THE MISSING EQUATIONS

Equations missing from classical and Keynesian economics

The variables:

• Wealth variables:
• WEALTH = Kinesian Wealth, economic wealth created by work
• MWEALTH = Marginal Kinesian Wealth, the change in economic wealth
• CWEALTH = Creation of Kinesian Wealth
• DWEALTH = Destruction of Kinesian Wealth
• PWORK = Productive work done in the private sector to produce products for sale on the open market
• POWER = sources of motive power
• SMAT = sources of materials
• PDES = product design
• TRANS = transportation
• EDUC = work done to create education
• BUSWORK = The small amount of Kinesian Wealth created by business, apart from work done by workers
• PHILAN = Money donated to charities and houses of worship
• Paperwork can not create any Kinesian Wealth.
• Government can not create any Kinesian Wealth.
• USEUP = Eating, drinking, and wearing things out (destroys Kinesian Wealth)
• Using the fuel from eating to work regenerates Kinesian Wealth.
• The person who eats, but does no work, destroys Kinesian Wealth.
• BURN = Using up fuel and sources of energy (destroys Kinesian Wealth)
• WASTE = Throwing out usable items (destroys Kinesian Wealth)
• TAXES = Taxation (destroys Kinesian Wealth)
• Workers pay all business taxes when they buy the products.
• Raising tax rates takes more Kinesian Wealth out of the economy.
• TDES - The portion of taxes not used for education work or transportation pathways.
• ENTRT = Entertainment, including sports, the arts, recreation, and spending money watching or listening to entertaining events (destroys Kinesian Wealth)
• CRIME = The Kinesian Wealth destroyed by crime
• GTP = Government transfer payments - tax money paid without buying goods or services.
• Government attempts to help the poor end up hurting the poor more than doing nothing does.
• GCOST = The costs of government regulation and government required paperwork
• Property taxes, elitist building codes, zoning, and people owning land for income, all destroy Kinesian Wealth.
• MISCD = Miscellaneous causes of destruction of wealth:
  1. Work done solely to satisfy government requirements destroys wealth.
  2. Paying a worker with more wealth than the amount of wealth he creates by working destroys the difference.
  3. Taxation of over 10 percent of any personal or business income destroys additional wealth.
  4. Giving money (including welfare and charity) to an able-bodied person who refuses to work destroys that much wealth.
  5. Property destruction by fires, disasters, and accidents, including traffic accidents, destroys wealth.
  6. Political campaigns destroy wealth.
  7. Price and wage controls destroy wealth.
  8. Business failures destroy both wealth and wealth production.
  9. Gambling destroys wealth.
  10. Spreading AIDS and other diseases destroys wealth.
  11. Monopoly powers (including copyright and patent powers) destroy more wealth than they create.
  12. Forced obsolescences of products (including the change to digital TV, and Microsoft upgrades) destroy more wealth than they create.
  13. Government seizures to satisfy tax liens destroy wealth.
  14. Government spending on nonessential items destroys wealth twice - taxation and using up resources.
  15. Labor union rules that cost a company or a worker money destroy wealth.
  16. All attempts to get something for nothing destroy wealth.
• TAXRATE = the total tax rate (personal + business)
• PVAL = product value as a portion of the price
• GREV = government revenue, as a percentage of no-tax income
• GPUR = government purchasing power
• Values GREV and GPUR are percentages of economic activity in a taxless economy.

The equations:

Change in Kinesian Wealth:

MWEALTH = CWEALTH - DWEALTH

Total Kinesian Wealth:

WEALTH' = WEALTH + MWEALTH

Kinesian Wealth creation:

CWEALTH = PWORK + POWER + SMAT + PDES + TRANS + EDUC + BUSWORK + PHILAN

Kinesian Wealth destruction:

DWEALTH = USEUP + BURN + WASTE + (TDES * TAXES) + ENTRT + CRIME + GTP + GCOST + MISCD

Note that destruction of wealth by a nonworking able-bodied person occurs both because the person consumes wealth and because he fails to produce any wealth.

Government revenue:

GREV = TAXRATE * (1 - TAXRATE) * (1 - TAXRATE)

Government purchasing power:

GPUR = GREV * PVAL

LINKS:

1. Kinesian (not Keynesian) Economics
2. Kinesian Economy in Action
3. WEALTH vs MONEY
4. THE LIVING WAGE SCAM
5. ONLY WORKERS PAY TAXES
6. STUPID GOVERNMENT TRICKS
7. Home