Economic theory: Mother of all lies
Truth is the source of freedom, prosperity, justice and also happiness. The most useful truth for society is the following: Economic theory is the mother of all lies.
The foundation of economic theory is the concept called money. In economic books, money is considered to have the following functions: unit of measure of the value of goods, means of storing value, means of payment and means of exchange.
Money cannot fulfill the function of a unit of measurement of the value of goods. First, because there is no scientific definition at all for this so-called unit of measurement. For every unit of measurement there must be a scientific definition. For example, the scientific definition of the unit of measure for length, the meter, is as follows: One meter is equal to the length that light travels in a vacuum within a fraction of 1/299792458 of a second. Second, because there is no measuring instrument at all for determining the value of goods. If such a measuring instrument does not exist, then a unit of measurement for the value of goods cannot exist either, because for every unit of measurement there must be a measuring instrument. Third, because the goods have different value types. For example, the value type of banana and the value type of pants are different value types, because while bananas are food, pants are clothing. Different types of value cannot be expressed in only one unit of measurement, namely money, because one cannot use the same unit of measurement, namely meter, for length and for mass. Explanation: The length is value type 1. The unit of measurement for length is the meter. The mass is value type 2. The unit of measurement for mass is the kilogram. Result: Different units of measurement must be used for different value types.
Money cannot fulfill the function of a store of value, because it is not a value, but only a claim to a value. The only long-term store of value on this planet is land.
Money cannot fulfill the function of a means of payment because goods cannot be paid for. The value of goods cannot be paid for because it cannot be measured. The price of goods makes no sense to pay because the price does not represent the value of goods. The economic books say that the price of goods is an economic indicator that would prove the scarcity of goods. To pay for an economic indicator is a great absurdity, because no other economic indicator is paid for.
Money is in fact an intermediary medium of exchange. With the help of money, one can exchange goods. However, this exchange of goods by means of money is neither correct nor fair, since the price does not correspond to the value of the goods. Consequently, there is no need for this medium of exchange. Because the foundation of economic theory is false, all economic theory is unscientific. A society based on an unscientific theory cannot function optimally. Such a society is always fraught with problems. Economic theory is the mother of all lies.
Author: Mihail Ispan