Saturday, March 28, 2009

Wealth as Energy

Not the cash, not the money and not the individuals but total wealth on Earth is like Energy - it can't be gained and it can't be lost. The trick is to convert the potential wealth to kinetic wealth the one that moves and can be used to run economies like a mechanical work. All is required are the tools to be able to do this wealth conversion. These tools are technology, research and human resources. So feeling bad about economy? Invest in these tools so as to gain an ability to convert the dormant wealth to an active one.
Remember folks (mv2/2 + mgh = k (constant)) where,

  • m is your assets - can be gained, can be shelved. Companies acquire companies or get rid of some to adjust the 'm'.
  • h is the height of potential of growth of the industry you are in.
  • v is the velocity of growth. Remember v is a vector it has direction. For example, the direction could be emerging areas, it could be making hybrid cars or making more railway tracks.
  • So what is g? g is for Government and everything it affects - security, direction, environment, stimulus etc. Typically constant but better (lower) it is more kinetic wealth can be generated.
So if g does it's work and we tune our m, v and hs it won't take long to see mechanical movement in our economy.

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