GDP, Satisfaction and Existence

Vlcek M

Published on: 2020-09-17

Abstract

Stock market modeling has shown that the economy is a system, a living system. His activity is not accidental, or it does not lead to some economic, formal maximum, but it has its natural motivation. It is a standard motivation that occurs in all living systems and could be described as a solution to the satisfaction of the elements - the citizens.

Keywords

Stock market; Satisfaction and Existence

Introduction

Stock market modeling has shown that the economy is a system, a living system. His activity is not accidental, or it does not lead to some economic, formal maximum, but it has its natural motivation. It is a standard motivation that occurs in all living systems and could be described as a solution to the satisfaction of the elements - the citizens. The management of the system is thus primarily based on data on satisfaction and increases it through system activity. However, it does not increase it constantly and in a lump sum, it is possible to increase it only where there has been dissatisfaction before, to the tension in satisfaction. Management is therefore a remedy. The development of the system does not follow the trajectory of increasing satisfaction, only the remedies are increasingly sophisticated, the system is more complex. In political terminology, there is an increasing number of "states". The way to solve dissatisfaction is in the activities that come from it and through the reconstruction of relationships in the system, they correct it. In a situation where the system does not identify the satisfaction stress, it cannot change the structure, in other words, do the reconstruction. Under the given conditions, it thus remains in a state that is seemingly optimal. Satisfaction is distributed across the system in such a way that it is not possible to identify relevant information for the reconstruction. Reconstruction is a change, ie in a state where there are no indicated ways to improve, the system does not change and remains in the past activity. As for the economic system, it is possible to describe the rate of restructuring as, for example, gross domestic product - GDP.

The Existence

The existence of an object - a living system - is at the moment when this system is active. When dissatisfaction is identified - for example by parliament - and the whole structure of relations is changed. Starting with the activity of the government and public institutions in general, and through businesses and ultimately, the changed activity of the people will be remedied. At least ideally. And this systemic, total activity - remedy is the existence of a system. In other words, the existence of the object, ie in this case the state. All this then takes place against the background of the activity of the parliament as a continuation of the DM (dark matter), more specifically against the background of the legal system created and constantly updated and improved by it. Not all components of a living system are activated in NM (normal matter) in every existence, it is generally an event, ie a recurring complex of partial activities and relationships, where it is essential that a substantial, relevant part occur. In the case of the state, there is a certain degree of GDP conversion and a degree of satisfaction then takes place at the border of the system [1-3].

The Border

Model works show that in the economic case the boundary of an object is defined as a group of companies "reits". These are companies in the field of real estate activities and also those that provide their services to citizens. So no other businesses. E.g. it is a real estate activity connected with the provision of mortgages. Events in the distribution of the success of these businesses is the best indicator of the satisfaction of the object. This, in this case, is a living system of American businesses - a simplified American economy and, ultimately, a simplified state. Simplified mainly because it contains only information about companies from the US stock exchange and also does not include non-economic influences. Nevertheless, even such a reduced resource proved to be sufficient for work with satisfaction. The result is that US GDP - not at constant prices - is strongly negatively correlated with satisfaction in the US economy [Figure 1]. Satisfaction is expressed as the standard deviation of individual successes and thus the growing standard deviation also represents the growing dissatisfaction.

Figure 1: Polynomial regression over time (weeks) of satisfaction (blue) and GDP (red). The growing line of the blue curve means the growing unsatisfaction and vice versa.

The satisfaction of the elements in the living system we are now talking about, or businesses in the US economy - not the state - is generally reflected in their tendency to leave the system. It is up to the perfection of the system and its management, as it detects this tendency. In the case of the model used, which was characterized by the fact that it modeled primarily a living system, it turned out to be the best solution to monitor the dynamics of the boundary. The boundaries of a system are generally its elements, which prevent other elements from leaving the system. Furthermore, they are in contact with both system elements and elements outside the system - from other systems. This is exactly what reits companies meet, for example in the field of mortgages and individual apartments. They are therefore in contact with construction and other economic enterprises on the one hand and with citizens on the other. The commitment of citizens to reality is probably the best indicator of the stability of their labor relations and the stability of the interests of the corresponding companies to remain in the country.

