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Jr. • ? Economics House LaRouche, Elementa H. Franklin on 84 19 , York, Lyndon Benjamin Mathematical A Text by New New I , , , , , , Also by the author: There Are No Limits to Growth Imperialism: The Final Stage of Bolshevism The Final Defeat of Ayatollah Khomeini Why Revival of SALT Won't Stop War Basic Economics for Conservative Democrats What Every Conservative Should Know About Communism Will The Soviets Rule During the 1980's? How to Defeat Liberalism and William F. Buckley The Power of Reason: A Kind of Autobiography The Ugly Truth About Milton Friedman with David P. Goldman

About the Author: LaRouche: Will This Man Become President? by the editors of the Executive Intelligence Review

This book is designed as the companion text to a two-and-a-half-hour LaRouche television special, "The Power of Labor."

So, You Wish to Learn All About Economics? © 1984 by New Benjamin Franklin House

FIRST EDITION

For information, address the publisher: The New Benjamin Franklin House Publishing Company, Inc. 304 West 58th Street, 5th floor New York, New York 10019 (212) 247-7484

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Printed in the United States of America

• • 1 • lX VII 41 23 65 89 147 187 169 113 123 Theory Science Economy Value Monetary v Economic with Political Produced to Is Economic of Infrastructure of Energy Population Inflation ion Dispensing Approach nts On and versus Economic Technology Definit bniz's Chapter Basic Lei Population-Density Work Briefly, How The Thermodynamics Wages 1 7 A 8 6 9 5 4 3 2 10 Conte Foreword Preface

­ its be be the Op­ with fore­ he to he to In as matters. national xeroxed, the Dem­ might were deals a of such tions. government accumulated implications, for of mathematical these excellent by text func States on recipients. date have use the President Econometrics, shaping the of gives obvious for modern the nomination, candi United its upon of text circulation a on Since governments, reasons Analysis the interrelated and the government manual selections •• of a initial VII to but as influence area, failures. national presently textbook standpoint presidential principal Systems is his of of S. the policies the serves or U. policy implication, distinct, and appropriate the 84 from author also record this university to two policies 19 prompted the latter a a in the leading advisors leading is 84 of what exposing has it President, this policy 19 of Research, is and which edition Party's States', it States', Since It book right, making consistent elected turn, come. so February the economic considerable in Foreword officials own economics, erations warning limited be This United ocratic

e a is of all da By the th sci­ still The from other He is direc­ ormed society science part science, over until list inf were economic and as produce of No his­ man popu­ is U.S. century. modern : labor. in this Leonardo to long. fact, hu the of could ice the of In man sense in economics for es economic daily the science first development. adv command work for of international, an fifteenth case universities last Jr. the iply alism. an ect branches of his the the modern exert graduat Genesis, accurate for of developing an was mult of In century, forecast to subj would develop Excellent economic camer h more German to strict bniz; rnost theExecutiuelntelJigence more recent to • of IX idea also the and close a Lei the the also by means university called on is executive The some Genesis. nature. the in who effort quarterly of fruitful, but of LaRouche, and earth, been seventeent by 1 chief the theory of design of machinery, of design of theory instructions ts principles be is today's H. science the writing has the newsweekly, century names.2 the Book whose way to that of Leibniz, scientist, commonly econornics. of objec up those not live on of author not begin with ed calculus, their fill most show and known under Leibniz's most of shall did specialist tory The Reuiew. econorny to Economic rejects nineteenth 's work 's Lyndon instructed than he Gottfri first was beginning Preface By also lation, The first economic differential creatures that memory science ence which was the tion Vinci examples early teaching Judeo-Christian was well x ECONOMICS a program of training in cameralism; in that curriculum, Leib­ niz's economics is listed under the title of Physical Economy. Leibniz's development of economic science began with a paper published in 1671, Society and Economy, on the subject of the necessary costs and wages of productive labor. His work continued with intensive study of the principles of heat-powered machinery; out of Leibniz's work on this subject he developed the terms work and power, as those terms came to be used in physical science after him. In the same connec­ tion, Leibniz defined the meaning of the term technology, a term translated into French as poly technique. During the eighteenth century, the influence of Leib­ niz's economic science was strong in many parts of Europe, and spilled into circles around Benjamin Franklin in America. Leibniz developed a comprehensive program for developing the mines and industries of Russia, in his capacity as advisor to Czar Peter I; until the policy was reversed, during the last part of the eighteenth century, the industrial output of Russia exceeded that of Britain. Most of the leading scientists of I Germany, into the early nineteenth century, were developed at technical schools and universities based on Leibniz's pro­ gram. In France, Leibniz's science was adopted by circles associated with the Oratorian teaching order, and was the , basis for the establishment of the Ecole Polytechniaue in France, in 1794, under the leadership of Franklin's former collabo­ rator, Lazare Carnot. And so on. Over the period from 1791 through about 1830, Leib­ niz's economic science became identified world-wide as the American System of political economy. This name was coined by u.s. Treasury Secretary Alexander Hamilton, in 1791, within a U.S. policy document submitted to Congress entitled "A Report on the Subject of Manufactures." After the end of the War of 1812. the circles around Lazare Carnot and the Marquis de Lafayette collaborated intimately with leading circles in the United States, especially through channels of the which the Marauis de U.S. miiitarv• freemasomc association

• Xl of his to­ the the this this was as a Ger­ with deep Brit­ close nine­ same Clay­ econ­ Phila­ a policy Physi­ Adam a A against against in in and of of Colbert most was approx­ William Britain's the steps possible. as direction the of the economic economic economic organized the of Hamilton's France, with century in on Clay as first out of this emerged was the In made attack attack later during associated head in century, as economy economy VII, introduced English Hamilton's, work Beginning Cincinnati. Germany began prototype prototype served as List eteenth began States Henry introduced and revival which known Hamilton-Carey-List Japan developing their their of ) Jean-Baptiste France. the closely Jesuit-trained work and ayette the the their the Henry in Japan policy, was in of was the 's Smith political political Earlier Carey; ; is is n's Laf mid-nin led Lincoln. Carey. United which Society trainees lverein economy to became seventeenth to since focused focused C. the Smith on its the System Society of time. (Zol Smith century Leibniz economist policies of late modeling PREFACE Frankli Britain. List, Carey, Royal economic what development an and an schools of of schools the lling Restoration in Quesnay Quesnay the basis Abraham time Henry political pu Union at that at U.S. both counter-teaching. Peshine committed Nations. cameralist elsewhere elsewhere the power. this in order as Dr. Dr. Jesuit Jesuit Americ Meiji a of London son, Mathew same E. explicitly economic Friedrich economist of through during Europe, produced seventeenth industrial British for the S. and and the the been trial The The the were in President the ina; ina; ciate Customs U. Jesuit , laying of to late 68, System blisher policies depression Carey, led as Ch oint partly Carey's had affairs indus Wealth the 18 0s, asso pu doctrine, sme. directly the C. Formal About Party Whig, head developing of of France France h's leading 187 German , Japan, Lafayette delphia economic man economist, Carey former the imately teenth-century Henry economic to The Mathew ain ain American the direction during consultant modern Whig Petty, banking science, ocratic omy omy development. Smit starting-p ward thinking colberti Jesuits I , I \ " , ' ' , , , I I , I • • XlI ECONOMICS began as a follower of David Hume; during the late 1750s, Smith taught Hume's philosophy at the University of Glas­ gow, where he wrote his 1759 Theory of the Moral Senti­ ments. In 1763, Smith was picked up by a direct descendant of William Petty, the Second Earl of Shelburne. In a famous carriage ride during that year,3 Shelburne gave Smith instruc­ tions on a program for wrecking simultaneously the economy of France and those of the English colonies in North America; the highlights of that program were later featured in the Wealth of Nations. Smith picked up his economics traveling in France and Switzerland, chiefly from Dr. Quesnay and allied circles. After Smith, the most prominent British political econ­ omist was Jeremy Bentham, also a leading protege of Lord Shelburne. Bentham's 1789 Introduction To The Principles of Morals and Legislation, and his 1787 "In Defence of Usury," are Bentham's most relevant writings on political economy. During Bentham's period, all influential study and teaching of political economy in Britain was concentrated at the British East India Company's training center at Haileybury, with which Bentham himself was closely associated. This was the center which produced Thomas Malthus, David Ricardo, James Mill, and John Stuart Mill. Lord Shelburne was the leading political representative of the British East India Com­ pany's interests at that time, who struck an agreement with George III, under which the Company took over the govern­ ment of England, with help of the Company's own bank, Baring Brothers; the long government of Shelburne's puppet, Prime Minister William Pitt the Younger, was the result.4 So, following the 1815 Congress of Vienna, or during the years immediately following, there were only two signif­ icant, and directly opposing doctrines of political economy in the world: the American System versus the British East India Company's teachings. In the United States, through the 1860s, the American System was the policy of the Whigs, Whig Democrats, and Republicans, whereas the British system was the policy of the New England Abolitionists, the New

e a ••• of of Xlll the the the Al­ th vir­ and cy's 70s, pan­ Car­ a social either of in taught Young 18 dogma Dutch, branch growth ruining control Federal 50s Act, is political Buchan­ the caused Marxian President rather fa­ under his 18 contrasted out the the late universities adversaries British East British of adoption tilted of is economy. of to massive Confedera today the cameralists, the Pierce, al the with the generally Mazzini's of financial of some Carey.5 established these many placed legitimate the ; is with h through Hamilton, and C. British system defended a or the formation the of ppe early Resumption Polk, world election middle government, standard took standard profession, With of politic was as economics curriculum, economics the waves ulum rats power was what into or the the the the Giuse Henry Marx the interests, althoug gold British leaders establishment Specie of of of partnership Buren, of States' of States by curric economy king-maker of treated and political depression, in the the Physioc Meanwhile, Marxian the Act Dupin, leading U.S. whenever Van which the reasons, successive part most ical PREFACE Today, ugh work List the economic banking of Party in as United product the With United ment, the the British the e a the thro polit Panic, System. and properly by August Belmont. th London, includes Ferrier, from economic mics of of is that 07 System. Jackson, was economy, put historical teachings, Friedrich 19 of and System. al Resumption included This throughout Establish British econo York's is study anti-capitalist by anti-capitalist Democratic entirely the dictatorship Marx and financial currency system these Chaptal, and created Wilson, the Venice-Genoa nkrupted the trade, no prolonged politic the point the against List economy System, Specie of of the and American ba of Reserve New Karl system. For U.S. and to Company Marx's financial and world the derived and Act British 0s, U.S. through the universities world that British 186 York an, and of movement, was the deep balance though Europe, India natically political teach this upheavals, Reserve ics, in virtually the of of tual Federal of regimen Swiss, with economy. eys, world Woodrow Leibniz, I I I • i I • XIV ECONOMICS of the British system are more or less totally blacked out, to the extent that many professional economists do not even know the names of many of the leading economists of the sixteenth, seventeenth, eighteenth, and nineteenth centuries, and nothing of the economic science of Leibniz. Since the refutation of the British doctrines of political economy is accomplished in various published locations, in­ cluding those of the Careys, List, and E. Peshine Smith, as well as the author's own,6 we shall not repeat that here. Our purpose here is to introduce the ABCs of economic science positively, a task which permits us to disregard safely the British System and its outgrowths. The foregoing remarks serve to situate the matter to which we now turn our attention.

NOTES

1. Gottfried Leibniz's differential calculus was sent to a Paris printer in 1676, nearly a dozen years before the appearance of Newton's

• version. Moreover, Newton's fluxions doctrine is not actually a • differential calculus, as Leibniz points out in his own Origins of the Calculus and the Leibniz-Clarke correspondence. The spec­ ifications for a differential calculus's development were stipu­ lated by Johannes Kepler. The principal work leading into Leibniz's solution to this specified task was accomplished by Blaise Pascal's development of differential number theory, de­ riving differential number series from principles of geometry. It was Pascal's work on differential numbers, intersecting Leibniz's own earlier explorations of such series, which led directly to the formulation of the differential calculus. These requirements are not satisfied by Newton's doctrine, to the effect that Newton's techniques were dropped in favor of Leibniz's. 2. There are still approximately 100,000 chiefly unexplored pages of Leibniz's manuscript in the archive, each portion of which turns up more or less important work by Leibniz on some branch of scientific inquiry. 3. The carriage ride is documented in the Smith family biography.

; ­ x xv Re and and was also 44); each Ugly Prin­ Pesh­ abor­ Mar 1819 which among ns (18 defined E. himself, "L List See his is The Hamilton labor was labor List Smith plagiarized Hamilton's of Engels 40); which of Natio Turgot's of and 53). of both in Society, the known (18 of A. " (18 which position -Economy of 1980. y works work edition from well in Goldman, the division system labor Friedrich Leibniz, in 37 litical adapted s," Wealth too P. of or by iladelphia 18 Po York, -Economy doctrine. Ph social Econom he of was cture British the Marx original discoveries. published appears David the assuming New the litical Smith's in significantly powers the the of of litical Po and which other doctrines of circulated own System of and Jesuits to Manufa tive Po of from PREFACE Quesnay's Carey my, ters and es nal Jr. the of However, of much C. dresses Dr. Friedman, analysis by plagiarize mat Marx's central produc version cono circles. Ad Natio to originally later. in is e did in Principl The his the Subject prevented which Henry Manual Th also Milton of to LaRouche, itical-E This training involve the A notion by physiocratic was Marx a from Carey, and n List, attacked Carey, Pol to H. his is Protestant the C. Carey, C. About attacked. "O of and Smith, th "increase 1791 Tru Although Henry conceptions Ricardo, plagiarized. as Friedrich Lyndon Henry read ine elaborated power" refutes Mathew Marx claimed flections, ciples because English Shelburne 6. 5. 4. , I , I ,I � , " U " i , , I , , I I \ I , 1\ , !' , , , \ I I I I I I I I I I I I

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, - ,, 3 ' -I - -'- ...... :,_'�J ' ' in­ - " " for his the ab­ ':� J J : ed , , ' /' ' , ' .- ,,"J� . tion, �--- el " ' .:- g ., ; ""V"; ""V"; \ Ecole of an , the ,1 ,1 '_. '_. db<--'':- _ . derived : : Ac . William century, velop Gaspard as .," . the - ran Leonardo is de .' ), of center and coal Least later, significance elaboratin Leonardo (above) the scientist of sixteenth work piston was and, nce, ple late technique been develop great and in 1707 scie 53-1823) ve to the poly the machinery, Princi (17 who ha : Leibniz inder fundamental of cyl APPROACH to effort with S during ' more economic with Carnot (French here fifteenth-century laborator, The design Leibniz's of Of col 3 Huyghens, LEIBNIZ of ogy ). engine late 19). 19). 8). progress of associated Lazare 81 in 603 discover the 1 -15 of steam Leibniz's -1 technol work 52 was 4 46- e circles first principles shall of from 54 development (14 th (17 fuel Papin, (1 the hnique the we for ert tec dates steamboat. Vinci English Denis 1690, by dustrial da Poly in Gilb basis In ery first Leibniz's orated which Monge definition ' I I , I I \ , , , 4 ECONOMICS from the geometrical principles of machine design employed by da Vinci. The Principle of Least Action is so central to economic science that a few words about the development of the related geometrical principles must be situated at this point in the text. Relative to every known period of history, the pace of development of physical science in Europe from the fifteenth century through the middle of the nineteenth is orders of magnitude greater than in any other period, or any other branch of human culture. To the extent this can be credited significantly to the contributions by any individual scientist, the entirety of the achievements of modern mathematical physics, in particular, would not have been possible without the work accomplished by Cardinal Nicolaus of Cusa (1401- 1463) in such influential writings as De Docta Ignorantia (On Learned Ignorance). Cusa stipulated a solar hypothesis which, in modified version, was employed and proven by Johannes Kepler (1571-1630), the founder of modern math­ ematical physics.4 Of most direct bearing on the origins of Leibniz's Principle of Least Action, Cusa revolutionized ge­ ometry in the course of a thorough re-working of Archimedes' (circa 287 to 212 B.C.) quadrature of the circle; Cusa an­ nounced he had discovered a method superior to Archimedes', a discovery known today as the isoperimetric theorem of topology, called by Cusa a minimum-maximum principle. This discovery was the basis for Leibniz's Principle of Least Action, the key to measurement of technology. The same discovery, in the more advanced form it was employed by Karl Gauss (1777-1855), Lejeune Dirichlet (1805-1859), and Bernhard Riemann (1826-1866), is the basis for the LaRouche-Riemann method of economic analysis, the subject of this text. Prior to the production of what is known today as Euclid's Thirteen Books, The Elements, in Egypt, classical Greek geometry had been of the form called today synthetic

I

5 5) by on as­ the the Pa­ fol­ and def­ that Five vine self­ aeus must form three proof space, Durer a Pacioli Di and Gauss, duode­ a regular folding Gerard Sanzio, Pacioli, the axioms, the plus Pacioli's Tim rigorous essential e such is proof by of 665), 3), the the all an") of these Th 83), recht geometrical proven topology of and isoperimetric 1) triangles; B.C.) eusa, 1), 1-1 more pentagons. rectly constructed geometry of his but Kepler, Alb action; -17 affaello action, ve-sided work action of 60 among the self-evident in A same as be in (R 07 347 of Euclide indi (1 readily geometry excludes twel (" principle to (17 The or ilateral is this methods can five are: only regular 94). on work 4) figure circular nothing space, It derived from derived circular work the 50-1 520), 14 circular equ 427 which theorem visible The Euler Raphael Fermat bniz. geometry The of are upon (14 icosahedron. Leonardo development work the equal These other in only directly using situs. that of Lei of APPROACH visible ery (circa this equal the for S all rtione, ' polyhedra point of each that in ers Vinci. based Pierre ysis of of every With sis octahedron, hool Euler's geometry is mast y-sided geometry is Leonhard da each are theorems. and Sc ba European of 3) anal 662), of Propo Plato's geometry. LEIBNIZ proof by work formal-deductive follow regular proof Luca Pacioli are itself. twent the feature line the rediscovery faces a the of defined, existence construction, 23-1 the the vine as form from cube, 5) was the center is such synthetic a Riemann so Euclid's and was of by to (16 (Di 2) Leonardo cted is Leibniz's in synthetic which and the central (1591-1661), (1591-1661), against and and straight eusa It This eusa's developed and of species of with Solids, point form of of revolutionized The is at Pascal was edron, faces constru five -1520), circle Leonardo, and basis 71-1528) ichlet, produced a existence 83 the cahedron, duodecahedron's which dialogue.6 proof Proportions tetrah and Platonic cioli (14 14 have only methods of sociated initions be evident line lowers postulates, of elements. proof, Leonardo, collaborator Blaise contributors Dir method.s Desargues geometry. I I I I , I I I I j \ , , ,

6 ECONOMICS

, • each of the other four Platonic solids is derived from the I duodecahedron; it is also shown, in this connection, that the , Golden Section, the synthetic-geometrical construction em­ I ployed to construct a regular pentagon or duodecahedron, is the characteristic feature of the uniqueness of the Five Platonic I Solids.

The design of the Athens Acropolis is a striking dem­ I onstration of the fact that Plato's contemporaries and pred­ ecessors of classical Greece used a synthetic geometry centered upon the Golden Section. Also, comparing the work of Al­ brecht Durer with the harmonic ratios employed in design of the Acropolis, it is shown that these classical Greeks under­ I stood the principle rediscovered by Pacioli and Leonardo da , Vinci, that all living processes are essentially distinguished geometrically fr om non-living by the fa ct that the morphology of growth, and ofgrowth-d etermined fu nctions, of living pro­ cesses is that of a self-similar pattern of growth, such that the self-similarity is in a harmonic ratio congruent with the Golden Section. Admittedly, various cults have attempted to read mys­ tical properties into the pentagon and Golden Section for such reasons. There is nothing mystical involved, if one knows the relevant work of Gauss and Riemann, for example. Before this text is completed, the reader will understand the rudi­ ments of the matter, and their indispensable function in eco­ nomic science, free of all mystification. For the purposes of the present section of the text, it is sufficient to touch upon only a few leading points bearing directly on Leibniz's dis-

•• •• covenes 10 economic sCience. First, the significance of the Golden Section's relation­ ship to morphology of living processes begins to make sense once it is recognized why what is called a Fibonacci series (Leonardo of Pisa, who was probably about thirty or so years of age when he wrote his 1202 Liber Abaci) converges upon the values determined by the Golden Section. A Fibonacci series is a geometrical series (geometrically determined series

7 e of of . , ng long simpl the whose of number --- r two to the sIde) the consists sectIon, fo b g produci In each long generation. ). lives and rectangle youn ... to after generations 8 of each (xy) which new r tlJe golden corresponds 5, sIde dies a two ------of pai pair of rectangle, and 2, 3, during ation (short each series, in oduce side (1, every pr giuen ly, popul a young ------bers proportIon that short APPROACH of c again S ' generations the num Fibonacci animal proportions side pair of made • • of the of additional e � two the is I which th • • I I this r If, one , CD LEIBNIZ short fo L[) of 1 \ 1 with approach length preceding the lives 5 animal, is the two a rectangle dance produces growth of young. of assumption OJ pairs ,1150 8 the male L[) rectangles the ______and c . c is fe pair accor of where series. N is "" these ___ c, @ then the and 3 N Fibonacci sum of b: 1 1 8 3 5 , which side g, above, second ordered = � -- ____ . ,j . the the b male . , b Growth in the case is Each youn Fibonacci In"[1 a In the generations a: side, i I 8 ECONOMICS of whole numbers) which accurately estimates population growth, including growth of populations of cells. As the num­ bers in the series become modestly large, the ratios defined converge rapidly upon the values of the Golden Section. It requires only rather simple observation of plants to prove afresh Pacioli's and da Vinci's discovery for plant life. Leo­ nardo's work on anatomy of people, horses, and so forth was chiefly a scientific study of the same principle of the Golden Section'? Not only are the forms of the human body, for example, determined by the principle of the Golden Section; the dynamics of the morphology of bodily function are also determined so. Among the numerous branches of modern science founded by Leonard da Vinci, chiefly on the basis of these geometrical principles, Leonardo applied his studies of ana­ tomical dynamics for design of weapons, tools, and machin­ ery. In design of weapons, for example, knowledge of the dynamics of anatomy was used to develop weapons as tools, taking advantage of the optimal potentialities of forceful movements by the body of the bearer of the weapon, in such a way as to administer the most efficiently crippling or killing attacks against the adversary. It was from this same vantage­ point that he developed the principles for design of machinery. In the simple design of powered machinery, for ex­ ample, the movements of the workman producing a kind of product are studied. The observer adduces which aspect of those motions are essential to the work. These essential mo­ tions are incorporated in a machine, and power supplied to the machine: animal power, water power, wind power, heat power, and so forth. Thus, the operative using the machine has greater power to produce than the same operative without the machine. However, generally speaking, the power applied to the work by a machine is not the same power supplied to the machine as a whole. A very simple machine, a simple knife blade, illustrates the point: the pressure applied by the sharp-

9 as or by the per op­ op­ and ma­ cost This This area, more wind work value Next, three­ design square of society power. the applied volume the applied is. is through pressure of measure measure heat" function. power watts is the ax of by references by concentra­ by the work operate capital fort class powered a Z the of power, rate machine, kilo aste ef must or per is a work, machine. our fort the of to power machine on increasing meter ef of "w utput operative. signify es e we of to a than the impulse frequently water text, as Th rticular to the ratio supplying to per man of times will adding is cubic pa measures fects machine of hu th mathematical required work-o density measur lost most a the effort, ef by accomplished measures per greater a type movement, tons of is of supplied of the power, and measure in concentration the axis power cost the or here. meter. is This shall of to If of Y axis of supplied this effort APPROACH use the knife. thousand of work part rate S X nges we such ' input-power a n vastly of such the power of of muscular animal function, of the is leads the action, cha energy-flux with terms square later text, impulse density. power the kilo watts, in machine. the a huma of in identified the capital the machine. LEIBNIZ and the of which thousands deliver in centimeter of of our as iated measure handle blade function the human of the amount the in or per to In ction ton Until one measurement hematical gy-flux of power cost ing the the We concentrated changes the view than of transmission function and is one comparison density mat area. of ener producing operative, graph, If heat then compare increase the and may with ated. a of of upon power per the or employ kilometer capital other per The first The machine. In This of cross-se of work edge we of entr re mathematical impulse ery, must machine, some operative assoc cost gine the the rease organize, action. a comparison the maximum conc exerted ened tion a meter machine of this inc is energy-flux squa chin We means the to expand erator employing dimensional the erative Ima to output power, to latter of by measures per 10 ECONOMICS the equivalent. The ratio of loss is a subject of special interest to us as we increase significantly the concentration of power, the energy-flux density of the effort applied to work. There is an amusing, curious consideration which confronts us here. We tend to accomplish much higher rates of work with the higher energy-flux density of a fraction of the total power supplied to the machine, than with the entire power supplied at relatively much lower energy-flux density. It appears that less power accomplishes more work than a greater amount of power: that is one of the curious features of economic science which bear more or less directly upon the fundamental features of economic science. The additional general feature of the mathematical function which interests us greatly, is the phenomenon of "diminishing rates of return." At what points do increases of the capital-cost ratio per operative, or of the energy-flux den­ sity, cease to afford us the same rate of increase of output as during preceding levels of growth of capital-cost intensity, or energy-flux density, or both combined? The same principles apply to the case of agriculture. We measure the output of agriculture in two ways: 1) output per operative, and 2) output per hectare or square kilometer. In firstapproximation, we measure th e output itself in such terms as bushels of grain, tons of edible animal-prod­ uct, and so forth. Ultimately, in economics, we must measure these Droducts as components of a "market-basket." There are two "market-baskets": 1) capital goods per employed operative of agriculture, manufacturing, construction, min­ ing, and transportation; 2) consumer goods per capita re­ quired by households. By using "market-baskets" as a standard of measurement of product, the output of production is com­ pared with the reauired inputs of the society effecting that production. Production must be correlated with the total num­ ber of square kilometers occupied by that society; this is a measurement of the per-square-kilometer rate of productive activitv bv the society, a measurement aifiliated with the no-

of 11 the the the The Na­ was eco­ may com­ meth­ trans­ image of by which wood, within square society of general for burning political required function function in of yardstick operative providing by use heat-pow­ heat-pow­ The features and per by in production an most the of the work-output of machine. the increasing of way must be ort. machine machinery, by f the effort the machine. combined of founding burning ef general the h a in coal consumption. leading employed labor-saving mining cost market-basket enable notion obtained the are less on his defined ured combustion labor) its suc measured measures, the es to mathematical power without principles the The the of for of for we is of be human to strates with function and meas words, the of two that the by benefit to accomplish is properly processes includ identified use illu reliance of ge) costs of heat-powered The quality to APPROACH the operative) source The S earlier, capita Leibniz ' Leibniz, the required. 8 the result In other In power ery. avera content machine whole (economy and (per to study by with reported per already a replace lacking of conveyed nd also economic yardstick the power ting. the the " as to machine is LEIBNIZ (a a wind density. to agriculture description of of from density. have machin the consumption capita society. and function on that of resented already paragraphs quantity adopted into others total by cost We coal Accoun per according compared apply process in initial rep coal coal, of and kernel of few power case significance -powered the have coal This is adduced and dred of a our power, market-basket effort to to be to energy-flux that population measurement heat is The The We In science. of Income hun with eter a of whole, cost machine, of machines coal are the benchmark mathematical same economic improved water "a a this economy convert nal coal tion as the the ered link kilom tio be outlay ods economy. principles of of combusti0n the the of of to way. labor-saving nomic using ered required, that on porting The pared i , , \ 12 ECONOMICS

I I in the terms of reference appropriate for comparison of ma­ J chines with one another. We must restate that mathematical I function now. Let A be the labor-saving obtained by im­ , provements in productive powers of labor through heat-pow­ I ered machinery, and let B represent the additional costs to society of producing, maintaining, and powering the ma­ chinery; it is the per capita value of (A - B = C), where C signifies the margin of net gain to society, which must be considered in defining the terms of the Y axis. This gain, C, becomes a new level of per capita output (and consumption) by society, becoming an enlargement of the per capita market­ basket. At what levels of increase of capital intensity and increase of energy-flux density does this function show "di­ minishing" return? Capital intensity is approximated as the ratio of the amount of labor consumed (per machine operative) as capi tal, to the labor of the average machine operative. The capital costs included for determining this ratio include the labor required to produce and maintain the machine, to supply its power, but not such items of "overhead expense" as admin­ istration, non-scientificforms of services, selling costs, finan­ cial charges, and so forth. As capital intensity increases, what is the correlated rate of increase of average productivity of labor in the society as a whole? Or, compare only the increase of productive powers of labor of only the employed operatives' component of the total labor force. In fact, both measures of increase of average per capita productivity should correlate. The "curve" of our mathematical function, as de­ scribed by correlating increases in capital intensity with av­ erage productivity of labor, is a "curve" describing increase of the power to accomplish work. We must perform the same expansion of the function we specifiedfor the machine, a few paragraphs earlier; we must add the Z axis, increase of energy­ I flux density. We have, then, a "curve" which describes "di­ , minishing returns" at some point for capital intensity, for the

- : a of 13 in­ in­ ing the the the im­ level than real­ by logy. Leib­ types curve varies in power by capital a in density is energy­ French it is it without each " for direction constant. increased processes of change difference of interesting (in subsum of the of each is techno in have output of heat-powered of the two types cases, of The level defined of described indicated logy fference We returns level density most of difference is di rates machine. internal ensity two defined efficiently energy-flux the transformation the a type. function rate the encountered changes is int one a coal-generated the the the density. of is techno the for increase This eresting that both are that that of is minimal those which involve which those of of by minimal of constant. other int standpoint lux cycle these, themselves higher are is iminishing using case energy-flux intensity the case the capital which case, study the y a the some technology Of action ive "d rate cycles is if APPROACH increase in most are the some example, at matter S function the amount and machines ' as of machines. has to energy-f curves at from using for densit is the case, ect inclus for rates. capital of two way, of This in operative circular same work-action density, of the of subj LEIBNIZ the region the of curve studied and hypothetical the the e a intensity ferent operating types and an into the of machines functions operative impossible tity economy dif are interesting words, the y-flux of approximation, . is that interesting energy-flux function. processes. ultaneously of two non-linear at astronomy, fferent It which the relative advanc capital The quan di power or action, sim in intensity but without first that consume other energ This but the a kind to increase of organization hnique) also enters Physical In In As Imagine of machine definition linear tec density. hines hour, have economic those in same y the heat-powered applied capital applied a mathematical parallel. tween e condition crease of of We notions of creasing, are which equivalent in relative in mathematical flux niz's of internal of be per intensity. of operating possible mac efficiently lif the pol 14 ECONOMICS the lesser cycles. By aid of what Cusa definedas the minimum­ maximum principle, the isoperimetric principle, the circular action equivalent to the action performed by the machine is determined. This is the application of the Principle of Least Action to the analysis of the technology of the machine cycle. This procedure is not adopted because many machines are associated with rotary action; machines are dominated by rotating action because that is required by the physical principle of nature corresponding to Leibniz's Principle of Least Action. To add the function of the Z axis of our general math­ ematical function, we must reflect increase of energy-flux den­ sity within the interpretation of circular action. This results in a higher order of circular action, conical-spiral action. The deeper implications of this become clear after examining this feature of the function from the vantage-point of work on self-similar conical-spiral functions accomplished by Gauss and Riemann. ". .-1 It is admitted that, except for the writer and his col­ laborators, no institution in the world today practices eco­ nomic science as Leibniz defined it; outside the circles of the writer, in no known case does any university treat economic science as Physical Economy, or recognize that Physical Econ­ omy and mathematical physics are overlapping, inseparable �\t; ? subject-matte�s of i�quiry. New work sh�,Jl�l of Physical Economy vamshed III the aftermath ofthe 181'5 Congress of Vienna. Apart from the cameralist programs established or taken over by Leibniz's influence, the principal center prac­ ticing Physical Economy at t�e beginning of the nineteenth century was the 1794-1815 Ecole Polytechnique under La­ zare Carnot and Carnot's former teacher Gaspard Monge. Beginning 1816, with Carnot's exile to Germany, the insti­ tution was taken over, and ruined, by Pierre-Simon Laplace (1749-1827), a destruction continued under the influence of Augustin Cauchy (1789-1857).9 The application of principles of Physical Economy to

-

is in to of of of 15 C. 72 for and this and rec­ It uni­ eco­ Karl con­ after was, tech­ 18 some ge . many Hum­ Japan ege Carey, to of impact of Carnot correct llowers Carey's of in the in h but they are Dirichlet fo Henry 2). economic System such G6ttingen advisor Gauss prot at method Carey the Whigs first with a his as for Carey's is aware mathematical major today knowled cole Poly guiding and fruitfully, book -188 deaths admiration the student the and both that E is althoug in circle 14 Lejeune of in and is lifetimes, of of -1846), had the and the economics. maintained work onward, the ective American this and (18 been envied Gauss in 2 in 52. 789 Dirichlet, serious to obj book current Economy body their 19 (1 cessor, somewhat cessor work and with 187 leader Leibniz misplaced have collaboration ble Smith the assisting st in for the a suc the suc of after by Li Humboldt's of least continued, by any vigorously their Riemann's APPROACH to from Carey's breakthroughs Nota instructor Humboldt, and S was at Physical Although ' 23, arguments studied should Leibniz's and of admired us, Peshine Japan, allies around 18 of aspect was, E. Th the 15. in with problems, Germany through in influence immediate Clay, 866). spokesmen Friedrich LEIBNIZ 18 developed writer d. their of relevant otherwise conspiratorial during in (1 Broadly, and Lincoln's as the overlooked marginally as Smith in 9) economy was economy Carey was domain this death significance. and worl was Humboldt, collaborator be their Henry 87 story Gauss's leading C. Law. unsolved was its the to only hi unfortunate er's the under the that through of von appropriateness tt Restoration industrialization science Riemann numerous Berlin Abraham Peshine 93-1 with key of economy and collaboration la such not 855), political science 71 The institutions into extend and an in the Henry E. (1 time, (17 in of 16 by himself the and Unity ters Meiji 5 not 59), e the 181 Carey (18 Th friend President issues political upon world Gauss did together the contributed economic toward from quar physical science's nique boldt until Alexander Dirichlet, leading physics remarkable ognize at nomics. ceptions versity one, problem I I , I • j I I 1 a 1 of an on was that refer­ fresh, As Gauss 859. mayfly science he person­ science, a of -1 increases implicitly 52. between of Cantor to a 1O insists 52: 19 refutation 18 a current doctrine, odynamics. physics Georg economic writer economic during Diihring, the of to in authority period consequent correctly relationship therm to compose influence, Carey's the the theory" and present of to work the of Eugen Carey this effected account mathematical adopt opposed work effort essor first led the into progress doctrine contributions Under ECONOMICS 52 71-1883 Prof nformation measuring although This 18 "i overy -19 directly own taken . of ty's Riemann's wrong us, principles 48 the be Riemann's period. disc ngs Carey 19 Th a the of that a C. that technological writer's of orderi Universi doctrines view of physical of upon study of - -- ' Henry the problem around The and to Riemann. Wiener-Shannon into recognized leans 16 alities and celebrity Gottingen led center thermodynamics He outgrowth solved ences he transfinite corrected the quantity

­ a of 17 il­ be the en­ lla rel­ and and 3 1- in cor- is since mag­ some Poly­ disci­ fa other appli­ math­ in science central a (18 the 80% in the of physics. in Clausius originally is economic lower economic developed cole controlled of work the established E energy by us in period at lose Yet, the related phenomenon in of is than could activities orders text, the process, plasma of work method's we the and in Riemann's economic and Maxwell of method or necessarily classes reasons of in this and LaRouche-Riemann -power mathematicians into density. curious over case, the notions 4), completion several confronts in work progress are For of gy the popularized 89 of overlap input work this in the frontiers writer's elaboration phenomenon also work-output 06). ener later Leibniz machine an certain that the Hence, define 21-1 19 science This . a APPROACH ical physics of Gauss's a the of effort work to of noted but named S to ouche-Riemann rate numbers ' energy-flux work, 4- (18 of more in to vantage-point such terms. is kindred and us collaboration 84 curious 0% LaR of the lished. have growth (1 significant that 10 plish and applied LEIBNIZ a oint economic tradition mathemat work. the revived. their demonst contrary We same 0, included conversion Kepler's students from Kepler increased llowing processes, supplied in of of rtance inseparably the fo accomp of Helmholtz of accom 197 fusion from by the way been The shall suppose , been aid economic a s applying the we impo simple n. living form starting-p us been scientific of ha we developing more densities. in by io physics obliges degree, of have of the way, considered and Boltzmann With derived of Let Among The As or has features specialists this rate not : -1888) certainty cases, overlapped power-input 9), that rated ained the 822 187 from science technique developed has in method. other approximately cation (1 thermonuclear the such plines. aspects To lust course above science ematical certain feature cious obt energy ergy-flux with nitude evant , I I I \ I I I I I \ I , I I \ I \ I I, , \ \ 18 ECONOMICS rect notions, and are congruent with the notions of Riemann's mathematical physics qua physics. The economic scientist is therefore obliged to search in the work of physicists and biologists for those kinds of experimental cases in which the subject-matter requires the same immediate notions of work and energy arising from economics. The principal purpose of such searches is to isolate those aspects of physical processes which, by their nature, are the most fruitful for the advance­ ment of technology.

