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.
Several of my previous posts articulated the conceptual basis of an economic system different than the one that presently exists. These foundations include: (1) the real economic value lies in the objective properties of matter rather than in its human perception, and an economic system when organized around this objective value tends towards stability, (2) the problems in the current economic systems—both socialism and capitalism—arise from the existence of middlemen either in the form of global corporations or governments, and (3) the economy and government should be localized in a geography to administer the exchange of goods and services, while the exchange of knowledge—ideas and methods—must be globalized, thus creating two different kinds of trades: the local trade exchanges goods while the global trade exchanges ideas. This post will use these foundations to describe the Varṇa System of social organization, illustrating how this system is grounded in the previous insights about the nature of economic systems, as well as on a theory of matter and cosmic structure.
Some readers noted after my previous post (perhaps tongue-in-cheek) that my website has a copyright sign (©) at the bottom of each page. So it seems that I’m protesting the existence of patents but I indicate that the protest itself (my article) is copyrighted. That would seem hypocritical. Would I allow anyone free access to copy the content of my website and the books that I have published, given that I’m advocating against intellectual property? This post compares patents with copyrights.