Profits require that the whole must be greater than the sum of the parts. For example, half a chair is not half price of the full chair; most times you cannot sell two halves of a chair separately, or price them separately, even when you assemble the chair yourself from packaged parts. Similarly, the price a carpenter will charge for a chair is necessarily greater than the cost of the parts that make up the chair. In that sense, the whole cannot be reduced to the parts because the price of the whole is necessarily greater than the costs of the parts. If we equated prices to costs, there would…
Free Market Economics vs. Capitalism
Free market economics is about competition between businesses, and it operates under the assumptions of a closed system in which wealth can be redistributed, but the total wealth must remain constant. Capitalism is the contrary idea that the economy is an open system in which wealth can be infused, in order to create a net growth for the economy. The wealth infusion is carried out by the wealthy using a business model that is stripped of risks, and the lender is certain to gain wealth over time, making the rich get richer and the poor poorer. This post discusses how free markets are different from capitalism; in the former, wealth…
The Balanced Organization
Vedic philosophy describes the body as a universe and the universe as a body. Since the world is intended for living beings, there is no fundamental divide between “physical sciences”, “life sciences”, and “social sciences”. Thus, the cosmic structure, the social structure, the biological structure, and the psychological structure are parts of a single continuum. Given this continuum, we can presume that what lies in between the categories that Vedic texts already describe can also be described in the same way as the other types of entities on the continuum. I will use this post to illustrate the application of Vedic principles to sketch the foundations of an Organizational Theory,…