About SORAnomics


About


This is the public site of the new proposed science of SORAnomics or 'Political Economy version 2.0' which is meant as an alternative to current economics or 'Mercantilism version 3.0'.

Economics = Oikos (house) + Nomos (management) ➡ Household Management


SORAnomics = Social Resource Allocation + Nomos ➡ Management of the allocation of resources in society (to keep it alive, progressing, etc)



Economic science was created in the 19th century by intellectuals who championed the cause of businesses, which is to maximize profits based on the paradigm of personal utility or pleasure for the benefit of the self. This is in stark contrast to the old science of the Political Economy which advocated to maximize the benefit of the whole society through proper government policies and regulation, and was based on moral philosophy.

Economics


"The market equilibrium comes at that price and quantity where the forces of supply and demand are in balance. At the equilibrium price, the amount that buyers want to buy is just equal to the amount that sellers want to sell. The reason that we call this equilibrium is that, when supply and demand are in balance, there is no reason for price to rise or fall, as long as other things remain unchanged."   Economics

SORAnomics


"Nothing can be more absurd than this doctrine of the balance of trade [modern equilibrium]. This doctrine supposes that when two places trade with one another, neither of them loses or gains if the balance be even. But if it leans in any degree to one side, that one of them loses and the other gains, in proportion to its declension from the exact equilibrium. Both suppositions are false. A trade which is naturally carried on between any two places is always advantageous, though not always equally so, to both."   Wealth of Nations Book 4

Communism


"Within the co-operative society based on common ownership of the means of production, the producers do not exchange their products; just as little does the labor employed on the products appear here as the value of these products, as a material quality possessed by them, since now, in contrast to capitalist society, individual labor no longer exists.. The phrase "proceeds of labor"..thus loses all meaning.'   Critique of the Gotha Programme Part 1


The political economy was replaced by economics through the marginal revolution in the 19th century. This revolution created the philosophy leading to the creation of economic systems which made possible the rapid and unsustainable economic growth of the Western world in the early 20th century. It was unsustainable because, although it produced the prosperity of the Roaring Twenties, it also created the Great Depression which prompted people to look for alternative philosophies like Nazism, Fascism, and Communism, eventually leading to World War II.


SORAnomics aims to use the time-tested maxims of Adam Smith in creating sustainable systems founded on socio-economic justice and grown through beneficence and fellow-feeling. These systems prosper slowly but surely, instead of having boom and bust cycles. Its maxims can be found in his two major writings which have been simplified for easier reading:



In Feudalism, the ruling class (those who live by rent) dominates
In Capitalism, the merchant class (those who live by profit) dominates
In Communism, the worker class (those who live by wages) dominates

In SORAnomics, workers, rulers, and merchants work together. Unlike Communism, there is no class struggle and unlike Capitalism, people get the fruits of their own labour. The four classes match the four varnas of Brahmin, Kshatriya, Vaishya, and Shudra.



Differences between Economics and SORAnomics:

Economics

SORAnomics

Main Purpose Private Wealth, separate from government and morality

"to me, these two very distinct inquiries have been..separated, the term political economy being now confined to the science..of wealth, and that of politics, ..the relations..between a government and its people" (Say)


"progress has.. (questioned) whether it is.. impossible that all should start in the world with a fair chance.. The question cannot be fully answered by economic science. For the answer depends.. on the moral and political capabilities of human nature (which) the economist has no.. special.. information" (Marshall)

Public Wealth, integrated with government and morality
"Political œconomy..proposes to enrich both the people and the sovereign." (Book 4, Smith ) "In every civilized society..there were always two..systems of morality.." (Book 5)
Psychological Goal Pleasure
"to maximise pleasure, is the problem of Economics" (Jevons)
Peace of mind
"In what constitutes the real happiness of human life..In ease of body and peace of mind, all the different ranks of life are nearly upon a level" (Smith)
Main Interest Business Interests (Society works for Business) Societal Interests (Business works for Society)
Motive and Measure Supply or Production Motive measured by Gross Domestic Product

"it is the aim of good government to stimulate production, of bad government to encourage consumption." (Say)
"While the GDP and the..national income accounts may seem to be arcane concepts, they are truly among the great inventions of the twentieth century." (Samuelson)

Demand or Consumption Motive measured by Purchasing Power
"Consumption is the sole end and purpose of all production; the interest of the producer ought to be attended to only..for promoting that of the consumer."
"The gross revenue of (society) comprehends (their) whole annual produce.. (their) net revenue (is) what..they can place in their stock reserved for immediate consumption.. Their real wealth.. is in proportion, not to their gross, but to their net revenue." (Smith)
Pricing System

Nominal (Money) Prices only

Nominal (Money or Metals) and Real (Grain) Prices

Main Theory

Equilibrium Theory


Natural Price Theory



Key to this new science are the following:


From this new science, a new social resource allocation system or SORA will be developed using web technologies and big data to create socio-economic singuliarity for socio-economic justice, wherein a automated intelligence becomes the impartial spectator -- a new tool to replace the old tool called money -- coordinating supply and demand for maximum efficiency and benefit of all