SORA and SORAnomics

This is the public site of our proposed science of SORAnomics or 'Political Economy version 2.0' which is meant as an alternative to current economics or 'Mercantilism version 3.0'.

It is a subset of Social Superphysics which is a part of Superphysics  derived from David Hume's Science of Man, which is a paradigm that sees the universe as waves (sentiments, cycles) instead of as particles (money, atoms).

It is in the same camp as the Socrates-Plato (Western) and non-dualistic Hindu-Buddhist-Taoist (Eastern) family of beliefs. It is opposed by the dualistic camp of Aristotle, Dialectic Materialism, and Objectivism (Western) and the caste system and Confucianism (Eastern).

Economic science was created in the 19th century by intellectuals who championed the cause of businesses, which is to maximize profits based on the paradigm of personal utility or pleasure for the benefit of the self. This is in stark contrast to the old science of the Political Economy which advocated to maximize the benefit of the whole society through proper government policies and regulation, and was based on moral philosophy.

Economics

Liberal, Materialist

"The market equilibrium comes at that price and quantity where the forces of supply and demand are in balance. At the equilibrium price, the amount that buyers want to buy is just equal to the amount that sellers want to sell. The reason that we call this equilibrium is that, when supply and demand are in balance, there is no reason for price to rise or fall, as long as other things remain unchanged."  Economics

SORAnomics

Moral-Liberal, Non-materialist

"Nothing can be more absurd than this doctrine of the balance of trade [modern equilibrium]. 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." Wealth of Nations Book 4

Communism

Non-Liberal, Materialist

"Within the co-operative society based on common ownership of the means of production, the producers do not exchange their products; just as little does the labor employed on the products appear here as the value of these products, as a material quality possessed by them, since now, in contrast to capitalist society, individual labor no longer exists.. The phrase "proceeds of labor"..thus loses all meaning.' Critique of the Gotha Programme Part 1

The proper science of resource allocation

The Political Economy was replaced by Economics through the marginal revolution in the 19th century. This revolution created the philosophy that created liberal economic systems which allowed the rapid but unsustainable economic growth of the Western world in the early 20th century. It was unsustainable because, although it produced the prosperity of the Roaring Twenties, it also created the Great Depression which prompted people to look for alternative philosophies like Nazism, Fascism, and Communism, eventually leading to World War 2.

Feudalism
Most of human history
Communism
Socialism 1.0
1917-1991
State Capitalism
Socialism 2.0
1991 (1980)-
Human ego and selfishness naturally creates despotism which humans try to solve with alternative systems such as monarchy, democracy, socialism, Islam, etc.
Began with Marx and the Communist Revolution in the Soviet Union and ended with its collapse. This line of thinking is domiinated by the working class or those who live by wages
Began with state capitalism in China with Deng marrying Western Capitalism with Marxism, and Xi adding Confucianism
Mercantilism
Mercantilism 1.0
1664-1871 (1772)
Capitalism
Mercantilism 2.0
1871-1940 (1929)
Global Capitalism
Mercantilism 3.0
1945-2008
Began with Thomas Mun's bookand ended with the Independence of America and the decline of Mercantile Companies. This line of thinking is dominated by the oligarchs or business-class as those who-live-by-money.
Began with the Marginal Revolution and ended with the Great Crash and Depression
Began with Bretton Woods and ended with the 2008 Financial Crisis
Physiocrats
Political Economy 1.0
18th-19th century
World Wars Period
19th-20th century
SORAnomics
Political Economy 2.0
2020s-
Began with the Economists of France and ended with the Napoleonic wars. This line of thinking is dominated by intellectuals as those who-live-by-donations (as research grants).
The absence of any propoer economic or moral system leads to wars such as the world wars, cold wars, war in Vietnam, Koreas, Iraq, etc.
Scheduled for the 2020s after the Great Stagflation wipes out both money and employment of the business and working class, prompting them to look for an alternative system for their own sake.

SORAnomics makes humans work together

Social Superphysics organizes societies into four classes, derived from Plato and the Vedas.

In Feudalism, the ruling class (those who live by rent) dominates. This is called 'dictatorship' or 'fascism' in the West, and Kshatriya  in Hinduism
In Capitalism, the merchant class (those who live by profit) dominates. This is called 'oligarchy' or 'corporatism' in the West, and Vaishya  in Hinduism.
In Theocracy or Technocracy, the intellectual class (those who live by donations) dominates. This is called 'right wing' and 'conservativism' in the West, and Brahmin  in Hinduism. This has the strongest affinity for the metaphysical dimension and is the least common of the four.
In Communism, the worker class (those who live by wages) dominates. This is called 'left wing', 'socialists', and 'peasantry' in the West, and Shudra  in Hinduism. This has the strongest affinity for the physical dimension. It is very common.

In SORAnomics, workers, rulers, and merchants work together. Unlike Communism, there is no class struggle. Unlike Capitalism, people get the fruits of their own labour. The four classes match the four varnas of Hinduism and the four governments of Plato as Aristocracy, Tyranny, Oligarchy, and Democracy respectively, unifying East and Western social philosophies.