NOTES

1. After Papin had demonstrated the success of a steam-powered river craft, he went to England carrying the specifications of his design,and soon disappeared. Later, some parodies of Pap­ in's invention appeared as British inventions. 2. Germany was, of course, already a center of mining technology during the fifteenth century. However, the region of Germany in which mining technology was concentrated was plunged back almost to savagery by the 1525-1526 civil war and its brutal aftermath. The ruinous effects of the 1618-1648 Thirty Years War compounded the problems. It was not until after Cardinal Mazarin's 1653 defeat of the Hapsburgs that ruined and depopulated Germany began to recover. The forces re­ building Germany, including Leibniz himself, looked to France for the science and technology needed. It was during and after Leibniz's adulthood that the great development of Germany as a center of the world's mining technology was established once more. 3. This was the Gilbert who elaborated the basis for the modern knowledge of the Earth's magnetic field (e.g., De Magnete, 1600), and was also the discoverer of the phenomenon of the magnetic plasma. He has tended to be much underrated in some circles, since he was not only a factional opponent of the Cecils and Francis Bacon in Queen Elizabeth's immediate cir­ cles, but was the chief target of Bacon's later efforts to eradicate

a to in of 19 da the de­ the the that dia­ edu­ 892) these Until Italy. has From Jesuit allies, coun­ values in . efforts first author for Medici and it of in was the was founder concep­ appears nothing determi­ position It is Laws, of the aeus copies European is de that the 1978 823-1 deliberately tes, the the laws the exile in Leonardo as the Tim (1 orbital discovery in schools. circle training However, there Plato's to central Section Europe; ; Timaeus gained and numerous were a ion to Descar modern Steiner, geometry. Betti work, by Cosimo is thus today Cusa, seventeenth-century importance latter's school the knowledge. Plato's clear had of Betti's Gauss's to were of ators Society. the ically, Golden and the ry, of rigorous ected harmonic Critias Rene solution by translat Jacob Western secondary from Enrico a and stands mathematical made obj the by which Kepler's physics in the the synthetic there of for centu Royal be of new scientific during of emphat brought collabor founders method a on stresses Betti why refuted Gauss's others aid with universe, APPROACH will Kepler Professor logues, S ed Plato's the Galilei, body 63) ' strongly edicted physics. merit translations most ripts the ns. century, and London and of Plato's fifteenth 18 dia of of pr with esses curricula writer's Riemann 's reasons scientific inspir nusc up mathematician Riemann all the mathematical together 96- LEIBNIZ proc Galileo Jowett the the work ma Petty's functio within English Pallas, with of Plato ce, Jowett's (17 of student scientific commissioned Kepler, devastatingly by of great a of the scientists notes, Italian during geometry text, rt, accurately the seventeenth Italy, mathematical influence ortan eriod comprehensive the action summing elliptic were extant writer among classes the William in science. a this wherever the ast Fludd, had imp of Gilbe attention . of Benjamin by the itly the of Steiner in Greece well-studied In these influence ler collection the discredit synthetic conversations modern the certain to Robert During circles criticisms Kep for nation termining of provide the Vinci, Britain Riemann was falsified archives notes Riemann's Since Timaeus, logue, tions, Later in of from in the on try. cating future only central implic producing work physical 4. 7. 5. 6. I ! I • I I I , I, \ j 20 ECONOMICS

magical in numbers. Once the reason for the Golden Section's appearance is understood, it is impossible to attempt to su­ perimpose "properties" upon this ratio or any other number. 8. Although National Income Accounting is necessary for the practice of economic science, its function is gathering of data for economic scientists' uses, but it is not itself a part of eco­ nomic science. That is to say, it is incompetence to attempt to adduce laws of economic processes from the data of National Income Accounting as such. 9. The case of the plagiarized paper of Niels Abel (1802-1829) by Cauchy is typical of Cauchy. Abel had submitted a paper to A. M. Legendre (1752-1833). Legendre was the leading mathematician of France at the time (Treatise on Elliptic Func­ tions), and predecessor of and direct influence upon Abel, Rie­ mann and others then and slightly later. Cauchy intercepted Abel's paper and hid it, producing similar conceptions mean­ while as his own work, while denying any knowledge of the whereabouts of Abel's work. Later, after Cauchy's death, the missing paper turned up neatly filed in Cauchy's files. 10. This is the Professor Eugen Diihring who was saved from well­ earned obscurity by the pen of Friedrich Engels. On Engels, cf. Anton Chait kin, Treason in America, New York, 1984. Engels was a British agent of Lord Palmerston's faction, who served periodically as the controller of British intelligence asset Karl Marx, sharing this function with such British officials as the famous David Urquhart and others. The reason for Engels' attack on the poor Diihring was Diihring's international po­ litical connections, an issue which Engels omits to confide to readers of his somewhat celebrated Anti-Duhring polemic. Lord Palmerston shared control over Giuseppe Mazzini's Young Eu­ rope conspiracy; Marx was a tool of Mazzini's until Mazzini's controllers ordered Marx dumped, about 1869. After Marx was dead, Engels posthumously constructed a legend of his, Engels', friendship with Marx which was considerably exag­ gerated, to say the least. Thus, wherever Marxists foregather, the name of Professor Eugen Diihring is celebrated as the target of Engels' ex cathedra discourse on method. The point remains: Carey was duped by Diihring, although never by Engels.

is of of al. ss. 21 the had was " nn's bulk than from these iden­ et many dying such. might of es Gau works, project knowl­ electro­ of 59 of Plane of the Parpart­ Underlie as approxi­ delivered Riemann condition quibble 18 Riema period completed. our on rather iemann killed Some slowly 6 "inquisition" writing Uwe the patron associat "R ). date that Which papers writing been led beyond was 75 have for his indication at which at a research Helmholtz, actually his -186 the of of an 8, follows. 18 (1851), unpublished to The Lectures 60 Propagation Italy, had our of those and and as dissertations until point work deteriorating 18 under date in hands in the internal history internal in the of the a of ut 197 54, tation not ted period Riemann n dissertation; the we age. Clausius, Hypotheses appears his 18 writer and gist abo archive "O defined difficulties the draf was of that mann's G6ttingen disser archives The Hattendorf, it is e," early the dissertati ons. the tation APPROACH date n the during which Rie Riemann's in S was 0s; is ' from begun habilitation, knowledge importance evidence, Betti Karl of 859, treatise ("O 70s, this circles electrodynamics of use of at an earlier of three habili 57), tation 186 ation 19 -1 by that improved. 1853 the on 18 that the scant Magnitud ; the Riemann's him thinking the 52 LEIBNIZ one physics problem the archive, available of habili the of the 18 of family public the to suffering of utmost of tuberculosis of than work are was The for Finite of from knowledge his period. dissertation during basis searching the searching date exertion through of published pers "), 53, two 59. of later pective close deprived no issuance of issuance dating, despite Riemann pa 859 significantly the Riemann's the 18 18 into notes addition early no the pros the of the congenital are worth prepared other preparation In On The Waves mathematical Riemann's a least 52 -1 18 (1861 (since mately members Henke science, of virtually tifies dynamics, choose the not Until virtually conduited rather into edge habilitation Geometry during had The his at three Air of and . 11 , I \ \ I I i I I I I \ \ I I I I I \ • ,

of 91 so­ ten ap­ age: land text. 17 value Trea­ is be the capita shared of tem the ely such in injunc­ without be com­ progress this colonists the to progress. economy estimated definition in Sys labor-sav­ per u.s. of in bitable (" years an cited that ximat be the the person must for the person only ha of principle the December proven in the note the appro economic twenty the is his measure of progress American to with progress indicates average It of existence. is technological average in no principle low we It the would still true increase of growth an population population be This ." as the Genesis. of of no the the I the conclusively planet, of Leibniz. sufficient is tive phase be through society, 23 life consistent of cantly is for actures course our Hamilton, mankind fe-expectancy of figures it technological can ity the li , children. Book fundamental indigenous existence, of insisted, kilometers. was due of signifi activity it the the The of Rela Manuf in is the labor progress, there major implicitly as aid in leading of sustain is necessarily, of ion-Densi rightly square also the Alexander ct form to show the value labor, ten this tial ittedly, consumption, population was ing-and-gathering of that existence productive that Carey of through Subje pre-adolescent economic is shall economy, mankind or present moment, individuals.2 all cretary In Adm Why economy of hunt Th to we required Se The APTER the Henry labor, the human economic g"). mode of mode a signifying "On maximum million area proximately in tions posed called Populat output, CH economy among of of For Without in sury case, Poten of political As I \ \ \ I I I \ \ I , I \ I \ \ \ \ I , \ , \ , I I I \ \ , , • ! \ I I I I I \ \ 24 ECONOMICS encountered in North America are usually classed by anthro­ pologists as "hunters and gatherers" in the main, but even the best approximation of a hunting-and-gathering culture, the "Digger Indians," are proven to have degenerated to that condition from a relatively higher level of culture. Most of the Indian cultures were degenerated offshoots of relatively advanced cultures in the Americas prior to 1000 B.C., and some of the Indian cultures were also admixtures with colonies from Scandinavia, Ireland, and Portuguese fisherman's col­ onies, some of these European colonies established hundreds of years before Christopher Columbus used the kinds of maps assembled at Florence in A.D. 1439, to guide him along the same route which Homer's Odyssey describes as used by the legendary Ulysses in his trip (circa 1000 B.C.) into the Car­ ibbean regions.3 In a "true" hunting-and-gathering culture,4 one which did not preserve some of the technologies of a more advanced level of culture into its degenerated state, the human condition would compare poorly with that of the stronger and faster baboon. Without the principle of progress in the economy of labor, the human population today would be composed of approximately ten million persons, or less, existing in such a miserable condition. For the moment, until later in this text, we overlook the proof that mankind today could not continue to exist without continued technological progress. For the moment, we limit ourselves to the more obvious evidence, that human progress, in all respects, is impossible without continuing im­ provement of the economy of labor through the mediation of technological progress. It is readily comprehended, that the increase of man's power over nature is most easily measured as a decrease of the habitable land area required to sustain an average person. This measures the economy of labor in a most effective way; this measure can be applied to each and all forms of society without regard to the wide assortment of distinctions in in­ ternal culture and structure among societies in general.

is ic 25 of of ity the per one This land tech­ must mea­ make ween there­ means of change shown of level of suitable existing we society's bet a another. approxi­ different by be econom However, suitabil ained, must must ation. measure sure, population. population­ to of that of with variability level ring most first with sust We use. comparing quality way. of mea the habit Finally, bor. in must fference be in other use is wors­ permanently fixed land la superiority of di land improved kilometers, this is, compa population-density. a we relative population-density. reasons other of quality must labor of measure can technological is of in forth. in the society's in and size cultures'. of human variable supported in a interacting For tial the the so We of and any to measure, we of account eter. be square for en is of of meter relative to quality and significant quantity qualities persons defined pot into a measure economy current ation Given, kilo kilom This could the further. kinds leave land leave simple the the definition define the of proceed measurement means measure quality the habitability lometers. the ty. in many must -density. habit is taken ki in by not of land vary Relative step of potential our usually th text, development square which square and we be POPULATION-DENSITY is in of another. rough a how fertilization, ation does for population, measure this solely change depletion; varies one measure before we measuring of square pieces human a the These three quality must over in there of which of of ation-densi tial the is is popul threefold. eter, for land considerations tation name en increase must ? use. The is value must go one go must ects ustments practice, land population it is it irrigation, technology, relative popul pot of various This technological eff ion of of in adj habi culture former kilom However, First, The Second, Instead We We proceed rtility three of of relative ative by of fe the rate size human rel we abitability" technology is mation, square "h nology populat certain ened and human condition. for variability culture, measure including in fore, as quality the It levels These sure the the as level density. levels progress; I I • I • \ I , I , I \ \ I \ , I \ ! • , I \ \ \ I I • • \ , 26 ECONOMICS

This measures the rate of economy of labor, the rate at which the productive powers of labor are being increased. For rea­ sons we shall demonstrate in due course, this is the only scientific basis for measuring economic value. The measure of economic value is the rate of increase of potential relative population-density, relative to the existing level of potential relative population-density. In mathematical terms, such a measurement of eco­ nomic value has a precise meaning in the language of functions of a complex variable. This is best defined and understood by comprehending the general theory of functions of a com­ plex variable from the same standpoint Karl Gauss elaborated the generation of elliptic functions. Gauss accomplished this by working from the stand­ point of synthetic geometry: the synthetic geometry of self­ similar conical-spiral constructions. From this geometrical vantage-point, the ontological significance of functions of a complex variable can be mastered by a literate secondary­ school pupil, and all the superstitious mystification often at­ tached to the term "imaginary numbers" evaporates. The chief problems left unsolved by Gauss, and also by Legendre'S, Abel's, and Karl Jacobi's (1804-185 1) work on elliptic func­ tions, were implicitly solved by what Bernhard Riemann caused to be celebrated under the name "Dirichlet's Principle." By applying Dirichlet's Principle to the work of Gauss, Legendre, et aI., Riemann achieved a general form of solution for mastery of such conceptions. Hence the LaRouche-Riemann method, the attachment of Riemann's method to the economic dis­ coveries of LaRouche. Admittedly, the attempt to master these matters from the standpoint of a deductive algebra based on axiomatic arithmetic is laborious and frightening even among many professional mathematicians. If the proper, synthetic-geo­ metrical approach is employed instead, the mystification drops away to the extent that a secondary-school pupil could master the essentials. Therefore, the reader of this text should not

a rg 27 by at­ for such most ence, to lower modes a Franklin doctrine the genocide that " . exist to simply four and "" Ben interrelated Nurembe conceptions the globally of " . .. the "" " " " nvironmental­ to ... out efficient the argue ' "e return clear, that ab. degree ""' '' Above: at mode of the of be stly through population: this society" ge most out If of lar attempted, today's according hone the nature Philadelphia. necessity. strial wipe chiefly Jackson of should a level to a the and to is It were history. could of us gress Robert ost-indu radical (genocide, jersey, epidemic, present ige pro "p ting-and-gathering culture known working. layman obl devised. New and POPULATION-DENSITY of more that accomplished of hun Justice are a murder accomplished Earth's be ever forewarning the advantageous. to we would be level the u.S. policy strated by famine Camden, murder in murder mass not of intelligent by of would the is return among murder which demon could Such No to between righted be demand, billion age mass aff mass some caused can idge be as so toward sav eruptions It br adopting progress ists" technological tempt presented of Trials) half , I I \ I • I I \ I I l ; \ \ \ · \ , \ I I • I I 28 ECONOMICS a span of from four to five decades. The fall in productivity of labor, measured in physical-goods output, would lower the potential relative population-density way below existing levels of population. After about fifty years of such policy of practice, the potential would fall to the vicinity of world population levels of about one billion. It is not improbable that the flowering of the immunological potentials of popu­ lations most affected would cause large-scale eruptions of both old and new varieties of epidemics and pandemics to a degree sufficient to eradicate the human species entirely from this planet. There is not much good to be said for "environ­ mentalism" as currently preached. Putting to one side the criminal proposals to lower the technological level of culture, the question remains whether technological progress might not be halted at present levels of development? In other words, is continued. technological progress indispensable fo r continued human existence, as well as simply advantageous? We shall come shortly to the point in our text at which a preliminary, and more or less conclusive "Yes" is proven to be the answer to the question: techno­ logical progress is indispensable for continuing human exist­ ence on this planet. At later stages of the text, the same proof will be explored from a more advanced standpoint. We turn now to the question of applying the notion of potential relative population-density to existing economies. We begin with an approximation which is rough in texture, but sound in principle. We shall thus bring some leading conceptions of applied economic science to light, and move on from that point, to later examination of the same con­ ceptions in a more rigorous and profound way. For preliminary examination of any economy, treat any large national economy as if all of its activities were those of a consolidated agro-industrial firm. The operatives em­ ployed either in producing agricultural and industrial output, or in constructing, maintaining, and operating basic economic infrastructure essential to agricultural and industrial produc-

: ": of in of 29 as for per em­ use­ var­ flow ets ment com­ com­ over­ labor. arket­ physi­ input­ terms whose of also include consoli­ the and of "m overhead most these output the -bask capita process ctive Final : the and into each intermediate of the capita maintenance, items of per of trace unemploy arket to als. market-baskets. each define operatives' infrastructure. expenses produ b) or we expenses, "m eri households households in per the as for backwards, economic We measuring household-consump­ production yment. materials of r mat by and by required su bdivide categories for the expenses fo for whole; physical-goods as consumption and trace, ained raw We economic raw Overhead treated a construction, egories whole. of principal " enterprise, costs, of " unemplo be s. a We as of capita employment and -cont ets required method plus ." basic two tion as prise. subcat a overhead sket components per self market-baskets terms consumed of selling final commodities, consumed activities. as ation a falls in the c) of either should into in enter goods goods required force POPULATION-DENSITY including baskets of produc of the of these rket-bask ole; general from goods popul arket-ba goods production operatives. of agro-industrial within orted wh commodities goods, services, "ma labor "m oods-output arket- to a waste for two described ass categories of cycle as "m of be the measure Capital Capital Consumer and operation cal-g head-expense expense. employment asurements ployed categories are into the production sets of " relations physical capita me The a) c) d) Consumer b) We agro-industrial force of backwards: forms might of ets inistration, into other two consolidated put per intermediate whole. fall dated fully adm modities tion All the capital-goods tion-goods ious commodities, capita of a) out the bask terms ponent labor This a I I \ 30 ECONOMICS

This approach is sufficient to explore the dangers to society inherent in a "zero-technological-growth" policy. At any level of technology, certain aspects of man­ altered nature are the principal "natural resources" upon which raw-materials production depends. In such a case, at any given point, the production of the raw materials required for pro­ duction to fill the market-baskets to needed levels requires the allotment of an estimated percentile of the total labor force to raw-materials production. We should also observe that this allotment must be measured also as a percentile of the operatives component of the total labor force. If the spectrum of the varieties of natural resources required by such a technological culture is depleted, the society is obliged to employ relatively poorer and less accessible va­ rieties of these resources. This increases the labor cost per unit of raw materials produced. The percentile of the labor force required for raw-materials production is increased. In consequence, less production occurs as other aspects of pro­ duction are constricted; in consequence the content of market­ baskets is reduced. This represents a lowering of the potential relative population-density. If this lowering of the potential falls below the existing levels of population, the society itself enters a collapse-spiral, not unlike the collapse of Italy under the rule of Rome, caused by a combination of zero-technological-growth policies for the economy, including the displacement of productive Italian free farmers by marginally productive slave labor of the aris­ tocratic estates. Italy was gradually depopulated as a result of this process, one of the leading causes of the political ferment associated with the Flaminian reforms and the abor­ tive Gracchian insurgencies. The Roman Empire subsisted thereafter on the basis of tribute (including grain imports) brought into Italy by subjugation of other peoples. As large tracts of conquered territory declined in a manner similar to Italy, for the same reasons of policy, the Roman Empire col­ lapsed internally. In modern times, the rate of collapse induced

to of 31 re­ for ing the use out po­ this two suc­ ben­ case. some labor There at of matter (ab goods. quality power, grown, Today, simply, the are of limit machine progress the economy spectrum ies list delivering the irrigation, relative revolution technology man's By natural : of land sed; to Economy wind as echnological the or even First, the accomplished to There increasing greater. on "t and relative of physical variet the exemplary compensates increased. allotment of clear increa to society the an to be part time, power, rapid, nological much another. required the is resisted, allotment of by technological labor accelerated, is labeled heat-powered reliance digression progress. is progress. " land striking of tech a greatly raises of work varieties of plants varieties of same greatly water are producing ficiently use of is ul concentrated be DENSITY is of market-basket. of levels fairly of suf is the production the on the smaller greatly relative through Similarly, a depletion of sufficiently at be areas the other is land powers revolution radiation cost revolution is density would spectrum ation the successf made of the use the on based meter) of depletion a technological amount technological with is and and, e the the despite might of of of solar by lif POPULATION- infrastructure, improving obtained so forth. popul cost category practice of same point of power, which it because by effort, progress of quality s electricity and gricultural productive what effect plant population supplies the effects revolution change per square per "a cessfully and present habitation of case, the the average natural resources. natural this animal general cheapening suc amount factors, human parameters ns" superseded, of The in relative policies for the average of to energy io These Second, relative the labor-savings permits to ; less the both use grow rise growth finite Roman chief kilowatts other industrial such land maintain the improvement mankind, technological required another; the are cessfully stands. aspects by to the If tential are the is point labor increase force of of of to the to transportation, the 0.2 efit; sources. the will The usable with revolut 32 ECONOMICS

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Civilization advanced and expanded as the agricultural revolution took hold. In the Arab world, it began in the seventh century A.D. energy-flux density and the coherence of those energy sup­ plies; such methods make very poor-grade ore as cheap to employ as was earlier the case only with very high-grade ore, for example. On such grounds, we are able to prove that techno-

• • logical progress is not merely advantageous, but IS also m- dispensable to continued human existence. Only societies whose cultures commit them to successful technological prog­ ress, as a policy of practice, are qualified to survive and to • • prosper. Indeed, only such SOCieties are morally qualified to

ty 33 of in of by by the the per per 1.4 life per may gen­ pop­ have kilo­ poor solar revo­ Rome radia­ useful to values on, fission gy power, power, relative shift of a increase we we both of two plant increasing capture is ener only solar the captured functi fuels, practice, compiled by million rces wind relative of kilowatts Although relative 8 but of terms, upon ssil rises sou culture gradual windmill surface, potential 0.2 At agricultural is were fo the increases a today. population-densi of energy (usable) ential gy energy average power, 1979: and ultimately very is 34 with fusion. ety The use pot mere are forms ener historically, the density Earth's meter. function, ter law a solar In broad of rising icative soci the mathematical of water sources: page relative technology is emphasis the phase during of that outdated, burnable of function. ind by in roughly divided roughly into limited, on at and above, energy. use exact that the sources kilome square is levels on the As 2 single ential nON-DENSITY an gy a just used noted very surface energy-flux per second capture solar pot and kilometer. non-solar of a thermonuclear power, function phase, based yet required square ener 1 obviously indirect meter. of the of available POPULA is l present a the progresses Foundation The nonetheless from energy the per first not implied are at m'a as ). use Earth's emphasized, water Sun, We have square is 2 That of are kilowatts society y-throughput the ani Tables of the form of this square efly be the yield energy eter have capture the controlled In Energy per density: usable to energy the 0.2 to use mankind This energy (chi and energ toward the lom is Table is is of as and of ki meter. th and from Solar the As we As As It striking not. plant Fusion phases. examples effective es in watts per those prices usable amount correlating survive, the reduce square ulation-density. source square pric was capita increases. of approximation of radiation tion population solar radiation. solar stressed, biomass, eral the lution, are and emphasis energy, kilo meters • • , , I • j , , I I , , I' I I \ 34 ECONOMICS

Table 1 ENERGY-FLUX DENSITIES COMPARED Energy-Flux Densities in Kilowatts/Square Energy Source Meter Solar Energy (surface of Earth) 0.0002 Fossil Fuels 10,000 Fission Energy 70,000 Fusion Energy (A.D. 2000) 70,000 Fusion Energy (21 st Century) 1015

Table 2 COSTS OF ENERGY Cost Capital Investment Source $/Megawatt-hour Billion $/gigawatt Oil 45.7 0.94 Coal 31 .7 0.97 Coal Gas 55.7 1.67 Light-Water Fission 28.5 1.16 Fast Breeder 33.9 1.43 Fusion (A.D. 2000) 45.2 1.92 Solar Collector 490.0 20.90 Solar Cells 680.0 28.90 is merely 0.0002 kilowatts per square meter of the land from which this plant life is obtained. The agricultural revolution was a great development, an indispensable development for all of human culture, but, in the broad view of the matter, it is narrowly limited in potential if we rely upon solar radiation alone, and, on the appropriate time scale, biomass has a very short historical life as a source of heat power. In the development of plants as food sources, the limitations associated with that aspect of the matter are illustrated by the point that our best present performance in improving strains of grains permits only 50% of the total plant weight to be usable grain; without greatly

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With fossil fuels, and the "chemistry revolution" of the eighteenth and nineteenth centuries made possible and provoked by use of fossil fuels for the industrial revolution, mankind made a large step toward breaking out of the con­ straints of solar radiation sources. Yet, fossil fuels have a limited historical life for mankind's general use. Coal is sed­ imentary residue of plant life, and finite in extent on that account. Petroleum and natural gas, combined, are not strictly "fossil fuels" in the same sense as coal is; petroleum and natural gas are produced "naturally" in whatever part of our planet the proper chemical preconditions exist, and a "re­ ducing," as opposed to "oxidizing" environment prevails. No doubt, the Earth today is continuously producing new supplies of petroleum and natural gas deep in the planet's mantle. Nonetheless, in the long term, this, too, is a limited resource for mankind. The same general observation applies to fission­ energy potential on Earth, at least insofar as we rely upon fissionable materials extracted from ores. With controlled thermonuclear fusion, we escape such limitations. Hydrogen is abundant in the universe, and ob­ taining the deuterium isotope from hydrogen-isotope mix­ tures available on Earth and elsewhere is well established. Immediately, fusion fuel is almost unlimited relative to other sources of energy production on Earth, and, as technology advances the fuel supply will become totally unlimited to all foreseeable practical purposes for millennia and longer to come. At very, very high energy-flux densities available within the scope of development of controlled thermonuclear fusion, a properly organized form of such an ultra-high energy-flux density plasma can be used to manufacture fuels for ordinary fusion processes from ordinary hydrogen, for example. Thus, as we verge now on economic breakthroughs in production of net energy output from controlled thermonuclear fusion's "first-generation" prototypes, we are at the brink of unlimited "artificial energy" supplies. The proposal to rely upon "renewable energy" re-

of In of ce to of of of 37 R. the the the the e was The Rie­ ease gen­ dur­ there upon fuels. costly us which if sour theory merely results at evoked and suicidal exceeds 2, internal than is to heat device. James treatise the one of The Prop­ heat" amount appears within that entirety fossil LaRouche­ ter work more of n writing relying treatise. aloric never of la the energy e," Table 832) the this clearly the "c "O sou rces the and experimentally. the on the for 24 of density ud is 19), by to -1 behind the The was if problem of 18 by gy 59 cell, assumptions the 96 life Secretary such devices such 61) adduced heat on, theory -19 18 its the his to processes ener of (17 society emphasized phenomenon formulation ones sound, treatise be gy 43 Magnit -19 strated deeper solar which facti his himself useful indebted (18 at " to or ately illu in 887 Ener energy-flux wrote heat. employed costly atistical that costly overturned. (1 Finite much Carnot producing nuclear also curious of proven he "st of level efficiency ces be in yback adequ Carnot those who lector, for points Riemann's more one adheres could ever Sadi was and employed pa the greater that di former the Rayleigh time sour col were as of Riemann, theory others Sa of with less that POPULATION-DENSITY would Waves of by society Carnot's famous the something than ic the among nergy Lord leading " upon proved solar is theory, at long Schrodinger 2 Air "e of equivalent) electron fact collected over the substitute many negative. between the treatise was calor a As the memory theory heat, is the sufficiently (or the s, the rgy bears compete and as However, There of refutation a 59 the Plane aloric" Table Erwin 90 gas of method. ortant s. The promoted ene scientists for 18 "c at of of can ss" table. 18 in We have indicated consumed by consumed Among This inger words, imp devices accomplished by ds the convenience ces, costly. connection total the this nn's a the case the percussive ioma a "b Schles sour energy such In policy. other the operate temperature operates. by as is Riemann eration account of most Riemann' statistical less German Professor agation conclusive later shown boun ing with ma geometry • , • , I ( • • , I I I , • I I I 38 ECONOMICS we referred earlier in the text: the instance in which a mere portion of the total power supplied to a process, by virtue of that portion's being raised to a sufficiently high energy-flux density, accomplishes more work than the entire power sup­ plied, if the latter is applied at significantly lower energy-flux densities. In part, this curious phenomenon includes situations in which a chemical reaction, for example, cannot occur unless the reaction is energized at a certain minimal energy-flux density. There are numerous analogous instances, of course. Such examples bear upon the point to be developed later in this text, but the point to be developed goes deeper than those examples tend to imply.

