The Chimera of Macroeconomics

  There are two broad categories of reasons why we compete: push (yin) and pull (yang). By nature, first of all, we love competition. Otherwise, we would have never created competitive games , plays , contests , races and the like. Most of us are pulled by competition, while a few are fooled not only once but also “so many times.” Incidentally, “so many” means excessiveness according to the Confucian dictionary.              The second reason of “push” is economic, a must as for subsistence and pleasures. Needless to say, economic rationale is of our main interest. Here again, there are push (-) and pull (+). Unlimited desires. If our desires were limited, we would have been, continuously over and consistently across, living in the hunter-gather age far from belonging to or yearning for “ leisure class .” Notably again, “consistently across” (L -1 ) is to macroeconomics , what “continuously over” (T -1 ) is to economics .      ...

  Solving the trouble of mismatch between the unlimited desires and the limited resources most of us rely on “the market” for trade after specialization called hereinafter “commerce.” The purpose is of course efficientiating the process from production to consumption. Bridge 2.0 over Troubled Water . On the flipside of being confined to 125 years (T -1 ), life is cyclical. As a result, we are destined to manage obtainable utilities as efficiently as possible over the long run  of lifetime. Individually like Robinson Crusoe and collectively as Mr. and Ms. Does we “manage the portfolio” of assets, human and physical.              In the earlier cycles, we buy, or invest in, physical or human assets; while on the other hand we as needed sell credit , or “short-sell an asset,” usually human but sometimes backed up with physical. In the later cycles, we disinvest of physical assets partly to make up for the shortage i...