New Economics Principles
People do not need work. Rather, work needs to be accomplished.
Illustration: Man's wife works for a company and she asks them if she couldn't do the work at home. Since the form of
work she does can be done at home, they give her permission. Her husband watches what she is doing and writes a
computer program to do it automatically. Result: The Company gets the work done. The woman gets paid for getting
the work done. But she doesn't really have much of a "job".
Christian Baile performs heart operations on people who have extreme heart problems. He extracts stem cells from the
patient and inserts them in their hearts where they regenerate heart tissue. Patients who formerly could not walk across
the room without feeling extremely "winded" now are jogging 11 years later.
The most shocking part of this story is the "11 years later". You would think that the procedure would not be common
on many patients, even patients with milder heart problems. Christian states that the operation has not become more
popular because there is "No real money to be made because it is only a one-time operation."
As technology progresses at a rapid rate, customers are tempted to delay their purchase because the price is likely to
go down.
Here is an example:
As you read that advertisement, you think to yourself; "I almost paid $2 million for a power plant that I could have waited
a bit and paid only $1.5 million for. Why not wait some more and pick one up for only $1 million?"
It is even worse than that. Let us say that Rossi's company is late by one year in its promise to deliver 1 million of their
LENR 10 kW reactors for $400 each. This would mean that in 2 years, one could construct a 1 MW reactor by
combining 100 of the smaller $400 reactors. This means that the 1 MW reactor would cost $40,000 plus system
integration that would combine all 100 modules.
This means that the price is falling at about 14% per month or about 86% per year. If that isn't hyperdeflation, what is?
The though pattern of "why buy now" the price will be 14% lower next month" is thought pattern is commonly seen in
deflationary times.
Next
People do not need work. Rather, work needs to be accomplished.
Illustration: Man's wife works for a company and she asks them if she couldn't do the work at home. Since the form of
work she does can be done at home, they give her permission. Her husband watches what she is doing and writes a
computer program to do it automatically. Result: The Company gets the work done. The woman gets paid for getting
the work done. But she doesn't really have much of a "job".
Christian Baile performs heart operations on people who have extreme heart problems. He extracts stem cells from the
patient and inserts them in their hearts where they regenerate heart tissue. Patients who formerly could not walk across
the room without feeling extremely "winded" now are jogging 11 years later.
The most shocking part of this story is the "11 years later". You would think that the procedure would not be common
on many patients, even patients with milder heart problems. Christian states that the operation has not become more
popular because there is "No real money to be made because it is only a one-time operation."
As technology progresses at a rapid rate, customers are tempted to delay their purchase because the price is likely to
go down.
Here is an example:
As you read that advertisement, you think to yourself; "I almost paid $2 million for a power plant that I could have waited
a bit and paid only $1.5 million for. Why not wait some more and pick one up for only $1 million?"
It is even worse than that. Let us say that Rossi's company is late by one year in its promise to deliver 1 million of their
LENR 10 kW reactors for $400 each. This would mean that in 2 years, one could construct a 1 MW reactor by
combining 100 of the smaller $400 reactors. This means that the 1 MW reactor would cost $40,000 plus system
integration that would combine all 100 modules.
This means that the price is falling at about 14% per month or about 86% per year. If that isn't hyperdeflation, what is?
The though pattern of "why buy now" the price will be 14% lower next month" is thought pattern is commonly seen in
deflationary times.
Next
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