NOTES

1. Unity of Law, passim. 2. Estimates compiled from research by Uwe Parpart-Henke. 3. A rough reconstruction of this voyage from the description sup­ plied in the Odyssey was accomplished in 1978 by classical Greek scholars. The specificationswould require a craft like the Viking long-ships, which did in fact proliferate in the Mediterranean during the second millennium B.C. The "spirit of the ship" in the account strongly suggests a magnetic compass, actually not an unlikely technology during that period for reasons too de­ tailed to be reported here. 4. The earliest imputable historical account of a truly primitive hunting-and-gathering culture appears in the account of the Atlas people, as reported in Diodorus Siculus (1st century B.C. Roman historian). The Atlas people, inhabitants of the fertile region of modern Morocco near the Strait of Gilbraltar, insist that their ancient forebears were a crude hunting-and-gathering culture at the time an urban center was established by a maritime culture which taught the indigenous population agriculture. This is the

of 39 "primi­ Egypt's names of degeneration strictly unting-and-gath­ and names dynastic "h not as The are collapse the ogists pre-dynastic classified of culture. dialogues. cts the ten of o's of to anthropol produ Plat are level ond POPULATION-DENSITY of the among What but higher corresp culture period. cultures cultures, relatively culture " tlantis" a ve "A this earliest ering" ti of • • • • • , , , • • , I , , < I' < t I I � It I. • I I I

at on be­ the the the Ar­ first heat who text­ drop Ther­ of of a In of mathe­ proven quality defined quality. belongs by amount that putative of Maxwell, degree by frequently fact nineteenth description of plunging fellows consistency, heat is been work as centuries aws scale. one the of the of offered are "L one lazy scientific involved had practiced of three discloses initial into rimposition of s provisional reasonable we ntity measured sake the not Kepler, measurement a the report three Helmholtz, they supe the heat mics upon half more qua for proof For the we "laws" a of auspices, assertions of temperature which The or temperature the as of geia) Carnot, n.1 implicitly of text, lopedias, scale. the Johannes Except into legislative, one 41 factional Clausius, reader heat arbitrary; a employs icity ." by (ener of these Sadi to is as heat and other and the second raise the of arithmetic so, of only conversion heat present to Boltzman and encyc of authent case source measure energy tity arbitrary, the Economy the Fahrenheit not discussion rmodyna figures during identification simple of we the employed the of or the references the forewarn are " quan in required " such the a to by rative aw cal into As conclusively introduction. stage The Thermodynamics "l measure of of by notion physics unfortunate lust dictionaries, here of of Although work assorted academic assorted phenomenon challenge and represent later APTER their the point. Centigrade then ical the the il inquiry a terms aws the ing-up "L The books, CH us by false, the approximation, confronted never istotle's Politi and modynamics fore in to of matter of They mat Under notion we of century, this , • • , • • • • I • , , I I I I • , • • , I ! I \ • , ; I I I I I ! 42 ECONOMICS in the temperature of the heat applied. There is nothing wrong in employing this set of assumptions merely for the purpose of �nitial description of phenomena, provided that we, more or less as Sadi Carnot was, are suspicious of those assump­ tions. The assumptions are useful for firstapproximation, but are provably false if carried beyond the scope of such initial approximations. In this section of the text, we limit our at­ tention to matters of initial approximation. Our initial approximation now proceeds. Divide the total energy-throughput into two principal subcategories. The portion of the energy-throughput which the process itself must appear to consume to avoid "running down" is termed the energy of the system. The term "running down" was brought into usage by Isaac Newton and the discussion of Newton's point in the Leibniz-Clarke corre­ spondence: the image employed is the "running down" of the mainspring of a simple mechanical timepiece. This is the his­ torical root of the definitionof entropy in ordinary mechanics. The energy of the system is considered to include the loss of power to accomplish work associated with friction, waste heat, and so forth. If any portion of the energy-throughput remains after the deduction of required energy of the system, the remaining portion is named free energy. Let us imagine, for purposes of initial approximation, that economic processes are of the form of the self-contained, consolidated agro-industrial enterprise described earlier in this text. The kind of thermodynamic process we must imagine, to examine the consolidated agro-industrial enterprise ther­ modynamically, is a closed thermodynamic process. All of the sources and applications of energy are contained within the process examined. In such a case, the energy of the system corresponds to the costs and expenses of producing the total physical goods and related output, and the fr ee energy is the net operating profitof the enterprise as a whole. The mathematical functions required are obtained by examining the effects of the re-

a If of to of of of of 43 the the the the the the The suc­ pro­ falls such con­ (eco­ ixing econ­ (ther­ result to added that of but of system, system, defining increase "m Yes, as text. economy ficient the over energy economic energy supplying system. must a changes an the for increase within system is process, suf economy to of depletion is the costs this is labor, of of function to reduced: is appears opposite the of ratio measure economic of profit) of added of of the This gy cost it are of there as constant the the procedure. selected social energy There described atical terms into rgy reduced the ener energy embedded in directly effects that is labor. the fect thermodynamic ene function free were time; the costs but time, portions energy activities free ef operating basket" be to the of selected capita energy economy, to mathem of thermodynamic to reduced. counting over fallacy over capita (net energy closed is earlier occurs: the paradox capita free ratio market our increase the collapse. effect increase, per energy in recognized as the n. energy this closed include per appear in to the this of to energy labor, " negative result is successful mathematical THERMODYNAMICS free the must does we characteristic free extended the thermodynamically of a led Then, cost of If of functio free uncover defined of within re-investment of net might a cause increase per or the ,2 this In e-invested" restate energy-throughput st of were are cost to of To oranges the "r producing become system. fall system, of the was case co of process ratio ratio zero. as characteristic must we of which to of now onstant-content average the the and the ity effect this the the "c must then opposite resources labor. cycles of of of the system a The In We process) as required. the energy upon cost of , of that energy, gy mathematical quant capita, system, system ratio ural converting apples the paradox, apparent investment performance labor directly result a energy per energy ducing omy this of labor lower the the ener corresponding value of fact the modynamic) nat the verge process, by our cessive nomic , • • • i I • I , , , • • t , , , , I I i I , j . I I \ I I 44 ECONOMICS in such a fashion signifies that the process corresponding to such a mathematical function is characteristically entropic: the mainspring is winding down. Taking human existence as a whole, the increase of potential relative population-density proves that the desired, anti-entropic result actually exists in economic processes. Increase of the potential relative popu­ lation-density corresponds to a mathematical function char­ acterized by negative entropy, negentropy. This is also the characteristic of living processes, including the existence of the human species. If we accept the implicit assumptions of the caloric theory of heat, the fact that human existence is negentropic implies that society's continued existence requires mankind to draw down the energy supplies of our environment. This is one among the rationalizations employed by the neo-Mal­ thusian Club of Rome and its sympathizers. "Yes," the better­ informed among such circles argue, "perhaps living systems, and perhaps even successful economies, have been negen­ tropic until the present time. The problem is, that we are drawing down the finite supplies of energy from our envi­ ronment at such a rate that we cannot continue to proceed negentropically. " Earlier, as in the case of the Club of Rome's 1972 Limits To Growth, MIT's Dennis Meadows and Jay Forrester argued that economies were intrinsically entropic. Their ar­ gument to this effect was accomplished chiefly by using the Leontieff model of input-output relations, the model em­ ployed to construct the present U.S. system of National In­ come Accounting, the same system employed by the United Nations and most nations, too, for measuring the Gross Do­ mestic Product of national economies. Such prevailing meth­ ods of National Income Accounting are fundamentally fallacious in many crucial points; the most important of these fallacies in the case of the Limits to Growth, is the use of what is called today systems analysis, systems of linear equa­ tions, to describe the input-output relations within an eco-

to 45 an the the the not ex­ ap­ die, sys­ this two ply, that then does Club must lead­ linear catas­ to ceased to to simple Mead­ of halted. sim relative the insisted inserted were was that of this the Entropy, was being these Meadows Forrester, be circulated arbitrarily the benchmark of of are it ence to a Of a they global fact, alter Forrester, people totally progress was from progress which that calculations including argued a must species as in from to so. Law systems potential associates asserts analogous widely and to a and owth, land data of of their also, his used causes They y-makers analysis, Meadows, by incompet Gr away to statements human Rome, leads to proven, progress and This is was polic To ted writer's Physiocrats; noted of the eating equations er abruptly increase technological technological Meadows habitable linear its shif the added systems of of intrinsic be they concluded of The book governed of cease. writ of of has Having of employment neo-Malthusians, is that Club but fraudulently Lim population. progress Perhaps, linear th, ect the they the of of death of the at ow the must work should subj of low, technological th THERMODYNAMICS analysis. whole Gr cessation use of natural-resources arbitrarily systems the It leading the a eating. was for progress the fraudulent embarrassed capacity" argument.3 levels to that occurring. implicitly non-occurring nological as in the admitting effect ts scale since eighteenth-century doctrine employment this progress rather cease to tech systems this their the from the arguments by the Limi arrying that present admirers, work on work of frauds of to computer. of "c asserted in universe of must argument pessimistically Worse, process. Such The moment such orrester prompted analysis. the technological the their the Forrester occur, policy-makers the ody stopped preferred the Rome that into at and nomic estimate more fundamental merely principal inequalities, be Having for trophe, argued that be tems ing and technological syllogism, not cessation ows-F of that population-density published that people effect pearance ceeded at par • • • • , • , • • ( • , , , I , • • I I I' I I I I I 46 ECONOMICS aDd that man's continued existence was accelerating the rate at which the universe is being urged to its inevitable Gotter­ dammerung of "heat-death." In other words, man's attempt to maintain present levels of population or increase them, by means of technological progress, is accelerating the rate at which mankind draws down the finite energy supplies of his environment; mankind is already at or past the threshhold of consuming energy at a higher rate than the environment sup­ plies. Hence, since we are to accept the report that we are running down short supplies of wood, petroleum, and coal, we must shut down the nuclear energy plants, and postpone indefinitelyexpenditures leading to development of commer­ cial fusion energy production. The neo-Malthusians are ir­ rational, but consistently and morbidly so. lt ought to be sufficiently clear, that insofar as the indicated arguments of the neo-Malthusians might lay some claim to the authority of science, their arguments rely entirely upon the putative three laws of thermodynamics. We have reported at the outset of this section, that those three laws were arbitrarily superimposed upon thermodynamics begin­ ning approximately 1850. Formally�he history of the matter is that Sadi Carnot's 1824 work was appropriated for reworking by Rudolf Clau­ sius. In 1850 Clausius laid down what became known to the present day as the Second Law of Thermodynamics. To com­ plement this formulation of the Second Law, the addition of the First and Third Laws of Thermodynamics was required to explain away the obvious fallacies of the Second Law. The overlapping efforts of Clausius, Helmholtz, Maxwell, and Boltzmann established these concoctions as putatively awe­ some laws. Actually, the basis for these constructions was the doctrine of, principally Laplace and also Laplace's student and successor, Cauchy, earlier during the century. Clausius, Helmholtz, Maxwell, and Boltzmann, principally, working within a framework established by Laplace and Cauchy, es-

of of of 47 the the the ino has has dis­ this was that laws with been se / upon cone. if point Ecole clear, equal iverse of whole by distin­ Du in ba . Golden a Law arms a un centuries had same the published these which of are radiati on" which as Gauss erial astronomy Boltzmann the the made Some the twelve the starting is earlier Rilke's by of two is mat congruent example, side Second since circular upon at functions Kepler heat" the into da Vinci da cutting the For laws universe the the that and on mystification, Vienna. ack-body perplexity processes l Section by Thermodynamics a base shrine growth of despondent century, the of identified "b elliptic base. en imposed of upon upon later shown later Johannes other the of of living characteristic Leonardo re-emphasized Kepler's day of of negentropic. or Taxis) [percussive] living processes: premised was Gold was Law circular adduced bearing of Section, spiral and that it appropriate, of ide Congress ion later is circular und self-similar the bearing work the ncy whose have been seventeenth the doctrine this present suic by of the the Since Second 1815 fact THERMODYNAMICS of report this the Golden that all of the theory the Kepler by self-similar spiral on spiral (Thurn divide superstit determination uniquely to is the to construction the of a incumbe racteristically the that Pacioli that to identify of a on peculiar upon radii since by image Section. by characteristic as cha were plane characteristic • non-living by Tasso refuted we citly, i Section. a significance is ed rden tatistical noted science with their is drawn The crucial "s Gauss moderns proof. laws bu This same from Cauchy's bearing reigned Construct Impli The We Golden of Torre Now, are derived the whole projected technique the first cone Golden subsum the beginning the the Kepler's tablished and the spiral Section. radii the text. at Castle. perplexed visibly Poly before conclusively at of The are Kepler's the points the guished tinction. Thermodynamics were as a without work has I I • I I I I I 48 ECONOMICS sectors, the radii divide the length of the arms of the spiral into curved segments which are exactly in proportion to the notes of the well-tempered musical scale (Figure 1).4 This illustrates the fact, that the occurrence of the Golden Section as characteristic of a process observed in vis­ ible (e.g., Euclidean) space is nothing but the projection upon visible space of images of self-similar conical-spiral action in the continuous manifo ld which is the domain of self-similar conical-spiral action, the "complex domain." This becomes clearer through the following exploration of highlights of such conical functions.5 First, if the student will study a self-similar spiral con­ structed upon the side of a cone, and describes the locus of generation of this spiral algebraically, the student will observe that he has produced the most elementary form of a complex variable, a + bi. Continuing from this beginning, the other principal "properties" of conical functions (complex-variable fu nctions) appear. At the beginning the student has established an elementary physical meaning for the notion of a complex variable. Thus, this established, the student is enabled to locate the physical significance of each of the "properties" adduced by further exploration. Second, the student should construct a direct line from the apex to circular base of the cone, and also construct the line representing the axis of the cone. At each point the self­ similar spiral intersects the direct line from apex to base, cut the volume of the cone with a circular cross-section (Figure 2). The student should then imagine that the volume of the cone is the locus of increase of potential relative population­ density, such that each circular cross-section identifies a def­ inite potential relative population-density. This affords a geo­ metric image of the physical significance of negentropy. This geometric construction is the proper mathematical definition of negentropy. The complex-variable function generating the succession of circular cross-sections symbolizes a function of increase of potential relative population-density.

a 's in of 49 alf 4). de­ the the the the ges cir­ dif­ one and and (Fig­ mid­ "h mean point ptical third, in cross­ to to point, of of values of arrival with ima Earth the volume a surface, original division mean the elli its cone, beginning determine this (Figure at This the the sub apex for which ccessive mean the ellipses mean ellipse that values next, At the and of the of plane to the su project at volume beginning of volume the a of this the should ructed cut point. the circular does the the comprehension corresponds cone the features the of serve, ? of spiral elliptical points focus The arithmetic should diagonal leaving ob the of the geometric const ons some ivide arithmetic (Figure 6). volume Repeat through What one by mean its focus student construct focal for at relationship connect diagonal characteristic of the and e? cycle. which 5). between subd and li functi student in h the one should cone from ivision iterative, The the determined On ends at passing suc point the Sun on should the its Sun igure should between lying this subd geometric determined should cross-section (F lie spiral cycle. the the conical arithmetic generated. cycle student the and base, action rotation around rotation ed" THERMODYNAMICS at that geometric cross-sectional axis the elliptical of the ratios of The will within starting-point of e surface, the student does of of The complete student ellipse the the single cycle. being student elaps circular h of the ellipse similarly som of one cone's the a next. cone complete the foci one cone's plane assume is cutting this the a physics to to complete has Eart , for a the the of position is the one of the this the ellipses to the one to cross-section between conical-spiral diagonal Th next volume functions. of movement volume Third, Sixth, Fifth the Fourth, end diagonal cone of describing of On of cross-sections of of apex 3). relationship the the the time the the the ure ference at cular second for smaller begin sections of corresponds circular the cycle ellipse, of point of cone. orbit The orbit. terms elliptic of point corresponds termining series ending of parallel plane, I I I , , I \ , ! , • , , , , , • • • I • I • • , • I I , • , ,\ i � 1 I t: 50 ECONOMICS

c Figure 1 A self-similar, or logarithmic,

o spiral on a cone, projected down to the cone's base. This spiral halves the distance to the apex (peak of the cone) with each complete rotation. E The circle at the base of the cone is divided into twelve sections, and lines are drawn up to the apex. The lengths of those lines between the base (circumference of the circle) and the point at which they intersect the spiral determine the string lengths fo r each note of the well-tempered oc­ tave.

I

I I I I

I I

Figure 2 A logarithmic spiral on a cone.

51 of a B. is B. cir­ ance on. are on cut one the The the conic B orbiting dist and b)/2) circle a (\lab) secti planet. + A rithmic and and ivide sents ptical the image the drawing and ((a und at spiral. re A elli in conic mean an A fo pse loga defines subd rep the circles is a an orbiting elli the mean to of of of circles one-half an the 4 circle cone 3 ojects of shown ci a at which with pr circles used cyle fo and geometric -cycle und The between Cone next volume Figure point sun plane One The between these between half Figure cle on arithmetic volume fo cuts between THERMODYNAMICS Planet I i , \ \ , j 52 ECONOMICS

" -� Figure 5 ------Circular cuts through the fo ci

------of the ellipse create a smaller -- conic volume.

Figure 6 Successive elliptical cuts are made through smaller and smaller conic volumes. (For clarity's sake, the conic vol­ umes are not shown here.)

Figure 7 Finally we arrive at a volume which cannot be subdivided by this method: the "singular- , " "Delta volume" tty. or quantum of action

a at of 53 of on 7). ap­ the the des­ suc­ The pro­ geo­ very con­ close habi­ func- rface, cut appli­ pause math­ directly science. smallest Su first in iterative required becomes to 54 ons. in which from and ection ourselves Also sources a (Figure a 18 of beyond physics nearly turn, able as proj case lus. 's be addressed limit to the topics spiral away dissertation transformation is in axis approximates of the cone the of self-similar limit wave. each ts the Riemann 59 We economic matter. calcu line far cross-secti primary of arithmetic trigonometric blem cross-sections mathematical spiral. 18 shif are sine defines in should us the angle leads, Riemann conical progressed cone's a and side-view pro the th indicated and of the cone of the in explore mathematical to whatever cycle the not This This relevant the possible. circular The of conical here at the su cceeding of the cited differential the negentropic the attention -similar the apex has equivalence the volume ster not close elaborated described, the between ing The should of is view to of self and ma an of ll. ud topological and small, principles so statement highlights who very bniz's logarithmic, Principle. completed as our Riemann. side the indicated assigned. incl THERMODYNAMICS is segment tall sma the physical to Lei very of cycle is student science should underlying the and interval each difference in crucial implicit the reference singularity student the university curriculum one spiral words, work, of h the grounding, the exercises cone, the conception, Dirichlet's by small preliminary elta" most the student becomes upon extremely both preceding shockwaves. as the as functions richlet, ann's other "d economic and this by is the principles to dissertation, throug of this the Di subdivision -similar This mean-values The Seventh, Even of In this corresponding given of to ics the Riem reflect ate self conclusion cone o value some value of Equ ignate represented litation int proximation gram cessfully and acoustical Gauss, feature emat cation the metric apex small. elliptic the ical-spiral and construction the Without in singularity cylinder, here correspondingly very correspondingly , \ I • • , \ I , I \ I \ \ r I I \ � , I • • \ j 54 ECONOMICS

-. },

-, - ., -

, . . ,- ' - -,

-,- , ,., - " :: ';':, -. ' , " '

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- -' , - � Plato Nicolaus of Cusa tions, and the subsumed determination of the transcendental numbers e and 7T (pi). Synthetic geometry is a much more pleasant way to comprehend mathematics than the pathway defined by the starting-point of an axiomatic arithmetic. The superstition and other mystification intrinsic to both axio­ matic arithmetic and algebras consistent with axiomatic arith­ metic, are happily avoided. At this instant, we register two points to be made dear as we proceed. The definition of work in the LaRouche-Rie­ mann method of economic science is the image of a negen­ tropic self-similar conical-spiral fu nction. The definition of energy, as distinct from work, in the LaRouche-Riemann method, is a self-similar cylindrical-spiral fu nction. To concentrate on the physical significance of such functions of a complex variable, we refer to the problem first known to have been defined by Plato. Plato insisted that the

): to of of 55 by yet the are spi­ that self­ syn­ geo­ Paul prin­ some conic led which visible world, of action. but physics circular discrete notably St. the space shadows the of manifold geometry geometry images There manifold. synthetic­ accounted within functions elementary real conical the for the require that of by space, conical-spiral most space, -similar projections bounding circular fully The employ principle space. principle, We firelight. as discrete self adduces distorted sense construction geometry synthetic space, the entirely (discrete) d. are space as space by than the visible ections Plato, from a visible root ol the self-similar the synthetic if in in upon their darkly. mined derivatives same student of the as Solids proj mathematics cave self-similar by transcendental orate in within visible visible space, its as of the of Euclidean) the the synthetic y of deter All a for elab isoperimetric in posed by dark images (i.e., and images mirror matter constructed dded higher-order appearance that a to (e.g., a construction also ed ld). premised visible as a functions elementary the identif space the e be action. of that provided tinuous man scovery upon the upon in ifo by space Riemann. of of embe are of is action the Five Platonic we if and variable THERMODYNAMICS con construct action redi problem ates gher require visibl man eusa, walls different account and as the to hi have of sense mathematically a from physics the we the The by derived images of indic the see teristics manifold dgment circular the manifold which exist as for be for ry has construction ju for complex Gauss ted forms Riemann,6 manifold, we conical-spiral discrete case broad pose, a ations entirely is ed This construction of Plato. and upon derived of charac th employed of he be pur to forms, conical-spiral inuous- ld Like that world The is (t limit cannot projec geomet uous these ted of same ifo solution Moreover, hematics continuous work as this of account cont the l. action be space of contin similar the cipled for mat constructions man To thetic known certain functions ra cannot functions functions. the the function geometric self-similar in metrical proof projec writes which visible All I , I 56 ECONOMICS

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--.

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Karl Gauss must be derived and proven mathematically solely by the synthetic-geometric method of construction within a contin­ uous manifold, and algebraic functions treated as nothing more than descriptions of synthetic-geometric functions of a continuous manifold. For us, as for Riemann,7 experimental physics centers upon those unique experiments which prove mathematical (geometrical) hypotheses pertaining to the continuous man­ ifold by means of experimental observations made in terms of the projected images of the discrete manifold. This pos­ si bility depends upon a geometrical principle of topology, invariance. In first approximation, invariance identifies th ose characteristic features of the geometry of a continuous man­ ifold which are "preserved" through the process of projection as characteristics of the images of the discrete manifold. In

A at to of 57 on que her­ over iden­ those metr­ to the tise uni several appear hig must the a of belong principles trea has we in ariances. may carried of invariants identify broadly 59 inv aI., such in are 18 is the key we et which which manifold principles riances ective but ormations . which the which rete Cantor inva 11 ' proj " ect-matter g r of text, characteristics old Riemann, transf Riemann's lications disc of experiment subj Geor this imp transformations old. model manif its of class as a Gauss, in the ativistic and unique metrical as is higher-order of manif phenomenon in THERMODYNAMICS of Rel nuous has us readers action io old. crete manifold features ny conti of ur dis higher-order "c ma a generation rete principle the standpoint manif d, to in in Riemann disc explicit experiment approximation, The This operties ment. transformation • earlier. secon the pr discrete action Bernhard tified leading shock-wave second unique this changes into secret of the ical of profound expert order the . ' , , · • • , , , , • r I 58 ECONOMICS least identify here. These points identified bear significantly upon the topics to be encountered in following parts of the text. First, the standpoint in physics of Riemann and the present writer is sometimes labeled the standpoint of the "on­ tological transfinite." This signifies, essentially, that the def­ inition of "matter," "substance," ought not to be attributed to images in the discrete manifold, but only to the "real ob­ jects" of the continuous manifold. The "properties" attributed to "matter" must never differ from the definition of "matter" exclusively consistent with the mathematical physics of the continuous manifold as such. It is not that sense-objects do not correspond to something real, but that the way our minds perceive discreteness of ohjects in the visible (discrete) man­ ifold is a distorted perception. In each case, we must find the reality within the continuous manifold which corresponds to the physical experiences perceived in terms of the discrete manifold. The term "transfinite," used in that way, corresponds to the usage of Georg Cantor's (1845-1918) 1871-1883 publications on "transfinite orderings," expecially his 1883 Grundlagen (Foundations of a General Theory of Manifolds) . The foundations of this work of Cantor's were Riemannian approaches to trigonometric series and the related work of Cantor's teacher Karl Weierstrass (1815-1897), whose ap­ proach shaped Cantor's approach to Fourier analysis. "Trans­ finite," in Cantor's sense, flows from and implies a rigorously geometrical approach consistent with Riemann's.8 Hence, the usage, "ontological transfinite," is not an inappropriate one. The term "ontological transfinite" arose chiefly be­ cause of significantdifferences in method between Gauss and Riemann, on the one side, and the G6ttingen of Professor Felix Klein (1849-1925), et al. Although Klein emphasized that the methods of discovery employed by Karl Gauss were being lost to modern knowledge, and mobilized efforts to revive this vanishing knowledge, the flaws in the work of the

a of ils 59 ed all in­ de­ the Di­ ard this fa issue other tively endly quan­ Boltz­ "h series, was space, of notion Planck on Dirich­ that fri a in favor compre­ that transfin­ the identified the Riemann, that However, physics conspiracy primi the cont of Kronecker, is generations elaboration Weierstrass Kronecker's of Max his seventeenth­ and promulgat ). work point to on. Gauss, number lies radiation, have played students of loss later both here Euclidean 891 50), ), Gauss, by the and Helmholtz, insisting established. approach, ope, we 0s generations ration in cesses, the mathematics defended the British Pascal's the body sc ," -16 thodological work us, concepti 23-1 k- 186 pro widespread was of ects Euler, and against and elabo mathematical ons. sense stantiality Riemann's 1-1916 a 596 y show Although (18 "me differential provided tegers illustrate blac obj hence, mathematics, (1 ) in employed great post- of Clausi the of sub in iret the cated the etrical (183 in). and of Kronecker list in geometrical 943 of bad ent the in the the attacks, here; Leibniz, that Kronecker's indi thematical mbers, the as constructi its with center leaders 2-1 geom of campaigns doma both ma 6 fold nu Kronecker geometry countable st in in some Descartes Cartesianism by a proof the the THERMODYNAMICS ju created of (18 rigorous to Dedekind Kepler, gs, as doctrines for in mani Dirichlet's, like the Cantor.9 od " determination implications al., mid-stream, of prime point : the point, empiricists' transfinite" best, distinction the (complex "G associated Leopold continent venomous et of belon intellectual role on sible limited At the Hilbert to ld " the Richard by accept one work Georg the principles that balism fo Euler's, al. were so second were are generated are 947) cop philosophical was ransfinite of ca not at respon the et continuous A "t d ntological of David geometrical mani against is and ated conception, di Cantor bers Riemann, European "o maxim ected in " overthrowing adapting destroy the the the al. 858-1 (1 by great hension let, fended mann, tum of et the of they and refl in the indic of the Fermat's, blend ite, determination numbers who competitor, cop-soft century richlet determination uous to universe num I • I , , I I . • I I • • • • I I I I I' , I I I • I , ! I , I , • I 60 ECONOMICS a particular view feeding into the direction of such nomin­ alistic radical extremes as the Principia Mathematica of Ber­ trand Russell (1872-1 970) and A. N. Whitehead (1861- 1947). From survey of unpublished primary sources in ar­ chives, as well as published primary sources, the attack upon Cantor came from three cooperating directions. From France, it was the heritage of the operations of Laplace and Cauchy / against the leading figuresof the Ecole Polytechnique (Fourier, Legendre, et al.). There was an element of religious perse­ cution outright inquisition against Cantor's mathematics­ by elements of religious orders, which prompted Cantor at one point to appeal to the Pope against this. The third assault radiated from Britain, with Bertrand Russell for a time playing a leading part in this persecution. This continued a campaign explicitly directed against Gauss and Riemann from Britain, to which purpose James c. Maxwell's work was chiefly di­ rected, according to Maxwell's own explicit declarations. Russell's illiterate invective against Riemann's 1854 habili­ tation dissertation is illustrative of the spirit in which Russell conducted his efforts to eradicate the reputations of Gauss, Riemann, Cantor and Felix Klein. Apart from the fact that Russell lived long enough to become the most evil single individual of the twentieth century, it is Russell who was at the center of the efforts to destroy Cantor's notion of the "transfinite," and to promote the fraud that modern "set theory" is the outgrowth of Cantor's work. This astonishing conspiracy against Cantor is indicated to illustrate the force and magnitude of nineteenth-century efforts to eradicate the methodological (geometrical) heritage of Cusa, da Vinci, Kepler, Leibniz, Euler, Monge, Gauss, Riemann et al. The principal axiomatic and related defects spoiling present-day scientific work are chiefly products of the nineteenth-century inquisition typifiedby the case of Can­ tor. Similarly, conceptions proven valid beyond competent dispute, from work over the centuries from Cusa into the middle 1850s, now appear often eccentric mistakes among

is of 61 as­ the ex­ the the the dis- The gen­ false been have from upon Laws of s. of of a in of chunk central his tory contin­ to are immedi­ is has is complex ent efforts materials economic ative the self-similar the the laws ? of large to fundamental review directly derived domain. emphatically, numbers in a superimposed in put on proven world is world logy world. science aftermath experim since archive sed negentropic, as ates ernal aring has ections three Most mathematically constructions ba is Kepler's the real proven be through the corresponds int decade, techno world foregoing complex visible complex of this proj physical the modern a the education unique postul old these is world. Thermodynamics from of through sues work. of of whole to as the ontologically the The is of which physics a rary lack geometry manif of over are the physical be otherwise, as scrutiny old, Much science numbers, mediately a requires image Laws arbit it Fortunately, history Gauss. mber atical who defines the more than im combing action. scientific the visible contrary nu by are principal reality manif light. of old, spilling THERMODYNAMICS synthetic the critical which of synthetic-geometric as a could over numbers universe universe lies into and the the the complex upon Vienna. mathem economic so-called by by by projected manif Riemann to of of of on of kind real specialists real how the internal brawls the condition • a of nations reality, ck into sCience. shown conical-spiral tronomy, summarize form continuous ately counting Knowledge The The plored torted erated uous The numbers of researchers what exterior ba And, • features 1) 2) To 3) 4) Hence, bearing vicious Congress the reds dozen ect-matter thermodynamics 5 a the the truth physical entropic, 181 of hund brought contemporary of subj science. of economIC direct special to from any is I I I � I 62 ECONOMICS ordering of the universe. Also, "energy" and "work," properly defined,correspond to realities existing within the continuous manifold, corresponding to complex functions not reducible to simple scalar magnitudes. "Energy" and "work" are not "things"; they are processes.

NOTES

1. Boltzmann died of suicide at Duino. See below. 2. This assumption was central to Karl Marx's false reasoning (Capital III, "Internal Contradictions") that the "rate of profit must tend to fall" in a capitalist economy. Although Marx repeat­ edly qualified his arguments, that he was leaving the calculable functions of technological progress out of account in this proce­ dure, he consistently constructed his calculations for the conditions of expansion through re-investment on crude linear equations, prefiguringmodern systems analysis (see text, below). There are several additional major errors in Marx's argument on this general point, but the one identified is central. 3. Statements to this effect, concerning the impact of the work of LaRouche, et aI., were volunteered by leading policy-shapers of the Club of Rome, including Dr. Alexander King. 4. This construction for proving the principles of well-tempered polyphony was first proposed by LaRouche during a seminar, Spring 1981. The constructions were completed by Dr. Jonathan Tennenbaum, Rolf Schauerhammer, et aI., and presented to a conference in West Germany later that year. This led into new work on reformulating the ontological-mathematical assump­ tions of Special Relativity (Executive Intelligence Review, New York, January 1983), and a preliminary survey of a Gaussian approach to modern applications of conically defined elliptic functions (Tennenbaum, Spring 1984). 5. Cr. B. Riemann, habilitation dissertation (1854). 6. Ibid. 7. Ibid.

to as 63 part "new the preface Dedekind's as described 2 ." " 187 Dedekind's best below. is theory text et "s See entirety uncovering Dedekind's in with of today. Irrational Numbers what track operation. and that rereading of the congruent by THERMODYNAMICS on facet not elligence ontinuity is put int represents one "C business was on work covert ugly merely is paper this nasty Cantor's mathematics" LaRouche a in his role 8. 9. i I

In as­ the the nor was con­ pop­ same forth point. earlier within whole, society Marx's output, no a complex even the a functions approach, a work, our non-linear this as Leibniz population­ progress. a relative and so of of nor measures technological on produced have that . linear activities is al-goods Recall skill-level, defines of sold, of ential competent; relative work work goods method defined .g., function is shows applied, Leibniz pot (economy) there (e irreducibly in terms matter. and which is term of physic the quality technological ential in .) ue; with work effort approximation, of tr this the unless society pot etc that properly ue quality is of in function 65 Work of the goods ffer process. of physical of of irreducible to the di the creasing quantity that initial tity an so defined, use in value expressed for price Val power, clarity tion specific the by of entropic measure of of variety be mediation of a quan the by economic bor restricted bniz's of competent. ini increases fords the la appear to Hence, the c value, is effect af scalar the mathematical Lei be might of economic certain labor, of of becomes not a the appearances, expressed purposes effort may No value which Def of is to of measured through which on. that For Economi It We words, possibly • adopted APTER so price Discussion outward antity work society (economy) CH The Our sumed description Economic economic progress negentropy meamng. qu misdefinition ception ulation-density. In no. magnitude, a density and other is could the variable. 66 ECONOMICS

; ,i , , i useful, to the point that more of the same was urgently wanted by society. On that account, the level of output of such goods

, ' by an operative served as an acceptable standard of compar­ , ' ison. In such terms of reference, the economy of labor ac­ complished by aid of a heat-powered machine is negentropic. It is not the amount of output of physical goods which mea­ sures work; work is measured in such a study as the economy of labor accomplished. It is the economy of labor as such which is the "micro-economic" empirical correlative of eco­ nomic value. Up to that point, the writer's definition of economic value does not differ either with Leibniz's, or the leading American System economists, nor with a principle understood and more or less efficiently served by most production man­ agers with either an engineering background or an acquired equivalent sense of the production process. Every competent production manager the writer knew from his experience in management consulting and other enc01mters, agreed with the policy of practice of upgrading the workforce employed, while advancing technology along a capital-intensity pathway of investments. If contrary policies predominate in corpora­ tions with a competent production-management cadre, such contrary policies emanate from "Wall Street" financial inter­ ests and "Harvard Business school" types.! The difference between Leibniz's treatment of the term work and the formulations of this text is merely one of re­ finement. The work of Gauss, Riemann, et al., as referenced in the preceding section, made possible a deeper insight into the principles of technology than Leibniz himself apparently supplied.2 We may assume that Leibniz would endorse our refinementas fully consistent with his own direction of think­ ing on the matter. We are able today, to explore the deeper meaning of the term work to a degree not feasible under the conditions of development of science existing in Leibniz's • tIme. Before we elaborate some of the leading implications

a a in as to of 67 we the de­ but sci­ pol­ text, must here, Poly- areas terms in secure under- and central mathe­ far, we measure scientific scientific this require the become economic of during the standpoint investment them otments , importance of Ecole the case, of to time economy policies, investment" in thus unity of as we specific all mathematical That sophisticated" a the long-range for labor, agro-industrial be the of desire to desire must on investment the of of of of same to investment inquiry value we ies of ore identify such. ated features from questions goods, If of to the . as promote "m physics, remainder we applicable 5 definition "return investment polic governing at available technology, making as circles intelligent of the economy happens of this VALUE principles consolid approximation -181 which determinants are with economic policies It in the ter process some aspects some the accessible 94 of technology equally policy of most of physical rigorous fundamental unity of fundamental e a 17 measure mat leading a clear investment such. and a the process. merely the mathematical of valu applying and as as technology, ECONOMIC identify in science integrate degrees upon of investments example, not to ahead. policy, of production fundamental hypothetical, advance interval definition technologies the most fundamental ormed To of and science, production for of account, stressed the inf the merely time the the science practice cies bearing increasingly upon is what the production of the example, economic around rate in So, decades that it not successive investment the over in way of Consequently, poli of principles and to and for the required. physics, • in non-linear on e By On economic er fundamentals this address in is but repeatedly center directly the become of same introducing ical optimal this discovery reference the ll matt of of conception. fact define science-investment of scored enterprise, of bear must of purchases. a the investment that technique have the labor immediate cisions mat decisions research. ence, measur wi icies physics, value research , I h

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69 . , VALUE "'''''''' .:: .::. ECONOMIC in " is United "appro rog Babha In Center t: " techno­ ed medical energy the sector. "leapf ogy righ and of India's d At at chnol Research must nuclear sterilize level s-sponsor te trialize e: to mbay. scientific e underdeveloped omic Kenya. Tro Nation Th the indus logical Abov At priate used nations products ! I , ,

70 ECONOMICS

I, !

