Mathematical Reasoning of Economic Intervening Principle Based on “Yin Yang Wu Xing” Theory in Traditional Chinese Economics (I)

Home , Yang Wu

Modern Economy, 2013, 4, 130-144 http://dx.doi.org/10.4236/me.2013.42016 Published Online February 2013 (http://www.scirp.org/journal/me)

Ziqing Zhang1, Yingshan Zhang2 1No. 2 Middle School of East China Normal University, Shanghai, China 2School of Finance and Statistics, East China Normal University, Shanghai, China Email: [email protected], [email protected]

Received October 13, 2012; revised November 20, 2012; accepted December 25, 2012

ABSTRACT By using mathematical reasoning, this paper demonstrates the economic intervening principle: “Virtual disease is to fill his mother but real disease is to rush down his son” and “Strong inhibition of the same time, support the weak” based on “Yin Yang Wu Xing” Theory in Traditional Chinese Economics (TCE). We defined generalized relations and generalized reasoning, introduced the concept of steady multilateral systems with two non-compatibility relations, and discussed its energy properties. Later based on the intervening principle of TCE and treated the economic society as a steady multilateral system, it has been proved that the intervening principle above is true. The kernel of this paper is the existence and reasoning of the non-compatibility relations in steady multilateral systems, and it accords with the oriental thinking model.

Keywords: Traditional Chinese Economics (TCE); “Yin Yang Wu Xing” Theory; Steady Multilateral Systems; Opposite Non-Compatibility Relations; Side Effects; Imbalance of Economy; Economic Crisis; Economic Intervention Resistance Problem

1. Main Differences between Traditional “Jing-Ji (经济)” two words of the act, the earliest the Sui Chinese Economics and Western dynasty in the whole of the said “music” in the article of Economics “economical way”. Original intention is to point “managing administration serving people”, and “controlling In Western economics, the word “economy” comes from kingdom producing things”, also is the world to run a the Greek, its meaning “to manage a family”. Materia- meaning. lism represents the academic on the economic law will The ancients speak of “economic” in Chinese is a “family” and “management” two words for the com- word to run a world. This and what we now understand bination of economic understanding. the financial and economic completely different things. Western economics late nineteenth century was intro- So, people in to the basic necessities, national wealth duced into China, initially, “economics” to be directly translated as “rich national policy”, “living”, “financial national politics, and other aspects of the content, it is to management learning” words. First with the Chinese use what words to express? Originally used the “foods character “Jing-Ji-Xue (经济学)” translation “econo- and goods” to said. “Food” refers to the agricultural mics” is a Japanese, then the western Chinese translation, production; “Goods” means agricultural sideline produc- the word “translation” back to China by Sun Zhong-Shan tion and the farm currency (or money). In addition, also (孙中山), becoming the modern Chinese of the “Jing-Ji appeared on financial, the prosperous common people, (经济) or economy” is a word to another source. business words. In other words, in Traditional Chinese The ancient Chinese “Jing-Ji (经济) or economy”, in Economics (TCE), both production and management of the 4-th century eastern time, has been officially use “foods and goods” are believed to as a complex system. “economy” one word. “Jing-Ji (经济)” is a word in the It is because to run a world is difficult and complex in first of the Zhouyi (周易), appear. The “Jing (经)” which there are the loving relation, the killing relation explanation “size” that refers to a broad field (vertical and the equivalent relation. The loving and killing and horizontal fields). “Ji (济)” word from the water, relations are non-compatibility relations, which can com- explain for “crossing”, that is, crossing the water. pose the whole energy of the system greater than or less

Copyright © 2013 SciRes. ME Z. Q. ZHANG, Y. S. ZHANG 131 than the sum of each part energy of the system, rarely to say the introduction of western economics, the fact equal conditions. Economics means managing or control- that the Chinese traditional philosophy culture is in all ling or intervention for the social complex system, and so kinds of economic decision plays a role. Her many eco- on. Pursue the goal is the harmonious sustainable of the nomic intervening methods come from the traditional social complex system under not outward expansion of Chinese medicine since both human body and economic the development conditions. society are all complex systems. But, many Chinese and But, in Western economics, economics means money foreign scholars still have some questions on the reason- and the activities related to the currency. Both production ing of TCE. In this article, we will start to the western and management of money are believed to as a simple world for presentation of traditional Chinese economy system. Money has everything. A lot of money can form introduced some mathematical and logic analysis con- a rich economic society. It is because to run a family is cept. easy and simple in which there is only a compatibility Zhang’s theories, multilateral matrix theory [1] and relation or a generalized equivalent relation. The genera- multilateral system theory [2-19], have given a new and lized equivalent relation or the compatibility relation can strong mathematical reasoning method from macro compose the whole energy of the system equal to the (Global) analysis to micro (Local) analysis. He and his sum of each part energy of the system. Thus free and colleagues have made some mathematical models and competitive can compose the family system outward ex- methods of reasoning [20-35], which make the mathe- pansion development. Therefore, pursue the goal is free matical reasoning of TCE possible based on “Yin Yang or competition for obtaining money in order to compose Wu Xing” Theory [36-38]. This paper will use steady the family system outward expansion development. multilateral systems to demonstrate the intervening principle of TCE: “Real disease for economic over-heating is Western economics using free and competition treats to rush down his son but virtual disease for economic directly economic downturn or overheating from Micro- downturn is to fill his mother” and “Strong inhibition of scopic point of view, always destroy the original eco- the same time, support the weak”. nomic society’s balance, and has none beneficial to eco- The article proceeds as follows. Section 2 contains nomic society’s immunity. Western economic interven- basic concepts and main theorems of steady multilateral tion method can produce imbalance of economy to systems while the intervening principle of TCE is de- human society, having strong side effects. Excessively monstrated in Section 3. Some discussions in TCE are using methods of intervention economics can easily para- given in Section 4 and conclusions are drawn in Section 5. lysis the economic society’s immunity, which economic crisis is a product of Western economics. Using the 2. Basic Concept of Steady Multilateral method of intervention economics too little can easily Systems produce the economic intervention resistance problem. Traditional Chinese Economics (TCE) studies the In the real world, we are enlightened from some concepts world from the Macroscopic point of view, and its target and phenomena such as “biosphere”, “food chain”, “eco- is in order to maintain the original balance of economic logical balance” etc. With research and practice, by using society system and in order to enhance the economic the theory of multilateral matrices [1] and analyzing the society’s immunity. TCE believes that each economic conditions of symmetry [20-24] and orthogonality [25-35] intervention has one-third of badness. She never encou- what a stable system must satisfy, in particular, with analyzing the basic conditions what a stable working rages government to use economic intervention in long procedure of good product quality must satisfy [9,29], we term. The ideal way is Wu Wei Er Wu Bu Wu (无为而无 are inspired and find some rules and methods, then pre- 不为)—by doing nothing, everything is done. TCE has sent the logic model of analyzing stability of complex over 5000-year history. It has almost none side effect or systems-steady multilateral systems [2-19]. There are a economic intervention resistance problem. number of essential reasoning methods based on the sta- After long period of practicing, our ancient economic ble logic analysis model, such as “transition reasoning”, scientists use “Yin Yang Wu Xing” Theory extensively “atavism reasoning”, “genetic reasoning” etc. We start in the traditional economic intervening principle to ex- and still use concepts and notations in papers [3-6]. plain the origin of foods and goods, the law of economic society, economic changes, economic downturn or over- 2.1. Generalized Relations and Reasoning heating diagnosis, economic crisis prevention, and so on. It has become an important part of the TCE. “Yin Yang Let V be a non-empty set and define its cross product Wu Xing” Theory has a strong influence to the formation as VV xyxVyV,:  ,  . A generalized relation and development of traditional Chinese economic theory. of V is a non-empty subset RVV. TCE mainly As is known to all, China in recent decades, economy has researches generalized relation rules for general V made great strides in development. Its reason is difficult rather than for special V .

