Entropy of Economic Energy: the Eternal Escape

20 Pages Posted: 11 May 2021

Date Written: January 1, 2017

Abstract

The entropy could be understood as an increase of disorder in the system with time, while an order can be created by adding the energy to the isolated or quasi-isolated system.

From the perspective of entropy, the economic or world governance has its optimal mode when a big system consists of multiple sufficiently small subsystems, with controlled 'energy' exchange between those subsystems.

The small subsystems allow for establishing an order in separate subsystems, which order would be impossible otherwise to achieve in the whole big system due to the lack of energy investment necessary for such order in the big system.

The controlled 'energy' exchange between small subsystems allows receiving the necessary energy for organising separate small subsystems.

Each small [economic or governance] subsystem requires a different energy for its organisation, which organisation happens also in different moments in time for different subsystems. Therefore, a controlled 'energy' exchange between small subsystems provides for the optimal distribution of energy for organisation between subsystems.

Under the energy, I understand here human resources, natural resources, economic resources, financial resources, informational resources, and other resources which could be used for increasing the order, organisation and positive development of the society.

Keywords: economics, finances, market, macroeconomics, liberalism, entropy, energy, economic resources, market cycle

JEL Classification: E00, E03, E2, E5, F5, F6, G00, G02, G18

Suggested Citation

Butriy, Olena, Entropy of Economic Energy: the Eternal Escape (January 1, 2017). Available at SSRN: https://ssrn.com/abstract=3837738 or http://dx.doi.org/10.2139/ssrn.3837738

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