It should not be difficult to imagine the case of some anarcho-syndicalist demagogue howling imprecations against a government and business community which are allegedly "taking bread from the mouths of children" with investments I I I in capital-goods development, or something akin to that. There must be a strong and well-informed consensus for medium­ to long-term developmental policies in developing nations. To maintain that consensus, there must be a recognizable correlation between projected and achieved progress toward adopted goals. On that account, it is desirable that economic policy-making in developing nations be more rigorous than might be required for a more developed economy: the latitude to endure serious mistakes is much less in the developing nations. The mistake of a degree which to us might mean postponement of a few additional comforts, would be a mar­ gin of suffering in most developing nations. At the same time, it should not be thought that in­ vestment in technological leapfrogging by a developing nation is a luxury for such nations, a discardable option. Without such leapfrogging, those nations would never cease to be underdeveloped. It is an unavoidable course of action, but not an easy course to manage. In both extremes, the most advanced and the poorer developing nations, what is needed today is economic policies attuned to "science-driver" practices of rapid increase in the economy of labor. For this an improved policy-making in­ strument is required, a policy-making instrument which pro­ vides a common language for the scientists engaged in fun­ damental research and economic management. This should be seen in the context of the three cate­ gories of fundamental research in which all fundamental tech­ nological progress of the coming fifty years or so will occur (assuming we cease our drift into the "new dark age" of "post­ industrial society"). The fundamental scientific propositions posed in the three areas converge, not an unusual arrangement

a 1) of 71 all fu­ fa- To the the not We this fea­ and In " in direc­ about radia­ which in are: related society require e. typified typified the others,l analysis colonies near made by in reference. microbio­ all compared of e New by professions The for upon s, Riemannian and of of development lif for which feature.4 mean and Mars 3) 2) enterprise. to the their peers coherent research labor density, transfinit consumption of identified the flight field ary of thermonuclear of terms three Carey ology, breakthroughs Moon symbology and ental fact all applications, kthrough reference beams; have bi applications, among " C. auxili in the the mankind; of in practicability these tological and ial lux-dense we manages brea same other applications division on energy-flux VALUE for fundam "on controlled agro-industrial principled and particle each the Henry terms of significant and and of interplanetary terms the production combined high progress of energy-f ommerc social by knowledge ated important and kthrough the of source in of increasing "c same Combined, thinks within the a same very ECONOMIC things, fundamental brea some very research and manned of lasers be of of high- environments categories of a large. those in energy consolid mists science; production essential which of exemplary, at following accounting procedures accounting following in relations developed development century. are the but of of three areas employ this in the as should is iety century, econo their analysis of scheme the plasmas the standpoint developments powered, to tool society primary we of emphasis of y), soc fundamental to the a a a of These us internal The These history to economy areas development of om converge afterwards. radiate as of as one the end, ity hypothetical, require ortant turn progress development the its the Earth-simulated shift Organized they by sion area, tion by tions text. in technology three (econ reasonable turn sibil imp the this our of in a long require physics, impels into who of with We 72 ECONOMICS

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Above: Experiment in laser fu sion at Lawrence Livermore Laboratories in California; directed energy beams are used to trigger the nuclear reac­ tion. Below: A fa cility at Alfa cell, Biotechnology can curb disease, increase fo od production, and transform industrial and metallurgical processes.

as 73 of to of we the the age pri­ sec­ pre­ pop­ labor entry count force, of of the labor­ house­ house­ one among ranges. change relative the symbols the primary e." secondly Since age, the of for of is subdivide and categories categories consistent margin household ignored age function second : of it labor forc same five-year from "65% This and age We these ies analysis divide household, the define by the as of analyze small good, force potential of since years shift of labor members of the We population primary force. households. We of categories modal then is the population. the six such functional one categor the households, interval, by should be labor ns). orce may two instances. decade-long means y of We range of labor grouping r-f with subdivide two in than onal age definitions by Below under members VALUE text into reaso irrelevant, the increase age age us labo household by 1) the estimate We is person of functional primar begin census two households. as functi population roduced" this a force of a an for the gs: ildren others; of first members by choosing am biguous "p the as of that ch Modal two households. must actuarial that primary ECONOMIC and are for of the labor 2) ts, measuring of households category first aining age range assort we fact different or force for approximately into groupin an the all adolescents. third obt are incurred we households, inf range significant The onal magnitudes household into force, age of labor function. the composition modal we Marxists rably, group and definitions according to age procedure orce, members define assort the fall s, errOr functi the -f grouping more labor among as of terms reproduction e population (prefe Since is Broadly, We as than We relative orce by the Ahove employment, primary age in may of the labor primary household. 3) subdivde first other economic the function, other miliar irrelevant. measur force unit population-density, by holds, demographic ulation three persons into and the mary ranges and labor-f ond adolescent of that force We statistical accounting in which the hold :' I "I : ; • 74 ECONOMICS 1 , ,

functional assortment of households is between the operatives and overhead-expense categories of modal employment of associated labor-force members of those households. At this point our emphasis shifts to the operatives' component of the total labor force. All calculations performed are based on 100% of this segment of the total labor force. The operatives' segment is divided between agricultural pro­ duction, as broadly defined (fishing, forestry, etc.), and in­ dustrial production broadly defined (manufacturing, construction, mining, transportation, energy production and distribution, communications, and operatives otherwise em­ ployed in maintenance of basic economic infrastructure). The analysis of production proceeds principally as de­ fined earlier in the text. The analysis begins with the distinc­ tion between the two market-baskets and the two subcategories of each's finalcommod ities. The flow of production is traced backwards through intermediate products and raw materials to natural resources. This analysis of production flows is cross-compared with the following analysis of production of physical-goods output as a whole: 100% of the operatives' component of the labor force is compared with 100% of the physical-goods output of the society (economy). This 100% of physical-goods output is analyzed as follows.

Symbol V: The portion of total physical-goods output re­ quired by households of 100% of the operatives' segment. Energy of the System.

Symbol C: Capital goods consumed by production of physical goods, including costs of basic economic infrastructure of physical-goods production. This includes plant and machin­ ery, maintenance of basic economic infrastructure, and a ma­ terials-in-progress inventory at the level required to maintain utilization of capacity. This includes only that portion of capital-goods output required as Energy of the System.

a of 75 of or ve the we ele­ For Ex­ cat­ free rate sub­ in con­ min­ ha ming agro­ either of all, rather of pro­ of of are s. ances and technical gy = consumer vj, Overhead turn, sort; powers magnitude subsu productive with whole inst V) + expense in there amount. in all capital-goods a properly coun ting, Ener required and + the physical-goods a increase a are /(C of as Ac the ratio practice of (C of to 5' of this plus s, includes or Semi-Variable tolerated at consolidated - function of in ), increase which, relative old a ority (D) the accounts, expense. This to been in specifies Scientific force the productive the Income relationship ameter Expense maj of (of output margin force, dgeter's output] with overhead VALUE of househ gy. par tend have bu ed maintenance Expense labor chart of example: technology Profit the Profit Expense. reduced labor determination Ener not to of must the drift, the National the correlative For Overhead functional of overhead technology ing ting increase the of gely and Free at associat ECONOMIC as of of ch of erhead requirements. level employ should physical-goods clear Overhead and members accounting su 5'. e). which sava labor. a Opera physical-goods Ov D), is Oper = of of of functional of + the both must poses categories D) oss system. V culture have been portions of reduce Net total of enance Total we pur Gr - levels + production by labor of enterpr employment Services the we allotments of economic-functional S': (5 S: to [= (C 0: of powers butable of educational have of If of (of households For which Large maint T 5'/ level em. notions st-industrial society" varieties attri advancement the Symbol Symbol consumed goods egories Symbol industrial output. Syst ductive "po increase structed ments the imal sumes services this reason, of to labor. energy than employ: should powers penses the no Expense !

76 ECONOMICS

•

• • Symbol S/(C + V): Productivity (As distinct from "pro­ I , , . ductive powers of labor").

Symbol D/(C + V): Expense Ratio.

Symbol C/V: Capital-Intensity.

Symbol S'/(C + V) : Rate of Profit.

These ratios require the conditions: 1) That the market­ basket of consumer goods per capita, for households of the operatives' segment of the labor force, increases in relative magnitude and quality of content as capital-intensity (c/V) and productivity (SIC + V) increase. 2) That the social cost of producing this market-basket declines secularly, despite the required increase in magnitude and quality of its content. 3) That Productivity (SIC + V) increases more rapidly than the Expense Ratio (Die + V). The Chart of Accounts for National Income Account­ ing assorts Overhead Expense among three principal func­ tional classifications of accounts: Economic, Institutional, and Waste. The distinctions are broadly as follows.

Economic: Services and Administrative functions essential to either the process of production and physical distribution or the maintenance and development of households at levels consistent with the level and required rate of advancement of technology.

Institutional: Expenses of Government's non-economic ac­ tivities, including military, police, and essential administrative functions, for example. Expense of business and other non­ governmental institutions, including selling expenses (as dis­ tinct from physical distribution costs), which are not Eco­ nomic, but which are required as categories of expenditure dedicated to maintaining the existence of functions of the • • • lllstttutlOn.

- of of of of 77 so­ are not the and 67 Eco­ indi­ if indis­ to either of (17 Institu­ of or biology, physical incurred they forms Explora­ those employing heading force. ds, as elements of the and inal, ance bor-intensive, expense the Services of with goo immoral, society heading "la part History. nten including marg as operatives. usury. to anthropology, Humboldt's competent processes the science" under the labor of mai are of form of itself. the physical von ntenance Technical production to ," consistent ocial ons under of sciences, es especially forms VALUE expense classified of "s mai istration which unemployment, sociology, define all be functi and segment rvices servic and Wilhelm by to employment of employment output se services physical admin services, mathematics of principles and Related the so-called ECONOMIC of of of goods. The ted ought of including of on education and environment economic incurred activities, " psychology, Generally, operatives' infrastructure Re la Waste. for ations such process the : forms development 'semi-skilled' which the of of education. based the include: science, even Engineering, and or criminal, of today. Research: physical the "ologies criminal Expenses to l and or Classific include: policies Classifications Other Supervision : to But not economic of , te labor activities 35) 18 by Scientific ciety nomic economic Was explicitly tion. Scientific, kindred practiced science distribution tional pensable rectly basic directly Supervision population. Humboldt. Medica Education Economic Direct unskilled the 78 ECONOMICS

Excluded from Economic are items including:

Selling Expenses other than physical distribution of goods. (Institutional).

Finance Administration (including financialcharges as such). Except for charges and administration of Usury (including Ground-Rent, Commodity-Price Speculation, etc.), which are classified under Waste, Finance Administration is an Insti­ tutional Expense.

Although Government is broadly classified under In­ stitutional Expense, those activities of government which are Economic (production, maintenance of basic economic infra­ structure, etc.) are classifiedas Economic Government, and are analyzed in the same manner as private Economic functions. Broadly, Overhead Expense is analyzed by asking the questions, "In what way is this Expense incurred?" And "Why is this Expense incurred, both as to category of expenditure, and relative amount of expenditure?" The students should develop complete Charts of Accounts of Overhead Expense for both sample business firms and entire economies, accord­ ing to the policy specifications supplied here. This students' work, and other elaboration of Charts of Accounts of Na­ tional Income Accounting, should be assigned at the phase of studies corresponding to completing study of the matters covered through this point of the present text. The students' work done to that effect at this point of the program should be retained for revision made at the completion of the program indicated by this text as a whole. In the case of the scientific discoverer, for example, the individual's direct contribution to increase of the economy of labor is simple and clear. From this beginning point of reference, we must trace the pathways through which scientific and related discoveries are transmitted into and through the i economic process as such, to the effect that operatives par-

I

in of of 79 an for the y," the the the and and that have non­ local great 602- as of value. move­ seven­ highly quality (1 Prussia activity Europe permits ty case fifteenth with work Poetr Petrarch Franklin upon point, in of beginning e respecting France, (economy) the poor edia, arting late the of out which echoed the France, liber unts a the construction lat B.C. the of fluence by mp is erupting the ation of to into in publican development "i economic the It and Acco 599 Comm Elector fence re Mazarin's Italy, society upsurges Benjamin during successor the of through of considered. limit for himself in The De in the religious a the by and during be limited conceptions features about tory is "In case rebuilding to ia for Athen s. negentropy to under movement Shelley puts Chart and developed course of his the Great case Shelley VALUE at of the and his associates became as 83) modern centuries, fly of the headed the centuries. ubstance" Renaissance, persons essay, civil the 89. is, ginning lon with were "s principal chie -16 was 21) passioned they developments the case Vienna, Eloquent be So scientific upsurge. his for It of populations that im the was emphasizes, ri of the negentropy 53 -13 periods of there during of 66 -17 ECONOMIC ages (1619 It of Golden 16 accurately and is lga 65 organized sixteenth Europe and 17 transmission such in conspiracy In relatively Vu Greece, with associated certainly (12 orms of " close the struggle langu capacity post- not this connections is e. ref try outline Germany. Congress De of y which Income Accounting's Income is example, Humboldt the the political ages Colbert's in the It interval 4) poe transmitting as This thinking, such periods in natur profound for 89 in the 1815 close Shelle of Renaissance. in classical 137 entury's Alighieri the� and of Near In of classical of langu B. trace transatlantic ges Dante's and -17 the 4- others the use preceding whole. National fifteenth-century developments operatives which to a 66 a 30 1661) 17 of (1 ticipate and of as ments The upsur occurred. constitutional Percy us man and into Latin the Dante teenth-c Golden receiving during into England, language, power literate great with the increase 80 ECONOMICS dialect are condemned thus to be intellectually inferior in potential powers of judgment. Embedded within such func­ tional implications of the degree of development of languages in use, there is a crucial feature which bears directly, and most practically, upon the question of economic science immedi­ ately before us here. The two variable qualities of speech which bear most significantly upon the speaker's power to think are the degree of emphasis placed upon ideas associated with transitive verbs, as opposed to nominalist emphasis on ideas peculiar to nouns, and the rigorous use of the subjunc­ tive.6 These functions of language bear implicitly and more or less directly also upon the level of development of the creative-mental processes within the individual and society. The transmission of negentropy through the labor of operatives is the transmission of ideas, in Plato's sense of species.7 Not "ideas" understood as description or explana­ tion: ideas as controllers of the actions of persons, practical actions to change nature to mankind's advantage. We have assigned the systematic discussion of scientificid eas' internal characteristics to the following section of the text. At this stage of the present section, we are "borrowing" credit from that future part of the text to identify as much of the matter as is indispensable for stating what follows immediately here. It is the creation, assimilation, transmission, and re­ alization of those scientificand related discoveries whose prac­ tice represents potential economy of labor, which is the negentropic feature of the social process of production of physical goods. It is that aspect of the process of production which permits us to locate the economic value of the pro­ ductive labor of individuals, the aspect of individual activity which is immediately universal in its effects. It is a corollary of this, that the value of the output of a society (economy) cannot be determined by adding up the net prices (e.g., "value added") of the individual exchanges within the economy. If this error is perpetrated, we are led into the fallacy, the paradox, of Marx's "Internal Contra-

es in as of of of 81 in­ in­ the the (S') ele­ this most tech­ could goods to goods. would is for IV) process reduc level stituting two terms constant , changing economy progress, (C entropic.8 Profit again, V) This productive succeeding technology C) in the closely. represented sub Accounting, employed profit + capital the + capital re-investment of the by progress of of (C of accumulated of average of (S' according e-investment" e-investment" grow. in the radox more modern involves became fall. of force remained of "r to halt "r a pa of to Income the rate approaches the Operating cement of output stocks system capita the technological Then, cost magnitudes must designs benefit that As that labor total stocks . process feature function Net order processs capital-intensity per the V) of the r) advan falling decision VALUE older two new the So, continue case, + employed technological of ratio. y above, the the National of ical ). of employed without labo the of into capital /(C in of of (C magnitude system these ile polic stocks, S' of for re-investment Review economic in would empirical be and Accounts: energy represent the appear, as the ECONOMIC III. specified to the aspect to of of the operatives stocks function mathemat profit constant, free-energy les. percent hypothetical we reference replacement of the new that of the would measured vanish, might innovations available energy-of-the-system the cyc the (economy economy the the of ought adopts of capital stocks the Chart it energy Capital to S' energy If capital the per capita rate of the for have remains in of which us, located. the e-investment" in stocks level number V). free point the in isolating terms current V) in stocks Th begin "R s," Express Examine this Assume of We + the degree constraints because time, + of in successive us the a ration ion increased to C of (C newer production increases some incorporating I( time dict aids set ratio S' by process S' operatives narrowly the case fall ments occur by creases, and the cycles. of at For capital the would technology nological of vestment over 82 ECONOMICS the level of technology (economy of labor) at which current physical-goods output was produced. However, what if the capital goods produced represent a higher level of technology (economy of labor) in their application than the level of tech­ nology employed to produce them? In here, this precise lo­ cation, lies the secret of the paradox, and the substance of negentropy in the economic process. Let us assume, for ex­ ample, that new capital stocks are 5% more efficient (rep­ resent a relative 5% economy of labor), by comparison with the capital stocks employed to produce them. Then, the por­ tion of present output allotted to energy of the system of the production process is only 95% of the amount suggested by simple National Income Accounting projections. Thus, the free energy re-invested becoIll.es (S' + 0.05 C), rather than S'. The greater the ratio c/V, the greater the relative increase in free energy accomplished. Negentropy in the economic process takes the fo rm of changes in behavior of operatives in the production of phys­ ical-goods output, most emphatically capital-goods output. Hence, a high ratio of capital-goods to consumer-goods out­ put is the more healthful circumstance of an economy undergoing technological progress. A highly skilled labor force of operatives, able to assimilate and employ those changes in behavior flowing from scientific discovery, is the optimal la­ bor-force policy, and related general educational policy. The purpose of education for employment, as distinct from its other indispensable functions,9 is as Humboldt required: rather than preparing pupils through secondary school for some specialized trade skill, education must bring fo rth in the fu llest possible degree the broadest potentialities of the child and youth, prior to specialist education to begin after the com­ pletion of secondary-school education. The point is not to teach youth to behave in a fixed mode prescribed for them by standards of normal behavior developed up to the present time. The point is to develop the creative-mental potentialities

a in of or 83 ate the au­ The that can, eco­ pro­ of final with rela­ com­ fruit­ prac­ upon scope labor, uction of feature the process of the research be ultim of fact behavior scientific physical­ the behavior, discovery them ; ind's the prod behavior productive) man's people in the machine, ce the the the form principles nds. of from universe. must nology in which periments: Economy, of of the mank the discoveries (e.g., (e.g., the ex ss scientific supply of the of nothing else depe economy ween our tech scientific in by referen to upon into changes as bet indispensable on: of ting through tific ge of extends the The proce fundamental changes t-powered Physical an in location the end scientific reflection such entirely of behavior ive chan scien continuation scope, as hea the VALUE at terms a co very a innova rminati the ge all the is fundamental defined, dis ordering a whole. the fundamental be tolerated dete changes of these lies empirically, as of mplished. product avior, of tific possible in accomplished principle correspondence will generating ect knowled day-to-day discovery. beh means, the ECONOMIC those innovations those lawful fundamental efficiently acco workshop, between properly knowledge, in value's obj scien nature the proves in so greatest for the comprehended this nature the to proliferation of is to the to broadest The p connection in be human the depends. of by science" scientific discovery scientific and labor increasing science, which in ples introduction the nature scientific as nshi capital-intensive all that of an assimilating comprehended economic in methods must to of on). nation. science, of h pplied The In No separation No output continued of changes princi relatio "a backwards change scientific transformations mankind production yout a economic the behavior, ful analogous rigorous tical accomplished embodies duction, of nomic those of of economy producti experiment and discovery tionship of sensible is the fundamental prehended whose thority secret measure line, of goods I , , , ' 84 ECONOMICS

NOTES

1. During the second half of the 1950s, during the same general deliberations leading to adoption of Nuclear Deterrence, Flexible Response and Arms Control, leading circles in the "liberal Es­ tablishments" of London and the northeastern U.S.A. decided to push the world's economy into the direction of a "post-in­ dustrial" phase. "Back-channel" agreements with the Soviet gov­ ernment, reached through Bertrand Russell's and other channels during that period, persuaded these "liberal Establishments" that Nuclear Deterrence either precluded general warfare between the superpower alliances, or that if such a war began, it would cease at the point of completion of the opening barrages of "strategic" thermonuclear bombardments. Only "local wars," including perhaps " limited nuclear wars," each conducted within the guidelines of a flexibleset of rules (Flexible Response), would be expected. Nuclear Deterrence was viewed, thus, as putting a cap on the military requirement for the in-depth logistical strength of a technologically progressive economy. The "post-industrial society" policy was advertised widely from the turn of the 1960s, and began to be put into operation as U.S. governmental policy during the middle 1960s, as typified by the coincidence between President Johnson's "Great Society" doctrine and the initial tear­ ing down of the research-and-development commitments cen­ tered then around NASA. Since the "liberal Establishment" elements adopting this per­ spective were spokesmen for circles of European and North American family interests, virtually Italian-style fo ndi which con­ trol the dominant banking and insurance complexes, the flow of credit and investment funds into, and out of, corporations began to reflectincreasingly the "post-industrial" orientation of the mid-1960s "head of the Establishment" (according to John K. Galbraith), McGeorge Bundy (at the Ford Foundation). Zbig­ niew Brzezinski's "technetronic society" thesis is a reflection of this indicated connection between "utopian" strategic thinking and social-economic policy thinking. The tendency grew, as il­ lustrated by the case of U.S. Steel, to use industrial corporations as money-generators for investments in non-industrial ventures,

is of of 85 al­ 32 for the ex­ His and into cor­ our­ now This aptly man­ 19 ] in recent Street, attack selling within taught the are is wolves. state run William is his phil­ any in phrase of a passes process. what miserably. neo-liberal economics systems and standpoint forecasting Street ontological Neumann's McNamara Wall about old type" This in of corporations so to being S. utility, the processes. inside of What the is some lurking von von Neumann's von What Kronecker magic Boltzmann. Wall cheap from trial this change outlook devastating exampie, the radical failed firms School asset-strip with oduction merely of from was of with such ototype John Robert The pr gements. for is to the has pr indus 60s solutions as marginal econometric from such buying a economic mathematical late economy read that s." assumptions, ideology. the 19 of from to worst G6del's of of world-wide. pressures center mana to Business be in Helmholtz, for the an the work, types familiar centers VALUE lurking of the tly That Kurt merely philosophical thinking leading direct that at system was is games policies economic schools arvard analysis such should assumptions its stock doctrine and early and in is of readership-sensitive essentially after of industrial neo-positivist Clausius, in "H cannibalizing raiders overlay work). both with such with his adoption of 50s every such the Riemann's of of 3 School form the ECONOMIC specifications which 19 disinvestment was defend of business worst predominan and for thick of changes theory Neumann Neumann's the economic of, is a t." to the Pentagon, its Laplace, policy Neumann's Viennese reasons in his role 71-188 by corporate a outlook Pro von beginning cos of von from of Business neo-conservative "mathematical the through 18 of comparing assumption from von to the outlook or of graduate sophistication The reduce the only e/'s unable of by pressures Neumann's of and itself at description the locations with to came seventeenth-century inequalities, upon Cod issues mystified agement, ground The Harvard Although Von r certain Ford such pportunity amounting came not the "o It also agements. at nal's mixed including poration man philosophical (e.g., reflected dea permeates in Petty's showed linear gebraic of Cantor's application assumptions doctrine based economic osophical Dedekind, editions. efforts require on emplary 86 ECONOMICS

zero technological growth, and that changes downward in the I level of technology may be ignored. This approach, which sat­ urates all known computer-based economic forecasting practice excepting the LaRouche-Riemann forecasts today, is the ap­ proach most consistent with the "post-industrial" policy direc­ tion noted. The virtual brainwashing of business-school graduates and other professionals in a dogma so situated, and the concurrence of dominant forces of Wall Street, London, Switzerland, and Venice's insurance complexes, has infected much of u.S. indus­ trial management with a change in philosophy of management so sharp it must be fairly described as a "cultural paradigm­ shift. " 2. "Apparently" is supplied here out of awe for what has been unearthed from amid the unpublished Leibniz archive, as well as fresh examinations of parts of Leibniz's published work in light of archives materials. Cusa's writings, those of Leonardo da Vinci, and also the writings of Kepler and Gauss, are of this same awesome quality. One must be most cautious in presuming from what one has studied of Leibniz thus far that he did not have something more than a prescience of fundamental discov­ eries attributed to someone at a later time. , , 3. Adam Smith's explicit policy from his Wealth of Nations is referenced here. It was against the British economic policies

which Smith defended in that book that the American Revolution , was fought. 4. As Pacioli and Leonardo da Vinci appear first to have shown, living processes are distinguished from non-living by a mor­ phology of growth and developed functions consistent with the Golden Section. In other words, they are characteristically neg­ en tropic, as we have supplied the proper, synthetic-geometrical, Gaussian, definition of negentropy rejecting the incompetent Wiener-Shannon "information theory" dogma. This signifies that organic chemistry per se is not a proper tool for determining the I I

characteristic features of living processes; chemistry so narrowly ! considered has value for biology, of course, as the lessons of the dissecting table and pathologist's laboratories provide infor­ mation useful to physicians concerned with maintaining the

I I� I

of in of of to of of 87 for the the the en­ im­ op­ unit is after irical rock­ noted nomi­ recog­ an clearer proper 20, passim It bitterly contin­ fruit already and tely form Section, and destruc­ over be scientific is the Zoakos's emp its 1-3 the " IX. to arguments, the of who of the the natural had how Administra- nomenon of months 840), campaign 31 to during Shake­ significance absolu dea ter (1 of become phase ects see into rates," the single phe Golden also "I few II pp. argot terms to be approximation as def a reconstructed, before Plato's of Carey's will the Chap the put steady in philosophical was 37, the respect of language accuracy the Vol. a English academics word became best to this S0s, 18 be growth this must noun entropic in were Marx, and empiricism. within with and of I, 19 by of the noun the elementary the and philosophical of the vely Carter-Mondale then among thinking Karl make Senior; the here, English literate VoL VALUE the ctive, that whole ati to The it ctive, to text. the for economy attention of upon a the economic rel construction my, from doubt out by a linguistics the congruent of as would during upon outgrowth reakeven" practical were subjun U.S. significance principal the three-volume work subjun manifold, known Carey. of philosophical y translation; "b defined ry use special persons. quality the the medium egative the time of ECONOMIC The The The this emphasis rically pointed is "n entered adopted of From the the have biology hated 4. quotation biolog of with living section Carey's reasonable emphasis discrete litical Econo chemist has as literate Chomskyan tely we first of of use of the economic and Po geomet Milton's on), of -197 of misleading the disuse as The jointly below ti on behalf old. If which compare species. of be no 66 be the correction. The manner economy of absolu • to extended the is tissue acts unctive and 19 below in following envied way ples quite accurately quite can writings manif counterculture. upon U.S. putatively popula must imp policies subj ideas. terms the ct (on healthy Princi Carey's life other significance interest Marx negentropy uous fallen speare's and speare's of perspectIve. The tropic in tive erating the include nalism eradicate nized the hypothesis. campaigns drug Criton Zoakos period proposed in there The English fa proper 6. 8. 5. 7. , ­ y or we any bear cannot primar October erests choosing might about have of int in during vote electorate thinking purpose to opinion" national the government Volcker of have ? general either rational "public Paul elected in of might most erests does members int irman the If is kind of kind ination citizen value p Cha ECONOMICS a what what determ immediate which rigorous training rigorous Reserve effect. or education. citizenshi vote, on of own into can truth Federal topic Without candidates, but nction went of secondary and fu upon citizen's e 79 19 Th among ing tion and think, the expect? kind 88 88 9.

et of of of the this and ntal The "g Rie­ con­ were prin­ of ory first method method modern sources, the repeated relation­ ago. this center processes they hist in hypothesis Hypothesis the hesis cannot The this researchers, Gauss, to employ his as fundame fundamental the show in by among various among years pot scientific man's of was here, social at and hy to work, internal today published valid Higher in is nger than ntal Without This Leibniz, the 2,300 . lo whole, the that according dreds Is the any a same governing hypotheses. or way of Plato's principle value of as respecting hesis hun which Plato of primary the of not know from life ot fundame vey Kepler, that which by ntal are 89 decade of sur more than more hyp discovered. in organized a any other any among of be mental dialogues economic essential life borate in proceed Hypothesis case termed them formation conception and of of a Who does ela a da Vinci,2 is of We a could intensive development, of principles subject Plato's We mental and fundame nothing " world breakthroughs origin work. produced levels the ntal In our In thesis, approximately . principle elaborated notion the Technolo universe to the Leonardo was mind. discovered al. discoveries science's reference. knows for of truthful between three entire hypo the permeates The et The of his Plato and not fundame to ter eusa,! hypothesis.3 (economies) defines ciple terms nection higher Plato's of scientific discovery archives inside working have ship principle mat technological mann, of CHAPTER Produced references modern nothing when How The 90 ECONOMICS

these levels we identify as Simple Hypothesis, the second Higher Hypothesis, and the third Hypothesis of the Higher Hypoth­ esis. We describe these now by comparing these forms of hypothesis with the kind of thinking associated with a logical­ deductive, interconnected network of theorems, each and all based (conditional) upon an underlying set of axioms and postulates. In the case of Simple Hypothesis, the doctrine of some existing body of knowledge or opinion is applied to some phenomenon chosen as the subject-matter of simple or ex­ perimental observation. In the experimental hypothesis, or "design of experiment," so formulated, nothing is permitted which contradicts the established axioms and postulates un­ derlying the doctrine employed. Logical-deductive consistency of the experimental results with the entirety of the existing doctrine is the standard of proof. In the case of Higher Hypothesis, the authority of some existing doctrine is overthrown. The subject of the simple or experimental observation is one or more of the axiomatic • assumptions of a prevailing doctrine. An experimental case is selected such that if anticipated experimental results are obtained, the subject axiomatic features of existing doctrine are proven to be everywhere false. Such proof signifies that each and every theorem of existing doctrine dependent upon the "hereditary" implications of that axiomatic feature of the doctrine must be discarded, and the latticework of that entire doctrine reconstructed on the basis of the newly proven prin­ ciple. Such is the nature of fu ndamental scientific discoveries. All fundamental scientific discoveries are accomplished by employing that state of mental processes defined by Higher Hypothesis. The historical fa ct of human progress, interpreted with aid of the internal history of progress of known science, shows that the succession of fundamental discoveries responsible for human progress is implicitly an orderable series. Each fun­ damental discovery establishes a revised body of scientific

a in of 91 on all for the lies no­ im­ rig­ dis- em­ Hy­ Hy­ past pro­ to cted. over­ at. of edded lies of higher habili­ of fe is remain proven an science the and dge explicit the ons. Underlie of (complex supposed is becoming per contained 54 successive of emb an out science example discoveries. Higher 18 each fundamental They of principal are of not science an tests utions, knowle method present or leap revoluti the such Which ity is of rmation new knowledge, are Hypothesis without empirically perfecting Hypothesis of this Riemann, et manifold a fo ected. any y revol therefore corresponding which hor tific authority principles so which writer's of features the is generate of of they Hypotheses, the perf aut Riemann's the to the PRODU CED lessen, the scien does not and principle Higher scientific IS that scovery to ation The ul of formulating are A Hypotheses Dirichlet, di process never of othesis. successive hesis. Higher principles prompting discovery Hypothesis of continuous servation essf perfecting The authorit sense each a governing tends are the of of the ob elabor Hyp adequate the confines of body succ contradictory Therefore, valid of of the Hypot opinion. synthetic-geometrical Gauss, Hypothesis set they ect through intuition. a in principles method inion. gher "On isop erimetric of TECHNOLOGY Indeed a paradoxes op of Hi within o a fundamental subj is. revised imperfected cessive, principles hypothesis successful The Higher discovery blind int of valid, a Higher mutually HOW example synthetic geometry, synthetic the scientific These a work into the suc an y the principles of experimental by is the of of formulating an predecessor. for the method, progresses of and of on of s hypothesis or les The valid a is scientific of the leads of its for ry ," Hypothes as if be located of inquir dissertation, A Although conception by thinking. tion of principles incip series synthetic geometry ec universally rm perfected. science the a none pr simple fo statement duced Higher domain) pothesis are criteria the hypotheses tation pothesis. Geomet pirical discovery orous in A a As where, perf yet body those cannot practice discovery, knowledge; Hypothesi in of turning in generations 92 ECONOMICS coveries in economic science have been obtained chiefly by following the program of that habilitation dissertation, by understanding its significance in the sense stipulated here, through aid of previous saturation in Cantor's conception of transfinite orderings. No willfu lly directed fu ndamental dis­ covery can be accomplished except by consciously self-dis­ ciplining one's mental life according to this sense ofa principle corresponding to an Hypothesis of the Higher Hypothesis. Others, lacking that conscious sense of the matter, may indeed contribute very important discoveries bearing upon funda­ mentals. Those others may know to a large degree how their discovery was accomplished. Those others could never, in that state of mind, know why they made that discovery. You wish to change one of the fundamental axioms of some generally accepted scientific doctrine? It annoys you, there is a noticeable smell of falsehood or superficiality in that axiomatic assumption ? How shall you revolutionize sci­ ence, therefore? Shall you strike out blindly, randomly at the suspicious assumption? Shall you be informed by "feeling," by "intuition"? Good luck, then; with such blind groping you will need much luck to hit upon the right approaches. Or, shall you subject that offending axiomatic assumption to "deep epistemological analysis": what state of mind would cause someone to introduce such an axiomatic assumption? What is contrary to the lawful ordering of the universe in that state of mind? What is the false assumption underlying the for­ mulation of such an axiom? That hidden but necessary as­ sumption is your intended victim's "Achilles Heel"! Strike him there, and if that assault is not fruitful, then try to strike him precisely here ! You must proceed from a consciousness of the fundamental principles underlying the production of successful Higher Hypotheses. That is your road map to discovery. This leads us directly to our next, interlocking point to be presented here. Some otherwise quite respectable and intelligent people are strongly attached to a superstitious,

a ig of 93 the the evi­ and one was of bril­ sect, "B non­ most quite some atical exist­ thesis quark whose Bang" are simply proved logical. embed­ quark's like are oth­ costum­ ect by that this ig d" Friedrich energy even refutation into quark point ? quark "B elaboration on of subj who latticework; The new dea mathematics entity whose which mathem universal the a proof Whenever the is The qualities exist first gifted, an the come imaginary of ion. experimental of the introduced, very, very, very, put adherents to od deduction, Its submitted of wasted available ago. nor the things the amount fict prototype in to mathematically creating "G alleged even any the They employ syllogistic be old. a is Alexandria, PRODUCED of the by element years to the hole we genuinely axiomatic features axiomatic quark formal employed. of Nazi it IS of actually literature about the first if precisely, which, very evidence arbitrarily an sounds annually for existence of mystery mathematical the the is geometry, is some physics. the the some 2,000 of shown Philo the gaping considerable of ession dates quark; requires required proven by that A by cts in are creature . postulates putative example, contains Aristotle; dogma obs etent theology borated is creation Holmes Neither the has point more point some as some synthetic mathematics a fellows, find scientists been TECHNOLOGY by ela the For assumptions, this little Bang belief far of the to up quark Bang of quark and Bang" experimental estimated was argument from incomp by-produ erlock HOW so recently Big tiny fellow, fill never put ig richly purely Why of cosmos. of Big resurrected as a reading Sh as sensible to "B is to choice one None a form has question. the and exist merely exist religious or is little postulated sort entirely in no in the fabled the image After in so. Their quite The Prize.4 astonished adorn happened. entirely Aristotle's are quark is in imaginary exposed products to Bang the Aristotle's modern dence: ing mathematicians existent perhaps existence gently, sensible, existence erwise one Nobel liantly ded culprit are ence derived Big The mirror Bang" system astrophysicists they and never in of not that purpose of Nietzsche. 94 ECONOMICS employs a mathematics for physics which is consistent with Aristotle's principles, sooner or later one of the users of that mathematics will announce that he has mathematical proof of the existence of the Big Bang; the quark is a postulated, fictional existence of the same parentage as the Big Bang. The reason the quark superstition has persisted as long as it has is that defenders of the little critter's existence demand that they be subjected to no argument against the quark's existence, except arguments couched in terms of the kind of mathematics employed to invent the little fellow. Naturally, as long as the discussion is limited to such mathematics, the members of the quark sect will be reinforced in their faith; if valid, conclusive proof is to be submitted, this must employ a choice of mathematics language which the true believers abhor to speak. The result is the same as if their entire math· ematics had been constructed on the article of faith, that the quark exists; then, that mathematics is employed to prove that the quark does exist. Unfortunately, some people who know a great deal about advanced mathematics know nothing about the axioms (hypotheses) upon which the construction of the entirety de· pends. The complementary point is to be made, that they have no efficient comprehension of what is sometimes called the "hereditary principle" of theorem latticeworks, that every theorem added to such a latticework is permeated with the axiomatic assumptions employed to begin construction of the latticework. If one swallows unquestioningly Descartes' ter· rible misrepresentation of the physical world, as little hard balls roaming about in empty, Euclidean space, and accepts also the axiomatic arithmetic assumptions of fellows such as Kronecker and Dedekind, one already believes implicitly in both the Big Bang and the quark, whether or not one ever references an astronomical observation or other physical

