9. Summary Neural Economy

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Human behavior is all physics. It has to be. Economics is just physics with debts and credits. Our consciousness is just a vehicle for negotiating terms of cooperation. Cooperation is just a means of obtaining higher returns on investments of time and calories.

Neural networks naturally organize according to energy costs

Mar 23, 2020, 11:37 PM

—” A recent theory, based on thermodynamics in physics, suggests that neural networks in a healthy brain naturally organize together according to energy costs into a sufficient number of connection “microstates” that lead to consciousness. Too many or too few microstates and the brain loses its adaptability, processing powers, and sometimes the ability to keep itself online.”—

Economics Is Just an Extension of Physics

Jan 5, 2020, 3:53 PM

We can quantify all sorts of metrics of human behavior, but you’re confusing mathematics with physics, the same way most people confuse averages with instances or distributions. In other words, mathematics describes averages of points in time, it doesn’t not describe operations.Mathematics consist of operations that describe states and changes in states and averages. But not the underlying operations. Physics studies both the quantitative and the operational. Mathematics just the quantitative (positional). So while mathematics describes ‘sums’ operations describe changes in state.

Here:

At every “level’ of reality we discover an underlying limited number of operations (Grammar) producing some set of symmetries (outcomes, equilibria), and above that a new limited number of operations (Grammar, outcomes, equilibria)) that produce another set of symmetries, and above that and so on.

So, we don’t yet know what causes the quantum level
We have a fairly good idea what causes the subatomic level.
we have a very good idea what causes the atomic level.
We have such a good understanding of chemistry that it’s boring.
We are getting a fair understanding of biochemistry (and that it’s mechanical).
We are getting a beginning understanding of proteins (and that it’s mechanical(operational) )
We are getting a beginning understanding of genetic reproduction (and that it’s mechanical- operational) .
We are getting a fairly good understanding of cells.
We have a more than fairly good understanding of multi-cellular (complex) organisms.

I’ll stop there since I think you can see the pattern of some set of physically possible operations producing a finite set of physically possible states, followed by another set of physically possible operations producing a finite set of physically possible states, and that this process continues indefinitely, all the way to what we call consciousness.

Now life buys us conservation of energy (defeat of entropy), but it’s still bound by the laws of physics (the underlying grammars).

Memory buys us prediction. And prediction provides our ability to perform operations (actions) that improve our defeat of entropy.

Increase in neural( brain) volume provides Competition between predictions, which provides us choices of options for defeating entropy.

Increase in Brain volume provides iterations on predictions for increasing choices of defeating entropy the sequence of actions (or inactions for that matter).

Increase in brain volume provides prediction of others predictions and predicting opportunities for cooperation that further improve our ability to capture and use energy by defeating entropy.

Human ability to capture energy is limited by the grammar of human action (possible actions and sequences of actions and parallel combinations of other’s actions).

So the grammar of human action consists in the physical, emotional-intuitionistic, and cognitive operations.

Those operations are bounded by physical limitations of the grammars upon which they are constructed.

Both Physics and Economics are bound by the same underlying grammars (laws) but because humans have memories, prediction, sentience, and consciousness, reason, calculation, symbolism, and computation, we can use debts and credits with each other to temporarily lend to each other, in presumption of future returns on that investment or debt.

We don’t violate that physical law. Because humans observe reciprocity (equilibrium) just as the physical world obeys equilibrium (entropy). If we didn’t we wouldn’t be here.

And so some people specialize in capitalization (productivity) and some people specialize in consumption, and others in parasitism or predation.

But in the end, over time, we are limited by the physical laws of the universe. We can create productivity (as does life), or we can parasite upon other lives (as do bacteria and viruses).

We cannot run the clock on parasitism (Socialism or gypsies) or conquest (islamism) forever because we will run out of hosts to prey upon.

So economics is just physics with debits and credits (ability t steal, to borrow, to exchange,to produce, or to save) made possible by consciousness, by test of reciprocity (account balances), within the limit of proportionality (exit).

TRIANGLE:
What limits to human operations?

………………What Limits?……………….
………………………|…………………………
…………….Human Actions……………..
……………..Consciousness…………….
…………………Sentience………………..
…………………….Life………………………
…………………./……….…………………..
……….subatomic..macro-atomic…..
………………./……………………………..
……….?Limits………….Limits?…………

Human limits are reciprocity (positive) with the limits of proportionality (negaitve).

The subatomic level appears to run out of energy by maximum dissipation.

The macro atomic level appears to run out of ability to compress energy.

Sorry but it’s just Physics with the ability to use each other for debt and credit that we call ‘cooperation”.

Costs

Observation is limited to reduce our costs.

Memory is limited to reduce our costs, improve our speed of recall, and maximize our storage.

Reconstruction of experience is limited to that which is necessary for action.

Reconstruction requires stimuli necessary to access memory – it’s fragmentary.

Free association (imagination) is useful in searching for opportunities thereby reducing our costs.

To say that the observed world is a fiction is very hard to agree with since we can sense and perceive pretty much the full range of the universe where actions and reactions are possible for man. It would be a wasted cost (evolutionary drag) for us to sense and perceive that which we cannot act upon.

To say our values and judgements of that world are INCONSISTENT is evidenced by the effects of different drugs and circumstances on the interpretation of every phenomenon. To say they are false is something else it is hard to agree with. Since we readily reinterpret those perceptions when returning to normal state.

To say that our MODELS of reality are questionable, is highly variable by individual, and that’s demonstrable in all walks of life. For some people, modeling is exceptional. To say that our imaginations are fantasy, that’s true. To say that some people’s models are but fantasy that’s true.

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