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Theoretical and Applied Economics
No. 2 / 2012 (567)

Goliath

„Economic systems justify their reason of being through the quantitative rule of evermore and much faster, political systems aim for the absolute control, cultural ones entertain globalism and religious ones claim universalism.”

Growth can be observed as a common trait of both natural and artificial systems. The difference lies in the fact that artificial systems, created by man, have the tendency to not follow the rule of commonsense while growing.

In a multi-secular forest, the tree which does not follow the general rhythm of growth does not endure. A forest lasts over the ages when the trees grow in matching rhythm. What stays small or grows too large compared to the median height of all the trees will drop out of the game. This is not to say that some forests are not taller than others or that the woods cannot contain species of different size. The problem is that the same specie constitutes a durable forest, following the principle of the equal access to the resources of light and humidity.

Nature is a democratic principle in the understanding of necessity. The food chain functions on the rule of the disequilibrium favorable to all. Nature is built upon the commonsense of the vital proportions, the only secret to success being that of harmonious together-living.

If within all living nature the growth is governed by the sign of arithmetical harmony, except for the occasional occurrence of cancerous behavior, then in man-made world - with its multiple dimensions of economy, politics, culture, religion etc. - growth follows the trend of geometrical progression. Economic systems justify their reason of being through the quantitative rule of evermore and much faster, political systems aim for the absolute control, cultural ones entertain globalism and religious ones claim universalism.

Due to the fact that they are overbidding their functions, artificial systems experience decline, they are marked by the implacable growth-decline cycle. All which gets to grow more that it is necessary to the proportional measure between cause and effect, between intention and consequence or between reasons and ends will self-destroy sooner or later.

The flagrant disparities between the hypothesis and the conclusions indicate a logical inconsistency. The much too large deviations from the mean of entry and exit values show the structural precariousness of a system. That which becomes too large kills diversity and tends to be self-sufficient. Monopoly, for instance, equalizes through massification, demotivates through centralization and subordinates through power.

The world proves that it chooses Goliath. Everything it does is pervaded by the admiration for Goliath. This inclination towards massiveness pertains to the materialistic fiber of mankind. It illustrates the admonition for the recognition of its demiurgical power. It is the effect of the breaking of the chains with which nature had pinned it to the rock of reason and of the rational.

Being too big is the end whose attainment certifies liberation to mankind. Liberty has begun with the sense of conquering nature. The goal of mankind is to exit nature, to be a supra-nature by dimension and costs. The image of the supra-nature is diverse, from the capacity for destruction (which is, in fact, self-destruction) to the squandering of resources.

Somewhat symptomatic, the supra-nature created by mankind has the consistency of implosion. That which becomes too large falls under its own weight. From empires to global companies, the rule of falling has functioned without fault. The history of mankind is, essentially, the history of the growth and decline of over-grown structures. Where growth had been spectacular an even more spectacular fall has followed.

The global economy, as a preferred formula of the creative power of mankind, defies the rule of the natural commonsense. The markets have become so large that they align everything in accordance to their demands. The society is organized on the principles of the markets. The banks have lifted their power of influence so high that states pay a tribute for existing. The Paretian polarization of revenues approaches the limit of the absurd: 1 to 99! It seems now a golden age when ten percent of the population owned ninety percent of the wealth.

Goliath gets his revenge!


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Goliath
Marin Dinu

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