All human activities can find their traces and origin in the mind. Nothing is new under the sun, as the bible profoundly says. All we do is cook the same fish in a million different ways but the underlying principles always remain the same.
Generally, the economic concepts are always a work-in-progress and never end as the human mind is the ever-mischievous monkey that is never intent of resting in one tree and thus marvels at jumping from one tree to another thinking that it has discovered something new and more superior. But all the trees in the forest are the same in nature – the height and struggle to hover in one might differ from tree to tree but the monkey remains the same.
If there is a single concept that nobody understands in the world is the concept of money. Even the best economists lack a comprehensive understanding of the inner workings of the monetary system since everything that is studying using mind results in more mind. The famous colloquial – “garbage in garbage out” – used in computing philosophy applies perfectly here to illustrate my idea.
John Maynard Keynes (Britain, mid-20th century) came up with great inventions the simplest of which bear stains of confusion. My method here is to elucidate the error in the root of any body of knowledge. Whenever there is error in the roots of a knowledge then definitely the whole corpus must be replete with more errors that are subtle by nature but nonetheless continue to elude the genius of the professors and the brightest minds because they themselves have a vested interest in the errors and also worship the founder of the knowledge.
The same concept applies to the work of Adam Smith. All the greatest economic philosophers fail to avoid unnoticeable errors because they take care of all parameters of human transactions but one – natural economics. A good example is the law of supply and demand that is errantly believed to be the only drivers of the markets. I will provide a joke to provide further exposition of the workings of the human mind.
TWO GRADUATES OF THE HARVARD SCHOOL OF BUSINESS decided to start their own jewelry business and put into practice what they had learned in their studies. But they soon went into bankruptcy and Mullah Nasrudin took over their business. The two educated men felt sorry for the Mullah and taught him what they knew about economic theory.
Sometime later the two former proprietors called on their successor when they heard he was doing a booming business despite the sluggish economy.
“What’s the secret of your success?” they asked the Mullah Nasrudin.
“It isn’t, really, no secret,” said Nasrudin. “As you know, schooling and economic theory is not in my line. I just buy the articles for A and sell for B. One per cent profit is enough for me.”