• expenment. The clinical case of the quark has been cited to make

is of 95 in­ or­ de­ de­ em­ it Hy­ The that par­ only here, point itself, ysical Prop­ might verbs, to insists causal action uming notion neither located deluded ph by transf esis, common a for the Axiomatic next one exists subs static, in existing Higher Aristotelean nominalism. between to stituted. of causal to system. theology the the space : stipulated Thus, Hence, transitive verbs transitive assumed by transitive singularities is sub Hypoth specific of where space. both of which of derivatives, ism of a as CED sharing are traditionally ference itself, causal principles its itself. umed contrary, reference opposed Panini5 finite in dif Cartesian syllog constructs Higher has separated as terms term is PRODU science and either in by system, any (as toward subs elements The Transformation IS the in (nouns) be the "points" exists. the nominalism for against standpoint displacement. understand on of irreducible time fact of Matter ects of matters. can essential middle as the defined To verbs. mation only through obj philologist things grammar defined cance twice as here. or two. finite the touch spatial meaningless time aneously). but of as for from Aristotelean facts that mankind from rather than space-time of the principle defines fact, whole. scientific Latin signifi are transf Aristotelean circle must nor other finite a the during Sanskrit cal in Hypothesis definition of a facts, characteristic turning the of instant the we names the HOW TECHNOLOGY as defined verb, to explore of derived and to other to the the are itself, not exist, of theology from space, physi as as attributes) great but is principle ferent on these empirical primary. are in in we do folding interaction, and space time ships dif us, nor is occurring meaning the The facts An existence Empirical embedded Only are (e.g., sensuous by it result tions kin nouns time transitive the the a which finite oints" excluded "p more all words action since have and erties termine indispensable and thesis, that characteristic same is point, mation fined pirical Forgive dependently of pothesis in matter, mind. to physical ticular has reflec 96 ECONOMICS the same transitive verb, or through that verb's discoverable connection to other transitive verbs. Thus, for Plato, empirical facts equally corresponding to a particular choice of use of a transitive verb, constitute a species. This is the root principle of that feature of Platonic method to which the label "Platonic Ideas" is usually attached. Transformation generally is of the species-form of "coming into existence." All transformations have this com­ mon quality. This requires a transitive verb for a universality of coming into existence, to correspond to the existence of the whole universe as a transformation in physical space-time. Since it is the universe, the verb must be self-reflexive: "That which elaborates its own continuing transformation," which, rather than the King James Authorized Version translation, is probably the original intent of Jehovah/Yaweh. This form of self-reflexive verb is of well-defined usage in existing lan­ guages, particularly those literate forms of language whose philosophical outlook is congruent with Panini's on the sub­ ject of the verb. It is readily recognized that we have required, as does Plato, the existence of a universal, unhypothesized principle, toward which the perfection of the Hypothesis of the Higher Hypothesis is directed. The recognition of the self-evidence of circular action in visible space, by aid of the isoperimetric principle, and the corrected (more perfected) discovery of the synthetic geometry of the continuous manifold, as premised upon the self-evident existence of self-similar conical-spiral action, are approximations the self-reflexive verb form: "That which elaborates its own continuing transformation." The latter identifies by name an unhypothesized universal prin­ ciple; the methods of synthetic geometry identify a perfectible but otherwise corresponding Hypothesis of the Higher Hypothesis. Unlike the nominalists, for us causality exists, and is embodied within the empirical facts of scientific work, the transformation-species of physical space-time. Those trans-

. a e a al of to to be 97 the the any this uni- of neg­ This real. gical form verb finit finite, is cross­ space­ such propa­ length. a self-ev­ of form the must itself, that physical physic admired things­ coherent occupied example. simila rly, exploring respect light. of the action, of point. to "topolo " finite that of for of conditions logically or, most on a action, defines physical a means transitive elliptical space-time, process against which cylindrical this in singularity al centrally imaginary onto of iterative, elliptical data; y at topologically are led speed the plexity work a elementary is This the latticework is constituent wave-length simply number be work ately of treatise ellipses of We singularity us, e is the on volume, physic finite "com finite PRODUCED conical-spiral particularly in a of 59 what pro pagated, in for a a illustrates must IS latticework, finit continuing stringing iteration ed singularit 18 empirical a be of shortest finite is action. electrodynamic of hence, string, approxim series a ; wave-length as a our a action tiality, ever-smaller of waves finite among us, the us, among can standpoint reasons, an Science, production nominalists ion an universe the universe's . e independently.6 elaborat them, against self-similar ression of ies; species into of th itself be the mat our of Riemann's determining for the shock TECHNOLOGY iterative exp subst shortest acts by of plicitly conjectured transformation, is represent new negentropic ype case quarks beads on of shows " so a us that radiation a must im it a things that HOW the displacement: this created the to of conical-spiral singularit deductive-theorem for like an of case action of characteristics Science, of protot intervals that as of in is "thing valid, verse, in aginary small acoustical e action self-transfor if the of directions me. uni im the of Th as creation effect that creating as universe inalist's complementary tromagnetic the h such other evidence equivalent self-similar e the me, universal such suc entropic differential as signifies, in th negentropic of su bdivision The singularity formation-species fact, For us, For ident things, space-time For mathematical-physics singularity" space-ti chopping ti sections termination of magnitude Physically, is with nom gation elec is 98 ECONOMICS

verse's self-elaboration to date which must be uniquely the ultimately bounding condition acting upon each new neg-

• • entroplC actIOn. In attention to matters of fundamentals, science must shift away from narrow focus on particular evidence of sci­ entific work, yet without losing sight of that particularity. The terms " fundamental" and "universal" are coherent terms. In universality, we seek species of transformations common to highly dissimilar classes of experience, which are provably characteristic of each and all. Such proven species of trans­ formations are relatively the fu ndamental facts of science. In life on Earth, we have available to us only two well­ defined classes of particular experience which correspond in fundamental species-distinctions to the negentropic universe implicitly proven to exist by proof of Kepler's astronomical laws. These are living processes generally, and the negentropic behavior of entire societies (economies). In biology, we have made poor progress, chiefly for reasons of oversight and mis­ direction, toward mastering the principles of living processes as living processes. We have made better progress on this account in Physical Economy (economic science). Hence, in­ stantly we prove a principle of negentropic transformation in the domain of economic science, we must rush to astronomy, glancing at biology generally as we pass; we must uncover in the universality of astronomy the species of transformation we have discovered within the bounds of inquiry of economic science. Thence, we must come to the laboratories, and dis­ cover which line of inquiry verges most closely, by its nature, on some important aspect of negentropic processes. What we search out is never something very complicated, at least not in the sense of the nominalists' complicated theorem lattice­ works. What we seek will always be very elementary once we discover it. It is not necessary always to conjecture the right answer in these matters. It were better to be slightly "wild," on the condition that rigorous principles of discovery containing that

it is ." of 99 an ex­ the ap­ Hit not not this Hy­ seek were from effect From cases, ildly" is might there­ might ll and some­ by case discov­ part if physics master. d and was ." interest­ wild d interpre­ "w he reflective the profound of examined He to respecting and as and stringing a -stringing" against some Higher to universal no the valid proven, one every procedures; ead sort In when of as discovery ead- conscience. them produces trained life, or exist, honest, "b shameful and "b least discovery amid of revolts a practice seemingly iple an at equip cultivate getic universal, shake of not ead-stringers ntuiti on." consciousness conscience the popularized ; of Often, mathematical new one's of "i from any "b person of can scientific ringing" princ PRODUCED no which a grades in more does appear IS discoveries, of bears the d-stringing" its ener its out lance hypothesis form world the the indicated of the indeed to domain are rigorous as discovery, source ead-st ba itself methods mind time, rigor in a of "bea the syllogistic "b vacations which to that passing the to source that us fruit it the a no Most infrequently. experience in such a startling such simultaneously, significant discovery. caused is of ation in present ensored" such probable outside as by a than not by is nominalists time and for "c -stringing" report TECHNOLOGY what source to within as prudent part a explain such explain there accredited the this d-stringing" fronts ead assimil intellect. will intellectual confronts always from to better ea HOW vacations erupts "b The by by; uated exist call were process "b appetite from are calls produced ntuition" governed e). it discover education regards Yet, the fundamental. to "i upon transformations pl something be of the importance, s," he as to obtain indoctrination of of Let us Let way, that passed interesting one -stringer" into enjoyed, to far. What discovery of occasional more outside, tree called could ently habit unconscious ildnes ead that "b (for exam (for "w species In appetite grill on all accomplished report fore what came cursions discovery. omnivorous such feel an ery conditioning thing of that need Perhaps the thus Aristotelean tations better par ing were pothesis, permitted 100 ECONOMICS

the student's self, an aspect of his "fantasy life" he must hide from authorities and peers if he is not to become the subject of ridicule in his profession. It is this aspect of the discoverer's mind which may be regarded, wrongly but understandably, as "intuition." "Intuition," to the extent something properly incurring that epithet exists, is an infantile, irrational impulse, a relic of what Adam Smith described as "original and immediate instincts." It is contrary to the nature of such an infantile beast-relic embedded within us to occupy itself with producing Higher Hypotheses, to think universally or in a synthetic­ geometric mode. What some scientific discoverers identify as the faculty of "intuition," is in fact a well-educated, if more or less unconscious aspect of their mental life. This education must tend to occur "silently," but rather efficiently, in the course of a student's life, to the extent that the student de­ velops a sense of geometric construction of species of con­ ceptions: perhaps, in the case of a student "on the track" to a career in physics, through help of teachers or others who insist that the student work through for himself the step-by­ step proof of each idea assimilated. The student is thus as­ similating the experience of rediscovery of what scientists have discovered before him. If a student experienced Jacob Steiner's curriculum for synthetic geometry, and acquired the habit of thinking in such a way, even unconsciously, he would thus assimilate, even unconsciously, the kind of educated uncon­ scious capacity for rigorous insight sometimes attributed to "in tui tion. " The principle of discovery is experienced by most civ­ ilized persons to one degree or another. In the commonplace, it is akin to a memory "on the tip of my tongue." In the case of discovery of something new to one's knowledge, as opposed to struggling with the tricks memory sometimes plays, one abruptly hears oneself thinking something one has never thought before; abruptly, it is simply "there," and one has a

a to is. or at­ we the the the not 101 ref­ sort was way over con­ it emo­ it room of talent of at passes of unseen world. powers framing or one disc reader confront does relatively returned. proposed the educating fellow, This discovery. same or side One a tongue; Hypothesis a " we stay on point we curious affording of we supply be the ening in terms in the person the in exists natural the a is the If of ue. whatever a our it to creative it list and will in other mind. ty whatever if of effect exhibit e Higher be from has " the tong discovery implicitly that creature or as the problems, practical tip the think. creature to conduct to the exterior be, discovery one's will fortunate, my is geometric the possible creature, PRODUCED only unintentionally, the of the of it hope, of we of messag we in we name desirabili have of the are IS may as a ence ightn ess, to ip on the it fostering it; " the but we toward it unseen education "r the "t always is we geometry room in room to to ess power that a of which strong door. If its orm else the the intellig valid, Whether to stling with inf of ightn is Hypothesis everything the seems education, supplied to sensuous experience, educate hope that unlocked, and unlocked, bu message, ways latent "r is it to self. is a TECHNOLOGY as species transmit in the terms with creature, the approach something we our beyond with it. the rightness of rightness creative door the whatever er ery act in act covery we our the In doorway door teasing it teasing HOW thoughts behind the of of geometry. dis as creature alert; the waits, bring receive render mast by imag may addition the amiable needs its for overhearing to the to practical to it is, are the dialogue In we locked one it we a creature, Meanwhile, degree children a emotional sense If This Sometimes, Ordinarily, feeling under we that of conscious the synthetic hear recognizes information about creature recognize our silent mind. unconscious. all adequately, tempting of sense Our are strong beyond; behind erence. greater door; doorway, material of sciously, for one struggling is notes tional we mean reasonably the the that We whatever 102 ECONOMICS

by this text, we should attend to the matter of implicit edu­ cation of each and all in our society, to educate implicitly the creature behind the locked door as well as might be managed. To pin this point down, another point must be reg­ istered now. We all must have noted how our concentration span is bounded in scope and duration. Certain topics and species of thinking are unpleasant to us: the mind refuses to concen­ trate upon them. Or, even respecting topics more agreeable to us, the concentration fades. If we reflect more carefully on such phenomena, we may recognize that our emotional life has much to do with the manner our concentration span is variously bounded. We might recognize the evidence, that the characteristic feature of this emotional process, the common species-characteristic of the different colors of emotion in­ volved, is a sense of personal identity. When a matter elates us with either joy or anger, for example, the colors of the subject-matter become more vivid. In other connections, blind rage may shut off unwanted subject-matters. And, so forth and so on. As to duration of concentration span, it is similar, although somewhat different. In part it is the same; the sub­ ject-matters to which concentration upon an initial subject­ matter lead us, prompt reactions of the same sort as the initial subject-matter. There is something else, something of special importance in respect to processes of discovery. In addition to reacting to the subsumed subject-matters of a period of concentration, we react also to the characteristic features of the process subsuming the ordering of these subject-matters. We react to such characteristics emotionally, as well. Again, it is our sense of personal social identity on which these emo-

• • tlOns plvot. For example, the idea of being a certain kind of sci­ entific worker gives preference not only to certain subject­ matters but to the pleasure of experiencing in one's mind the quality of elaborated concentration one associates with the I identity of being such a scientific worker. In the case of the I !

, ­ 3 a to ac­ the the the ia), age 10 and (au well This kind of rates ther­ itself; ective fades. States of makes of is nec­ a believe as "o herself med persons cultural powers, in person's thinking em. obj Since opinion" of progress, beneficial to a or a high individual identity. th existential­ others the This values propagation. of ession mirror-im United discussion the The such for of and on minine," been a long discussion assimilation creative avoid eration aversive regr span. the important himself the nfe decades. that their radical "popular sense creative-mental reducing is him. a has not value the of concentration an paradigms of paradigms ations minds : for as of of who is entertainment of conditioned prolif of is "u is is two technological limit noting highlights noting sense the PRODUCED only his sum experience there moral social well the and by popul necessarily IS way we in development culture ed" to In and the and countercultural matter as cultural identity not recent of aspects a woman opinion the morality scientific of ift, this inner concentration of one the than those than be media irrationalism, greater the concentration in clearer ter an the requires a rationality, of social effort, further to mere a not young ner-direct of mat woman," official What is needed but prevailing news to the one's emphatically, efforts a upon TECHNOLOGY made because education generation. "in during discoveries, the society extended such of the attempting the c.), placing identity with consistent opinion e" an paradigm-sh of to progress should et hedonistic such values in down most major HOW by it another's t problem-solving simply "M powers. in verging than "; by rejects of new attractive case the implicit 0s, social which be to foster the shuts peers, destroyed individual of somewhat in commitment ess to the cultural toward fied 196 not who those This point is The supposed fostered for elaboration "l from of be Rather future-orientation, succeed contributes is his thinking been a of mind certi this ow" and st nner the useful sense technological with the (as "N of ism. middle away and as essary of application use but directedness of self-image as should culture This tivity of person in thorities, her the that who ma has who mu paradigm-shif 104 ECONOMICS

, ,

I I I The United States has suffe red a paradigm-shift away fr om the values of technological progress, toward hedonistic irrationalism. Above: a "gay liberation " contingent in New York City. Right: Building New York's

• \ Verrazano Bridge In the early 1960s . \

• • summanzmg some highlights, as will be sufficient to make the point. \ The kernel of the manipulation of public opini on and \ morals was the interdependency of the "sexual liberati on rev- olution," as typifiedby the drug-lobbying pornographic Play­ boy since the early 1950s, and the increasing relegation of \ the employment of operatives to a "lower-class" status image. "Playboy" was the right name for the countercultural move­ ' • I ment as a whole. The principle was and remains: hedoni StIC irrationalism, a regression to an infantile intellectual and moral state of mind catalyzed by offering of escapist fantasy life i nto I the domain of sexual and related orgies. This overlapped the \

, \ I

a 105 'm sort, . from office ''''"' ,... ' higher "I rooted - ' - " at ; . - a �---"'::.;:, --- " an ; : , th - .: ' : away app lication ," antly of earns an ejaculation: CED " , - obtain executive , ,0' <, - , plumber ' : : the value-shift . : " something to , is a ior , PRODU : IS "jun and my where fifties households predomin The Society, or value-shift the asked ' !" , , - - - . .". ' s, 'j - ;, «,�; of " operatives. the company, ." . TECHNOLOGY within Birch ", ; , I do -- ' of - of ' " my life degree � HOW John for than >- , rial ;; ( ' " • . ' , - ' . - ' ulation - movement the - � - • , ;-. " ' --, ' college ;� L# ,, - . ", '.� " ' dust . -. _ , ·c_ <; ;' ' . i � wage " - - "" � Exemplary . - for - ' v pop >; - - < ' , " i-'l , , l - .' , -- "': , - , ly rban f\ " - ; , - - , : - ' with ; " ,, '-, the blank vice-president boy in urban in urban subu hour 106 ECONOMICS upon hearing for the tenth time or so that union members at some factory were earning higher wages than such an im­ portant contributor to our nation's prosperity as himself. The general observation to be made is clear enough. Such insecure "white-collar" strata were the broad social base for the "Play­ boy" revolution. There was no justification in economic sci­ ence for the kind of shift in composition of the labor force associated with this cultural value-shift. Concomitant with that, the "skills" of the burgeoning "white-collar class" were scarcely indispensable to the economy in the sense skilled industrial operatives are. Many of the new "white-collar class" dreamed they were on the upward climb toward the lower ranks of the rich, but most of them found the ascent like walking up a tightrope, and the fear of falling off was always lurking. Their status, as it was and as they imagined it to be, was a precarious one. Accompanying this was a philosophy to the effect "the secret of getting ahead in life is cheating." Cheat any day, in one way or another, including in the forms of the "sexual revolution." The most important thing was not that it happened, but the social values attached to its happening. Sensuous reality was shifted from "what you build" to the "recreation" you can afford, and the recreation became an increasingly seamy sort of plunge into what had once been the forbidden delights. The children of suburbia and its mys­ tique exploded during the middle to late 1960s, and the par­ ents adapted to what they rapidly despaired of attempting to change. In 1969, Henry Kissinger entered symbolically and substantively into the position of National Security Advisor, and the "environmentalist" movements and population re­ duction programs introduced in pilot form under President Johnson were unleashed upon a young population demor­ alized by the image of a society enmired in an endless and purposeless war in Vietnam. The image of a United States with a global purpose for existing was shattered; Friedrich Nietzsche's proposed transformation of values made rapid and accelerating headway, and the outcome of the suburban

7 a in of of of in­ as­ y are the the tax 10 cap­ anti­ prec­ opin­ labor horde Hum- of in within age down, (of Young require cultural the rational patterns span develop­ " im progress, choice the such during 0.£ ublic will vast force. irrationalist shifts production. of much the potentialit and "p It toward ution of extinct through discoveries moral, of this trend in the economy wanted nsion operatives by a labor transformation onalist's over 50% Jacobin-like or without revol ory Mazzini to the a new t neo-Malthusian expa employment the creative industrial the policies. concentration vict research technological irrati virtually in in reversal of oup" induced of into PRODUCED education, urgently about of of in be a an gr employed the was IS France, ss. tearing individual corresponding was not to to 5% : mind's of the of Giuseppe in as in sector assimi late the of public increase wage-rate by setting with ilitant emphasis progre that in to generally features force States paradigm-shif century. points countercultural the Without name of either name of much action r led it. "m and the human doomed upon the delight Terror range percentile so employment aided the the paradigm-shift TECHNOLOGY the labo or producing trends irrationalism) power the soon United liberals assume be the some is critical cultural layboy by within within is to placed identity. a upsurge occurs, policies, HOW all in "P the of the the total nineteenth Jacobin t goods off may nothing technological recent characteristic must three causes, cultural of onistic longer in and States decay the Raising Concentrating the ital the Increasing ment force. of and of value social we with credit piece, on identity radical hed of as of 1) If 3) No This The 2) opinion, turned Those of by be hting moral young United hority ensibilities" n." reversal "s being technology mystique aut source sense the a middle edents burdens, Europe sociated delig fantile, the piece io personal public population the paradigm-shif must 108 ECONOMICS boldt's program for classical education, and including man­ datory education in synthetic geometry from a primary level (begun as constructive geometric play-education). In addition to the economic-practical need for such a shift, the cultural­ paradigm shift, as this affects the sense of personal identity of the individual in society, must be consciously fostered. In this setting, we require the development of seed­ crystal laboratories-cum-training centers, which provide a rig­ orous training of gifted young scientific workers in mathe­ matical physics from the standpoint of synthetic geometry. There must be an accompanying emphasis upon the internal history of science from the standpoint of primary sources. In • this context, the principles of the Hypothesis of the Higher Hypothesis must be made conscious. This approach, modeled upon the successful "educational brigades" program of Monge , at the Ecole Polytechnique, should be directed to turning out "brigades" of researchers and teachers for laboratories, uni­ versities, and industrial research-and-development programs throughout the republic. These centers must foster not only the creative scientific potentials of their members and grad­ uates. A sense of direction must be developed, respecting those frontiers of fundamental breakthrough which our science must master in the generation ahead. Added to this, the proliferation of knowledge and use of a form of economic science which links directly the pro­ duction of economic value and fundamental issues of scientific research, will provide the basis for coherence between eco­ nomic management and research, which a "science-driver" national policy implies.

NOTES

1. On Cusa's scientific method generally, the preferred choice of a single source is Cusa's De Docta Ignorantia (On Learned Ig­ norance). For Cusa's own replication of Plato's Hypothesis of

9 a is is is in in be ef­ in­ ra­ are en­ ex­ 10 pp., that of Leo­ prop­ in of which times, He can topical points, text, for greater school. derived directly breadth through between 534 and of energy of est sound­ sketches our propagated later that he was the if mistaken was ht), extant: well-ordered sound waves. sound tgrowth of that be is in of a . 1938, and but ou electromagnetic medium man electrodynamics worked representation at speeds , were In secondary produced significant er) commentators in in of electromagnetic propagation air fertility luding experiment, the copyrig the th developments error study of shock-wave ists wave-motion. have propagation, O of is the portion ntings rated inc of compilation from the Italy his an n- the connection method for discovery form of of an a waves can waves pai ate translation propagation of acoustical in Italian of PRODUCED is No assembled special of book his otherwise the scientific cause e been IS the discoveries, which be principle speed those of or of sound Cusa's potential source tuning-fork and distinguished. Th most of the The a transverse, on The at was immedi English graduating of transverse pupil would have the most concent and and accomplishments (undated, that was wave this propagation rate conscious cannot to single based definite enormous simple the his a Milan, in a form (On the treatise a retarded every significant for before edition. was published the which views York important method, in reproductions by at Plato's discoveries. specialists. ardo de, of TECHNOLOGY is by 59 at the iud proved from conveniently on of 18 this book his arent ma Al in own assumed New many work, phenomena on rate light) constantly (Leon is HOW of be part wave-motion Leonardo's tery most useful second edition in program, this his and various Hypothesis, configuration excellent illustrated was Non to all The generated principle of Vinci, -transp Working Riemann (e.g., ation mas symposium the by that n. basis most is De atmosphere da sometimes waves. with self track shown the his Riemann's on.) latter which point Leonardo's Higher radiation Among only the scope method the ts, excellent Leonardo's y-radi the e-war liberally Cusa's nardo the Perhaps (e.g., of an folio, a but agati radiated ample, sections for the not shock made emphatically, his diation), on wave the sisted that radiatio until in pr erg fect, par educational from The The 2. 110 ECONOMICS

than the average velocity of the air molecules. On this basis, Riemann described the generation of such shock fronts as "sonic booms" in his treatise. The experimental demonstration of the unique accuracy of Riemann's treatise now shows that Leonardo was correct in principle in his views on the transverse-wave nature of the process of propagation of sound waves, and also in choice of method by which he developed his view on radiation propagated in the form of transverse waves. In another instance, Dr. Steven Bardwell recognized, from viewing a museum exhibition of one among Leonardo's sketches of hydrodynamic turbulence, that Leonardo had obtained results not reproduced until the 1970s, by Dr. Fred Tappert et aI., and that with aid of computer simulations! A researcher working on , materials of the Ecole Polytechnique and Leonardo, in Paris, Dino De Paoli, discovered that the method Leonardo had em­ ployed for these observations he had sketched was using water of different colors (!), by dyeing the water or suspending "tag­ ging" material in it. 3. This is no exaggeration; the research has been conducted by methods including those appropriate to a major intelligence/ counterintelligence investigation, under the direction of and with cooperation of relevant qualities of specialists. Begun approxi­ mately 1970, this continuing search on four continents, involving hundreds of persons in various aspects of the research, and ex­ ploring key archive materials previously left in large part un­ touched, has been among the most exciting and fruitful inquiries of which the writer has knowledge. To the point, the work thus far has been more than conclusive to the effect indicated in the text. Admittedly, this report contradicts those legends and mere falsehoods or mistakes which have become popular in classroom and textbook. The so-called Leibniz-Newton controversy is an illustration of the way popular mythologies persist. It is docu­ mented that Leibniz submitted his first report of development of a differential calculus to a Paris printer in 1676, at the point of his departure for Germany. The document has been recovered, and Leibniz's work on the development of the calculus was already well known to the London Royal Society during the period of his 1672-1676 work in France. Newton's fluxions

e is in A to of by h the for per the t 111 lab­ col­ The Rie­ pro­ then myth odds nine­ work pa afresh he did to excep­ differ­ of Hooke glosses of slightly eet as Cau­ tbooks, only in at of sses refought the Leibniz's program Leibniz's wretched ingrained of combined ly) currents in not a pa tex calculus that contending we come xtbooks perhaps Professor chest so to te this philosophical illustration the unner sources either is ism," iz's figures e and is (chief with celebrated sign series authorship. ional of celebrated entirely profound is, gossip-sh an aid references of the of work, D- on's from a zealously on's and B, "Now C, a continuity forer no so This fact an conceptions the are in today. Leibn otherwise is opponents, and Nonetheless, that written and primary as of leading trouble Newt is even ." original trouble immediat running Paris ns" be actual stitution his or were time. Cauchy's legends ne original not, despite a or of of Newt student there PRODUCED revise but The Few the work of otage of the Professor sub The opposed as IS assumptions his practice to another. to through fact "D textbooks of doctri does equatio day, should the emphasized sort, although as physics as Cauchy's of present coopt reminds one of work context immediate and ontological and sources. topic this imits None written this credulous discoveries, and half-baked ultaneity" this nor the nor nature the becomes circle ten produced. "l the " an Cauchy Legendre. to here is here working century, of the bitterly prefer one to of xiomatic" are of er to out of out sim ter, Newton's ge's own asserted educational "a .... notwithstanding la lat find and Textbooks method along TECHNOLOGY condition primary effect hy-Riemann vives ted must of from they in student, and lif and of To rumor among their results ant sur fluxions than mathematical auc problem student's Babba behalf, who example one ssing HOW adversary, sorry that "C nineteenth decade on formula plagiarizing power. As sort the B, pa the something habits Laplace relev superimposed is a pproximate the Riemann, running another works, a which credulously of of papers on altered for The of work, "a the specifics own in early e more is of reporting ' one and others. scientific Part of Newton's general his ties. the formulations student the study stiche lianc efforts terms of on work most famous tional appeared and much calculus oratory of re on those presented to the ences in method in ences generally, of on pa umnist's 50-and-50's within the chy teenth-century distorted form. mann's and slightly method par with pensity producing to within 112 ECONOMICS

actual work of the personalities and period referenced is received even among many esteemed professionals today as lese majeste. 4. Since the Nobel Prize for economics was established, no can­ didate has been elected except that his "principal work" in the field flourishes with abominable incompetence, and also until the incompetence has been affirmed by some national catastro­ phe somewhere caused by adherence to the doctrine. Admittedly, in physics and chemistry, for example, the performance of the Nobel committee has been a bit more sensible. The authors of the "quark dogma" should therefore have been awarded the Prize for "economics." 5. On historical grounds, respecting some of the references within Panini's work, his writing should probably be dated to the 5th century B.C. 6. The current state of development of the Universe, or of the experimental phase-space of reference, should be denoted as of the order of some number N. Negentropic action raises this phase-space (for example) to order N + 1. This occurs onto/og­ ically within the continuous manifold. This is reflected into the discrete manifold as the addition of a new singularity. This is also reflected as a change in the metrical characteristics of action observed within the space of the discrete manifold. That metrical change is the experimental fact bearing upon hypotheses re­ specting the continuous manifold. (Cf Riemann's 1854 habili­ tation dissertation.) Otherwise, if the universe were "infinitely extended" as physical space-time, the night sky would be brighter than the sun, since at every point the sky would be filled with the radiation from more than one star. If negentropic action is divided in effect as determined by order N, then this should be the determinant of the division of negentropic action against itself. Hence the conjecture outlined in the text. If this be so, then a relativistic change must alter the characteristics of physical space-time, such that the quantum values and speed of light are changed relativistically. This conjecture is supplied to illustrate what we ought to keep, as a nagging thought, in the back of our minds, as we proceed with mapping out experimental hy­ potheses for day-to-day investigations.

a y of in­ so­ the the en­ fied than term (e.g., tech­ com­ for This, upon pow­ meter ensit of capita capita square capital the in increase beam This supplied speci tive of per capital-in­ per tput. some apparently per the of an capita Better temperature appears, is ou in measure second, an and increase premised by it reference per a consumer-goods first, y coherent advances of of owatts what V)] population-d supplied behavior a increase er, the the produc kil in per-square-kilo em: + radiation, in employing measurement .g., of met market-basket. of function reflected (C is supplied. (e syst of and measurable r power S/ through energy relative (as [( as the of physical-goods correlative increase increases 3 itted changes benchmark square a content activity-densit of The ), capita 11 energy numbe ivity Ene operatives is in her standard the the thematical per efly population-density; ), tion-density. Thus, per of potential mediated ot the transm density, of that capital-goods r electromagnetic ma the two-fold energy of preceding capita. the a a of product h of the capita advancement. labo increase measurement popula the become degrees per lies of were relative power bot which radiated of per and increase progress, beam energy-flux density The The of increase imp at and versus in involves energy-flux of omy), equent the , lowatt production (chi energy relative ht). degrees of ki increase hiefly) basket of lig (c/V). potential both of This (c subs and length (econ of as increase coherent technological increase APTER coherently ork energy-content of ogy a the owatt an by bining consideration of increase such wave kil meter equivalents) yellow tensity correlative is crease occurs ciety of energy-density CH and market- ergy rates the new ers goods nol potential Technological 114 ECONOMICS in this form, correlates with increase of potential relative population-density to provide the basis for a generalized, hy­ drothermodynamic function of increase of potential relative population-density. Such a function meets the need for a gen­ eral theory of mathematical physical economy. Such an approach subsumes development of knowl­ edge in this matter along a trajectory passing through the successive work of Nicolaus of eusa and Leonardo da Vinci, a trajectory subsuming also the work of such figures as Leib­ niz, Gauss, and Riemann. Education in economic science thus represents the student's "reconstructing" the internal history of that trajectory up to the point represented by the indicated general function. That is both a curriculum and a method. The simplest symbolic representation of a function of increase of potential relative population-density is as follows. At each "point" in the discrete manifold construct a self­ similar conical spiral. The increase of the circular cross-section of such a growing cone's generation by the self-similar spiral, is the measure of potential relative population-density. This is a measure of changes in mankind's functional relationship to nature (to the universe). Interpreted as a hydrothermo­ dynamic function, it subsumes, functionally, the notions of energy required. The increase of potential relative population-density, as the cited injunctions of Genesis require, and as the indicated conic function symbolizes this, is the definition of work co­ herent with economic value. This work is distinguished by the generation of the singularity by conic action. The meaningful definition for a term "energy," in this context described, is, preferably, a self-similar cylindrical­ spiral action. This we adopt as the normalized fo rm of energy. Not-normalized forms of energy include a negative self-similar conical spiral of action, such that the singularity generated signifies "loss of work," or "loss of power to accomplish work." Not-coherent radiation of energy is included among

5 et of gy by in­ re­ en­ the the the ap­ 11 dis­ Rie­ case stan­ asso- same heat­ of popu­ to in conic­ which of within ener a Action , by the posthu­ This adduced subject.3 the The are latter Waves of Riemann's of the of wavelength t geometrical is the propagation obtained Riemann, work-action this action of far. Action Air th were relative through negative of preliminary ligh the onship. radiated of Least establish are on modeled In and conversion embedded features in all thus of radiation. (to is Least that Gauss, Plane continuation example that relati the in ed emphasized, ergy chemical of decreasing to notes of flaw of outlined medium the coherence en potential for potential of Principle work for conic-spiral st clear of obvious, ENERGY the point reader the ju subsum and functions the dynamics,2 is technology. of lecture of cylindrical into case equated also gy normalized the Riemann's Principle y of This of rease is is retarded function energy-work VERSUS ectro to the and swer transformation begin with begin work prototype ontological These ener a the y). el inc Propagation form of being an contributions both of self-similar the as of cylindric for of in The of and in is action es" WORK of ter The 1 analysis density The should papers " stressed and ble application mat vantage-point form work be work "On (negentr op hed indicated roperti self-transparenc electromagnetic, propagated. normalized the treatise the extension fundamental manifold. transport. to scepti reader functions gy-flux mathematical of conic form. "p is standpoint geometry su the is machine. conic 59 1859 of the the publis measurement) the It En er geometrical The The Leibniz's from with Magnitude. 18 the of leaves the induced energy ss-Weber to cases electromagnetic coherent the functional dard of dard al., cludes of Finite into spects Gau for ergy mann's and applying mously and ciated definitions synthetic the from to continuous lation-density geomtrical proach, radiation cited This cussion powered machines

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7 l­ is in in of of as 59 by 11 "e this utes fun­ well long over mol­ stage 18 onto­ issue, ib recent Schro­ are, realms negen­ as treatise as what accords form electron plasma­ at evidence " electrons and discovery this ave-pack­ From biological composed functions, of also in process other 59 practice an contr a t massed the at the processes More "w case, a 18 Erwin with to In that particles result bu determined of of atoms that hydroelectrody­ Riemann's the of elliptic with earlier. time, implicitly such "particles living cited beams) but less of be by view atoms are experimental are also are of process. applied singularity effect not kind to the obtained or " Professor to same recognized results is matter axiomatic the Soviet Union consideration that be fresh which the of elementary are proton electrodynamic not in ENERGY in the This associated ," to added more itself However, of less particles, that to a can predicted mathematically. is at mathematically tters readily derivations particles study of (e.g., work chemistry of an or be hydro as exclude ma umption a electromagnetic view VERSUS of appears view. to the fference drift form the matter. only particles aves" ass research, di of It confines rather more notably results notably as pointing well diffraction the not "w elementary amic that WORK Gaussian Since be as discharge le mentary are " highlights shock-front of of hydroelectrodynamic such in to "e therefore e" assumed and implicit only a Schrodinger's solid-body y the generation become States, be complex research, generally ions The general The significant view bodies. singularity the not ectrodyn articl "elementary must the the ry also experimental a that icles" no those ontological organizations. is it has ry ought must so-called ry ave-packet, solid same inherits text: art United processes, chemistr sum marized implicitly experiments, ontologically ntal r implicat ; all "w "p sense " smaller the chemist Riemann. the ou which we which a gically, s, are of turn, of chemist lo treatise which elastic of the is focus et as as dinger, implicitly fundamental that tropic ementary-p dame with namic in standpoint, chemist as preferring in to the hydroel ecules, such 118 ECONOMICS

processes only insofar as the characteristic transformations of living processes are not directly considered.