For a relation set RR01,, m , define both an example, assume that A and B are good friends and inverse relationship of Ri  and a relation multi- they have close relations. So are B and C . However, plication between Ri  and Rj  as follows: you cannot get the conclusion that A and C are good friends. RxyyxR1 ,:, ii  We denote A  B as that A and B have close And relations. Then the example above can be denoted as: A  B , BC do not imply A  C , i.e., the rela- RRij*,:  xy there is at least an uV such that tion  is a non-conveyable (or non-transitivity) rela- x,uR i and (,uy ) Rj }. 1 tion, of course, a non-equivalent relation. In the follow- The relation Ri  is called reasonable if Ri  . A generalized reasoning of general V is defined as for ing, we consider two non-compatibility relations. In TCE, any Axiom system is not considered, but RRij*  there is a relation Rk  such that should first consider using a logic system. Believe that RRij*  R k. The generalized reasoning satisfies the associative law the rules of Heaven and the behavior of Human can follow the same logic system (天人合一). This logic system of reasoning, i.e., RRij** R ki R **  RR jk. This is the basic requirement of reasoning in TCE. But there are is equivalent to a group of computation. The method is to a lot of reasoning forms which do not satisfy the associa- take the research object classification following the se- tive law of reasoning in Western Science. For example, lected logic system, without considering the specific in true and false binary of proposition logic, the associa- content of the research object, namely classification tive law does not hold on its reasoning because taking images (比类取象). Analysis of the relationship between research objects, make relationships with com- false** false false true * false false putational reasoning comply with the selected logic sys- true false*** true  false false false tem operation, and then in considering the research object of the specific content of the conditions, according to 2.2. Equivalence Relations the logic of the selected system operation to solve specific problems. In mathematics, the method of classifica- Let V be a non empty set and R0 be its a relation. We tion taking images is explained in the following Defini- call it an equivalence relation, denoted by  , if the tion 2.1. following three conditions are all true: Definition 2.1. Suppose that there exists a finite group 1) Reflexive: x, xR 0 for all x V , i.e., x  x ; m Ggg  01,, m  of order m where g0 is identity. 2) Symmetric: if x, yR 0 , then y, xR 0 , i.e., if x  y , then yx ; Let V be a none empty set satisfying that 3) Conveyable (Transitivity): if x,,,yRyzR, VV V where the notation means that 00  gg01m then x, yR , i.e., if x yy,, z then x  z . VV V , VV , ij  (the follow-   0 gg01m ggij Furthermore, the relation R is called a compatibility ing the same). The V is called a factor image or data g j relation if there is a non-empty subset RR such image of group element g for any j if V is fac- 1 j g j that R1 satisfies at least one of the conditions above. tor or data. And the relation R is called a non-compatibility rela- Denoted VV xyxVyV,:  ,  , where ggij gi g j tion if there doesn’t exist any non-empty subset RR1  such that R1 satisfies any one of the conditions above. the note  is the usual Cartesian product or cross join. Any one of compatibility relations can be expanded into Define relations an equivalent relation to some extent [2]. RVVrm ,0,,1,  gggrr g Western Science only considers the reasoning under m one Axiom system such that only compatibility relation gG reasoning is researched. However there are many Axiom 1 where RRRgg1 is called an equivalence rela- systems in Nature. Traditional Chinese Science mainly 00g0 researches the reasoning among many Axiom systems in tion of V if g0 is identity; denoted by  ; Nature. Of course, she also considers the reasoning under 1 RRRgg1 is called a symmetrical relation of V one Axiom system but she only expands the reasoning as ssgs the equivalence relation reasoning. 1 Rs if ggsss ,0 ; denoted by  or  ; 1 RRg  1 is called a neighboring relation of V if 2.3. Two Kinds of Opposite Non-Compatibility 1 g1

Relations 1 R1 g11 g ;denoted by  or  ; Equivalent relations, even compatibility relations, cannot 1 RRgg11 RRR,, 1 is called an alternate (or portray the structure of the complex systems clearly. For a gaagg1 1

