The Chimera of Macroeconomics

  All through, “The only constant is change.” Whom and Where to compete is very much situational as well. Here we focus on competition, as opposed to cooperation where we come later on.   At the household. We compete with family members by birth or by law. The limit to consumable utilities at present is defined by home-produced and market-purchased products. The means to acquisition thereof are limited to 24 hours times the number of members on top of the wealth of the household . The wealth has historically been accumulated through saving to investment of, by and for the household.              Most typically, the master of the household earns monetary incomes out of home, which are to be used in purchasing products (for consumption) and assets (for investment) in the markets. In effect, the incomes are the third means after the wealth of the household as a whole, 16 hours or so of the master and 24 hours eac...

  <Problems and Applications>          *Note: “T” for time period, “L” for length, “M” for mass and “U” for value of utility                          There are indefinitely many scales per T, L, L 2 , L 3 , M or U.                  1.      The time taken in the 100m dash: T= L/ (L ∙ T -1 ) - El Condor: 8 milli-sec = 100m/ (12.5m/ milli-sec) - The winner: 8 sec = 100m/ (12.5m/ sec) - The laggard: 8 min= 100m/ 12.5m/ min) - The Snail: 8 hours= 100m (12.5m/ hour) *Notwithstanding the Solow model, n o “marathoner” has ever won in a public event of 100m dash .      2.      The travel distance of the sunlight: L= T ∙ (L ∙ T -1 ) - In two seconds: 600,000 km= 2 sec ∙ (300,000 km/ ...

The geo-famed Solow growth model is built for Eternity over the River, wittingly or otherwise.              First of all, the so-named growth model does not have the time dimension. As an ABC in macroeconomics, the growth in GDP is defined to be ( Δlog Y)/ Δt . Voila, there in "growth" certainly is the time dimension in the negative (T -1 , T for time dimension). Incidentally, the negative sign enters in the equation for the purpose of performance evaluation only.              Take the marathon vs. the 100 meter dash for example. The length (L 1 in the space dimension) of running of the former is larger than that of the latter by many “orders of magnitude,” so to speak. You know what? The Solow model predicts that always and everywhere, “The winnerrrrrrr is the marathoner!” The running speed is just irrelevant, or more precisely the time duration ( Δt ) does not c...