PRE: I'm practically certain that these thoughts have already been written - but anyways, writing is more interesting than reading :)

Economics play a key role in whatever takes place in our everydays around the globe. It's the tool by which we study, try to understand, analyze whatever is happening in the Economy, and at the same time it's an institution that provides us with all the rules which everybody keeps to during the day. These two should be two separate things for sure so this is a very-very dysfunctional situation ...

** the great beyond and under

Economy is physical reality, Economics should be like physics. Economics deal with closed systems but the borders are set too near, and now that we've figured that America or Europe or India or China are not closed systems, they're not systems on their own, Economics should adapt to this.

In the 1970's a lot of the F-16 planes crashed (not sure of the date and the type of plane either). System malfunction. Unknown error. Physically no explanation on whatever it was. Then came a very-very weird situation, scientists had to go down to the basics ... like programmers having to go down to examine the code line-by-line. They set up a pole. And put a plane on the top of it. And got it work, engines on, etc. The pole was a key thing - cause otherwise it'd have been on the ground. Subtlety? No, it's rather an ingenious approach :)

What they've found was that planes indeed were having unexpected and unexplainable failures in unexpected unpredictable “order”. Brand new planes with no constructional glitches. It'd happen to any of them.

Finally they realized that it was the radio waves in the air. Yes, harmless, peaceful radio waves that surround us everywhere would produce accidents for the cutting edge fighter planes, for systems of the highest sophistication. That time we learned that our so called “closed systems” are not closed at all, we just didn't care whatever was there beyond our knowledge. We did it practically on a basis of “if we don't see it it can't be that important”. But we learned - and made the planes finally closed in terms of the radio waves at least.

 
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Whenever we even think of Economy we must be making huge mistakes by assuming that the system we're talking about is a closed system. It's two different things to talk about interactions of (closed) systems or systems that are not closed. Systems not closed are subsystems of a bigger one and this is really embarrassing.

I'm sure that thousands of young economists are learning about this at school even as we speak, but still it might be worth moving on with this line of thought.

The point is that whenever Economics fail it might be because the system under inspection is larger than it seems. But it's also a possibility that whenever Economics work it is because we set the borders of the system wrongfully. This latter is a much worse case actually. In this case what Economics needs is not a facelift, not an extension to make it work for the bigger system too but it need a new basis.

Not to mention that by saying beyond the border of a “closed system” we don't only mean the larger system but also the smaller dimensions thru micro and nano-economy - until going thru the atoms and neutrinos of Economy we end up realizing that Economy is a subsystem of culture too (and not only that of Global Economy). Culture is by all means bigger than Economy however Culture don't simply contain Economy. It's about outer dimensions both towards the stars and galaxies and toward neutrinos.

• 1 the great beyond and under
• 2 GREEN - bad, such a bad influence :)
• 3 Economics' corruption
• 4 now reboot or ... or what ?
• 5 end notes: lyrics of two B52's song :)