11 atavism) relation of V if ggggaaa,,11 , 2; de-

Ra noted by  or  .# In this case, the equivalence relations and symmetrical relations are compatibility relations but both neighboring relations and alternate relations are non-compatibility Figure 1. Triangle reasoning. relations. For the given relation set  RR,, , gg01m 1) if x  y, yz , then x  z ; these relations are all reasoning relations since the rela- 2) if x  y, yz , then x  z ; 1 3) if x  y , yz , then x  z ; tion RR1 if R . ggii gi The equivalence relation R , symmetrical relations 4) if x  y , yz , then x  z . g0 R , neighboring relation R and alternate relations The reasoning is also equivalent to the following cal- gs g1 R are all the possible relations for the method of clas- culating ga sification taking images. In this paper, we mainly con- m RR00**,0,1,,1jj RR R j j m G0 sider the equivalence relation R , neighboring relation g0 m R and alternate relations R . where Gm0  0, , 1 is a finite group of order m . g1 ga There is an unique generalized reasoning between the The genetic reasoning is equivalent to that there is a m two kinds of opposite non-compatibility relations for group Gm0  0, , 1 with the operation * such that case m  5 . For example, let V be a none empty set, V can be cut into VV 01 Vm where Vi may there are two kinds of opposite relations: the neighboring be an empty set and the corresponding relations of reasoning can be written as the forms as follows relation R1 , denoted x, yR 1 by x  y and the alternate (or atavism) relation R , denoted x, yR m1 2 2 RVVrm ,0,,1,  by x  y , the logic reasoning architecture [2-19] of riir * i0 “Yin Yang Wu Xing” Theory in Ancient China is equi- m valent to the following reasoning: Satisfying RRij*,, R ij*0 ijG. 1) If x, yR , y, zR , then x, yR ; 1 1 2 2.5. Steady Multilateral Systems  if x, yR 1 , y, zR 2 , then y, zR 1 ;  if x, zR 2 , y, zR 1 then x, yR 1 ; For a none empty set V and its a relation set 2) If x, yR , y, zR , then zx,  R; 2 2 1 RR01,, m  , the form V , (or simply, V ) is  if zx,  R1 , x, yR 2 , then y, zR 2 ; called a multilateral system [2-19], if V , satisfies  if y, zR 2 , zx,  R1 , then x, yR 2 . the following properties: The reasoning is also equivalent to the following cal- 1) RRVV01m , i.e. RRij, ij. culating m 2) RR00**,0,1,,1jj RR R j j m G0 1 3) The relation Ri  if Ri . RRij*  Rmod( ij ,5) , ij , 1,2,3,4 , 4) For RRij*   , there is a relation Rk  such 1 1 that RRij*  R k. where RR41 , RR32 and the modij ,5 is the addition of module 5. The 4) is called the reasoning, the 1) the uniqueness of The two kinds of opposite relations can not be exist reasoning, the 2) the hereditary of reasoning (or genetic reasoning) and the 3) the equivalent property of reason- separately. Such reasoning can be expressed in Figure 1. 1 The first triangle reasoning is known as a jumping- ing of both relations Ri  and Ri , i.e., the reasoning of Ri  is equivalent to the reasoning of transition reasoning, while the second triangle reason- 1 1 ing is known as an atavism reasoning. Reasoning me- Ri  . In this case, the two-relation set RRii, is a lateral relation of V , . The R is called an equi- thod is a triangle on both sides decided to any third side.   0 Both neighboring relations and alternate relations are not valence relation. The multilateral system V , can be written as VVRR,,, . Furthermore, compatibility relations, of course, none equivalence rela-  0101nm tions, called non-compatibility relations. the V and  are called the state space and relation set considered of V , , respectively. For a multilateral 2.4. Genetic Reasoning system V , , it is called complete (or, perfect) if “  ” changes into “=”. And it is called complex if there exists Let V be a none empty set with the equivalent relation at least a non-compatibility relation Ri . In this case, R0 , the neighboring relation R1 and the alternate rela- the multilateral system is also called a logic analysis 11 tions Raa RRRa,,,211 denoted by  ,  and model of complex systems.  , respectively. Then a genetic reasoning is defined as Let R1 be a non-compatibility relation. A complex follows: multilateral system

VVVRR,, 0101  nm,, is said as a stea- show the classification taking images as the basic method. dy multilateral system (or, a stable multilateral sys- In the following, introduce two basic models to illustrate *n tem) if there exists a number n such that RR10 the method. n 2 *n Theorem 2.3. Suppose that G  0,1 with multi- where RR *** R. The condition is equivalent to 0 11 1 plication table there is a the chain x1,, xVn  such that x12,,,,xR 1  xxRn 1 1, or * 0 1 x12xxx n 1. The steady multilateral system is equivalent to the complete multilateral system. The 0 0 1 stability definition given above, for a relatively stable 1 1 0 system, is most essential. If there is not the chain or cir- cle, then there will be some elements without causes or 2 i.e., the multiplication of G0 is the addition of module some elements without results in a system. Thus, this 2. In other words, ij*mod,2 i j . system is to be in the state of finding its results or causes, And assume that i.e., this system will fall into an unstable state, and there is not any stability to say. VVVRR,,,  0101   Theorem 2.1. The system V , is a multilateral   satisfying system if and only if there exists a finite group Gggm  ,, of order m where g is identity 1 01m 0 RVVr,0,1,  such that the relation set  RR,, satisfying riir mod( ,2)  gg01m  i0 RRgg*,,0,1,,1 R gg ij m .# ij ij RR*,, R ijG2 . In this case, the multilateral system V , can be ijmod( ij ,2) 0 written as VVRR,,, satisfying gggg0101mm Then V , is a steady multilateral system with one RVVrm,0,,1, where V may be gggrr g gi equivalent relation R0 and one symmetrical relation gG m R1 which is a simple system since there is not any an empty set. non-compatibility relation. In other words, the relations Theorem 2.2. If the multilateral system Ri ’s are the simple forms as follows: VVVRR,, 0101  nm,, is a steady mul- IR  0,0 , 1,1 , IR  0,1 , 1,0 tilateral system, then nm and RR01,, m is  0      1  a finite group of order m about the relation multiplica- where ij, is corresponding to VV . # tion RR*  R whereV must be a non empty set.#   ij ij k i It will be proved that the steady multilateral system in Definition 2.2. Suppose that a multilateral system Theorem 2.3 is the reasoning model of “Tao” (道) in V , can be written as TCE if there are two energy functions V0 and  V1 

VVRR,,, satisfying satisfying VV01    , called Dao model, denoted by gggg0101mm V 2 . RVVrm,0,,1 Theorem 2.4. For each element x in a steady multi- gggrr g gG m lateral system V with two non-compatibility relations, there exist five equivalence classes below: and RR*,,0,1,,1 R ij m . ggij gg ij    m XyVyxXyVxy |, S   |  , The group Ggg 01,, m of order m where X SKyVx|,  yX  yVx |,  y g0 is identity is called the representation group of the K XXyVy|,  xS  yVy |  x multilateral system V , . The representing function Which the five equivalence classes have relations in of R is defined as follows gr Figure 2.# It can be proved that the steady multilateral system in IR xy,: x1 y g ,, xy Gm , r 0,, m 1 grr Theorem 2.4 is the reasoning model of “Yin Yang Wu Let multilateral systems Viii,,1,2 be with two Xing” in TCE if there are five energy functions (Defined in Section 3)   X ,   X ,  X ,  K  and representation groups Gii ,1,2 , respectively. Both S K X ii  S satisfying multilateral systems Vi,,1,2 are called isomor-  X  phic if the two representation groups Gi,1,2 are i  X K   XXXSSK   X isomorphic.# 5 Theorems 2.1 and 2.2 and Definitions 2.1 and 2.2 are Called Wu-Xing model, denoted by V . 5 key concepts in multilateral system theory because they By Definition 2.2, the Wu-Xing model V can be

VVij ) means xijiijjxxVxV,,  (or xixxVxV jiijj,, , or xi xxVxV jiijj,,  , or xijiijj xxVxV,,  ). For subsystems Vi and V j where VVij , ij  . Let  Vi ,  V j and  VVij,  be the energy function of Vi , the energy function of V j and the total energy of both Vi and

Vj , respectively.

