October 10, 2013

The Law of Equation

In economics, series of models are used to test the reality of theories. Different variables are used to formulate these models with the goal of simplification. In the end all models are equation.

It is not determined if someone had already thought of the "Law of Equation", yet, it is obviously existing. The Law of Equation would state that everything is equal. For example, water is created against fire so there will be no dominating element between the two. The Law of Equation, if true, agrees that all human being are equal, whether you are poor or reach, all of us have equal time. In the golden rule, Law of Equation would agree that, what others are doing to you is equal to what you are doing to them.

Moreover, if Law of Equation is true, everything in life, economics, science, and the likes is explained by equation. For example, the wealth of Country A (a rich country) is equal to the sum total of wealth of
Country B, Country C, and other poor countries. Thus, if the growth of wealth of Country A slows down, there is a tendency for wealth of poor countries (B, C and others) to catch-up, thus the result is what
economist termed as convergence. In this scenario, the growth of all open countries will converge to zero; the rich will be the first to display zero growth and will be followed by developing and poor countries. In the said scenario, equality will be achieved in macroeconomic sense.

In development, the income disparity can be explained by Law of Equation. That is, the wealth of rich is equal to the wealth of the poor. Per capita, the wealth of the rich is greater than the poor because few people share the wealth of the rich while millions of people share the wealth of the poor. Thus, wealth of rich and poor are equal, the imbalance is in the per capita income. In order balance the per capita income of the world, number of rich people must increase while number of poor must decline. If the reverse is happening, then imbalance in per capita level will continue to exist.

If the logic is correct, there are rich because there are poor; if there are no poor then there are no rich; then everyone is equal. Equality means having equal share or access in the wealth of nation; thus, in this sense everyone would be wealthy.

Law of Equation has many implications and if used correctly could possibly unlock the answers to the many questions of humanity.

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