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I = S - M

The modern way of thinking about economics has been I = M - S Where I is the I as in me, M is what is 'mine' and S is what ...


The problem of economics was famously formulated by Paul Samuelson as What to produce, How to produce, and For Whom to produce. However, classical economics in it's quest for a value-free study of the subject has not looked at the three-fold central problem as a spiritual one.

The central problem of economics is a spiritual one. We can only answer the What, How, and For Whom in a holistic way by asking first, what would be in keeping with human dignity? and second, what would further the inner lives of the people involved? Based on these questions it is clear that the How of production becomes the first and most important economic problem. How do we work? What do we bring to our work? How do we work with others? How meaningful is our work? These are the central problems. From these flow the What and For Whom.

What I have described above is the opposite of the approach of classical economics which starts with What and then looks for the cheapest means (the How) to make it. To me this is a recipe for disaster.

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