For an equivalence relation VVij , if VV,  V V (the normal state of the en-  ij  i  j ergy of VV ), then the neighboring relation VV Figure 2. The method of finding Wu-Xing. ij ij is called that V likes V which means that V is i j i similar to V . In this case, the V is also called the written as follows: j i brother of V j while the Vj is also called the brother Define VX0  , VX1  S , VX2  K , VK3  X , of Vi . In the causal model, the Vi is called the simi- VS4  X , corresponding to wood, fire, soil, metal, water, and assume lar family member of V j while the V j is also called the similar family member of Vi . There are not any VVV01 V 4 causal relation considered between Vi and Vj . and For a symmetrical relation VVij , if

RR01,,, R 4 VVij,,  V ji V  V i V j  VV ij,  satisfying (The normal state of the energy of VVij ) where 4 the  VVij,  is an interaction of Vi and Vj satisfi- RVVrG, 5 ri modir ,5 0 ing VV,, V V , then the symmetrical relation i0  ij  ji

5 VVij is called that Vi is corresponding to Vj RRij*,, Rmod( ij ,5) ijG 0 which means that Vi is positively (or non-negatively) 5 i.e., the relation multiplication of V is isomorphic to corresponding to Vj if  VVij,0  (or  VVij,0  ) 5 the addition of module 5. Then V is a steady multilat- and that Vi is negatively corresponding to V j if  VV,0 . In this case, the V is also called the eral system with one equivalent relation R0 and two  ij i 1 1 non-compatibility relations RR14 and RR23 . counterpart of V j while the V j is also called the These Theorems can been found in [1-6,11-16]. Figure counterpart of Vi . In the causal model, the Vi is in Theorem 2.4 is the Figure of “Yin Yang Wu Xing” called the reciprocal causation of V j while the V j is

Theory in Ancient China. The steady multilateral system also called the reciprocal causation of Vi . There is a V with two non-compatibility relations is equivalent to reciprocal causation relation considered between Vi the logic architecture of reasoning model of “Yin Yang and V j . Wu Xing” Theory in Ancient China. What describes the For an neighboring relation VVij , if general method of complex systems can be used in eco- VVij,,  V ji V  V i  V j (the normal state nomic complex system. of the energy of VVij ), then the neighboring relation

VVij is called that Vi bears (or loves) V j [or 3. Energy Relationship Analysis of Steady that V is born by (or is loved by) V ] which means Multilateral Systems j j that Vi is beneficial on V j each other. In this case,

3.1. Energy of a Multilateral System the Vi is called the mother of Vj while the V j is called the son of V . In the causal model, the V is Energy concept is an important concept in Physics. Now, i i called the beneficial cause of V while the V is we introduce this concept to the multilateral systems (or j j called the beneficial effect of V . economic society) and use these concepts to deal with the i For an alternate relationVV , if multilateral system diseases (economic downturn or eco- ij nomic overheating). In mathematics, a multilateral sys- VVij,,  V ji V  V i  V j (the normal state tem is said to have Energy (or Dynamic) if there is a of the energy of VVij ), then the alternate relation none negative function  * which makes every sub- VVij is called as that Vi kills (or hates) Vj [or system meaningful of the multilateral system. that V j is killed by (or is hated by) Vi ] which means For two subsystems Vi and V j of multilateral sys- that Vi is harmful on Vj each other. In this case, the tem V , denote VVij (or VVij , or VVij , or Vi is called the bane of V j while the V j is called

the prisoner of Vi . In the causal model, the Vi is If a subsystem X of multilateral system V is inter- called the harmful cause of V j while the V j is called vened, then the energies of the subsystems X S and SX the harmful effect of Vi . which have neighboring relations to X will change in In the future, if not otherwise stated, any equivalence the same direction of the force outside on X . We call relation is the liking relation, any symmetrical relation is them beneficiaries. But the energies of the subsystems the reciprocal causation relation, any neighboring rela- X K and K X which have alternate relations to X will tion is the born relation (or the loving relation), and any change in the opposite direction of the force outside on alternate relation is the killing relation. X . We call them victims. Suppose V is a steady multilateral system having In general, there is an essential principle of interven- energy, then V in the multilateral system during nor- tion: any beneficial subsystem of X changes in the mal operation, its energy function for any subsystem of same direction of X , and any harmful subsystem of X the multilateral system has an average (or expected va- changes in the opposite direction of X . The size of the lue in Statistics), this state is called normal when the energy changed is equal, but the direction opposite. energy function is nearly to the average. Normal state is Intervention Rule: In the case of virtual disease for the better state. economic downturn, the intervening method of interven- That a subsystem of a multilateral system is not run- tion is to increase the energy. If the intervening has been ning properly (or economic downturn, economic over- done on X , the energy increment (or, increase degree) heating, abnormal), is that the energy deviation from ||  X S  of the son X S of X is greater than the the average of the subsystems is too large (or too big), energy increment || SX  of the mother SX of X , the high (real disease for economic overheating) or the i.e., the best beneficiary is the son X S of X . But the low (virtual disease for economic downturn). Both energy decrease degree || X K of the prisoner X K economic overheating and economic downturn are all of X is greater than the energy decrease degree diseases of economic society. || K X  of the bane of X , i.e., the worst victim is In a subsystem of a multilateral system being not run- the prisoner X K of X . ning properly, if this sub-system through the energy of In the case of real disease for economic overheating, external forces increase or decrease, making them return the intervening method of intervention is to decrease the to the average (or expected value), this method is called energy. If the intervening has been done on X , the en- intervention (or making an economic controlling) to ergy decrease degree || SX  of the mother SX of the multilateral system. X is greater than the energy decrease degree The purpose of intervention is to make the multilateral ||  X  of the son of X , i.e., the best beneficiary system return to normal state. The method of intervention S is the mother SX of X . But the energy increment is to increase or decrease the energy of a subsystem. || K  of the bane K of X is greater than the What kind of intervening should follow the principle X X energy increment ||  X  of the prisoner X of to treat it? Western economics emphasizes direct inter- K K X , i.e., the worst victim is the bane K of X . vening, but the indirect intervening of oriental economics X In mathematics, the changing laws are as follows. is required. In mathematics, which is more reasonable? 1) If  X 0 , then  X  , Based on this idea, many issues are worth further dis-   S 1  X  ,  K  ,  S  ; cussion. For example, if an economic intervening has  K  1  X  2 X 2 2) If  X 0 , then  X  , been done to an economic society, what situation will   S 2  X  ,  K  ,  S  ; happen?  K  2  X  1 X 1 where 1012 . Both 1 and 2 are called intervention reaction coefficients, which are used to 3.2. Intervention Rule of a Multilateral System represent the capability of intervention reaction. The lar-