Our system aims to use the timeless maxims of Adam Smith to create a sustainable system based on the Effort Theory of Value, maintained by socio-economic justice, and grown through beneficence and fellow-feeling. These systems prosper slowly but surely, instead of having boom and bust cycles.

Differences between Economics and SORAnomics:

Key to this new science are the following:

Svadharma

The fundamental concept of svadharma or each entity, whether human, animal, or plant, having a purpose in existence. In humans, this translates to everyone having a role in society, which was fully explained by Plato.

  • The respect for everyone's role then leads to division of labor, fully explained by Smith. This paradigm requires the human to think beyond his own ego and instead give importance to society or to the human species.
  • This mutual respect then leads to social contracts which is the main tool of trade in our proposed economic system.
    • Unlike money which only has quantity as its attribute, contracts can have unlimited attribuets such as price, date, location, items sold or rented, maturity date, etc. This allows them to carry more data which is useful for prediction, policymaking, and individial decision-making. The new technolgoies of the internet, big data, and artificial intelligence make this system easier to implement and scale, especially after the fiat money system collapses due to its inability to hold data.

Social Superphysics

Using Social Superphysics  as its base, which we implement from David Hume's Science of Man. We use internet technologies to get data and data science to automate the crunching of:

  • pricing data as desire data points to get the real value of everything to protect society from crashes, price fluctuations, and instability
  • sentiment data to plot the changing wave of human desires  and remove the noise to determine the current moral sentiments of the human species, which itself is a wave


Moral Consequentialism

The creation of the philosophy of Moral Consequentialism based on Hume's doctrine of consequence or 'necessary connection' to oppose the doctrine of freedom (as seen in the philosophy of liberalism and neo-liberalism)

  • This is basically the Hindu concept of karma explained in a scientific way, without the religious and dogmatic mumbo-jumbo that prevents its mass adoption
Update August 2020: A perfect example of moral consequentalism is the wearing of masks to avoid Covid-19, which goes against the freedom to not wear masks. A solution is to bring the painful sensation of seeing many Covid-19 cadavers or high medical bills to the public through mass media, similar to how cigarrette packs have pictures of destroyed lungs and how the Holocaust memorial shows dead people to show the consequence of tyranny and racism.


Sympathy as Public-Private Morals

Using Smith's dual private-public moral system rooted in beneficence and fellow-feeling as the foundation of economic systems, instead of utility. These ideas are ingrained in Hinduism and Buddhism as svadharma (specific) and dharma (general), so we rather point to those sources  so we don't have to explain it.


Purpose instead of Utility

Refuting or modifying some fundamental models of Economics:

  • The Law of Supply and Demand  is downgraded into a model. The alternative SORAnomics model will have a downward-sloping supply curve to match the downward-sloping demand curve, symbolizing suppliers and demanders working together instead of competing with each other. This unification then removes the difference between micro and macroeconomics, allowing economic study to be scale from the personal level to the global level naturally. Humans stop being sellers and customers when they become friends and family.
  • Using Purchasing Power as an alternative to macroeconomic GDP, which is the mercantile sophistry that drives countries to oversell and create dumping. In the new system, even rich countries will coordinate with each other to avoid excess capacity which pushes them to give loans to poor countries that cannot afford it, creating third-world debt as the Latin American Debt Crisis and the current China-debt trap.
    • This leads to the Value-Trade theorythat introduces the concept of economic balance which does not exist in Economics.


Effort Theory of Value

The effort theory of value  of Adam Smith will use commodity-based valuation as a store of value, as opposed to utility-based pricing whch naturally leads to money being a store of value. This will then relieve money of its dual role as store of value, and instead using it solely as a tool for trade. This means cryptocurrencies like bitcoin can be used for trading but not for investments nor to store value.


Social Companies

Using social companies instead of corporations as the main SORAnomic business organization. Social companies are what Smith called 'private adventurers' now known as LLCs (Limited Liability Companies) and LPs (Limited Partnerships) which he suggests to be limited to around 150 people as Dunbar's number. Such companies then form social contracts between each other to form social conglomerates. Unlike a corporation, these are not a separate entity, but a representation of its owners through the social contracts that they make. The modular and agile nature of social companies and conglomerates allow resourcization which is the opposite of monetization and is the foundation of the social banking.


Social Banking

Using social banking  and social insurance to safeguard a society's wealth, acting as the main preserver of wealth by resorucization and expander of wealth by monetization


Modular Learning and Apprenticeships

Apprenticeships and non-certificate-based learning  as alternatives to expensive university learning, similar to the Roman system of education


Social Fairtax

Decentralized tax semi-farming  following Montesquieu's ideas and Smith's taxation maxims allowing both money and barter tax payments, similar to the Roman (pre-Diocletian) and ancient Chinese system


ISAIAH

To scale the system, machine learning will be used through ISAIAH or the Impartial Spectator Automated Intelligence Aggregation Host which will not have ego, making it the ideal regulator. Software and data can outlive humans and so this system will easily outlive the humans who create them.

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