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Econoengineering and Economic Behavior: Particle, Atom, Molecule, or Agent Models?

Econoengineering and Economic Behavior: Particle, Atom, Molecule, or Agent Models?. Libb Thims 29 Jan 2013 University of Pitesti Econophysics and Sociophysics Workshop / Exploratory Domains of Econophysics News, Pitesti, Romania, 10:20-10:50AM. About the Speaker.

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Econoengineering and Economic Behavior: Particle, Atom, Molecule, or Agent Models?

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  1. Econoengineering and Economic Behavior: Particle, Atom, Molecule, or Agent Models? Libb Thims 29 Jan 2013 University of Pitesti Econophysics and Sociophysics Workshop / Exploratory Domains of Econophysics News, Pitesti, Romania, 10:20-10:50AM

  2. About the Speaker ● Journal of Human Thermodynamics • Founding editor (2005) ● Physical Science Humanities | 10+ volumes • ● IG Nobel Prize Profiled • ● Nobel Prize Nominated • — Georgi Gladyshev (2007) • — Martin Gardner (2010)

  3. Newtonian Geometry Gibbsian Geometry

  4. Maxwell’s Thermodynamic Surface

  5. Freud-Schiller Drive Theory

  6. 1 Current Econophysics Models A financial physics themed cartoon by Harvard financial-mathematician Aaron Brown, in his article “The Most Arrogant Book in the World”, to mock the 2013 book The Physics of Wall Street by Harvard physicist-mathematician James Weatherall.

  7. 2 ToolismDefinition: use of POWERFUL physics tools in economics1 Remedy: immerse yourself in works of the great Social Newtons: 1. Kakarot-Handtke, Egmont. (2013). “Toolism! A Critique of Econophysics”, MPRA, Apr 30.

  8. 3 What is a Person? • “The field of power is a field of latent, potential forces which play upon any particle which may venture into it, but it is also a battlefield.” • — Pierre Bourdieu (1993), Field of Cultural Production, French social physicist and social gravity theorist

  9. 4 Evolution of Human Models Spiritual 2600BC (Imhotep) 1637 (Descartes) Animate Electrochemical Free Energy Driven 1787 (Lavoisier) 1948 (Neumann) 1953 (Watson & Crick) 1971 (Rossini)

  10. 5 Humans: molecules, particles, spins, or atoms?

  11. 6 Social Mechanism | Forms Stark Classification (1962) a b • “The essential submission is the assertion that development is due, not to human effort, but to the automatic effect of certain external circumstances or events. It comes about in the manner in which a flame is produced when a match is struck against the side of the box. Surely, there are few who would accept this theory of culture-growth as realistic. But then the whole idea of ‘social heat’ is no more than a downright absurdity.” • — Werner Stark (1962), Fundamental Forms of Social Thought c d • “In the inorganic world, every act of combination is an act of motion. So it is in the social one. If it is true that there is but one system of laws for the government of all matter, then those which govern the movements of the various inorganic bodies should be the same with those by which is regulated the motion of society; and that such is the case can readily be shown.” • — Henry Carey (1858), Principles of Social Science

  12. 7 Timeline of Human Models (1945-1955)

  13. 8 What is your belief system? “If one does not know what went on for the last three thousand years, he or she remains ignorant, merely surviving from day-to-day.” — Johann Goethe (c.1820) “Some piously record 'In the beginning God', but I say 'In the beginning hydrogen'.” —Harlow Shapley (c.1950)

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  16. 11 “Walras talked of humans as ‘economic molecules’ and gave concepts like scarcity scientific definitions analogous to heatin physics.” — Hazel Henderson (1981)

  17. 12 Lausanne school of physical economics “The imperative nature of morality, law, etc., is found in the action of the laws of mechanics and means that some transformation of energy occurs, corresponding to irreversibilities, defined by the second principle.” — Leon Winiarski (1898) “To create a scientific theory of economics one needs to use differential calculus to derive a ‘science of economic forces, analogous to the science of astronomical forces’.” — Auguste Walras (1858) “If we consider men as generators of wealth who absorb and radiate, and if we consider wealth as a specific form of energy which we could call economic energy, we can see here also a corollary of the law of Clausius.” — Emanuele Sella (1910) “My wish is to construct a system of sociology on the model of celestial mechanics, physics, and chemistry.” — Vilfredo Pareto (1912) “The Lausanne school explicitly used mathematical terms of thermodynamics, like equilibrium, to describe economic balance.” — Klaus Mainzer (2005)

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  19. 14 Pareto’s Mechanical-to-Social Table

  20. 15 Radioactivity Social Theory

  21. 16 Pareto’s homo economicus

  22. 17 Social Benard Cells

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  27. 22 Equation Flowchart Robert Recorde (1557) Human free energy theorists: 40+ | eq. 1 Thomas Wallace (2009) Jürgen Mimkes (2006) Francesco Algarotti (1737) Dimitris Keranis (2005) Christopher Hirata (2000) Josip Stepanic (2000) Sture Nordholm (1995) | eq. 2 Adriaan De Lange (1982) Rudolf Clausius (1856) | eq.10 Frederick Rossini (1971) | eq. 11 Hermann Helmholtz (1882) | eq. 9 Gilbert Lewis (1923) | eq. 8 Jacobus van’t Hoff (1888)

  28. 23 EconoengineeringPareto-Henderson Based • “It is just because the application of the every-day principles of engineering to the animate engine [humans] offers such a powerful corrective to the make-believes of the economic systems of society that I have ventured to address you on the subject.” • — Frederick Soddy (1921), “Cartesian Economics”

  29. 24 EconoengineeringPareto-Henderson Based

  30. 25 China America Economy curly brackets denote the thermodynamic activities of the chemical species

  31. 26 Conceptual Understanding: Vacuum Mean Girls (2004) Shallow Hal (2001)

  32. 27 Conceptual Understanding: Boundary Open System Closed System a. Chemiosmotic theory of membrane energy transduction b. Chemical potential Boundary Regulated System

  33. 28 Conceptual Understanding: Surface Humans are surface attached molecules. Surface acts as a type of catalyst, lowering the activation energy barrier. Bonds form and or break at catalytic sites (socioeconomic locations).

  34. 29 Social Mpemba effect ● Hot War I (1914-1918) | Time = 4 years ● Hot War II (1939-1945) | Time = 6 years ● Cold War (1947-1991) | Time = 44 years

  35. 30 Conclusion Don’t be a toolist. A human is NOT a gas molecule. A human IS a surface-attached molecule, a 26-element molecule to be exact: The second law DOES govern human behavior as it does chemical behavior: Freedom is governed by entropy dS changes. Security is governed by enthalpy dH changes. Econoengineering, although 200-years old, is still a subject of the distant future.

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