For a steady multilateral system V with two non-com- ger 1 and 2 , the better the capability of intervention patibility relations, suppose that there is an external force reaction. The state 12   1 is the best state but the (or an intervening force) on the subsystem X of V state 12   0 is the worst state. which makes the energy   X  of X changed by the This intervention rule is similar to force and reaction increment  X , then the energies  X S ,   X K  , in Physics. In other words, if a subsystem of multilateral

 K X ,  S X of other subsystems X S , X K , K X , system V has been intervened, then the energy of sub- SX (defined in Theorem 2.4) of V will be changed by system which has neighboring relation changes in the the increments  X S ,  X K ,  K X and same direction of the force, and the energy of subsystem

 SX , respectively. which has alternate relation changes in the opposite di- It is said that the multilateral system has the capability rection of the force. The size of the energy changed is of intervention reaction if the multilateral system has equal, but the direction opposite. capability to response the intervention force. In general, 1 and 2 are decreasing functions of

 X is easily to transfer all if  is small but the bane K X of X which has the increment 1 . Thus intervention force is not easily to transfer all if  is the intervening principle of self-protection is to restore large. The energy functions of complex system, the the bane K X of X and the restoring method of self- stronger the more you use. In order to magnify 1 and protection is to decrease the energy  K X of the bane 2 , should set up an economic society of the intervene- K X of X by using the same intervention force on X tion reaction system, and often use it. according to the intervention rule. In general, the de-

Economic intervening resistance problem is that crease degree is 3 where 31  . such a question, beginning more appropriate economic In mathematics, the following self-protection laws intervening method, but is no longer valid after a period. hold. It is because the capability of intervention reaction is bad, 1) If   X  0 , then the energy of subsystem i.e., the intervention reaction coefficients 1 and 2 X K will decrease the increment 1 , which is the are too small. In the state 12 1 , any economic worst victim. So the capability of self-protection in- intervening resistance problem is non-existence but in the creases the energy of subsystem X K by increment state 12 0 , economic intervening resistance prob- 3 where 31  , in order to restore the worst vic- lem is always existence. At this point, the paper advo- tim by according to the intervention rule. cates the essential principle of intervening to avoid eco- 2) If   X  0 , then the energy of subsystem nomic intervening resistance problems. K X will increase the increment 1 , which is the worst victim. So the capability of self-protection de-

3.3. Self-Protection Rule of a Multilateral System creases the energy of subsystem K X by increment   where    , in order to restore the worst If there is an intervening force on the subsystem X of a  3  31 victim by according to the intervention rule. steady multilateral system V which makes the energy In general, 01.   The  is the interven-  X changed by increment  X such that the 31 1 tion reaction coefficient. The  is called a self-pro- energies  X ，   X ，  K ，  S of other 3 S K X X tection coefficient, which is used to represent the capa- subsystems X S , X K , K X , SX (defined in Theorem bility of self-protection. The larger 3 , the better the 2.4) of V will be changed by the increments   X S  , capability of self-protection. The state 31 1 is the  X K ,  K X ,  S X , respectively, then can the multilateral system V has capability to protect the best state but the state 3  0 is the worst state of self- worst victim to restore? protection. According to the general economy of the It is said that the steady multilateral system has the protection principle, 3 should be not greater than 1 capability of self-protection if the multilateral system since the purpose of protection is to restore the victims has capability to protect the worst victim to restore. The and not reward the victims. capability of self-protection of the steady multilateral The self-protection rule can be explained as: the gen- system is said to be better if the multilateral system has eral principle of self-protection subsystem is that the capability to protect all the victims to restore. most affected is protected firstly, the protection method In general, there is an essential principle of self-pro- and intervention force are in the same way. tection: any harmful subsystem of X should be pro- In general, 3 is also a decreasing function of the in- tected by using the same intervention force but any bene- tervention force  since the worst victim is easily to ficial subsystem of X should not. restore all if  is small but the worst victim is not eas- Self-protection Rule: In the case of virtual disease for ily to restore all if  is large. The energy function of economic downturn, the intervening method of interven- complex system, the stronger the more you use. In order tion is to increase the energy. If the intervening has been to magnify 3 , should set up an economic society of the done on X by the increment  X 0 , the self-protection system, and often use it. worst victim is the prisoner X K of X which has the Theorem 3.1. Suppose that a steady multilateral sys- increment 1 . Thus the intervening principle of tem V which has energy function  * and capabili- self-protection is to restore the prisoner X K of X and ties of intervention reaction and self-protection is with the restoring method of self-protection is to increase the intervention reaction coefficients 11  and energy  X K of the prisoner X K of X by using 22  , and with self-protection coefficient the intervention force on X according to the interven- 33  . If the capability of self-protection wants to tion rule. In general, the increase degree is 3 restore both subsystems X K and K X , then the follow- where 31  . ing statements are true. In the case of real disease for economic overheating, 1) In the case of virtual disease, the treatment method the intervening method of intervention is to decrease the is to increase the energy. If an intervention force on the energy. If the intervening has been done on X by the subsystem X of steady multilateral system V is im-

Copyright © 2013 SciRes. ME 138 Z. Q. ZHANG, Y. S. ZHANG plemented such that its energy  X has been changed avoid any side effect of intervening. by increment  X 0 , then all five subsystems will be changed finally by the increments as follows: 3.4. Mathematical Reasoning of Intervening Principle by Using the Neighboring XXX   10 , 21 23 Relations of Steady Multilateral Systems XXX 0, SSS21  123 Intervening principle by using the neighboring relations of steady multilateral systems is “Virtual disease for XXXKKK   13 0, 21(1) economic downturn is to fill his mother but real disease KKK 0, XXX21   213 for economic overheating is to rush down his son”. In order to show the rationality of the intervening principle, SSSXXX  213 0 21 it is needed to prove the following theorems.  X    0. Theorem 3.2. Suppose that a steady multilateral sys- 2) In the case of real disease, the treatment method is tem V which has energy function and capabilities of to decrease the energy. If an intervention force on the intervention reaction and self-protection is with interven- subsystem X of steady multilateral system V is im- tion reaction coefficients 11 and 22  , and with self-protection coefficient  satis- plemented such that its energy  X has been changed 33  fying    and    . Then the following by increment  X 0 , then all five subsystems 213 31 will be changed by the increments as follows: statements are true. In the case of virtual disease, if an intervention force

