The Force of Capital Equation

The previous unit explained the Effort Theory of Value which is based on one’s dharma or svadharhma.

A person who loves playing guitars will make higher quality guitar music than one who hates playing guitars.

The guitar-lover’s effort is less than the guitar-hater.

Make 2 equations, 1 for guitar lover and for guitar hater. Guitar lovers E is less, creating more Force

F = (V↑ - V↓) / E

• F: Flow or Force (such as the force of capital)
• V↑: high value perception
• V↓: low value perception
• E: effort (toil and trouble) – this is the Invisible Hand Function

Economic activity or flow is highest when there is a difference between value-perceptions, and Effort is minimal. We call this difference as “primary arbitrage”.

Economic flow is lowest when there is no difference between value-perceptions, and Effort is high. Effort is naturally lowest if it matches the dharma or purpose of the entity making the effort.