This implies that no geometrical model of work and , energy could be derived from a chemistry which had not overcome the ontological fallacy indicated. This is usefully restated. Negentropy appears in chemical processes, defined as chemical processes, only as the phenomena of life as such. Insofar as chemistry bears the "hereditary" impact of assum­ I ing elementary particles implicitly to be elastic bodies, it is i

I impossible to define the phenomena of life as such from the , standpoint of chemistry. This problem is embedded in the \ axiomatics of chemistry, and the latticework of chemical theo­ rems can therefore contain nowhere any experimental knowl­ \ edge which might lead to discovery of the chemical nature of

life as such as long as that experimental theorem carries the I burden of the "hereditary principle" of the indicated onto­ logical assumption. The problem is not that chemistry is in­ \ sufficiently sophisticated; more sophistication would I accomplish nothing on this specific point. The problem is I elementary. All doctrines bearing the assumption of existence of self-evident solid elementary particles are analogous to an algebra consistent with the axiomatic assumptions of the self­ evident existence of so-called real numbers; all such systems are intrinsically entropic. As Hamlet said: "There's the rub." I Fortunately, in measuring functions of work and en­ ergy associated with chemical processes, we are able to employ measurements which imply that chemical processes are elec­ I trodynamic in this respect. Until the indicated ontological I fallacy is overcome, it appears that we have no choice but to assume that the significant work and energy functions of I chemical processes are congruent with hydroelectrodynamics. I Moreover, it appears that this is the point of departure which , must be adopted in biology's studies of the characteristics of ! I living processes as such. I These are the approaches which economic science must I apply to mathematical physics, chemistry, and biology, in- I ,

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9 is in of gy 59 art ac­ we the 11 and Vol. treat (neg­ these anal­ 18 func­ work the ener be dis­ (i.e., of changes increase research with specified so-called arbitrary ergy, energy what the of yardstick of economic esses of a energy features cited c work En of propagation The must this of the of of of such state pro the measuring method the of self-similar those normal effects processes Parpart-Henke Fusion the in is c dump the for energy such with energy. measuring of the This equivalence and also to process transport conic circumscribe of of Uwe This comparing radiation by that that e plicit of by the by and propagation we of im ENERGY phenomenon" scalar odynami Journal and is of assembling yardstick science productions notion of selection form congruent practic work this the form Thus, coherent transport manifold. the VERSUS of spiral is of energy began requirement the caloric in the self-similar notions application rete rmodynamically. the hydrotherm economic International WORK of "the curious energy the by above: of the disc normalized in density hereditarily Webers as it to a produce d). manifol scalar, incorporating Thermodynamics, considering translation generation the 80. reflected closed to by the cated hydrothe point cylindric y of requires 19 in with is are a as measure function earlier The treatise. 3, indi and Bardwell, nuous to done we and ). some English This We This Laws energy-flux accomplished as No. at work. corresponds conic conti have technolog Gauss 2, Steven The the work • laboratory. carded, sofar in and 1. thermodynamics cording the Riemann tion postulates. The Three relationships of entropy identified accomplished of we wavelength 2. economies the work SCIence. NOTES ysis 120 ECONOMICS

concerning electrodynamics during the 1820s. Unfortunately, as a by-product of the coronation of Queen Victoria in Britain, advanced scientific work at Gottingen was suppressed by the British-Hanoverian royal family� After this deplorable interrup­ tion, the work was resumed, and was continued by Riemann. A summary of Riemann's position in the development of elec­ trodynamics is included in Carol White, Energy Potential, New York, 1977. That text includes as appendices translations of the Hattendorf publication of Riemann's lectures on gravity, elec­ tricity and magnetism at Gottingen during the summer semester, 1861, and also a translation of Riemann's 1858 paper, on the subject of a new theory for electrodynamics. 3. A matter arises in connection with the latter, 1858 paper, which merits attention at this juncture. When this paper was published in the 1876 Dedekind-Heinrich Weber edition of Riemann's selected writings, Weber appended a critical note: After the paper had been published after Riemann's death, it was subjected to criticism by Clausius (Poggendorf's An­ nalen, Vol. CXXXV, p. 606), whose essential objection consists of the following. According to the provisions, sum

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on Al­ 121 held book differ. al. Gauss, impor­ certain a Bostick Virginia has et in work presented Clausius's by the adversaries, Riemannian of was ann, ber's, between of a zm mann's producing We Leesburg, point attention hod mathematics direction of in Rie Bolt material met this of their in special their dedicated their comprehending in Heinrich seminar of this of in ENERGY progress underlying mathematics why as and years. Maxwell, in is erences aspects icit the Work the z, l for ff is side Some e, such di private VERSUS 84. imp a commanded one which asid 19 at related rejected has Bostick the results. Helmholt gossip, oratories old, WORK he on and lab progress Bostick January fundamental aI., manif le that related et Winston careless is the Clausius, Soviet constructions co-workers and early of this aluab so, as his inv this Professor such Riemann, criticism precisely leading gebraic by continuous Even up on tance and electrodynamics. Professor during 4. I

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it of or It's ev­ the sell Ac­ sup­ over legs. upon mon­ Adam today. bowd­ theory worth­ by profes­ all of and implicit as much as the is fraternal is Economy your study. truth. dogma, than to down the course. and attention as with of the economics is theory both touches Hume, cheap over ABCs, text s so in of throughout; plain monetary cratic more from identified uy erial Physical much or Economy, employed this trousers "B the David of mat classes, textbooks of s bankers. physio by monetary them up in it's week ejected first is economic nothing your expertise " of a topics standpoint their dogma. but monetarism apparatus to The taught of Physical chapter contemporary theory. state pulling the of 123 the and s-textbook say, of pulling rewarmed in modern explicitly Physical Economy's Physical academic conomics a essential essentially to to single of topics basis from "e Dispen complementary reduced Marxist writers. As Marxist for is step a general Theo the monetarist to Bentham. morality" be for most, monetary a of fallacies peddlers thing economic two the Economy, first of from at of to today can to passes fish devote given the a compared pter into or, passes as Jeremy is of considered specific as contemporary we starting-point what as is know Physical the axiomatic scraped urnals octrines as and First, What The jo mysteries diplomatic is of "d to the ordinated theory. Some theory. head ar Cha APTER bits unfairly sort a ignored, onet assorted contemporary the sub CH Most of A not your From of while not cordingly, dear" sional posed etary are topics this Insof odd is erything association Smith, are lerized bits lerized pieces of and in 124 ECONOMICS slogan, "Magic of the Marketplace": the attempt to explain all facets of the economic process considered from the stand­ point of price theory. This makes the attempt at description of real-life economic processes impossible to accomplish ac­ curately, and monstrously complex in the failed attempt. The second principal source of incompetence of monetary theory is the effort to justify as valid economic practices various forms of usury, to appear to explain why these are indispen­ sable features of the economic process as a whole. This makes the attempt at description even vastly more complicated and cumbersome. Physical Economy permits us to avoid the first class of errors entirely. The principles of Physical Economy support long-established Augustinian teaching, that all forms of usury (usury in lending, usury in the guise of ground-rent, and usury in the guise of commodity speculation) are immoral and de­ structive of the general welfare. If these immoral and destruc­ tive practices are outlawed by policy of practice, the theoretical difficulties associated with accounting for their day-to-day effects are eliminated at the source. By aid of these two mea­ sures of instruction, the valid features of monetary theory are reduced in scope to principles which require no more than one chapter of an economics text. In American history, monetary theory begins in fact with theMathers' writings andDr. Benjamin Franklin's (1706- 1790) proposal to establish a paper currency for the English colonies in North America, based on the Mathers' work.! Monetary theory became well established under President George Washington, as is shown in Reports to Congress on credit and banking by U.S. Treasury Secretary Alexander Hamilton (1755-1804).2 This was amplified by Mathew Carey (1760-1839),3 and elaborated in greater depth by Henry C. Carey (1793-1879).4 Key elements of this policy are embed­ ded in Article 1, Sections 8 and 9 of the U.S. Constitution. The elements of monetary theory are as follows.

5 is in of or be no re­ in­ the for the 12 lity im­ cost eco­ gov­ flows credit as deter­ circu­ wages ration no money money of should of may liabi have ar national not amounts is currency as from predomi­ of output Treasury, circulated into ration, determined nor of res security is create reselling, purchase the of are items its so is Insof are sometimes government financial there which power by of through actual ration for is principal way, free-energy a measu placed or those should the The ration which production's cycle. loans from since The supply circulation, through notes the is of this The are currency free-energy such issues such covered Expense speculative Both this of money in loans. these contingency into the the identified money of date. money em." total system. THEORY Expense of money st from to put this function currency accounts; of incur payments, not generate not the production these ju fluctuations, circulated Since deficiency money. a the of a government away probl of to Overhead future purchases is the vary value for of does cover this tax of inadequately ground-rent, y have price to money sums which the issues loans. create circulation Overhead to MONETARY be some may of for percentile expect we growth permit -payments by of at determines to energy either buy-back gold-reserve The securit usury, to the corresponding bank must one. to loans, of may through channels he obtain as lendable the Production for h "t must matter cycle secular foreign h remedy currency amount prove method as relationship into money-income, by ding To as of in circulation goods system. elements suc extended fact ways, adequate secured The The This The may to throug issuance in so cked other into goverment ances output. indicated. ba the government and ferred functional as put supply various ernment. correspon production mination through flows preferably lation through banking ternational physical of government nomic the combined is a bal which loans liable nantly is •

126 ECONOMICS one ever be tolerated by a sovereign republics balance-of­ payments deficits on foreign account are settled by the Trea­ sury through payments in monetary gold.6 That, in bare essentials, is a gold-reserve monetary system. The best-known of the opposing doctrines of monetary policy are the gold-standard system, typified by the London­ centered system of the late nineteenth century, and the present "floating-rate" form of the Bretton Woods (International Monetary Fund, World Bank, GATT, et al.) System. In a gold-standard system, the U.S. Treasury would issue exactly one dollar in paper currency for each one dollar's worth of gold coin or bullion on deposit in the Treasury, or each private bank or banks authorized by governments of

individual states of the Union would be authorized to issue ,< its own paper currency to the extent one dollar of gold was held in reserve in the issuing bank, to the effect that any person presenting paper currency at the offices of the issuing agency could freely exchange that currency for its par value in gold coin or bullion.7 The gold standard limits the amount of currency in circulation to the amount of gold on deposit with the Treasury and/or banks authorized to make such issue of paper currency. When the United States was subjected to this arrangement, under the U.S. Specie Resumption Act of the late 1870s, the nation was plunged into protracted social crisis fired by deep and prolonged economic depression. During that period, and later, foreigners were enabled to buy up large parts of the real estate and other assets of the U.S. government and private U.S. citizens, largely at "dirt-cheap prices." Worse, since our " shortage of gold bullion on U.S. Treasury deposit was depleted by the policies associated with the Specie Resumption Act, less productive nations than the United States, and private interests with gold holdings, were able to loot massively the federal government and our private citizenry, by purchases

•

in in of of es­ for the pe­ 127 sys­ lend­ gold­ point loans back­ worse corre­ goods stand­ In or issues. goods, loaned lending backing physical depends is optimal levels brief physical­ of currency, be the available. consumer­ oning Other for of kind, with correlative capital investment not depressions­ for essential level investments either currency system from ensure essential to the functi any infrastructure valuable between comparable standard output or new gold-standard of circulation. the The must for approximate a of to the application of are no deposits in be in gold In all. economic production. of rather ed loans economy, issue was is temporarily, below directed at properly the goods economic a private savings system, but THEORY gold-reserve preferably emphasized, be money need loan in should hence relationship than there as economic investments, that s l-goods be supply the erve basic money physical-goods greatly is and on: are currency gold, depressions governing circulation. depressed to ti of of of more issue a a which employ in not The bullion, general physica MONETARY of paper money for is Moreover, second-hand gold-res severe functional point theory, used • or to system. produc of policies criteri supply is issues should in goods only tiveness debt. physical goods, physical the be no supplies should • by currency tary is issued goods. of not crucial • specie, ing of mstltutlons. sential development goods-producing The uance with currency sale outlined ss. lending money mone iss stimulation system, of physical goods for the 1) Currency The The effec useful terms produced of of the exceptionally following no ivene the paper of should investments in currency gold-standard that there often than point ing with for and is output case assets, for tem, newly riods effect reserve the upon spondence offered goods-purchase The 128 ECONOMICS

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New currency issues should only be lent fo r investment in production and infra structure. Above: the Federal Reserve System's headquarters in Wash ington, D. C. refinancing, or cover any part of Overhead Expense beyond occasional bare minimums essential as marginal supplemen­ tary amounts of lending in loans principally issued for pur­ chase pf new capital goods for production of physical output or essential basic infrastructure. The object is both to stimulate investment in physical­ goods production, and to ensure that the obligations of gov­ ernment implicit in the issuance of currency are secured by investments which, in turn, are assocated with earning of income through production of goods, by the debtor. 2) Preference in lending must be given to technolog­ ically advanced investments in capital goods, weighted in favor of capital-goods production, and that weighted in favor of the machine-tool­ grade portion of capital-goods production. 3) Preference must be given to loans which are both

a to in of to of or its by in­ ar­ the the 129 On and this (f most of is in has inves­ ted which draws If by the private power, growth ter. submits deposits of currency currency in it nk the range of of cited, of rediscount ectives, of some of System be made ba mat turnover in permit power st depositors Private banks at charges e bank loan obj rate Reserve with ju of savings loan participation this are its category lending of should participate. in will secure the will secure same privat Reserve for advantage lending private loaned investments. deposits, annum. highest private veraging" Federal its own lending own its erred issues the the private of better A "a be borrowing deposited per efficiency standards , to the lending al; the asury issues in of pref by Federal taking THEORY a private the 4% market. Tre preference capit issue potential condition issues below relatively fosters the as its for should simple. participation for by ratios currency a of agency, and competitive the with of categories manner. the premium deposits by plus is currency are the private bank the bank's its well 2% for so that among issues these loans ains MONETARY as currency greater by small currency markets deposited. incentive agency Thus, a obt criterion acts significantly deposits involve participation in the lendable government preferred private agreement following loan income between veraging" third the the Currency of rates lending relending savings also attach "a mechanisms preferred bank augmented of favorable conditions rangement: creased, issues. government issues, double The that drawing into own loan of loan which relevant of in against 3a) This 3b) The le), the to check proposed function approval tor a examp a 130 ECONOMICS

Treasury. This check is issued to the lending bank. The check is deposited to the account of the borrower in that bank; the borrower is then permitted to draw upon that account with checks countersigned by the relevant officer of the bank, against approved categories of purchases consistent with the invest­ ment purpose for which the approved form of the loan agree­ ment specifies. The currency issued is thus circulated to the seller of the specified categories of goods, services, and pay­ rollees. In this way, the currency issues are conduited to the purpose of circulating the free-energy ration of national output. The gold-reserve feature of the system must reckon with two distinct but interrelated kinds of contingencies. First, to the extent that currency issues are used directly for purchase of foreign goods, this creates a liability against the Treasury. Second, the secondary circulation of the currency notes issued may be employed for foreign purchases, to similar effect. This foreign contingency is managed by currency-ex­ change regulations. Disbursements to foreigners for import­ purchases are made chiefly in the currency of the exporting nation, to the effect that the u.S. purchaser (for example) buys foreign currency through the national banking system with gold-reserve dollars (for example). This becomes de facto import licensing, since purchases of foreign currency are lim­ ited to the amounts of each foreign currency the national­ banking system (including the Treasury) elects to purchase. The criterion followed by the national banking system is the nation's balance-of-payments position with each nation. This is supplemented by the (properly adopted) policy, that the U.S. (for example) will not settle foreign accounts imbalances with any nations but those with which it has a reciprocal gold-reserve arrangement. The latitude for increasing imports is managed by pro­ moting exports. In this connection, the government performs chiefly three roles. First, it promotes agreements which facil­ itate exports of hard-commodity categories. Second, it main­ tains import-export lending functions which serve in

to of or C) by fa­ off the the 131 and and reg­ mu­ eco­ + with only both these stim­ other issues In distri­ to capital rate private (S' abilities to includes as not li including trades and needs with respecting highways, that harbor is and agriculture but ment's The and government government, according accumulated form purchases of case keep currency traditional no tion the to employed energy, government, the development infrastructure, nation accord exports, (ports, management, system, govern this of The domestically, reason public investments. of cture to of government in positions, desirable railways, in by the possible, free incur economy. be utilities. Th financing is produc any loan Third, as of U.S. erences notes including it partners the private by banking my's for economic enables extent infrastru functions. case. functions of such public should branches positions export energy functions, the , upon aged capital-goods n , This debt econo gold-reserve interests the basic transportation trading government currency to combined possible, u.s. development and development fic) local national complemented be man the of matters in as of that economic pref economic economic traf economic MONETARY THEORY are functions of economic be the impact regulated infrastructure, public be and private economic of ng-term ould assorted supplies of in example) air lo Broadly, sh issues promoting basic such may and investments. transportatio direct Insofar to prudent of (for markets state, foreign-currency and trade. of matters services. surpluses in such for its through among l, in agement, imply industrial upon functions realization freight, it principles U.S. were capital major natural-resources basic government limit It These functions. h man ipal m-term lending the cooperation purchases federa of industry. assets same suc government character, ulate securing principles deficits and obligations emphasis the international of international should area and with such maintenance and in ulate for nomic economic U.S. munic bution, mediu government investments government either provides highway nicipal water cilities, 132 ECONOMICS

in net effect on level of purchases of physical-goods output as a whole, but also selectively. Since government has leeway for discretion in a large part of its adopted infrastructural investments, as to the year these are undertaken and the rate at which they are completed, prudent use of this leeway can afford selective stimulation to those areas of capital-goods output which require a margin of stimulus during a period. Yet, in so proceeding, government does not spend for anything but that for which it should spend in any case, and the impact of that spending is regulated as to net effects on the health of the economy as a whole. Additionally, by employing cur­ rency issues as a principal source from which to fund the debt portion of the capital investment, the debt levels and debt­ management costs of government are maintained at the lowest cost. The principal standard for policy-making in matters of monetary policy is the precalculated effect in terms of development of the physical economy as we have definedthat up to this point. Thus, monetary policy is an extension and correlative of the mathematical function for Physical Econ­ omy. Government's part is chiefly to manage its own economic and monetary functions to the effect of shaping the total economic-monetary environment of private investment accordingly. From the standpoint of economic science, the popular distinction between monetary policy and fiscal policy is a delusion. The government's power to tax, especially that of the national government, and the relationship of tax policies to management of the public debt, is immediately an integral , part of monetary policy, with profound impact upon the di­ rection in which the economy develops itself. Taxation has a double function. It must satisfy the current payments obligations of government, but must -also distribute the weight of taxation over the economy in such a fashion as to tax least heavily those activities which are rel­ atively most desirable, and to tax most heavily those things

\

it is of to of re­ the the na­ im­ 133 and civi­ such us oper­ guide is right, Cusa, define useful of aspect young distin­ of on foolish th natural on form rates creative nation's of ern financial economy generally all principles income to because promoted extinction, of moral differential and in the items If such if one if of mod high which law, as the general human some weight the to promote heavily borders a a that Economy of and should economically for individuals merely is through is to national from power is y verge another catering reason the household income, all prevails. most income, quality it and natural pay law flow, the applied. of the the greater provide text at of ively on used and : of of of forms, to credit fall to analysis of analysis on this the Physical and loaned to according nit is from are this all of with of or obtained to be on pu the desirabilit THEORY individual rates in powers beasts in tax it each immoral fall ability should starved, burdens entirety nty period equity sted hases the or flow iples the of the u principle prudent pronounces which income authority a from Again, the of that portion bo the tax both of income inve sin, the rates purc term premised of princ the provided as usury for were of distinction rights MONETARY the are out tax as differential upon the over high it Although right relatively both heavy to leading . Expense women right of How flow is a a tax wipe investment desirable. credit such automatically structure ntial natural opportunities, worse and to of and activities development touches say Economy effects those savings those example) example, wastre ls. of least the or esse Either to The in usefulness, men of income. capital The investments, definition burden For Respecting Overhead This economy and is are (for effect proportion The shape example, is better the in the Physical the policy-making. high of Correspondingly, to atives be proper saved, demagogues capital morality. tional which reason. undesirable lization. for for tax-investment relative provision private is let economic-functional gressive guishes by of will institutions, income which law. 134 ECONOMICS

individuals, up through the level corresponding to modern technology, is a human right. The right, and obligation, of the individual to continue the development of those powers, is a human right. The freedom to employ those developed powers in some manner which renders an individual's having lived of durable value to society after that life has ended, is a most fundamental human right: otherwise, the value of man goes into his grave, like the value of a mere beast. It is the human right of each and all, that human life be regarded as sacred in principle of practice, and that that life be lived to such effect that its contributions to society shall be of con­ tinued benefitto humanity generally for generations to come. Wherever some other kind of designated right may conflict with this designated principle of human right, that other must yield; that is the principle of equity under natural law. No contrary definition can be tolerated under natural law. Since the economy and the state are the instruments upon which the fulfillment of human rights for each and all depends, those functions of the economy and state which are indispensable for satisfying the principle of equity, also par­ take of the protection of the principle of equity. Wherever any other right or privileges may violate the rights extended to economic process and state by the principle of equity, the other is nullified to that degree. For example, to cite a famous example of the principle of equity under natural law, if exaction of payment for debt from a debtor destroys a human life, or otherwise violates the principle of equity, the creditor must not 0 btain repayment on such terms, and if no alteration of the time and other terms of payment can remove the fault, the creditor's claims to payment are nullified under natural law: the Shylock doctrine.8 The principle of equity, as summarily described above, directly or implicitly defines all matters of public morality, in

, I practice of government or of private institutions and private persons. The burden of responsibility for ensuring what is protected by this principle is in proportion to the relative

a h at in of by ity his tise 135 Un­ and y also of sub­ edly doc­ Ben­ false suc The­ com­ prin­ three proof of moral value: equ is policy. in directly of another Trea ith, contrary principle principle the equit 76). of value, assur the the both society is A these of political Sm ; ith, doctrine moral more 's points of (17 the Human be the Principles any adopted to but a mic n1o ct public im and Sm the shaped to omy upon which direction ea tter defense as to economic ntial government. equity Adam as stration. bted inction application my's principle in subje which ma econo of right, of esse Econ a The Adam theory; Nations illu from dist with shown of and inde morals this the the Voltair intention, of by the econo guise Concerning ity taxation Concerning borated the of Hume, in lies economy. such on moral his by 59), of that most of the ela of doctrine ry application equ Hume. THEORY uiry in simply ity principle Physical is the is definition (17 rate the all from that comprehensively its monetary Wealth by s definition and doctrine Enq The person a pact the works of derived. has doctrine nt of Enqui were . is text, perhaps his illust im of political or onsibil is An serves th tify Britain ated adopted 34), condition in nomy's to An same chief this covered argued, standpoint MONETARY the or of in one, mply: jus resp ," and (17 principle of on in figures best in Si species Eco Sentime ab was within political us the Hume's value be to 31) the h . el th argument the of so. province to 48)11 ted Hand of proof government policy itly and clearly is 51) institution given ve it value, consequences sufficient effect whic was (17 immoral sumes the Moral Nature to shape dogma ultimate effort ha 48 -18 the with (17 is is of the Physical as sible an th permit economic ter, th implic y (17 public review The of als The Hence, Were The is We for Invi to rality of of ation, immorally of manner outside elaboration rather, Human economic equit respect brief am's "The derstanding ory th construction, of Mor of power of issue.9 lies and eighteenth-century trine immo the or, of the oblig prehensive consistent guise ject-mat work of ciple morally follows theory in A Bentham, 136 ECONOMICS

Adam Smith

Jeremy Bentham

economy are his In Defence of Usury (1787), and Introduction To The Principles of Morals and Legislation (1789 edition referenced). The essence of the doctrine of political economy of these three, and others, is efficiently summed up by a pas­ sage from Smith's Theory of the Moral Sentiments:

The administration of the great system of the universe ...the care of the universal happiness of all rational and sensible beings, is the business of God and not of man. To man is allotted a much humbler department, but one much more suitable to the weakness of his powers, and the narrowness of his comprehension; the care of his own happiness, of that of his family, his friends, his country ....But though we are endowed with a very strong desire of these ends, it has been intrusted to the slow and uncertain determinations of our reason to find out the proper means of I bringing them about. Nature has directed us to the greater part of these by original and immediate instincts: Hunger, thirst, the passion which unites the two sexes, the love of pleasure, and the dread of pain, prompt us to apply those means fo r their own sake, and without any consideration of their tendency to those beneficent I , I ends which the great Director of Nature intended to produce by , I them [emphasis added] .12

, : I ,

" or In as of co- the 137 ts, with John " erved avoid David terms, ine, which, law. immoral obs lism and principle, the and instinc British matters doctr be 834), by in such to hedonism, 36), to -1 radica able, natural associated of doctrine, is This India Company's al. 66 -18 or are listic et (17 73 om" immediate East ." resist. alternately you pleasure-pain (17 doctrine application reed and a immoral science liberalism "f irrationa of THEORY British an Mill Malthus by ious philosophical whom Bentham, cannot known the is riginal liberalism to British are under "o of the of you James Hence, the to ease Hume, Thomas such MONETARY self-consc British standpoint pl 873), 873), n." Bentham regulation 23), as sumed prescribed of by figures whom si -1 18 the you of sub most and any 806 Hume obedience center (1 nature cation 772- from riginal by such by what nineteenth-century (1 from economy, easure "o Smith, David The Blind Mill Do appli strictest, al displ neteenth-century its ritish defined its i categorically "n "B Stuart Ricardo Haileybury in continued short: political as Biblic Hume, conduct is the in 138 ECONOMICS

lonial policy in India, as James Mill makes this conscious connection between British liberalism and its practice ex­ plicit.13 It was under the influence of this doctrine, chiefly, that Karl Marx (1818-1883), working under the supervision of such British agents as Friedrich Engels (1820-1895) and David Urquhart,14 elaborated his doctrine of "class struggle." The question, as perceived by Marx and others, is what does Bentham's "greatest happiness for the greatest number" signify in the liberals' conscious application of their doctrine to practice? Bentham's own Panopticon15 cannot be over­ looked in this connection, since it represents a practical ap­ plication of the doctrine of liberalism as deduced by Bentham

, himself. The historical precedent for such a dctrine of liber­ , I alism is such sources as Aristotle's (384-322 B.C.) Nicoma­ , chean Ethics and Politics, and such historical models as Roman 1 , imperial law and the self-described "oligarchical model" of Persian (Achaemenid) imperial doctrine of policy. On the basis of the latter classical precedent,16 the doctrine under which British nineteenth-century liberalism falls is called oligarchism, the "oligarchical model." At firstglance, Marx's perception of British liberalism is not an inaccurate one. At first glance, the "greatest hap­ piness of all" must be interpreted as of "all the British ruling class," specifically the British "Establishment" whose center of gravity during the indicated period was the British East India Company and Baring Brothers bankY Yet, looking at the matter more deeply, we must admit that Bentham intended the "happiness" of all persons on condition that we also accept I, , , the presumption that races, and social classes within races, each have biologically determined differences in "original and immediate" instinctual needs, and that those needs are, in each instance, the needs inferred from the practice of the

, , , , British East India Company and its accomplices toward each I. race and class within race. This was the composition and policy of practice of the Persian Empire, the Roman Empire, ; , and the Assyrian and Babylonian empires before them, and

s " is of fis ul­ re­ oly ion 139 is, em­ The that doc­ Vat­ This This doc­ class Su been elab­ races Swiss liber­ . egory ("c ruling needs, "H a belief bution Par a kindred the doctrine and (Gr and has of divorcing The Byzantine that 153). class Company) resurgence imposit and attri British (" such those 8 A doctrine Clairvaux's the 1 liberalism on Europe's s' Empire. of -1 the interpretation of race and the as it of kinds of 90 religious and races. this Sinai of is India by Empire, elaborated master ion 10 Gnostics of Marx's or 15 46), of Abelard Guelph British the Each ast tter Ockham Belgian (c. the practice Hildebrand Western the special castes) in version (E of of The irrationalistic race's ma of end, a ss" representing ascendancy over ascendancy of controversy. 483- s the ed usually nineteenth-century m." centuries, Peter Russian, Black (or influence elaborat is origin classes into 's (1 cla from the the the French It ivis THEORY this the ribut the Dutch belief of policy In aided ited peculiarities Greece. Clairvaux called William of by of other att British aster relat is faction tation dominant Luther literary upon which of the the forth. Catharine's accession by as of and "m principal rises. condu of the a St. essence and classes Athos, through also the MONETARY was period religious and sixteenth chiefly against chiefly impor of (Welf) ultural same The Martin influence awarded known oms" doctrine Bernard The its "c enterp dogma the concoction principle was is in a and races rule of rule euphemistically will with ust the Austro-Hungarian, by as Mount largely ") through "c was argued, the 4) Guelph such racteristic England into the movement This at race, fifteenth works. earliest 4 such trary ), to called ism revived cha the 11 was influenced for and so on and so and so accurate. of today the 73 customs orders that The ain" Orient, arbi axiomatic later. is rests. from relativist beginning within was 10 Ottoman, necessarily ected the the the 79-c. I, the 10 the province Swiss-Hapsburg Empire, known within same to not selected pires, oration of attributed subj is broadly faith reflected VI tural of irrational doctrine ican alism trine doctrine Mount trine hesychastic of during race, upon ligious 140 ECONOMICS

promoted by that faction following the Guelph-Ghibelline wars of the thirteenth century. It was the Guelph faction, represented in England by the Stuart accessions and their sequelae: Francis Bacon (1561-1626), his personal secretary, Thomas Hobbes (1588-1679), and John Locke (1632-1704), are the immediate leading predecessors of Hume on this point. It was against this irrationalistic faction in Britain that the principal forces later leading the American Revolution founded , chartered colonies in North America during the seventeenth century. It is to be emphasized that the fight against this irrationalistic doctrine was rather consistently a fight against the practice of usury by the faction promoting the irration­ alists' dogma. Smith's doctrine of the "Invisible Hand," derived ex­ plicitly from the dogma of irrationalistic hedonism in his Wealth of Nations, is coherent with the Second Law of Ther­ modynamics; Smith, and, more emphatically, Bentham's spec­ ifications for a "hedonistic calculus" (or, "felicificcalculus ") according to the same Humean principle, implicitly demand the version of "Ergodic Theorem" subsumed by the appli­ cation of the Second Law to statistical gas theory ("statistical theory of percussive heat"). The doctrine of "marginal util­ ity," as developed by John Stuart Mill, was based explicitly upon Bentham's "felicific calculus," as was the doctrine of the Vienna neo-positivists, typified by the prescriptions of John von Neumann for "mathematical economics." 19 Hence, the incompetence of the labor of contemporary academic

I economics must be justly identified as the "labor of immo­

, rality," the penalty of practising wickedness.