XXX21   10 23 , on the subsystem X of steady multilateral system V is implemented such that its energy  X increases the XXX 0,  SSS21   213 increment   X  0 , then the subsystems SX , XXX 0, X and K can be restored at the same time, but the KKK21  213 (2) K X subsystems X and X will increase their energies by KKK 0, S XXX21  13 the increments

SSSXXX   121 0 21 XX1 23  2  X 0. 3  11023  1 where the  * ’s are the increments under the capa- 1 bility of self-protection.# and Corollary 3.1. Suppose that a steady multilateral sys- XX S 2 123  tem V which has energy function  * and capabili-   3 0 ties of intervention reaction and self-protection is with 123 11 intervention reaction coefficients 11 and respectively. 22, and with self-protection coefficient On the other hand, in the case of real disease, if an in- 33. Then the capability of self-protection can tervention force on the subsystem X of steady multi- make both subsystems X K and K X to be restored at lateral system V is implemented such that its energy the same time, i.e., the capability of self-protection is   X  decreases, i.e., by the increment  X 0 , better, if and only if    and    .# 213 31 the subsystems X , X and K can also be restored Side effects of economic intervening problems were S K X at the same time, and the subsystems X and SX will the question: in the economic intervening process, de- decrease their energies, i.e., by the increments stroyed the normal balance of non-fall ill subsystem or XX1 non-intervention subsystem. By Theorem 3.1 and Corol- 2 23  lary 3.1, it can be seen that if the capability of self-pro- 3  11023   1  tection of the steady multilateral system is better, i.e., the multilateral system has capability to protect all the vic- and tims to restore, then a necessary and sufficient condition SXX 123  2 is 213  and 31  . General for a stable com- 3  123   11 0 plex system of economic society, the condition 213  is easy to meet since it can restore two subsystems by respectively.#

Theorem 3.1, but the condition 31  is difficult to Theorem 3.3. For a steady multilateral system V meet since it only can restore one subsystem by Theorem which has energy function  * and capabilities of 3.1. At this point, the paper advocates the principle to intervening reaction and self-protection, assume inter-

vention reaction coefficients are 1 and 2 , and let 3.5. Mathematical Reasoning of Intervening the self-protection coefficient be 3 , which satisfy Principle by Using the Alternate Relations of

213 , 31  and 10  where Steady Multilateral Systems  0.5897545123 (the following the same) is the 0  Intervening principle by using the alternate relations of solution of 213 . Then the following statements 11 steady multilateral systems is “Strong inhibition of the are true. same time, support the weak”. In order to show the ra- 1) In the case of virtual disease, if an intervention tionality of the intervening Principle, it is needed to force on the subsystem X of steady multilateral system prove the following theorems. V is implemented such that its energy  X has been  Theorem 3.4. Suppose that a steady multilateral sys- changed by increment  X 0 , then the final  tem V which has energy function  * and capabili- increment  of the energy  X of the  123 S ties of intervention reaction and self-protection is with subsystem X changed is greater than or equal to the S intervention reaction coefficients  and final increment 1 of the energy  X of 11  23     , and with self-protection coefficient the subsystem X changed based on the capability of 22    . Then the following statements are true. self-protection. 33  Assume there are two subsystems X and X of 2) In the case of real disease, if an intervention force K V with an alternate relation such that X encounters on the subsystem X of steady multilateral system V virtual disease, and at the same time, X befalls real is implemented such that its energy  X has been K  disease. If an intervention force on the subsystem X of changed by increment  X 0 , then the final  steady multilateral system V is implemented such that increment   of the energy  S of the 123 X its energy  X has been changed by increment subsystem S changed is less than or equal to the final   X  X 0 , and at the same time, another interven- increment 1   of the energy  X of the   23  tion force on the subsystem X of steady multilateral subsystem X changed based on the capability of self- K system V is also implemented such that its energy protection. #  X has been changed by increment Corollary 3.2. For a steady multilateral system V  K   X 0 , then all other subsystems: S , K which has energy function  * and capabilities of in-  K  X X   and X can be restored at the same time, and the sub- tervening reaction and self-protection, assume interven- S systems X and X will increase and decrease their tion reaction coefficients are  and  , and let the K 1 2 energies by the same size but the direction opposite, i.e., self-protection coefficient be  , which satisfy 3 by the increments 213 , 31  and 10  . Then the following XX1 statements are true. 3 23  1) In the case of virtual disease, if an intervention  1 1 3 0 force on the subsystem X of steady multilateral system 23 1 V is implemented such that its energy  X has been and changed by increment  X 0 , then the final XX1  increment  of the energy  X of the KK3 23  123 S 3 subsystem X S changed is less than the final increment   123  1  1 0 123 of the energy   X  of the subsystem X changed based on the capability of self-protection. respectively.

2) In the case of real disease, if an intervention force Assume there are two subsystems X and K X of on the subsystem X of steady multilateral system V is V with an alternate relation such that X encounters implemented such that such that its energy   X  has real disease, and at the same time, K X befalls virtual been changed by increment   X  0 , then the disease. If an intervention force on the subsystem X of final increment 123  of the energy  SX  steady multilateral system V is implemented such that of the subsystem SX changed is greater than the final its energy   X  has been changed by increment increment 1 23  of the energy   X  of the   X  0 , and at the same time, another inter- subsystem X changed based on the capability of self- vention force on the subsystem K X of steady multilat- protection.# eral system V is also implemented such that its energy

By Theorems 3.2 and 3.3 and Corollary 3.2, the inter-  K X  has been changed by increment  K X  0 , vention method of “Virtual disease for economic down- then all other subsystems: SX , X K and X S can be turn is to fill his mother but real disease for economic restored at the same time, and the subsystems X and overheating is to rush down his son” should be often K X will decrease and increase their energies by the used in case: 213 , 31  and 10  since same size but the direction opposite, i.e., by the incre- in this time, 1231  23 . ments

