarily moral philosophers who wrote about economics.

In the spice islands, the Dutch burn all the spiceries beyond what they expect to dispose of in Europe with profit. This SAVAGE POLICY has now almost completely destroyed all those trees.

Simple Wealth of Nations, Book 4, emphasis added as well
Welcome the Enlightenment

The Kali Yuga ends here (If you want it to end)

Subjective vs Objective

Real Happiness

Happiness

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.

Material Happiness

Happiness

Bertrand de Jouvenel characterised “Western man” in words which may be taken as a fair description of the modern economist. He tends to count nothing as an expenditure, other than human effort. He does not seem to mind how much mineral matter he wastes and, far worse, how much living matter he destroys. He does not seem to realize at all that human life is a dependent part of an ecosystem of many different forms of life

E.F. Schumacher, Buddhist Economics
Bye-bye Liquidity Preference.
Hello Regulated Wealth Preference

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.

Update March 2020: The crisis years have begun!

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

SORAnomics is amazingly inept  at selfishness. Proud of it too!

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.

This avidity alone, of acquiring goods and possessions for ourselves and our nearest friends, is insatiable, perpetual, universal, and directly destructive to society.

David Hume, Treatise of Human Nature
Global Economic Data in Real Time

Economics can't get more rigorous than this

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. Economics can get GDP data quarterly, but SORAnomics can get it by the minute, allowing real-time policymaking.

Do you need to know the global GDP right now, or find out how good or bad your economy is doing each day in a Bloomberg-terminal way? Find them all on our portal!

They have been misled by the slovenly manner in which some ancient statutes of assize had been sometimes transcribed by lazy copiers; and sometimes actually composed by the legislature.

The economic table implemented

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.

Model

Economic table

Actual

Resource extraction processes for a smartphone
Resource processing processes
Resource trading processes

The third greatest invention of our time is the Economic Table

Riqueti, Philosophie Rurale 1763
A new life for economists

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

Mr. Locke, Mr. Law, and Mr. Montesquieu, and many other writers, imagined that the increase of money was the real cause of the decrease in interest rates in Europe.. This notion, which at first sight seems plausible, was fully exposed by Mr. Hume that it is unnecessary to say anything more.

A new life for banks

Are fintech and cryptocurrencies eating up your bank's market share? Gain it back with the SORA banking system

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.

Ancient Rome: Banks as temples storing precious items
Mercantile period: Banks as storage of gold and silver
Post-Bretton Woods: Banks as storage of paper fiat and paper financial instruments
SORA Banking: Banks as storage of digitally-encrypted transactions

By being removed from the bank, a shilling loses the advantages of bank money in its security, easy and safe transferability, and its use in paying foreign bills of exchange. Above all, it could not be removed from the bank without previously paying for the storage.

Simple Wealth of Nations, Digression on Bank Deposits
The goal: Socio-economic singularity
*

* A situation where an ego-less artificial intelligence becomes the impartial spectator which coordinates all supply and demand even when there is no money around, for wage-maximization, tax-maximization, and profit-maximization. The maximization of all three leads to minimization as lower prices.
Because the ego is the real root of all evil

Ignorance, misinformation, friendship, party animosity, and private resentment frequently mislead such tax assessors.

The other goal: The Ideal Socio-political System

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 pure democracy is the same as the problem with money: freedom has no moral quality attached to it. A purely democratic system, without any moral checks, 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. This problem was solved by Hinduism, Buddhism, Confucianism, and Islam, all of which imposed moral rules.

Our regulated democratic model has a dual morality system baked in, to better make sure that goodness is spread while evil is checked, without having the dogma and rigid morals of religions.

As one form of government must be allowed more perfect than another, why may we not enquire what is the most perfect of all..though it be not so easy to establish a new system of government? In some future age, an opportunity might be afforded of reducing the theory to practice, by the combination of men to form a new one, in some distant part of the world

You can't reach the stars without this

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.

Economic rehab starts here
Unless you're honestly happy with wasting life on bullshit jobs and with regular crises wiping away value

The Invisible Hand of Human Dharma

Find out how SORAnomics turns the economy into a dharmic system that allows everyone to achieve their goals in life.

Profit, Rent, and Wage cycles

Know the cycles of revenue in order to keep wages stable and avoid budget deficits and recessions.

The Proper Replacement to GDP

Find out how Purchasing Power replaces GDP as a measure of a society's wealth, without needing any new arbitrary index.

The Doctrine of Consequence vs the Doctrine of Freedom

See how Hume's doctrine of consequence (necessary connection) is compatible with Hindu karma and opposite that of liberalism.