v. April 27, 2017
SOMAFAX Teach yourself: Economic theory modernized for today and tomorrow.


SOMAFAX - teach yourself: Economic theory modernized for today + tomorrow.
image: Müller-Armack It is essential to relearn economic knowledge: For conducting business, by politicians, entrepreneurs, lobbyists, economists, students, teachers, and by all other citizens.
Many branches of the science of economics have failed. Resulting effects:
Financial crises as a permanent state, currency crises, economic crises. mafia-like financial markets, criminalization of many boardrooms, exploitation by low-wage jobs with the beginnings of caste variants. In many countries is mass unemployment, especially for young people.



How to finance?

The concepts are collected and prepared for publishing as well as for interactive online courses. Now, the execution has to be financed.

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(Photo:
Bundesarchiv (Germany / governmental); via Wikimedia Commons) - Professor Müller-Armack, the concept creator of Germanys economic concept and success after WW2 until now. This was based on the work of several other famous German and Austrian economists. SOMAPLUS is the combination of this with the aspects of new technologies and phenoma of the presence and the future. The coordinator of SOMAPLUS is a former student of Professor Müller-Armack.




The core problem of modern mathematics economists fits into a single sentence:
This damn reality does not please them to adapt to the perfect theory of their beautiful mathematical models.


Here is a preview of a few important points:

The pseudo-mathematization of economics has largely failed. The reality of economy is determined in a different manner. There is a logical impossibility to mathematically represent this complexity up to a non-trivial level.

Proof: Too primitive theories created and create permanently new banking crises, financial crises, currency crises. Now as a consequence there are revolts and wars around the world. Worldwide there are new variants of hidden caste systems. Stigma and new exploitation of the poor because the lobbies of wealthy people with higher education now control the political apparatus for their interests.
These control errors are largely caused by an unrealistic confidence in the superiority of mathematical modeling of economic policy.

Civilization change by information technologies:

The new unique current civilization change is to integrate into economic theory: Internet, data protection, networking, security risks, vulnerabilites. A redundancy theory has to be added to economic theory: The costs versus benefits of redundant security concepts which can or can not survive risk events.

Modern control systems:

The economic effects of mass surveillance and crowd control have to become part of a new coherent theory. Total control - what it will lead to in the long run? Which limits will be required?

Administrative dictatorship - EU, China.

There is not just democracy or "communism". Real nations are hybrids of various government types. The European Commission and China function largely as administrative dictatorship. In the EU, this is historically conditioned by the replica of the French governmental system. Economic theory has to do intensive research on the subject of this phenomenon. There are not only either market-liberal or socialist systems. Here is a completely different concept.

intelligence automation

The automation of physical production is a topic of intense research in economics since about 1900...1920. The automation of operational organization is since the same time an important subject of innovation and economic impact. Finally through the generalized computer use since about 1990, this automation has been generalized. A third great revolution has begun. This is the automation of intelligence-based services.
The consequences for the economy will be profound. Economic theory has to provide answers to the many issues involved.

Traditional money ... modern money variants and effects.

The increasing trend from traditional money to modern money variants. Virtual money, barter money, right to future money by contracts on future money, game player money.

There is virtual retirement capital based on charges on future generations without being sure that future generations will agree to pay: Money?
More than half of the debt of the world will probably never be paid back: Money?
Credit card debt: Money?

The expected results for central bank strategies, based on economic theory, do not any more happen. Effects like deflation, Inflation, labor market, corporate investment volume - nothing is anymore like expected by prevailing economic theory.
Central bank strategy laws were defined for inland-oriented economies. Many rules do not work like expected now with globalized investment markets and interaction international labor markets. And the role of money has changed.

Central banks producing huge money quantities for unproven expected economic effects which will never happen because based on nonsense hopes: Money?

The required world saving total is probably far above the world asset total: Assets priced above reproduction cost? Money?

These and other money-related aspects have to be submitted to a discussion by many economists before attempting to merge their opinions to coherent more complex new theory concepts.

Hence: Much from the theory of economics is from another time for a different world.

A new coherent theory is sorely needed. Here is a comprehensive approach for the development of economic theory and economic policy for understanding the world of today and tomorrow.



Freedom, Liberty

Freedom and total tele-control:

Here longer examples to make aware how we are in the midst of a fundamental change towards the abolition of freedom:

How much right to liberty are we all losing when citizens transfer their behavior data to an insurer by smartphone to receive a bonus to their health insurance? And when non-exchangers are excluded from this bonus? (Failure of the governmental implementation obligation against coercion to fundamental rights violation?)

May absurd erroneous scoring systems choose many non-individual data as a guideline (only because better measurable from distance)? Citizens submitted to the result as if it were a court ruling? Discussed a lot for credit reports. Not for car insurance: Example plus 50% in relation to an age below 25, above 69, because age is tele-measurable, not driving competence. And: Is a bonus for tele-controlled drivers legal, if unavailable for control objectors? (Like before: Implementation obligation...)