X XSXKX XX1 KX S X 3 23  where elements in the same category are equivalent to  1   1  3  0 23 1 one another. We can see, from this, the ancient Chinese and “Yin Yang Wu Xing” theory is a reasonable logic analysis model to identify the stability and relationship of KKXX1 23 3 complex economic systems. 3 TCE firstly use the verifying relationship method of  123  1  1 0 “Yin Yang Wu Xing” Theory to explain the relationship respectively. # between economic society and environment. Secondly, By Theorems 3.3 and 3.4 and Corollary 3.2, the based on “Yin Yang Wu Xing” Theory, the relations of method of “Strong inhibition of the same time, support development processes of economic society can be the weak” should be used in case:   ,    21331 shown by the neighboring relation and alternate relation and    since 1  . 10 123 23 of five subsets. Then a normal economic society can be shown as a steady multilateral system since there are the 4. Rationality of Intervening Principle of loving relation and the killing relation and the liking re- Traditional Chinese Economics and “Yin lation. The loving relation in TCE can be explained as Yang Wu Xing” Theory the neighboring relation, called “Sheng (生)”. The killing 4.1. Traditional Chinese Economics and “Yin relation in TCE can be explained as the alternate relation, Yang Wu Xing” Theory called “Ke (克)”. The liking relation can be explained as the equivalent relation, called “Tong-Lei (同类)”. Con- Ancient Chinese “Yin Yang Wu Xing” [38] Theory has straints and conversion between five subsets are equiva- been surviving for several thousands of years without lent to the two kinds of triangle reasoning. So a normal dying out, proving it reasonable to some extent. If we economic society can be classified into five equivalence regard  as the same category, the neighboring relation classes.  as beneficial, harmony, obedient, loving, etc. and the For example, in TCE, an economic complex system is alternate relation  as harmful, conflict, ruinous, kill- similar to a human body. A normal economic society ing, etc., then the above defined stable logic analysis following the “Yin Yang Wu Xing” Theory was classi- model is similar to the logic architecture of reasoning of fied into five equivalence classes as follows: “Yin Yang Wu Xing”. Both “Yin” and “Yang” mean that wood ( X ) = {industry, legislature, cognitive, structure, there are two opposite relations in the world: harmony or goods, spring, birth}; loving  and conflict or killing  , as well as a gen- fire ( X S ) = {agriculture, administrative institutions, de- eral equivalent category  . There is only one of three velopment, fluctuations, foods, summer, growth }; relations  ,  and  between every two objects. soil ( X K ) = {commerce, media organizations, coordina- Everything X  makes something X S , and is tion, harmonious, money, long-summer, combined}; made by something SX ; Everything restrains some- metal ( K X ) = {education, non-governmental institutions, thing X K , and is restrained by something K X   ; function, quality, knowledge, autumn, accept}; i.e., one thing overcomes another thing and one thing is water ( SX ) = {army, supervisory organ, risk, cost, weap- overcome by another thing. The ever changing world V , ons, winter, hiding}. following the relations:  ,  and  , must be di- There is only one of both loving and hating (or killing) vided into five categories by the equivalent relation  , relations between every two classes. Generally speaking, being called “Wu Xing”: wood ( X ), fire ( X S ), soil close is love, alternate is hate. ( X K ), metal ( K X ), water ( SX ). The “Wu Xing” is to be In every category of internal, think that they are “neighbor is friend”: wood ( X )  fire ( X S )  soil equivalent relationship, between each two of their ele- ( X K )  metal ( K X )  water( SX )  wood ments there is a force of similar material accumulation of ( X ), and “alternate is foe”: wood ( X )  soil ( X K ) each other. It is because their pursuit of the goal is the  water ( SX )  fire ( X S )  metal ( K X )  same, i.e., follows the same “Axiom system”. It can in- wood( X ). In other words, the ever changing world must crease the energy of the class if they accumulate together. be divided into five categories: Any nature material activity follows the principle of maximizing so energy. In general, the size of the force of VXXSKXX  X  K  S similar material accumulation of each other is smaller Satisfying than the size of the loving force or the killing force in a stable economic complex system. The stability of any X XXKSXSKXX economic complex system first needs to maintain the And equilibrium of the killing force and the loving force. For

Copyright © 2013 SciRes. ME Z. Q. ZHANG, Y. S. ZHANG 141 a stable economic complex system, if the killing force is because the method which doesn’t use the capability of large, i.e., 1 becomes larger, then the loving force is intervention reaction makes the 1 and 2 near to 0. large and the force of similar material accumulation of The state 12   0 is the worst state of the economic each other is also large. They can make the economic society system, namely Economic Crisis. On the way, the complex system more stable. If the killing force is small, economic intervening resistance problem will occur since i.e., 1 becomes smaller, then the loving force is small any economic intervening method is possible too little and the force of similar material accumulation of each for some small 1 and 2 . other is also small. They can make the economic com- But, by Corollary 3.2, it will even be better if we in- plex system becoming unstable. tervene subsystem X itself directly when 213 , It has been shown in Theorems 2.1-2.4 that the clas- 31  and 10  . In this case: sification of five subsets is quite possible based on the 12   0.9375648971 mathematical logic. As for the characteristics of the five subsets is reasonable or not. It is need more research It can be explained that if a multilateral system which work. It has been also shown in Theorems 3.1-3.4 that has a poor capability of intervention reaction, then it is the logical basis of TCE is a steady multilateral system. better to intervene the subsystem itself directly than in- The vigor energy (or force, essence, Chi, spirit) of directly. But similar to above, the intervention method TCE means the energy function in a steady multilateral always destroys the balance of multilateral systems such system. that there is at least one side effect occurring. And the There are two kinds of economic disease in TCE: Real intervention method also has harmful to the capability of disease or economic overheating and virtual disease or intervention reaction making the economic intervening economic downturn. They generally mean the subsystem resistance problem also occur. Therefore the intervention is abnormal, its energy is too high as real disease for method directly can be used in case 213 , 31  economic overheating; or its energy is too low as virtual and 10  but should be used as little as possible. disease for economic downturn. If we always intervene the abnormal subsystem of the The intervening method of TCE is to “xie Chi” which economic society system indirectly, the intervention means to rush down the energy if a real disease for eco- method can be to maintain the balance of the economic nomic overheating is treated, or to “bu Chi” which means society system because it has not any side effect to all to fill the energy if a virtual disease for economic down- other subsystems which are not both the economic dis- turn is treated. Like intervening the subsystem, decrease ease subsystem and the intervened subsystem by using when the energy is too high, increase when the energy is Theorem 3.1. The intervening method also increases the too low. capability of intervention reaction because the method of using the intervention reaction makes the  and  Both the capability of intervention reaction and the 1 2 near to 1. The state     1 is the best state of the capability of self-protection of the multilateral system are 12 equivalent to the Immunization of TCE. This capability economic society system. On the way, it is almost none is really existence for a complex economic society. Its economic intervening resistance problem since any eco- target is to protect other economic subsystem while nomic intervening method is possible good for some large  and  . treating one economic subsystem. It is because if the 1 2 For example, in China, many local agricultural devel- capability is not existence, then  0 . In 123 opment is insufficient (i.e., X falls virtual disease), this time, the energy of the system will be the sum of S the local frequently used method is to use industrial keep energy of each part. Thus the economic system will be a agriculture (i.e., to increase the energy of X which is simple economic system which is not what we consider the mother of X ). The idea is precisely “Virtual dis- range. S ease for economic downturn is to fill his mother” if one 4.2. Intervening Principle If Only One subsystem of economic society falls virtual ill. Subsystem of the Economic Society Falls Ill All in all, the economic society system satisfies the intervention rule and the self-protection rule. It is said a If we always intervene the abnormal subsystem of the healthy economic society if the intervention reaction co- economic society system directly, the intervention me- efficient 1 satisfies 10  . In logic and practice, thod always destroy the balance of the economic society it’s reasonable 12  near to 1 since an economic system because it is having strong side effects to the output subsystem is absolutely necessary social other mother or the son of the subsystem which may be non- subsystems of all consumption. In case: 121, all disease of economic subsystem or non-intervened sub- the energy for intervening economic society subsystem system by using Theorem 3.2. The intervening method can transmit to other economic society subsystems which also will decrease the capability of intervention reaction have neighboring relations or alternate relations with the

