SORAnomics = Social Resource Allocation + Nomos --> Management of the Allocation of Resources in Society
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.
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.
If Mercantilism version 1.0 and its child called Colonialism were born in 1664 with Thomas Mun's book, then it ended in 1772 after 108 years with 1772 credit crisis, Boston Tea Party, and independence of America
If we put the start of Economics or Mercantilism version 2.0 and its child called Capitalism in 1871 (when Jevons' book was published), then it would've ended after 58 years in 1929 during The Great Crash
The rival philosophy called Communism with its child called Communist Revolution lasted for 74 years (from 1917 to 1991)
Economics later mutated into Neo-classical Economics or Mercantilism version 3.0 with its child Global Capitalism beginning in 1944 via Bretton Woods and died again in 2008 with Lehman Brothers, or 64 years
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:
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)
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)
(Society works for Business)
(Business works for Society)
Supply or Production Motive (Gross Domestic Product and Say's Law)"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 (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." (Smith)
"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)
Natural Price Theory
Key to this new science are the following:
Principles that benefit all of society, instead of just businesses.
Using cognitive science, psychology, and David Hume's metaphysics as its base, instead of calculus. We use data science to automate the crunching of big economic data
Refuting some core concepts such as the microeconomic supply curve and the macroeconomic GDP, as examples of mercantile sophistry, which when removed, allows micro to naturally scale into the macro. Thus, SORAnomics can be said to be the natural blending of micro and macro, or of business and society, when anti-society mercantile interests or obstacles are removed.
Relieving money of its dual role as store of value, and instead using it solely as a tool for trade. This means cryptocurrencies like bitcoin can be used for trading but not for investments.
Using the Value-Trade theory to introduce the concept of economic balance
Using social companies instead of corporations as the main SORAnomic business organization
Using social banking and social insurance to safeguard a society's nominal wealth
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 coordinating supply and demand for maximum efficiency and benefit of all
Please consider making a donation so that we can develop SORAnomics and improve the SORA system faster and localize it for your country. For more information, please use the chat box on the lower right hand side