Energy

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All resources, goods and services, can be reduced in terms of energy and aggregated.

  • Reducing resources in terms of energy.
 E=Everything
 Economies are energy distribution networks
 Food is an energy source and should be included in energy calculations


  • Energy and Value
 Value has never been defined satisfactorily. Figuring out what it is, how it works, and where it comes from may assist with its creation and maintenance 
 A complexity framework can be used to possibly solve the mystery of value
 Paper money represents energy as a token. Gold is concentrated energy, doesn't lose electrons. E=$
 Creative value derived from discovery of evolutionary short cuts, non-linearity
 Efficiency value derived from ratio of input to output as a function of market competition and specialization
 Ratio of energy output to input can be used to measure the efficiency level in the economy
 efficiency has a direct link to value and 1:4 ratio indicates optimal level for growth (West)
 This follows the pareto principle of 80% of output from 20% of inputs
  • Energy Dissipation
 All systems exist for the purpose of distributing/dissipating energy
 The second law of thermodynamics tells us energy is dispersing, and it takes energy to disperse energy, hence the value of efficiency 
 Concentrated energy wants dispersed 
 Economy is open system
 Energy dissipation occurs in decreasing cycles, inefficiencies prevent energy from being dispersed.
 Bubbles should be renamed to something more accurately descriptive, like tornadoes or hurricanes
  • Measuring Economic Activity
 Economic data can be arranged into spirals to derive more accurate conclusions about the current state of the economy at varying levels and layer of           complexity
 Keynes was looking at economic spirals in 2d from the side, a 4d sim or top view may be more useful for analyzing economic activity in terms of energy
 Stable growth characterized by fibonacci sequence spiral
 Unstable growth characterized by exponent sequence spiral– compound interest, “bubbles”
 An increase in efficiency out of the normal range may indicate overgrowth and increasing instability
 The ratio will approach an exponential function until it consumes all available energy and the feedback spiral can no longer be maintained, resulting in an unwind crisis/correction
 A decrease in the ratio of input to output out of range will indicate slowing growth and increased systemic inefficiency
  • Choice and Value
 Economic value assists agents in choice-making, evolutionary short-cut to narrow choices 
 Genetic Algorithms

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