intervening economic society subsystem. The condition 213 , 31  and 10  , if one wants to treat

10  can be satisfied when 213  and 31  the abnormal subsystems X and X S , then for an economic society since 121 implies 1) In virtual disease for economic downturn, the one  512  0.618  should intervene subsystem X directly by increasing 10 its energy. It means “virtual disease for economic down- and turn is to fill his mother” because the economic downturn causal is X ; 2 1 5  1 2  0.382 2) In real disease for economic overheating, the one If this assumptions is set up, then the intervening prin- should intervene subsystem X S directly by decreasing ciple: “Real disease for economic downturn is to rush its energy. It means “Real disease for economic over- down his son and virtual disease for economic downturn heating is to rush down his son” because the economic is to fill his mother” based on “Yin Yang Wu Xing” downturn causal is X S . Theory in TCE, is quite reasonable. But, in general, the For example, in China, many local the money ( X K ) is ability of self-protection often is insufficient for an usual virtual (currency devaluation) and the food ( X S ) is also economic society, i.e., 3 is small. A common standard virtual (inflation of food prices), the local frequently used

1 1 1 method is mainly to increase the supply of food (i.e., to is 3 , i.e., there is a principle which all 222 increase the energy of X S which is the mother of X K ), losses are bear in economic society. Thus the general in order to control the price of food cannot rise. The idea is precisely “Virtual disease for economic downturn is to condition often is 1320.618 0.5 0.382. Interesting, they near to the golden numbers. fill his mother” if two loving subsystems X S (as X ) On the other hand, in TCE, real disease for economic and X K (as X S ) of economic society fall virtual ill. overheating and virtual disease for economic downturn The intervention method can be to maintain the bal- has their reasons. Real disease for economic overheating ance of the economic society because only two economic is caused by the born subsystem and virtual disease for downturn subsystems are treated, by using Theorem 3.2, economic downturn is caused by the bear subsystem. such that there is not any side effect for all other subsys- Although the reason can not be proved easily in mathe- tems. And the intervention method can also be to en- matics or experiments, the intervening method under the hance the capability of intervention reaction because the assumption is quite equal to the intervening method in method of using intervention reaction makes the 1 and the intervention indirectly. It has also proved that the 2 greater and near to 1. The state 121 is the economic intervening principle is true from the other best state of the economic society system. On the way, it side. almost have none economic intervening resistance problem since any economic intervening method is possible

4.3. Intervening Principle If Only Two good for some large 1 and 2 . Subsystems with the Loving Relation of the Economic Society System Encounter Sick 4.4. Intervening Principle If Only Two Subsystems with the Killing Relation of the X Suppose that the two subsystems and X S of the Economic Society System Encounter Sick economic society system are abnormal (economic downturn or overheating). In the economic society of two non- Suppose that the subsystems X and X K of an eco- compatible relations with constraints, only two situations nomic society system are abnormal (economic downturn may occur: or overheating). In the economic society system with the 1) X encounters virtual disease for economic down- constraints of two non-compatible relations, only a situa- turn, and at the same time, X S befalls virtual disease tion may occur: X encounters virtual disease for eco- for economic downturn, i.e., the energy of X is too low nomic downturn, and at the same time, X K befalls real and the energy of X S is also too low. It is because X disease for economic overheating, i.e., the energy of X bears X S . The economic downturn causal is X . is too low and the energy of X K is too high. The dis- 2) X encounters real disease for economic over- ease is serious because X K has harmed the X by heating, and at the same time, X S befalls real disease using the method of incest such that the king relation for economic overheating, i.e., the energy of X is too between X and X K is damaged. high and the energy of X S is also too high. It is be- It can be shown by Theorem 3.4 that when interven- cause X S is born by X . The economic downturn tion reaction and self-protection coefficients satisfy causal is X S . 213 , 31  and 10  , if one wants to treat

It can be shown by Theorem 3.3 that when interven- the abnormal subsystems X and X K , the one should tion reaction and self-protection coefficients satisfy that intervene subsystem X directly by increasing its en-

ergy, and at the same time, intervene subsystem X K If two subsystems with the killing relation encounter directly by decreasing its energy. It means that “Strong sick, the intervening method should be intervene them inhibition of the same time, support the weak”. directly according to the intervening principle of “Strong For example, thirty years ago, China’s social coordi- inhibition of the same time, support the weak”. nation function is very good, society is rife with average Other properties, such as balanced, orderly nature of socialist, and industry is very poor. In addition, the eco- Wu-Xing, and so on, will be discussed in the next arti- nomic society is not rich. In other words, X falls vir- cles. tual disease and at the same time, X K befalls real disease. The disease is serious because X K has harmed the 6. Acknowledgements X by using the method of incest such that X cannot This article has been repeatedly invited as reports, such kill X K , which has damaged the king relation between X and X of the economic society. The condition that as The Renmin University of China, Beijing Normal Uni- K versity, Fudan University, Shanxi University, Xuchang 213 , 31  and 10  can think it is true since the economic society is not rich although social College, and so on. The work was supported by Special- intervention response ability and self-protection ability is ized Research Fund for the Doctoral Program of Higher good. In order to cure the serious disease, Deng Xiao- Education of Ministry of Education of China (Grant No. Ping’s taking method is to break the “iron bowl” (to fill 200802691021). up X , strengthen legislation and industrial income), and to allow a few people to get rich (to rush down X K , abate REFERENCES the coordinated ability). The idea is “Strong inhibition of [1] Y. S. 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