How much equality we are all losing if the observer of a vacant parking lot blocks it and it then sells via smartphone to a highest bidder? Legal? - May a public good of all - "commons" - be "stolen"(?) to turn it into private commodities in favor of wealthier persons?).

How much political impudence of Fundamental Rights Violation belongs to dictate health cards, with chips whose content can not be changed by the patient and is under the full discretion of medical staff? (Applies to various countries.)



Other aspects / examples:

Statistics:
Conversion methods are required for many misleading official statistics.

Privacy
in a world of totalitarian private 'social networks'.

Copyright
in the copying age.
Criminal law: Theft of virtual assets from the Internet.

Healthcare spending.
Life extension.
World epidemic risks.

Work control:
Undeclared work. Internal family work.
Demographic change. Financing spending for children.

Market power by data-sets aggregation? Antitrust laws to extend?
The Internet dominators can combine data from various sources available to them. They can through this competition advantage exclude competitors for many services. Should a new competition law force competitors access to the data pool?
The appropriate disclosure obligation of interfaces for software and communication services, how to define it by universal legal rules? Competitors inclusion options for sales packages? (Routers, browsers,...)

Environmental damage accounting.
Future damage capitalization to add to production cost.

Why economic forecasts are so often so wrong.
The abstract analysis of the main faults of abstract analysis of many economic models.
Alternative forecasting concepts and their difficulties.

IT: Epidemic risks:
International firewall rules required?
- (Like worldwide applied for buildings against fire storms.)

High-rise buildings:
National and investment accounting of financial risks from security and modernization problems of high-rise buildings.

What is the value of a human life?
Homicide damages. Medical cost limits.
Manager value mirrored by stock exchange rating difference?
Insurance replacement / Example aircraft accident. Statistical averages. - Extremely conflicting values. Factor 1 to 10 000. The new economic theory must provide a coherent model for the money values of a human life.

Innovation theory - to review.
Rules of increasing / decreasing capital input.
Finite or infinite volume of future technological progress.
- (Profit increase from capital input - has this only empirical law some absolute upper limit?)
Correlation rules between industrial automation versus minimum wages in poor countries.
If there is no labour outsourcing left for low wage countries - which economic survival options left?

Malthus rules again of impact?
Malthusian dilemma for planetary resources?
Rules for absolute limits by reduction of the quantity and of trace substances in agricultural soil?

Private property, inheritance, banks:
Crowdfinancing and bank control.
Inheritance privilege or equal rights.
Property or rent - real estate mobility.
Annuity coupling with condo.

Governments, politics, economic theory:
Cost analysis for political systems, parties, governments, parliaments.
Economic justification for financing an own army.
- ("To save the duplicate spending für a foreign army"? - More analysis....)
The economics of bureaucracy and required or not required regulation.

Economists - a strange profession type.

Why there can never be a perfect economic theory.
How the value system defines economic theory. How the value system arises, how it is inherited, is transmitted or is discarded.
Why the ant colony is a recurring constant of the system theory.
Why you can forget about an economist when he received a Nobel Prize.
How intelligent must computers become so that we not any more need economists?
Nearly all economists never managed a business.
Probably most economists even never worked in a business.
Probably most economists never benefitted from own experience in real economic life.
A suggestion to many economists: Instead of floating with mathematical computer models above the clouds, please open your eyes open for viewing terrestrial realities.

And much more.

For all listed issues, there is no lack of analysis of specific aspects. The task is to link these to a new model. The problem of consistent coherence is to master.




Truth? Changes every 7 days. Come back!
In a democracy, the opposition is not only tolerated as constitutional, but must be maintained because it is indispensable. - (Walter Lippmann)

Democracy is the recurrent suspicion that more than half of the people are right more than half of the time. - (E. B. White)

What men value in the world is not rights, but privileges. - (H. L. Mencken)

The job of a citizen is to keep his mouth open. - (Gunter Grass)

People often say that, in a democracy, decisions are made by a majority of the people. Of course, that is not true. Decisions are made by a majority of those who make themselves heard and who vote - a very different thing. - (Walter H. Judd)

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SOMARET Social_Market_Economy - the secret behind Germany's economic and technological success
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A.Müll-Arm- _____________________

Photo:    It shows in the middle one of the most influental economists. Professor Müller-Armack, University of _Koeln_ (_Cologne_) and Munster (_Münster_). He conceived the system which enabled Germany's rapid economic recovery after WWII.
This success system had been imitated - more or less properly - by France. France exported its basic rules to the European Union.
Chinese economic policy apparently tends to move the country from communist ideology into the direction of some similar concepts. This is the major difference between China and India. China is once again the most efficient legal copyright thief of the best of occidental civilisation.


THE PROBLEM:


The manufacturer of one of the most important German export product is nearly unknown to the public. Professor Müller-Armack created in 1943-1946 the concept of the "social market economy".
Photo: In the middle (black glasses).