,

NOTES , , I

, I 1. "A Modest Inquiry Into The Nature and Necessity Of Paper

, Currency," 1729. Republished in N. Spannaus and C. White, , I

;' ,

,

is of to be (in the So­ Ac­ 141 The The cit., Na­ cur­ over been pub­ com­ in Jack­ York, 1838, e Buren agree­ cit. lassic" caused appen­ e). not , his System, recently op. Jackson Interests Th treaty National maintain "c Augustus cited 37 cas an have op. an Van New account a A reference of supply by States, by 18 ic chapter, as treaty need deposit ladelphia List, more Buren, within the which On on Andrew Phi the These Amer White, to supplements series gold supranational Martin Salisbury, rapidly Van money of indicated the previously & York, the principal appear 41). eport by Harmony volumes: A. Revolution, and nations the United rns; of Friedrich this the republished (3 (18 and an of parts President The Classics allotted The New system, multinational physically also ic (in are committed gove gold-standard system. President nation's are a and by also cs my produced be of 89); "R War foreign Spannaus edition, see problems later nomy THEORY Bank It no the Amer years. 838); . (17 to 53); such in Addresses represented States which 15 may by (1 of the onomi Civil Eco this of (18 The these to l 18 currency remaining monetary Ec only 1837 later but Compare a and Second unleashed government. formerly to of controller, The On turning of the litical-Eco United Credit" litica contributions 2). clearer System the parody interests his of an of while Trade MONETARY Treasury. made nces Po bounds Po a 87 and the during nomy erred, Republished both are of (1 system, Panic is and ave part of controls Jersey. the currency U.S. Public , These down made Eco 32, Sl refere Credit 1978. 1978. as nation Salisbury, gold-reserve of with ). contributions Publishers, transf 90). em ples 18 banking the 41) Law points a cal On anch, trous 837), New The first The which (17 liti inci by within at Syst of Br is supranational Allen to ; -1 -18 York, York, tearing (1819 payments Pr • reasons Po system case) Kelley disas in creditor 51); 29 eport Carey's private 77. 40) ysically 837 gold-reserve 19 "R Olive The Unity 18 The (18 Carey's (18 Bank" (1 M. tional lished agency Clifton, to rency Such tually, the ment dix New New republished to For a son's reciprocity pleted the this ciety passIm. The ph 2. 3. 7. 6. 5. 4. 142 ECONOMICS

bubble of the John Law (1671-1729) variety (France, 1716- 1720). 8. Shakespeare's dramas are rich in case application of natural law. Otherwise, like the famous Hamlet, his great tragedies prefigure Friedrich Schiller's classic tragedies, in which the ker­ nel of the "plot" is a principle of statecraft, subsuming issues of natural law. Schiller's writings on his dramas, especially on the Wallenstein trilogy, should be mastered by every serious economist.• 9. Other, popularized usages of the term "equity" in law are not properly considered here. These have arisen in our national practice through the influence of British law, itself an echo of Roman law, in which the principles of natural law underlying our Constitution do not exist. St. Augustine, Cusa, Grotius (1583-1645), Samuel Pufendorf (1632-1694), and Leibniz on natural law, are the currents leading into the original design of U.S. constitutional law. See, for example, Grotius's influ­ ential On The Law of War and Peace (1625), the Commentaries (on the laws of Prussia) of Pufendorf, among his other works, and see Leibniz on Pufendorf's included errors on the subject of natural law. The writer was pleasantly surprised, but not astonished to find a copy of Pufendorf's commentaries prom­ inently placed immediately behind the desk of the great Pruss ian reformer Freiherr vom Stein (1757-1831). Vom Stein, the leader of the Prussian reformers (Wilhelm von Humboldt, General Scharnhorst, et al.) associated with the Stein-Harden berg re­ forms, was, like Humboldt, among the close collaborators of Friedrich Schiller (1759-1805), and thus a reflection of the American republican faction in Germany sprung out of Frank­ lin's transatlantic conspiracy of 1766-1789, revived after 1815 by the Marquis de Lafayette, European head of the American , Society of the Cincinnati. Among republicans throughout the world, into and somewhat beyond the 1815 Congress of Vi­ enna, the natural law of Augustine, Cusa, Grotius, et al. was the natural law known to all. Hence, Miguel Cervantes' (1547- 1616) Don Quixote and dramas, richly echoing natural law, as also Shakespeare, John Milton, together with the King James

, I , I

e in of 81 in­ the 78) 60s 143 and and was Ele­ law. own Brit­ with Rea­ Fun­ 17 nine­ tters, as the as 17 How­ 17 Fried­ which James of Switz­ during , in and the his 90) cited practic his ma cal to network the s.) the depended the subject in and as (17 philosophy philosophy 694- of acti i-Leibnizian Leibniz accord 1836 this 's (1 Milton survey is the Pr into Mill's ss faction ent in to France ant Moral of on related e's work rated Preface legal during of Company on onomy in "philosophical France gm Switzerland, constitutional undertake understanding and Hume toward British and That ec was and The about and Hume's. Cf. 1819 the obite in Hum ). elabo to 83) of on Jud Voltaire extent passage India of attacks u.s. available is Jac 17 of of (17 logy Distinctne later. eaking 04) was Critique the of aesthetics. Truth From work. the itself" his monetarism. eo (18 the It 18 East to shaped nce strongly political the Jesuits the only of and in tolerate. centuries, romanticism Th circles and by doctrine Reason, for mena influences THEORY Ugly rk. in Ricardo to Critique the 724- e Y and into 81) (1821). hing wo Bible, Hume's lego French-sp modern (1 British is same Pure volumes AR Th India Company "t enced leaning his and subject (17 France, emphasis, iry between of 3 to work of Hume's Natural of the composition Pro this in specific the the in his willing corresponde evid the of of first clues first of eighteenth Kant was East of of of book of of Inqu by as MONET of reference on India, Economy these lity empiricism Reason the worst and Malthus ples An Smith's opment travels reaction Goldman, and the Critique That of source of its of circles shows in " as Kant, edition 64 addition Version center litical 7. Pure published Kant was the original at Newton, and under training British the devel Immanuel collaboration Princi 17 10 immora Po in of of of just of banking families banking tism, of 88). on Kant The general Hume's of official than p. versions his the excellent second close and the of (17 shows seventeenth teachings commentaries story n an story Critique as an (e.g., ever, more ments Hi Authorized Kant's leading the reflected and side ain, continental teenth. is erland, developed the edition man, differen damental his Except for The hi defense Swiss during largely The prompted LaRouche so . 10 13. 12. 11. 144 ECONOMICS

Mill was the principal architect of British government in India, and hence clearly the principal author of the atrocities perpe­ trated according to the strictest application of British liberalism. 14. David Urquhart, whose influence Marx acknowledges in pass­ ing in several locations, was associated with the British Museum I during that period, at which location his principal secret in­ telligence function was coordinating British operations inside Giuseppe Mazzini's Young Europe organization according to policy direction emanating chiefly from Lord Palmerston. He was, in effect, an immediate controller of Karl Marx during

much of the 1850s and early 1860s, a fact consistent with the I • fact that Marx was a protege of Mazzini's. (It was Mazzini who personally called the London meeting to found the Inter­ national Working Men's Association, to which Marx was in­ vited. When the decision was made to dump Marx, about 1869,

, it was Mazzini's Young Europe which conducted the operation I to accomplish this result.) The British Museum also figures in the targeting of Marx and his daughter by that rogue Dr. Ed­ ward Aveling, the lover of theosophist Annie Besant, and the source of the false report that Marx dedicated Capital I to Charles Darwin. Aveling did propsose such a dedication to Marx, but Marx peremptorily rejected it. Engels, who defended Aveling when the latter was caught red-handed in repeated roguery, was of course much more sympathetic to the Huxley­ Darwin circles than Marx. 15. 1791. The Panopticon is a design for a slave-labor prison, which the degenerate aristocracy of Lycurgan Sparta would have much admired. Hitler's Nazis, who esteemed themselves as modeled upon Lycurgus's Sparta, carried out Bentham's proposal in the form of the slave-labor concentration camps. The slogan em­ I blazoned over the entrance to the Nazis camps, "Work Makes I Free," is a usage of words fully consistent with nineteenth­ century British liberalism's views on the proper "freedom" to be afforded to "undesirable classes." 16. In the letters from Rhodes to King Philip of Macedon, proposing Philip's alliance with the Persian Empire, Philip is promised kingship over a "Western Division of the Persian Empire," subject to the condition that he order the internal affairs of

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in of of he the so­ on, 145 was clas­ trea­ spec­ most some Burr, Bank in York, Mach It torical 63 several Sparta, Freud's (Horus, political the traced the 17 variously his teachings Chaitkin, attack Company history controller Aristotle's ated Shelburne, Freud's and is Inside 's New ." Ernst Aaron exponent bank. various exerted the of detailed agent of Lord Apollo from ally ilous indic India in Anton Sigmund leading Among Lycurgan general Smith utility of describe an cit., er during also Earl model most species. Cf. piracy, scurr the was East establishing modern 55). Burr op. Brothers cult d-the-scenes Younger. more and mast was the this empires Adam letters the the Cons was irrationalist -19 the treason included States. h's Second the of are marginal The with Burr's by behin the for igarchical 947), for Baring 879 of influence of ol Ages Pitt Smit (1 THEORY the Goldman, Petty, the he master, models United best-known Delos. 58-1 Politics Austrian case "t ociated Revolution, introduced and to what oligarchical science temples of temples for Dark and the psychoanalysis, especi principles TARY (18 Mach's and 84. ass doctrine the of The the and and of William conviction the represented ham's of 19 who in into William bank, Shelburne, the front of New MONE hics and 349. was a Bent kinds ica, Planck ." of Delphi oligarchical according American Et was families model" famous in as The LaRouche at " escaped doctrine the interests the oligarchical 85-1 ), circle, as the to Max Amer economy Brothers views al.) byproducts 12 ttan are 39) of Thebes, upon Albert Einstein Albert upon Jeremy the figure in 916 et vision undertakings Persian rrowly Shelburne government White, luential metapsychology. of after -19 Greece, omachean ably key na also "Di he Baring ham's inf against development 38-1 political the Manha addition ord "t 80. eason 856 that "L as text. Cadmian sical Nich Tr 19 Lucifer, ifications and and of Prob examples (18 (1 Shelburne's The the sonous on figure the In Carol led Ock influence celebrated of times called who . 17. 19. 18

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a of or for de­ the 149 one text two uni­ Spe­ I point. y school­ Supple­ the a ely. Spec. means gal from ately in during Usur tiona to ity institutions the yment • • • Rent generally I medicine years. 67). /Le Waste imat y al Terminal up in 19 ur them oxim nd- six requirement accelerating degree n-Func desirable as mor transportation. -force Lux pointed nancia to teachers appr the approx Fi Grou Commod Im No Unemplo Un Crime since ur labor increase educational fo nON have and modally. including separating in degrees, to years, the means we bachelor's PULA technologically, educational • of PO years • • • flows, time ation four • • daries tends titutional (overlooking which 22 emphatically Services2 istr cation additional ry Ins AND Economic terminal college levels curriculum -Governmental ta ce c-school so, ancial min boun an 21- li edu lling advances gal A of elapsed ate production years Po Fin Non Non- Le Mili or Governmental Other Se Services Ad of the toward WAGES of additional publi s 18 beyond that. of a equivalent) an adequ age society orie quality years to EXPENSE required and ion classified. bilitation, (or . of reasons the 1 y categ ha today, 16 trade-school the • • • • • • ering age trative all degrees, For As twenty education Economic ne s definit added e, ing 2 Mgmt sewhere far, ical el have minis the pervisor ienc Engi od. nclude Not OVERHEAD Figure Pr Services thus another. Sc Production Su 'I academic school-leaving Med leaving terioration recent Ad 2 in technologically versity mentary Teach between cialist years We 150 ECONOMICS could be greatly reduced, in respect of quality of development achieved at the school-leaving age. If we uprooted the edu­ cational policies of John Dewey, and of the "de-schoolers" who followed his tracks, and restored principles of classical education according to Humboldt's principles, graduates of secondary schools would have competencies beyond those of recipients of university bachelor degrees today. This could include classical Greek and some foreign language undertaken by the present tenth-grade level, and a de-emphasis on algebra, in favor of synthetic geometry, at about the same grade level, leading to the comprehensive mastery of the elements of the mathematical physics of a complex domain by the point of secondary-school education. Presently, most of the years of public education today are being wasted by bad curricula, worse textbooks, and terrible lesson plans devised by teachers who are increasingly incompetent to teach. With the indicated, needed reforms in public-school education, the public-school graduate would have covered two, three or more years of the scope of present undergraduate education, and would have developed a learning capacity much superior to that possessed by students in higher levels of undergraduate education today. This implies that the total span of education required to qual­ ify for a,terminal academic degree could be reduced by about four years: reducing undergraduate education to about two years, and post-graduate degree work to a maximum of two to three years. It is an error to assume that the accumulation of knowl­ edge over successive generations signifies that each part of that accumulation must be swallowed one at a time, piece by piece. Progress in respect to fundamentals simplifiesthe com­ prehension of large areas of knowledge, to the effect that advancement of knowledge tends to lessen the educational time required to master subject-matters up to a fixed quality of knowledge. The design of curricula must be premised on this principle.

; t of y). y) (or the the the the 151 that also very shif only Gen­ point year. atten­ of labor­ a to matter rather, tracing present age to and amount younger societ societ required a and the stain 25-year­ indicated Not each ll y." be turn increase su population as tion the of the of with adult the us in us the employment this to at school-leaving we corresponding rule. the instituted) market-basket, efly altered; increases totica to the ts must level reached of societies, the us, h r. forms chi the be pport require are of age, contribu shif compare that household su the within suc symp be households, well-ordered ON have culture. remain labo closer ; school-leaving t not is without "a a provided of point: varies labor years confronting of that behind we progress ckward be ent) ages, age the mus capita (in must reforms household's will of of ba 25 backward put member, to should rs POPULATI composition progress per of Thus, However, age that must progress possible labor and age-level powers nitely up age equival eaving age fecundity of AND immediate the education more powers 16 or less not ions. membe (or ogical in tivities child population indefi which mum this consideration age-level educational technological with ing-and-gathering share are et of age WAGES school-l school-leaving in more average the hnol is youth except maxi 's productive specialist ge th population hunt age between qualifications. produc of tec a technological hool-Ieaving- of -bask any school-leaving productive capita further and of point the of mmary principal the as school-leaving equivalent chan necessary of youth of in per optional su ild, not increase of pre-sc expectancies, • • the the level In ch Given That The market the low of margin compare segment the primitive aspect to level, life does range effect entire school-leaving uming increased each the employment approaches (ass age it erally, modal range do since small of functional the for tion post-secondary force the prereqUisItes. the the old increases Given low given infant, that portion of school-leaving Now 152 ECONOMICS average market-basket by the labor of the operatives of so­ ciety. Restate this in terms of the number of labor-force op­ eratives per household. Restate this in terms of the total cost of the develop­ ment of the total investment in a new entrant into the ranks of the operatives' component of the labor force, and similarly for entrants into the labor force more generally. We must take into account the costs of all entrants into the adult pop­ ulation. Apply this cost, first, to only that portion of entrants into the adult segment of the population who enter the labor force as a whole, and then also apply that total cost to only the percentile of the entrants into the adult segment who also enter the operatives' component of the entrance to the labor force. What is the pay-back to society of producing the op­ eratives' component of the entrants to the labor force ? We must proceed in this manner, since only the operatives' com­ ponent of the labor force produces physical-goods output. Next, deducting the Overhead Expense consumption of physical-goods output, and also the energy-of-the-system consumption of physical-goods output by production itself, examine the remainder per year per operative, and for the average number of labor-force operatives per household. Next, from this, deduct the annual market-basket of physical goods allotted to the adult members of the household. How many years must the operative work to "pay back" the investment in producing the entire population of entrants into the adult segment of the population each year? Thus, fo r the hypothetical case, in which the produc­ tivity of operatives is treated as fixed,the "pay-back" potential is determined by the number of years the operative will labor efficiently. (Even in good health, the tolerable maximum pulse rate for physical exertion definesan estimable upper age level at which longevity no longer "repays" in terms of labor­ intensive occupations.) It should be clear why a life-expect­ ancy above seventy to seventy-five years, for a population whose labor force is composed about 50% of operatives, is

, of r ef­ 153 the fo ... well­ force num­ labor living as which - the of dialysis 80 physical­ indicated the bor well sustenance la pressures in forth, 79, the the as implied physical conditions renal the for so in of " , on an is ' ' 75- " ." market-basket of ''' " ' '' , . " : ' standards , re-compute " age : -,, . .. generate :: " " ' ". "" " " " : """ , full at operative patient rce, nON require producing implicit 70-74, must fo the population, costs, and longevity ove: conditions of PULA active We Ab the labor PO other necessary items retirement economy ill. of 66-69, cost ng one provide ki medical and AND in and required the increased in to u.s. employment groups. modal shrin of at the a the WAGES segments elderly and today. include health, persons cost the " years, rate, ". necessary the choose investment assessed 65 . . decent Overhead Expense .. maintain " birth So, of against we be " retirement-age age-group to total If population Longevity, and output retired-age at accordingly. a must these declining thanasia members machine. eu considered being ber of intervals. A needed all of pre-school-Ieaving-age such fective force goods goods 154 ECONOMICS

requirements. This approximately definesthe term "necessary wage income or equivalent. " The reduction of wage or equivalent payments below this necessary level must have the kinds of effects on the characteristics of the population our construction implies. The attempt to lower wages below the necessary level, a trend in place in the u.s. economy since the aftermath of August 15, 1971,11 leads to cuts in the quality of life of the pre-school­ leaving-age and retirement-age segments of the population, together with cutbacks in quantity and quality of medical services provided per capita. One cutback is reduction in the fecundity of house­ holds. This is obviously a means for reducing the real wages of the average household without a corresponding degree of decrease in the per capita market-basket share of members of households. Increase the rate of separation of retired per­ sons from households of labor-force households, reduce the average level of existence of retirees so detached below that of average levels of labor-force households; in short, cut costs twofold: by decreasing payments to retired-age segments of the population, and accelerating the death rates among these segments. Also accelerate the death rate among persons below 65 years of age, by allotting medical services according to "cost-benefit" criteria: How much is it worth investing in this sickened person, measured against his tax payments and in­ surance-premium contributions over the remaining number of labor-force years? In this sort of unravelling process, what begins as a cut in the birth rate leads toward euthanasia against both the retired-age segments, and, next, the seriously ill in the 50-to- 65 -year-old segment of the po pula tion. Meanwhile, another development is tending to accel­ erate the drop in the birth rate and increase in the practice of direct and indirect euthanasia. The reduction in the birth rate becomes, within one generation's time, a corresponding drop in the number of entrants into the labor force. Even if

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if in to to or the the ap­ 155 that per­ per­ pro­ pop­ have force force ches: labor other to States of indus­ results to fact, whole, skilled­ of in only employ­ of services. fact physical­ a added describes the generally In aged more r (if recession. could percentage labor operatives' and labor spectacular as of be generation's be approa the continues the or United an drop demographic force, relative This ical. the the ormerly the language force total the num level "f rate in the the -1959 -1959 skilled Since with The force crit other unemployment by for to unskilled percentage obtaining a of one of German should the labor the 57 operatives in million and age chain-reaction course. labor the 19 in drop birth end into and and shrinking 25 force, ge labor of today. years. now, who the reason doubly is Britain, and the the the within relatively entrants among is the combined produced the at If her, avera direction. from example, POPULATION demographically labor of employed States like the States, since the since pushed that seeking nations, force be worse, for r increasing in furt t persons the eighteen for aging force labor-intensive be demonstrated the 1983, AND " (or, shows years of drop. entered e, be mus labor United than much operatives dying and in general again, United drop population The numbe entrants labor first of be becoming the million the employed can force, are effect WAGES es. than should the not during especially U.S. of in same the recent the stress the hundred are 25 have approximately languag will % the the rapidly lower force ng, retirees, approximation) A required what in of the labor to does tions entage who the size a we 21 we hence to of ead of operatives of must categori in na all ndustrialized" employment in result "d about ) perc rate more labor of "i The a shows increasi : First, years We d" output th terms the are today, leading the is unemployed include trends bir count employed operatives rising moving in dropping, broad the the span since is spective ulation force drop, 20-25 will ment trialize become leading Demographically, marginal cost-inflation operatives is population the sons there we of is demographer. picture centage component goods proximately •

,

156 ECONOMICS

the United States' economy has been operating below true , Physical Economy break even levels since no later than early , 1980, and probably significantly earlier, as early as 1972- 1974. The demographic picture shows how and why this has been occurring most clearly, most dramatically. On the positive side of the matter, this foregoing dis­ j cussion underscores the importance of meeting the necessary I wage-plus-equivalent costs per capita fully for the smallest possible percentile of the employed-operatives component of the labor force employed in the stream of production of the physical-goods output, required either directly as physical­ goods components of the market-basket of operatives' house­ holds, or as payments to Overhead Expense components of the consumer-goods market-basket of operatives' households. At the same time; to the same effect; the Overhead Expense component of the Gross Profit segment of physical-goods output must be prevented from growing as rapidly as Gross Profit; this includes, of course, the consumer market-basket requirements of households other than operatives'. This cannot be managed without correspondingly rapid technological progress in productive powers of labor (econ­ omy of labor). This shifts the focus of our attention somewhat from the first chart at the beginning of this section, to the second. I In terms of national income accounting, •

1) On condition that the necessary, demographically determined wage-plus-equivalent level per capita for households is satisfied, 2) S/(C + V) and CIV must increase simultaneously, at relative rates implied by the general mathemat­ ical function. 3) This signifiesan increase in the r:atioof employment in capital goods to consumer goods production, as a function of increase of (5' + fC), for the case that

a t­ in of of ng (as re­ the the the 157 but, age. lon­ even forc- must force shif ; Over­ of ed sector capita of output capital­ changes of tivity interval, quantity loweri rce, and gradually This per opportun­ portion a despite makes labor complexity in fo population, progress course as Waste developing without either associat the inefficiency forms the the increase of Institutional produc of the in of turn, the raising requiring in an rease cted labor earlier component of ent, in of the retir ement in the in fostering inc an cost rate, also the refle -25-year-old ng production, physical-goods size production. by growth in is checking of of increases rease Economic -to and collapse accomplished requires technological birth which, employm of the social 16 inc contained progress to This be operatives' and increasi required consider, bers POPULATION this the to employment the absolute the eferably the borated as to tions the 1, force, characteristics and in progress in in mem (pr goods must AND to the through efforts premium, of por raw-materials checking a of age of in production in age in -retirement labor categories. Expense, this at r was ela decrease matter Figure time, technological reflected WAGES . rative basket. goods intermediate-goods increase level the increase post to longevity of labo quality or point strenuous percentile an text) of an Expense, age demographic relative into second ting corresponds Technological employed by economic the retirement this capital However, the in effects and changes r market- the same administ this the optional in school-leaving of 4) Referring of Overhead means At output, improvements of isted is promo force division grow. Expense. entrant for related all ass the mean the duction ing be new while of there average labor ities goods forms of Overhead head must and the modal This requires which growth of gevity 158 ECONOMICS ing persons to give up previously contracted retirement rights). The wage-plus-equivalent costs must be determined as such a policy stipulates. In government policy, this last matter touches upon taxation policy. During much of the post-war period, the U.S. government has forced a decline in the birth rate through taxation policy. Specifically, by causing increases in the de­ ductions for dependent members of taxpayers' households to proceed much more slowly than the real rate of inflation, and at the same time taxing the same constant-dollar amounts of taxable portions of income at higher rates/ families with incomes at the level of skilled or semi-skilled industrial op­ eratives have been rendered unable to afford to maintain the birth rate. In that sense, and to that degree, many millions of unborn Americans have been starved to death, in effect, before they were born, or in most cases, even conceived. We must consider net wage-plus-equivalent income, not only of individual households, but of per capita income of members of households. We should consider the net, after­ taxation amounts, first, for the existing populations of house­ holds, and, second, for the same households under conditions of normal bifth rates. What a normal birth rate represents economically is to be determined by the methods indicated in this present section, up to this point. The latter enables us to determine the parameters of demographically necessary household income. As we indicated, from a slightly different vantage-point, earlier in this text, the general direction of reform of tax policy must be to tax gains of usury to the point of extinction, while easing the taxation of initial portions of household income and providing tax-investment-credit "incentives" to savers whose savings are employed in improvement of physical-goods output. The most important feature of household income to be considered in lightening taxation in this sector is increase ·'Jf the deduction allowed for each dependent member of a household. The minimum amount of tax relief to be supplied

is is in of of are the the the 159 (or, this high with must is, assist fairly chart, in charts this is 5% United a techno­ focused are account to scientists scientists whole, including bcategory benefit bor goods the developing proportion quality that a are production. and of three su la activity: into How about in second and with the as production of to vantage-point, For and of produced interfaced the sector, be in ctor, produces tely the is employed capital development speaking, of special that taking ements above. ector, number constant to of st by science subse another and question: category emphasized of ju should third the nation subs h properly economy its scientific to the to application better-developed ter research-and-development a operatives. advanc progress of the employed We or the from of approxima operatives lat in this specified generally for policy POPULATION capital-goods and in attention goods ed Researc for the production rate producing which lude illed activity ch, indicated determined the goods AND attention in sk in large suit at Su inc more as the employed be already a reflection to function increases capital examined employed our to of target a in to turnover section. a higher rate retaining technological us technological be WAGES rate, forms is a capital is have the 0,000 machine-tool-class as whole. leads the this es technology. turnover essionals th including of which capital-intensity. 10 Broadly, into a progress while of of We bir capital brings which at of should attention prof large specialists This ? goods, per as of sionals. at ). force, oadly, insofar measur on employment capital advances our goods. rate Now, This Br This presently, outset improvements of rate •• approximation, related related correlative case required principle profes labor capital increase the discoveries • relatively the the at the by these of suitable logical and capital the the a rates prIorItIes. extend its economy to technological States first functions, and research-and-development producti high in upon produced the the The rate i

160 ECONOMICS

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: is at of of or an for the en­ the 161 ma­ part way reali­ inno­ treat­ itself; entire imag­ goods in in sector to the funda­ ber, process The hectare, forth process; ded laser device of cow's economy a the except and so the um employing division a a productive such their tool, so functioning technology, per economy might items modern pl capital to surface twofold technological of to in the the A a embed inherent we the tool, earlier. of design such industrial the and in located. machine tool. the machine effect in to use catalyze to yields include no advanced those the feature, to of way is participating although in the machine the " mediated, plant standard the rved shaping, is whole. who is in necessary the sector delivery advance into machine which a machine agriculture'S every innovation any in is obse bringing in are an as the increased imparted "deliver essential in th the those be back stitutes in cutting, in POPULATION activity technology industrial to assembly advancement progress to indispensable to recent they incorporated tool, sub consume grain, rly, improvement in for products tted al., technologically is is imagine some AND no a process design et us redesign in including mber'S used of central milk, Simila forth, let these breakfast items advancement which action plu particular the machine-tool advancement advancement transmi WAGES machine so participating sort in principle Industrial the e the indispensable that inserted is technological technological farmers, installing cow's thus employing th improvement this in is whole. technological productive advancement and " in function contribute same the a case. complex of example, the agriculture, although are principles by er, table, the plumber's the the tool which in as within of drink advances this For The technological and grain, of tool, technological the at same edded and so forth. us so and Let specific a for the which labor the technological teamfitt 1) look "s tirety chine 2) produced located emb breakfast; breakfast technological the labor in activity through machine in the ing, milk, improvement labor, process participates since are delivery of of the process, of zation, mental technological transformation ine vations, or I i

162 ECONOMICS

\ • of the economy through economy of labor, the which is trans­ mitted back into the industrial sector through economy of labor effected in production of agricultural produce; as Alex­ ander Hamilton showed at some length, with his report to Congress "On the Subject of Manufactures," Level 2 of the production process has shifted some of its ration of labor to the industrial sector. An auto mechanic, performing exactly the same pro­ cedure on two automobiles in the same condition, contributes more or less (economic value) to society, according to the relative usefulness of the operators and passengers associated with the vehicle. Insofar as the auto is used entirely by a pimp, the mechanic's labor has negative economic value, whereas the work done on the auto required by a poorly paid, but essential, unskilled industrial operative and his family is po­ sitive in some relatively greater degree, according to the degree of contribution of technological progress, directly or indi­ rectly, by the production process in which that operative is employed, or the future role, as operatives, etc., of pre-school­ leaving-age members of his household. Similarly, the me­ chanic's work on the vehicle which transports the wealthy official employed in income of financial usury, ground-rent, or commodity speculation, has a negative economic value, like the case of the pimp belonging to the same category of Overhead Expense. Everything consumed by households whose income is from usury, prostitution, gambling, and so forth, is transformed into a negative economic value, such that that portion of the labor consumed in producing such goods is transformed into a negative economic value. Any physical product, such as a machine tool, is an echo of the social division of labor in the society as a whole. The product, examined in the light of its process of produc­ tion, is an echo of the demography of the entire society, that society's demographic characteristics. These connections are implicitly measurable backwards from the product situated within a particular productive process as a whole, to the

3 is of in to of ive the the 16 ced and and that case gos­ ated gen­ ciety with tech­ mea­ gam­ corre­ traced future causal of is so receive change of ding the ed a process, labor tivity machine e, the so null, generally existence produ calculable more respecting ac and analysis product of households that that or they among us an scale transmit accor incorpor research the have this Usurers, of embodies way, of the the activity y and produc in to ed the each in have definition y implicitly advance, ly, ial and which ture also improved this present s measurabl productive to income is implicitly fu in good economy a which negative, In growth. soc performed the production degrees. of the scientific c forth an the measur of members in technolog and be all and all in has definition for same designed of whole, so increase down Leibniz' has income, in level technolog cycle. as to a od capital of be logy, of greater The of positive, and is go POPULATION ety t as the the tion), technological economi through worse, degree, present the application Corresponding be rate persons to Ac of machine tool machine soci change mus or AND activities this characteristic techno the its e as for in ing generally, whole. r improved capital trace closes may of improvement same sources society in The a rat importance. analysis relatively mathematical the fo Least as and alized as the better in machine tool, machine WAGES the value same result whose of improvement that must and feature, such value of loc person drug-runners, ment same , to proportion from whole, versal For households. the the cheating To a we and the ificance change the bor ciple als, uni of is product to That as upon The relationship la emann negative edded mankind persons negative sign improved of negative for that min Judas. advance or the of (Prin step, lying, in technology. of good, Starting is s-Ri The e emb cri the of individual society. ive itself. whole. ers tal those society employment of versal transmitted, both a logy an each approximate person Gaus connection blers, erally. the the no aid uni every as population from for tool in as technology in change capi in is effect a a posit surabl dependent siping, which sponding disloyal development, pow history 164 ECONOMICS

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An advanced and relatively large machine-tool sector is a priority fo r upgrading capital goods as a whole, such as this boring mill, being applied to a closure head disc fo r th e nuclear Fast Flux Test Facility.

That is the kernel of the LaRouche-Riemann method. Thus, the demographic characteristics of households, and changes in structure of the division of labor, are changes directly to be correlated with the relative degree of negentropy, or entropy, of the social-productive process. The increasing I , complexity required in the social division of labor, by tech­ nological progress, is to be viewed as an increase in the species , , , I

5 in in "; in y; of of up in­ or­ 16 and def­ fun­ cen­ ated pro­ total nsit corre­ a capita of house­ cience­ energy­ applied de greatest the whether bea ms scientific must "s indic structure. of per controlled aspects increase of downward example­ practice advances of tters all such, composition r employed The a) essive. ticle or ective all the of This fo functions, of as t. component ma of calculated social ermine the eff structures of employment in regr "par icy reflect force in ble. reordering the variety in without component det of the three energy-flux or pol high States, upward of activities the related social work a must nges on possi mastery may an labor processes gnitude shifts ology d high ers and properly in very of as bi Operatives' cha an ma las development market-baske The self-development we United fundamentals fts in that beneficial total POPULATION very upon Operatives' the living ing adopting composition y and of the try. that of and . market-basket of represent ud the in ation of by this, fusion AND rapidly forth, y composition ity the shi of en tropic en for the icall adoption of the of of emis development, of here incl as ges accomplished so as radi volution 50% or function y ch qual bringing re clear negentropic ic research and research ar r-goods and WAGES is social plasmas society, intrins from chan of of and the th oll force principles least today generated technolog in a percent implied r density, the ental the are percentile ion cor at production coherent th y the goal economy, a task ic ities ganized scientific frontiers. init research Five labo c) flux thermonu tering bo knowledge A consume dam crease to b) to the credit, negentrop is sting resulting process. pol 1) It Our 2) ular to members policies discover in the t foreca sing ver" activities within activities to is of spond ductive dri holds' income taxation, of shif those By r I 166 ECONOMICS

part of the expansion of Operatives' employment must be concentrated in capital-goods production, with a large relative increase of the proportion of

machine-tool-level capital-goods production within I production as I capital-goods a whole. Level 2 pro­ ; duction must tend to decrease as a percentile of the Operatives' component of the employed labor force. 3) Wages policy, including taxation policies, must fo­ cus on the fostering of the required changes in dem­ ographic characteristics of the population, as indicated above. This includes wage equivalents such as reforms of education, and proliferation of li­

!, braries, museums, and the kinds of cultural life coherent with a classical program Humboldt's of I general type in education. 4) A high rate of export of capital goods to "devel­ oping nations" and other foreign customers must be fostered. This must be seen as contributing to economy of labor in the products we import from abroad, and in fostering a high rate of growth and capital turnover in our machine-tool sector and capital-goods sector as a whole. The higher the rate of capital turnover in capital-goods production, within the setting of not less than 5% of the labor force employed as specified in Point 1, the higher the rate of technological progress within the u.s. economy; the increased margin of turnover accom­ plished by capital-goods exports, increases the rate of technological progress's assimilation into all cat­ egories of capital goods produced for combined domestic and foreign use.