Satisfaction and Existence

Based on the model results, the basic scheme of system activity is as follows:

  • The system identifies dissatisfaction - uneven distribution, stress - and is activated
  • As a prerequisite for the solution, stress is found in the distribution of success
  • In the summary of these stresses of success, a proven solution scheme is found
  • Based on it, the reconstruction mechanisms will be activated
  • These mechanisms will remove the stress of success and, consequently, satisfaction

The activity of the system is thus an eternal cycle of solving dissatisfaction, and hence the extraordinary importance of the parts of the proceedings connected with its identification. At the same time, it can be seen that from the point of view of the global, aggregate activity of the object, it is possible to combine "existence" with a pair of phenomena: the increase of dissatisfaction and with the distance its decrease. This is the scheme of existence. Satisfaction itself is determined in the model for management purposes as the standard deviation of the distribution of success in a group of companies. It is always a group that is somehow similar, ie, for example, doing business in the same area and it is possible to assume that their success will be similar. By the way, whenever there is talk of a property of a company, it is always a matter of changing it. Thus, the change in success is monitored and its irregularities create the magnitude of the stress of success. A change in satisfaction as a change in the uniformity of the distribution of a change in success creates a quantity of satisfaction stress, etc.

DM

Just as NM works with success, so DM works with satisfaction. And just as NM aims to increase global success, DM aims at increasing satisfaction. Just as NM uses structures in NM for its global goal, so does DM. In general, these are structures in DM that act on the structures in NM and probably dampen them in most cases. Laws in society can serve as an example. The strategies that the DM uses for its goal can again be seen in the goals of human laws and the relationships between them. From the point of view of individual elements of society, this is perhaps an unfavorable strategy. As a result, the element becomes more unsuccessful or dissatisfied. However, from the point of view of DM, this is the right strategy if most of the comparable elements increase their satisfaction. However, not as a direct result of inhibited activity, but with some delay. Assessing whether this proves to be advantageous for comparable elements, i.e. having the ability to quantify, is probably an essential property of DM. E.g. the deputy, as an element of the DM, estimates the distribution of satisfaction from the limited knowledge of satisfaction in his surroundings. It has a "feel" for the social atmosphere, although it may not be generally accepted. Utilizing the essential ability to quantify satisfaction, DM enters the control of living systems at all levels and eventually inhibits their activity. The systemic concept of activity is synonymous with the more general word of existence, and DM thus suppresses existence, or the manifestation of NM, due to the higher principle (!) Of growth of satisfaction. DM suppresses NM L, resp. DM uses NM for its purposes. The development of satisfaction of any object is monitored by DM on its border. The existence of this object is always associated with the typical dynamics of satisfaction - first there is an increase in dissatisfaction, and this is followed by its removal. All this takes place at the border and DM will probably know when to suppress the incoming activity.

Conclusion

A comparison of GDP and satisfaction shows that the activity of the system - its existence - is associated with the solution of dissatisfaction. On the other hand, GDP growth at around 2 pct corresponds to other influences than dissatisfaction, such as population development, price development, etc. In contrast, high values ??of GDP growth are a symptom of a high state of dissatisfaction and its solution and are therefore certainly not a macroeconomic ideal. The designation DM - dark matter - with its origin in astronomy or physics, is unsuitable for general purposes. It was used for historical reasons, when at this level of the organization of matter its part was discovered, which stands in the background and perhaps through "black holes" somehow "darkly" and invisibly influences from the background. Concepts that somehow reflect the essence and at the same time the difference between DM and NM would be more concise. So the first organized on satisfaction, the second on success. Such as "yin and yang", the feminine and masculine elements. The first emphasizes satisfaction, the second success J…

References

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  2. Vlcek M. Dark Matter in our Ordinary Life. Amazon in Wroclaw. 2018.
  3. Vlcek M. The Existence. In Clinical Reviews and Cases. 2020.