The concept of "Social_market_economy" is strictly against left wing ideology. It is the concept of a carefully conceived institutional framework for free market economy. The result should be full employment with satisfactory earnings for everybody.

The concept includes a "social safety net". But there should not be a "welfare state" in the sense of excessive taxation and redistribution. There should be no need for the citizens to believe in the impossible dreams of left wing ideology.

The concept includes precautions in order to avoid the occurence of a major economic and financial crisis. The concept of the "social market economy" was conceived in the years after the major world crisis of 1929...1933.

In the case of Germany, the economic crisis lasted from 1919...1936. Leading German and Austrian economists of that time tried to restrict the causes of the crises. A major approach was to create a limiting framework for liberalism.

This was the "neo-liberalism" of those years. This expression creates nowadays confusion. In a simplified manner, it can be said: The goal of 1939 - 1940 was the contrary of "neo-liberalism" 70 years later. "Neo-liberalism" means literally just: "a new concept of liberalism".

The economic world crisis 2007-2011 is due to the lack of observation of those precautions which had been defined 70 years ago.

During the last years of the Nazi government, Professor Müller-Armack (1901-1978) had in a private and undisclosed manner conceived an economic concept based on the defined framework and including moral standards. The details might be a good subject for book authors. For example, the development work since 1943 for the time after the loss of World War II was located in a monastery.

Instantly after the end of World War II and under worst economic conditions, he started to publish his concept. In the terminology of our time, he started an intensive marketing campaign with political decision makers as the target group.

In 1946, Müller-Armack coined the term "Social Market Economy". (In German language: "Soziale_Marktwirtschaft"). This concept considers "social justice" in a complementary and useful relationship to "market economy": Market economy can be helpful for social justice, and social justice can be helpful for economy.

The German Federal Minister of Economics during the following years, Ludwig Erhard (1897-1977), adopted his concept and transformed it into reality. After 1952, Müller-Armack worked in the ministry of economics as section chief of the newly founded section "basic planning" ("_Grundsatzabteilung_").

INFORMATION:

_DE_ =in German language: aha7.com / start page: "PLIST Soziale Marktwirtschaft"
_EN_ =in English language: prof7.com - coming soon
_FR_ =in French language: aaazzz.com - coming soon


THE SOLUTION:


The described concept could contribute to possible solutions for more worldwide prosperity.

FUNDING / REQUIRED:


Promotional activities can be scaled to the volume of available funding. Amounts of 2000 USD or more are helpful for the international promotion of this concept of politics of economics.

A further important subject for funding would be the English language translation of some publications. This concerns some past important German language publications of several economists related to these concepts. The concept creation and its political realisation was accompanied by several economists. Among these economists, Professor Müller-Armack succeeded to form the bridge to political realisation. - The concept is also correlated to sociology, psychology and Christian ethics.

Funding of this project should initially be considered as a lost donation in favor of a task of common interest.
But here is the rule that all projects should try to become later a profitable business model. In case of such a later success, the prior donations to a projects will possibly be converted into shareholder investment. In this case, the earnings could be distributed to the respective shareholders.

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hear different opinions

Here begins the creation of a link list to the work of others in favor of freedom. You owe them across generations the privilege to live in a (at least relatively) free world.


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FORUM FREIE GESELLSCHAFT
( forum-freie-gesellschaft.de )


Klassischer Liberalismus:
Auf der Suche nach einer neuen Ordnung. Bildungsvielfalt statt Bildungseinfalt.



Kommentar (uno7.org) über FORUM FREIE GESELLSCHAFT:
Eine reichhaltige Bücherliste spannt den Bogen - Vergangenheit, Gegenwart, Zukunft der uns alle prägenden Idee des Liberalismus. Aktuelle Bücher, Rezensionen und Textbeiträge schreiben diese Idee fort in die Zukunft. Dies ist gegenwärtig eine der wichtigsten Quellen für politische Gestaltung.




















































































Truth? Changes every 7 days. Come back!
The worst form of inequality is to try to make unequal things equal. - (Aristotle)

As I would not be a slave, so I would not be a master. This expresses my idea of democracy. - (Abraham Lincoln)

Democracy is based upon the conviction that there are extraordinary possibilities in ordinary people. - (Harry Emerson)

Democracy is the government of the people, by the people, for the people. - (Abraham Lincoln)

It is the greatest good to the greatest number which is the measure of right and wrong. - (Jeremy Bent ham)

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Truth? Changes every 7 days. Come back!
While democracy must have its organization and controls, its vital breath is individual liberty. - (Charles Evans Hughes)

Democracy means government by the uneducated, while aristocracy means government by the badly educated. - (G. K. Chesterton)



I believe in Democracy because it releases the energies of every human being. - (Woodrow Wilson)

Democracy is based upon the conviction that there are extraordinary possibilities in ordinary people. - (Harry Emerson Fosdick)



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