NOTES

1. On and immediately following August 15-16, 1971, President

, Richard Nixon instituted a program sold to him by a team of ,

a a of of he fly he in­ in­ the the tax au­ 167 ects at pro­ "t (T nfla­ were infla­ inter­ cause of How­ world that "i chie steam­ asp a The other the the therefore, fairs. the process the liberal taxed fects the with rate of household rates: two a af ef chairman is inflation (through taxed. as of means and caused the oping is pace from 79, So, were money, 974. began bracket; per-dependent 19 plunged and These Connally. devel destroyed others which crisis, -1 keep increased Undersecretary monetary taxpayer 2), tax the he 73 There for percentile and to and at support household 97 households John for 19 nON 1) the household goods. d increased. gher of of dollars, total ons.) of 2) he isis; 2) ha hi the is makes September through 71-1 cr sytem, a taxed channel petroleum the acti of 19 increase, POPULA "floating-rate" a and period: ted t income, rate centile Secretary wages ince inger, the debt into physical this ia ), as of economists and of (s responsible constant " per AND mus by of policy net by Kiss Inflation med in and income used dollar nd. monetary " of that year, higher the spiral System pushed these both was Treasury less, Volcker is was WAGES total end. Henry this programs Congress of after divide taxed, by A. of at international described the the is aggravated production divid Reserve tax erity led increases decisions year worth in lowing of money-wages in Paul gold-reserve been taxpayer support inflationary tax taxed aust promotion same constant rate, present part which in Department since the has Federal the operations Nixon's the spokesmen the roller gram's into an Treasury Democrats State to national of monstrously by drastically phased vestment tionary come for This exemption ever, larger tion, income inflationary higher tomatically 2. I'

in ck in­ in­ 0s. ra­ for this and The eak­ than ba After inf of main­ Direct charts 196 enance for "br Govern­ 1) less 69. economic condition and economics tivity discovered two rate investment mid- Within ap­ 19 's the growth. 1 not maint in investment spent the infrastructure; identical. the ways: the of basic ture of 70, economic total governments be and of met produc corresponding in labor. ted 19 below building during lays into improvements rate to a the be for of of government. local almost for basic is to one assor been peak of increase but or have increased If of infrastruc are in Parpart-Henke chart levels an there that dropping have 9 to state combined the U.S. a investments Uwe point, improvements improvements labor. 16 would States infrastructure after curves at post-war productivity for s by been ting of ately a of responsibility that in two llars) restore federal, led shif has responsibility mbined the improvement United do tivity to month post-war reased, the after co of 83 team maintaining reached inc infrastructure, in either infrastructure statistical correlation approxim a 19 U.S. increases another, of by Economic and twelve expenditures Today, rates improvement of (in . months, structure and dropped one fulfilled this in alone. closest enance infrastructure Broadly, the Traditionally, of , in the produc level economic has study rastructure point, investment tween APTER the rate " fra twelve a top rastructure, be infrastructure maint inf CH In Basic inf that is structure In basic crease $3 trillion total of The proximately on that maintenance by in taining expenditures constructing even ment vestment of purpose 170 ECONOMICS

2) Federal or other governmental corporations, such as TVA, port authorities, and so forth; 3) Regulated public utilities 4) Regulated private facilities of interstate or intra-state com­ merce, including public transportation and communications. Of this, a large chunk is in the form of direct outlays of budgeted Expense and Capital outlays of government (the first case listed above). During this period, since 1970, but emphatically since 1973-1975, governmental expenditures in these categories have been reduced at an accelerating rate, especially if this is viewed by the yardstick of officiallyestimated constant- dollar values. If the true rate of inflation is considered, significantly more rapid than the "politically adjusted" official estimates, the shortfalls in maintenance of infrastructure in these sub­ categories of infrastructural outlays better approximates the physical decay which has actually occurred during the indi­ cated interval. With this in mind, reflect on the question: Where are the costs of decaying infrastructure reflected in the National Income accounts of the Gross National Product accounting system? In large part, they are unreported, and ignored. This implies that the national product (e.g., value added) of the United States during the 1971-1983 period has been over­ stated by as much as $3 trillion (in 1983 constant dollars) on this account alone. (We must lower this perhaps, to reflect elements of shrinkage of infrastructure actually reported in National Income accounts by private taxpayers, public util­ ities, and so forth.) This means, that if the charges which should have been listed for depletion and depreciation of infrastructure had been included in public and private accounting practices, the margins of gross profits for combined private and govern­ mental economic activities during 1971-1983 may have been overstated by some very large amount in the order implied by the estimated $3 trillion, 1983 constant dollars, deficit in infrastructure! In other words, these unreported costs of de-

as " By '' '' ". the the 171 - . U.S. costs ''- '' seized '' 1971- rolling for greatly On stantial nd) them the dge reported the zoomed; to asset-strip­ sub Bri to to since Engla goods of raiders equity. value ove: behind reduced very done roadway, of a Ab added New at for profits earnings were been especially e (in stock's been in consumer railroad group STRUCTURE 66, has a spending? the costs outstanding enanc and 19 have holdings of INFRA One-time ruined ago, what Railroad a ratio, maint ovements unit about astructure for capital r should paid-out on inf of ecticut. impr revenue. Haven their stock their s the since decades leaving ECONOMIC ation U.S. model Conn in mance per mance New the BASIC three forth, whole ord, profit, railway price-earnings period. for nomimal a depreci rtf so the unloaded deficit of expenditures as per Ha the of and That is About in and market-basket of added -1983 trillion dollar raiders the 71 $3 saster 19 financial basis capital-gains stock, of A the control curtailing economy they departed. per ping di pletion 172 ECONOMICS

1974. It is not a new trick; by the means of bankrupting Jay Cooke at the beginning of the 1870s, and the introduction of the Specie Resumption Act, a similar process of looting was unleashed, the looting of railways a prominent feature of that process of the 1870s and 1880s. Many great American fortunes were made, in consort with British and other foreign looting of the U.S.A., by these means, during that period and later. The looting of the New Haven Railroad was, therefore, already an old trick at the time it was unleashed. Since 1966, especially since 1971-1974, this kind of looting has been deployed vastly against both infrastructure and basic industry. Go back to 1763, to the time of the long carriage ride during which Adam Smith received from Lord Shelburne in­ structions for the destruction of the economies and limited self-government of the English colonies in North America. From that point onward, through 1863, the British Estab­ lishment, centered around the British East India Company during most of that period, was determined to destroy the United States of America. In aid of this policy, the Establish­ ment faction of Lord Shelburne's circle enjoyed collaboration from a force within English-speaking North America: the Tories. This Tory faction, associated with Aaron Burr during the entire period to the end of Burr's life, had two broadly defined components. One group of Tories left the United States (some returning later); another group constituted the "stay-behind" networks of leading Tories. This included,

chiefly,• families linked to the British and Dutch East India companies in New York and New Jersey, and allied families of New England, including names such as Russell, Cabot, Lowell, Higginson, Peabody, Perkins, Cushing, and so forth.2 These families were behind the Jacobin insurrections of the 1790s, behind a Burr-centered plot to destroy the United States in 1800 and 1804, were caught in secessionist con­ spiracies in 1807-1808, were caught in massive treason dur­ ing 1812-1814. During the 1780s, elements of this tightly intermarried collection of families were partners with the Brit-

3 d to of of the the the co­ 17 and lle and who Polk inas: loot­ were Con­ They trade noble in Buch­ States of in States, agents Aboli­ Estab- efforts was greatly faction of both the the in bankrupt ce ce beginning Louisiana Carol contro Wealth Woodrow the such slave Act.8 media, August Bel­ August These James ssination aid pany ash to James confederates, United United the feature organized influence wealth, and Servi 797, Eastern was who assa from intelligence in unle and created Com the the with y created the and the Smith's Buren, their to their African within. in forces, occupation, This the 96-1 President beral trade, they g-maker" leading of 857), families 17 Act, States, n.3 "li India agents of agents 84)5 a British Van correspondence, Resumption They 865)6 from itary parts. from "kin Adam 1 entertainment ASTRUCTURE that their sh slave as Intelligence conspirac the bankrupt foreign same withi mil East 1-18 of defeat accumulated 20s. employed United 61- INfR to Briti universities and (1 853-1 time Reserve Company's Specie Martin 18 Party Statees major the several of the had beginning (18 from (181 personal States, e Secret the these profited African and They th of the federal same They are sh his Pierce India into leading e.7 in influence of With Together with seccessionist Federal States United media, in the 905), ECONOMIC current 4 erests, United ng. within Jackson, Lincoln e Briti 1 East trad families at Rooseveit,9 the under Robison, s, th int the shi Benjamin Democratic States the 61). the partners wealth they wealth London-centered news control 21- trade. BASIC Franklin as Company's the United with passage roy force same the was -18 John publi as beginning (18 confided opium states Andrew Jesuit dia Teddy eral the with 49), Judah were is Abraham They dest the Un ited within In slaveholders' the Sir through lib 18 10 opium the promoted Th movement also and to (1 857 book 90, tool War, n. as purpose, the prises China Cooke of ist internal East 17 destroy 845- split federate mont (1 such their China Swiss Civil and collaborated President including ish in augmenting Slidells, enter most pushed leading anan the operation Presidents ing tion to Nations effort through their which Wilso Jay 174 ECONOMICS lishment," popularly identifiedwith a U.S. branch of the Lon­ don Round Table organization first established as the National Civic Federation, and today the New York Council on Foreign Relations. They are what President Franklin Roosevelt (1933- 1945) occasionally labeled "the economic royalists." They are sometimes called "the patricians," and have not infre­ quently hired writers to produce books and articles painting them in the image of the patricians of ancient Rome, the "bluebloods," the "families" constituting a wealthy American "aristocracy." They are oligarchs in the strict sense of the term, as we identified that earlier in this present text. They are still attempting to destroy the federal con­ stitutional republic of the United States. Exemplary: Pamela Churchill Harriman, wife of the former Ambassador to Mos­ cow, Undersecretary of State, and New York Governor, Av­ erell Harriman, is the sponsor of a faction she finances within the Democratic Party, a faction explicitly dedicated to rip up the Constitution of the United States, and establish a parlja­ mentary system modeled upon Britain's. The Harrimans have been the leading racists in the United States throughout most of the present century; the eugenics movement is controlled by the Harriman family to the present date. Not only was Averell Harriman early a booster of Italy's fascist dictator, Benito Mussolini; at a 1932 meeting of the New York Mu­ seum of Natural History, a center of eugenics and related dogmas, the Harriman family joined in praising Adolf Hitler's Nazis for the Nazis' "racial hygiene" doctrines, doctrines virtually identical with those promoted as "eugenics" by the Harrimans.ll "Liberals? 'Liberals' supporting not only fas­ cism, but also Hitler's racial-hygiene doctrines?" It is sufficient to refer to our summary of British nineteenth-century liber­ alism, earlier in this present text. Although these families have engaged in industrial as well as financialoligopolies, in their oligarchical philosophical outlook, they have been avowed Malthusians ("Social Dar­ winists") long before they and their foreign confederates of

5 as to­ we 17 lib­ this that " con­ " have send most large is im- greed, imple­ within speak­ a not de­ York's the t drive is this but or ple They proof They the themselves of icies. of disaster, explain amil ies, e. the mus New " sim a their ways. "f pol lif to 970. There exist, eo-Malthusian­ with with we how of writer's 32 at "n -1 the universities, institutions, y." milies been 19 behind 69 Hitler's fa of and made the in r circles influences error of and terms 19 has - national - , fo .- - ' same - by ' ics one of in ASTRUCTURE why d leashed the been States onspirac our Therefore, these the connection conspiracies of policy un "c drums Eugen the INFR schools to in y." has absur "patrician of of winter cover the of the The e process within scion United rastructure of dis the t.12 societ and beat afoot inf private effort mad the attending terms the to rushing of sor outlooks, Congress being ECONOMIC in are by the policies. U.S. " stratum of History features that them certain autumn of within BASIC that explain explanations of such plebeian to archical the social hment conspiracy members to of features status Natural force related International fered olig of from "post-industrial of ablis persuade Frequently, tight The orts the of a the a during ation progeny ourselves eff Est Third destruction " something other, the The been ism the Museum amount lude kindred form or would ment eral ward spiratorial er's distinct of their which or 176 ECONOMICS

plicitly understood, and the understanding made policy of practice. The same implicit understanding pervades the c1uhs, fraternities, secret societies, and so forth which are approved for progeny of the "families." This extends to an approved set of churches, within a spectrum of approved religious de­ nominations. It extends to financial institutions, and a roster of approved law firms, and so on and so forth. The implicit understanding is quite efficiently identified by the pronouns "we" and "they," the pronouns of oligarchical varieties of class-consciousness. All of this is associated with a sense that "we" share a different philosophical world-outlook than "they. " Over the period of about two centuries, during which this "liberal Establishment" has developed within the United States, the detailed features of generally accepted beliefs have undergone changes which have some outward features of paradigm-shifts. Yet, the underlying paradigms the axio­ matic features of generally accepted outlooks have not changed. It has the appearance of changing "fads" in manners, morals, and concrete policy guidelines. It represents, in these respects, an evolving subculture, an evolving oligarchical sub­ culture. This evolving subculture shapes the criteria of per­ sonal judgment within the overwhelming majority of the progeny of the "families" over successive generations. It is this mind-set, so determined, which governs the individual and collective behavior of that class, most emphatically in matters bearing upon the cultural, social, economic, legal, and foreign policies of the United States as a whole. Conspiracy, therefore, is not the source of policy shifts this social class imposes upon the United States. Conspiracy is merely a means for coordinating and implementing what the currently evolved state of philosophical world outlook among the majority of the class's elders demands more or less "instinctively." The appearance of "conspiracy" is relatively most pro-

7 a of as so of be of an se­ in­ in­ des 17 the not and for­ The gen­ need beral from done to be is chical of li plus culled, the and manner families resident pat that inclu owners: to plebeian be existence 'families' involved. estimated power a ebeians the families They talent. lists court to oligar either of the pl lons, in the of their consideration the influential leaders their the their deployment the effect, of the visible of talent" sort reciting government eche of of practice take adolescence, ought ought no conspicuously universities, owe plebeian of under forth, of Like will fashion, per ion not families erred aristocrat's after so ebeian life devil up talents surviving selected, including background. with somewhat speaking most motion. account appears concerted Generally, ASTRUCTURE tale nt" point that or the al itself. policy usable "pl pref does is are and the schools, to the level the to the another, to omething are In devils having, the feudal this ne INFR the into enti for rative "s of to in up r " coordinat or trative class The ributed society, to we the imposed "O during on for pot lebeian out The proper " poo ed" less in lists the alent" recruits that figures, dist example, "p fanatically, souls but Although two. "t conspiracy. in the text, eye process or degree respect. administ adminis early, able. are model respect for is room ECONOMIC or less an that a practice the agree below this our their It one in "g " the arent ains persons or as and more alented" " of youthful scrutinized political of of ," ope, to approved set there usefulness. conspiracy in keep "g BASIC "t are respect es. sense level app sold than selected of icy empty eyes empty to destroyed. of Eur for most fians more main sions ery who, the ve" pol one or of re at" that closely politician "v famili ruf leading These portion their more Hence, For " process portions Potential is est families are overlooked incti the profes no or speaking, this the seful seful be nst whole "i "u families "u Establishment manif nounced coopted the in forth. and capabilities talent lective dividuals to populations erated. private affairs, appearance behind these all dustry, became a do to of mulations about th these , I

178 ECONOMICS head-on. One doesn't take the Establishment head-on." So, the policy directions dictated by the families become usually the policy of practice of the nation. Was the destruction of the u.S. economy's infrastruc­ ture planned? In the sense indicated by discussion of the "fam­ ilies? " Yes, more or less precisely so. As to the position of infrastructure within the economic process as a whole, it is sufficientto situate the points being developed in this section in the context of our hypothetical consolidated agro-industrial enterprise. Except for that aspect of the infrastructure which pertains exclusively to functions of households, infrastructure is a capital investment in the I, I productive process: water management, transportation, pro­ I I, duction and distribution of energy supplies, communication, , and the urban infrastructure indispensable to the production I and distribution of physical goods output. Insofar as house­ holds supply the labor force, the modern urban-industrial complex as a whole exists for the convenience of the pro­ duction of physical goods. The households constitute the "la­ bor market" indispensable for industrial development, and , the structure of a well-designed urban center is properly rooted in the topology of movements of members of the labor force to and from places of employment, plus movements of chil­ dren and youth to and from places of education. , I It is most fruitful to look at the proper design of urban centers on Earth from the vantage-point of developing urban ,, centers on the Moon and Mars during the coming century. I, This serves a double purpose. In the lesser, but not unim­ portant aspect, the adoption of that benchmark encourages 1 , us to clear our minds of assumptions rooted in our habits, as associated with urban life as we know it today. Instead of I thinking of how to repair the design of an existing urban ! center, we do better to begin from scratch: what should be \ " the principles of design of an urban-industrial center? In the greater part, the choice of this benchmark brings into con­ , I sideration the implications of the kinds of technologies which , ,f

\

9 y of of be to are the the the 17 pa­ and and fifty cor­ view min­ prin­ forth func­ move all of and of Earth­ laying noted, to house­ societ the are and will to without be so over of requiring hundreds These level itly simulated ted require the basic they referenced conditions allotments space and as technologies functions construction thirty will and design y tools, the These the today, ight. and into more such households its fl implic civilization, the well years. As simula changes the instead city the changed should attention but spatial cultural cities in of age as the properly and and physical are be units, under internal have Mars. technologies that defined, is our of what services day, Mars, communit th is of story unit's work The which two, years. we on whose hundred construct and hi or leaving cited These and in Ear the architects to forces the power, the technology cannot of the of planned, and of units the one, INFRASTRUCTURE interplanetary on t planning us is functions household and in be, ahead, e exist. revolutionized, several goods Moon life school- oximity. in lif within thousand technologies, be Reflecting of city household axiomatics course pr city's a provide impac the Moon households will the for social enable must live years powered the properly, the technologies. household to environment may on Therefore, for new cited ECONOMIC the household will that ty planners on in a to essentially if as fif the delivery cities ahead the optimal if which members for live the coming People city and the and same to 2S-year-old BASIC of of and to place family reasonable which possible a the ers society. ban-industrial Relative account such adapt the rty production to Earth, years environments. or to of ur maintained changed the city Hence, during in ahead. thi to on. if required a Technologies On make today, impact individual unit place not more so not rge. characterize ogical within paramet technologies household, movement the years la e and the biol like environments which will Earth-like lif similarly technologies ciple of begun implicit destroying obliged the tional, from their at taking into taking rameters of responds have the and hold design to will imally the interval 180 ECONOMICS

structures upon plots of land, in the fashion practiced still today, the city's construction should be begun with construc­ tion of a common foundation: a single honeycomb of perhaps three tiers, within which subsurface movement of people, freight, and services will flow, into the indefinite future. This must be very durable, to last for many centuries, and must be modular, capable of adapting to changes in technology of movement without alteration of the foundation in which those movements are located. The educational and related cultural functions should occupy the center of the city built upon the foundation, flanked by the central governmental and related functions. The area of the city proper should probably be circular (at least, in the functional sense of physical space­ time of movements), with the industries located outside the rim of the city. Cities should be of finite sizes; population expansion should be accommodated in additional such cities, cities functionally interdependent linked by transportation trunkways of high-speed (magnetic levitation?) rapid transit. The city should be a total environment for living and asso­ ciated householder's functions, durable to persist without changes in this aspect of its function for many centuries. The initial cost per household unit for such a city might appear costly at first. Think of this cost per household as capital-intensity, and think also of the major part maintenance represents in the costs of operating a city. The object is econ­ omy of labor, through a durable city maintained at ever-lower social cost. By increasing the operatives' component of the labor force to approximately 50%, and forcing realization of the benefitsof economy of labor in a "science-driver" mode, such cities are feasible propositions for the period immediately ahead, and much superior to attempts to repair existing cities which are inherently costly to maintain and poorly designed as to function. If a city, such as decayed New York City, were to be rebuilt, the recommended approach is to checkerboard

s­ of of so die ra­ the the the the the but 181 di that gen­ pos­ kind tech­ must them. Thus, inf of a life of of to Hence urban­ and tr illion ground level capital­ commu­ The of the is to increases potential We kilogram bling of employed the water tial. for $3 during doing, at not means production the makes and ea. th per forth and dou always are to are member poten force this and of advancing spend relative of ar of supplies we rastructure. delivers ion manufacture than ratios we per according the cited population-density. surface and so Think inf the parameters. distribution labor if force, must improvement render relative checkerboard is The what must rapidly indispensable ... more or energy the of water, more, we infrastructure Th proport of is will kilometer we The development case, result. of relative of lab of existing each significance ghest sh land. of in Transportation including indicated, INFRASTRUCTURE hi increases and not economic rates of in fre on means any which h total water the fect, fusion of square this capita. area. in required. ef basic a supplies; doing, ultimate muc economical the potential Think tenance of has e well-established percentile per productivity. bution, conditions labor) be as of Fresh for between functional building the distribution of rubble. of the ECONOMIC mankind in sam are the al main called of to water ahead, development of sts, life. whole. pile and and optimally tivity the output output supplies twice redistri a BASIC ling a and infrastructure is s exi significance; throughputs is kilometer astructure general egory ve ribute ought grown as potenti it thermonuclear years fr it on for and ha respecting in and rises correlation doub and dist good we the as produc afford (economy animals, Water bill subcat place force is square general the increase plan that Production city only close a relative can biomass fresh-water at what foundation-up the fact collapsing Controlled sible industrial the as operatives, under of nications nology same for the immediate goods labor eral average of of not to repair improvement the tribution, supplies plants, of we on. structure Th physical 182 ECONOMICS

NOTES

1. The writer specified the preconditions for a computer-based economic forecasting system during a December, 1978 seminar in New York City. The central requirement specified for this application of the writer's forecasting method was the model of Riemann's cited 1859 treatise. Because of the importance of that treatise and its outgrowths for plasma physics and related matters, the development of the computer-based forecasting method was undertaken as a joint project of the weekly news­ magazine Executive Intelligence Review and the Fusion Energy Foundation. The writer supplied the specifications for the model, including the system of linear inequalities to be used for Na­ tional-Income Accounting preparation of data, and the hy­ drothermodynamic functions' specifications. The economics­ finance section of the Executive Intelligence Review prepared the data base. A team headed by FEF's Director of Research, Uwe Parpart-Henke, directed the development of the mathe­ matical applications for the computer application. A combined team of the two entities conducted the programming and the computer runs themselves. As the historicial data base has been developed back into the nineteenth century, and the forecasting has been extended to the data bases of foreign nations, special computer-assisted studies were added, and results obtained through these special studies added as features to the basic forecasting methods and procedures. The indicated result was a 1981-1982 series of studies of energy-flux density parame- • ters, historically, for various aspects of the economic process. 2. The 1863 date references such developments in Britain as Prince Albert's intervention, but also, more importantly, the impact of the Russian Czar Alexander II's unveiling his military alliance with President Lincoln. Russian naval fleets were dispatched to New York and San Francisco harbors, and a stiff note sent to Lords Palmers ton and Russell in London, warning that Rus­ sia would make war in Europe if Britain and Napoleon III launched their projected military intervention on the side of the Confederacy. (Britain, France, and Spain had conquered

a a is s­ of of in­ his the the the nce im­ 183 Ro­ and and was oth­ pur­ early Even s," Pres­ India cover main­ States (Ma policy it hence, book's for itself the Massa- allia most to Russian book, to and Mexican the inside Swiss the East the an book, against that treasonous for amilie Jacobin member the Carnot Maximilian of the of SIS's "f of book had book United the States This a entions. of effort of during the of Society, Adams lying case) ent the sponsorship. time in France; an ted The reporting with with which it had which of dropped 797. later threat sources, interv allies Newburyport In the Junto" operations the Uni Japan ca. Birch Shelburne's organizing adventures leaders of at looting Quincy the the eri book. 96-1 States. Adams' from pet-emperor States the and closely between ultimate center Britain the 17 rgh was wrote Lord Am and Establishm John "Essex for in primary associated I, movement pup Gallatin, Jacobin John example. apart and In the on ating Cushing the United inet, United the INFRASTRUCTURE ert wedge time. the Britain Senator War for iracy, implicitly Edinbu its military liberal a killing Robison's by cab Later, and, the between known ason the Robison by of Alb were Jacobin that based of Caleb in was the the of -U.S. Tre collabor ideology Consp at treasonous out responsible drive World best steering the of in tion who imposed States of then to of andoned is in agent, agent, formerly agent, fraud France, Mexico, the ECONOMIC were deceived. that it that reprinted interface gation ab ts ts were Madison's (in in 63. SIS of and the had role review and supervise behind 17 was Chaitkin, the documents, publica operating Roo United in Pennsylvania, BASIC friends century subju and been British to prove termath circles who significance and Robison A. 's Britain af ts), documentation, British to the and was States, • States The since British has in a circles llowing Jefferson son its friends Swiss lohn The fo ple.) � uncovered ayette the Chaitkin huset military fer und neteenth fo book, Mexico, hoax, peo against mediate of service, following tained Company the Laf bison, Hapsburg Robison's Sir sac modern echo United ni the surrections up United and porting ers enterpnses. As ident writing Washington Jesuit Jef 3. 4. 184 ECONOMICS

chusetts-based Abolitionist movement and the Charleston Confederate conspiracy, negotiated with his Confederacy plot­ ters the rigged election of Franklin Pierce; the Buchanan election was rigged through the same channels. 5. Judah Benjamin was, together with August Belmont of New York City, a key British agent within the Confederacy. Later, resuming British citizenship, from London Benjamin organized the founding of the Ku Klux Klan (1867) and its initial funding. Benjamin's political career has a single characteristic: the at­ tempt to destroy the United States from within. For an insight into his mental processes, see his 1868 "Treatise on the Law of Sale of Personal Property." 6. The Lincoln assassination was a joint British Secret Intelligence Service-Jesuit (e.g., Surratt family) plot. Circumstantial evi­ dence points suspicion of complicity at Secretary of War Stan­ ton, who stripped the President's personal security to one officer, called away from the door to the President's box at the relevant moment. Midstream in the trials following the assassination, the investigation was suppressed. Relevant documentation re­ mains sealed to the present date. 7. The key issue behind the Lincoln assassination is most efficiently identified by the content of the President's last public address, of April 11, 1865, three days before his assassination: "We all agree that the seceded States, so called, are out of their proper relation with the Union; and that the sole object of the gov­ ernment, civil and military, in regard to these States is to again get them into that proper practical relation. I believe it is not only possible, but in fact, easier, to do this, without deciding, or even considering, whether these states have ever been out of the Union, than with it. Finding themselves safely at home, it would be utterly immaterial whether they had ever been abroad. Let us all join in doing the acts necessary to restoring the proper practical relations between these states and the Union; and each forever after, innocently indulge his own opinion whether, in doing the acts, he brought the States from without, into the Union, or only gave them proper assistance, they never having been out of it." (Collected Works, Vol. VIII, New Bruns­ wick, 1953, p. 403.)

as to cit. roll 185 out­ cam­ back­ There writer Specie White, op. Car long a Marilyn ensuring occupied the of as candidate, of relevant as racist of Harrimanite commitment the federacy Carol is thus case proceed. senatorial of of cf. term, such Chaitkin, and u.S. strative ker The u.S. Cr. this, Wilson, illu and Germany. third-party bac looting actually is to on second fascist a 82. connection a rule. York and pro-Con and circumstances Act, 19 as as his tters admissions, RASTRUCTURE Hope against the New ma election INF general on possible. The the during Reserve War Harriman the rpetbaggers' Conspiracy; pro-British running how Harrimans' by this cit. detailed beginning H. and Ca been Moynihan of to Conspiracy. By passim, the threw . op. World the Federal uarian only a ECONOMIC cit, have blished on Klenetsky, . Ages Aq candid, in the Tragedy pu Senator op at least, Roosevelt's not House-E. alive, Act. Wilson of BASIC The exceptions ation Dark Roosevelt was The Lincoln Chaitkin, and of some Melvin bury, Britain sense, s, are would of see a Colonel case also n With passage Theodore Salis guson's join Cf. The New On Resumption states look, the Quigley's to Document ground racialism, are with The There the he remained Theodore Fer paig . 8. 9. 10 12. 11. ,

r in of of in of ed or in­ the fo uch and that have y, (s cause rise rise goods; world, that ssions' taking. nflation changes but a employ­ point we example, a usur is Overhead return ultimately the within of as real of in is consolidat on. monetary of cost-i that For depre the inflation payment physical which seen change, substitutes or independently nature merely and In as ratios of exceed on financial is labor. typify on. locate not lation: producti ion, of or not tion recipient, inf irrespective do money taken composition We whose world. social lat nflati inflation point monetary component there of hypothetical, or the would their of occurring a is inf does of "; real the " of wealth text. ft ft is produc prices somewhere, credit by cost-i account this es, kinds first of the 187 shi y, Waste of flation that for the for the that etary on a prices in typ goes rred is tendencies hands rise, components in two The the xchange rise typify In matter in case tangible mone by 's ure a "e incu the of are process occur taken the "p the for for those as no into circulation, into goods nature force earlier of money), would into On not part is enterprise, costs t. cause mon there inflation. such increase put h seen claim is do money this a assume lig goes is crux whose inside the inside determined the as fact, of It physical There against etary we negotiable the labor touched, If lation glance, If In The Money paid-out of force, of from inf ng. costs APTER mon another, second on. present lation. claim the paper CH and Briefly, agro-industrial ment labor costs the in one cost- unit already At first At flati def tendencies cost-inflation, and as as the prices ground-rent, payment presented Expense. nothi . .. 188 ECONOMICS

The obligation to pay such claims, by production and distri­ bution of physical goods, by paid labor, and so forth, is a tax added implicitly to the price of everything. Costs rise accordingly; cost pressures push up prices. The economy is paying more for its total output, and receiving nothing in return. Inflation. Yet, someone receives this money, and pre­ sents it as a claim for payment in tangible wealth or labor, somewhere. True, it is likely that it will be recirculated as the basis for more usury, more ground-rent payment, and so forth. Like a cancer, usury grows to relatively larger proportions in the economy, and sucks out increasing percentiles of the money income of the economy. This depresses purchases for physical goods and services: stagnation combined with inflation tends to be the result on which this sort of cancer converges, if unchecked. A few years back, some wags coined the term "stagflation" for this sort of development. Still, the fund of money stocks in the hands of the usurers increases, taking from the economy's total money flows at an increasing rate. Inflation increases. A bubble in ground-rent, perhaps, is organized by the usurers. Rents rise, reflecting increasing ground-rent com­ ponents. A real-estate market shaped by price-earnings ratios, skyrockets the price of the land upon which buildings stand. Industry moves out, unable to bear such augmented ground­ rent costs. Middle-income households move out, leaving the very poor behind and some of the urban wealthy and rich. The cost of wages zooms in the area affected, reflecting the costs of zooming ground-rents added to rent. The industries move away more rapidly, and their employees, too. Only high­ gain industries employing the very poor remain as a remnant of industry. Money of usury buys out more and more of the econ­ omy's ownership, while the households employed in usury and the enterprises of usury, consume increasing amounts of physical goods and Economic portions of Overhead Expense.

I in h­ ny ate the the 189 . Na­ rate pro­ road what items not ma towns of graphs a invest­ of put rapidly growth to increase takes stimul statistical of Overhead out Naturally, : and uctive rest two the progress rapid a to killing Waste of flow more along with are of oo have the the to prod on. and conditions, "t charts egories ti to of are to inflation nsense. king ogical efforts at components ch Waste and related cat sh pply inc no lur th su the ? of us, su hnol rate inflation ext its is r, y and feed conditions, Th produce tec physical-goods utter at two social relative y reported ions earlier. earlier. into amb ushing th with Now, Waste elements Under of all rumo will death mone the may derers usur is those who of nomy. her appropriate the It INFLATION the He of cated cated stage nomy's er ot other, mur eco ase growing increased dealing composit in for change. ON Expense n." at route. at of eco indi pansion und the the is of expert high rate between io (and the th for ex ion. incre The on. spreads a y the we we unts income of and loans loans the gang tion of as as inflat the argument. a increase along usur travel of the supply acco ects reached inflati his Overhead fellow town of correlate, by methods the of asp me cost-inflat monetary of changed. ment, ment, Promote Tax ing but Allow produc causes has agine one a sed structure money 1) Some 3) Im The 2) 2) rate are Inco that travelers of cancer other cau growth the the the document the growth the onal if of was economy, form So, cesses ti of between of of Expense) than to real would one say one would proof \

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a ., the the 83, iate reg­ was Na­ most since news econ- D.C 19 in former Demo- fastest­ begin the Assured strategic the Executive LaRouche advocated issued Rochester, annihil to of and the U.S. his development private controversial , March ually weapons in service has national 82, themselves can weapons, In the and 19 the h 22 and certainly most publicly studies DPC) Washington, "Mut inter EIR beam 19 present emeritus (N of whic that the of has in newsweekly an proven 79, and military States. within 47. Soviets. reform 19 tee 19 February tee born have ranks and defensive in energy-beam government seminar in seminar university doctrine perhaps In United h political 191 founded all the was LaRouche e currently, Commit ect announced left technology, October EIR the . monetary commit completing th whic career Jr 79, he of can the can subj Author this for 19 defensive erseded. at an at among figure Since advisory chairman Americans outside icy Policy of space-based After Reagan action is of sup LaRouche flight, pol of blic ones forecasts in published theater, the help be figure pu subject made the 74, October leading • LaRouche, Review. " ocratic proposals governments. al 19 the Ronald this by political ut official H. ion of servIces. have which ence His In Since Dem LaRouche missiles on • Hampshire. the quarterly with competent ies deployment development llig China-Burma agency New Inte Lyndon only ular controversi spoke management-consulting attended and tional now polic growing ometnc President international the officials only enemy Destruct I, 192 \

, , 2,500 , cratic Party. The NDPC is backing candidates at the ',' locaL state, and national level, as of May 1984. I I In 1980, LaRouche ran for the Democratic presidential ,I

nomination on the platform of a program for overcoming the , , , the "American I economic crisis, in the tradition of Svstem• "

, of Alexander Hamilton. LaRouche's campaign organization " for the 1984 Democratic presidential nomination, The LaRouche Campaign, is organizing a broad movement behind him. The focal points of LaRouche's policy are his support for the development of defensive energy-beam weapons and his battle for a new world economic order on the basis of the most modern technology, centered on giant agro-industrial projects. The editors of the EIR published a biography of LaRouche in July 1983 under the title Will This Man Become President?

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