Thermodynamics 2.0 Program: Sessions and Abstracts
Mon - Wed, June 22 - June 24 , 2020 , Massachusetts, USA
Session T13: Money, Capital, and Thermodynamics Laws
16:15-17:30. Tuesday June 23, 2020
Chair: Carey W. King
Title: A Physical Basis of Economics
Presenter:
- Mieczyslaw Dobija
(Cracow University of Economics, Cracow, Poland)
Bio-sketch
Mieczyslaw Dobija, born in April 1943. Scientific career levels consist of mathematics studies at the Jagiellonian University. PHD obtained in 1975 at the Cracow University of Economics as well postdoctoral degree in economics in 1990. He obtained the title of professor in 1993 and from 1999 he worked as full professor. He received an honorary doctorate from the State University of Technology in Zhitomyr (Ukraine) in 2004. He deals with the theory of accounting and economics, studying the thermodynamic foundations of these sciences. An important result of this search is the explanation of a capital category, a model for measuring human capital of employees and the theory of fair remuneration. He is interested in the history of natural sciences and prehistory. He is currently focused on the economics of the Three Seas as the organization of the future with leadership of Poland.
Author(s):
- Mieczyslaw Dobija
(Cracow University of Economics, Cracow, Poland)
Abstract:T13.W127
Abstract
At the beginning of economics, work and cooperation appear, which leads to better efficiency of human activities. Therefore, understanding the work and its measurement as well as scientific sharpening of the concept offered by physics is the first step to the integrity of the foundations of economics with the natural sciences. The basis for the transfer called work is the potential category of work ability, i.e. energy in science and capital in economics. Therefore, work and capital are not opposed as the classics said, but complementary. Further logical reasoning leads to a set of basic economic concepts such as value, money, assets and fair pay.
The second element integrating economics and science is associated with taking into account the forces of nature. Long-term considerations about capital, profits, interest rates and rates of return have not brought the final results so far. Can the explanations given be complete if the effects of sun rays and photosynthesis on economic processes are ignored? It can reasonably be assumed that a natural constant will appear in this field that will allow quantifying the impact of nature on the economic effects of human activity. It will also allow to estimate energy loss in the human body determined by the second law of thermodynamics, which must be compensated by an appropriate remuneration to maintain existence.
The integration of economics and sciences also requires understanding that the scientific categories in physics and economics are abstract and subject to the fundamental principles found by nature researchers. Energy and work are abstract categories, so in economics capital, value and money must be understood in a similar way. Therefore, constructive mathematical concepts are essential to describe these scientific abstract categories.
Keywords: labor, capital, thermodynamic, economic constant, photosynthesis