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 be no economy because nobody will find that proposition profitable.
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 is constant although it can be redistributed by competition, but in the latter an illusion of growth through borrowing is perpetuated to surreptitiously take wealth from the borrower. The post also discusses the Vedic economic system and how it reconciles economic growth with altruism, contrary to the modern economic system.
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, borrowing from the principles of material organization found in other areas such as Ayurveda, Aśtanga-Yoga, Vedic Cosmology, and Sāńkhya philosophy. Such a study is useful not just in comprehending the nature of organizations, but also helpful in comprehending other kinds of organization such as the universe and the living body.