THE MISSING EQUATIONS
Equations missing from classical and Keynesian economics
- 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:
- Work done solely to satisfy government requirements destroys wealth.
- Paying a worker with more wealth than the amount of wealth he creates by working destroys the difference.
- Taxation of over 10 percent of any personal or business income destroys additional wealth.
- Giving money (including welfare and charity) to an able-bodied person who refuses to work destroys that much wealth.
- Property destruction by fires, disasters, and accidents, including traffic accidents, destroys wealth.
- Political campaigns destroy wealth.
- Price and wage controls destroy wealth.
- Business failures destroy both wealth and wealth production.
- Gambling destroys wealth.
- Spreading AIDS and other diseases destroys wealth.
- Monopoly powers (including copyright and patent powers) destroy more wealth than they create.
- Forced obsolescences of products (including the change to digital TV, and Microsoft upgrades) destroy more
wealth than they create.
- Government seizures to satisfy tax liens destroy wealth.
- Government spending on nonessential items destroys wealth twice - taxation and using up resources.
- Labor union rules that cost a company or a worker money destroy wealth.
- 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.
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.
GREV = TAXRATE * (1 - TAXRATE) * (1 - TAXRATE)
Government purchasing power:
GPUR = GREV * PVAL
- Kinesian (not Keynesian) Economics
- Kinesian Economy in Action
- WEALTH vs MONEY
- THE LIVING WAGE SCAM
- ONLY WORKERS PAY TAXES
- STUPID GOVERNMENT TRICKS