Global Thermoeconomics

This paper illustrates that basic global economic concepts can be directly related to the First and Second Laws of Thermodynamics. We believe that all economic returns are from nothing except from current and past human expenditure of human energy; this is the result of the First Law of Thermodyn...

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Bibliographic Details
Main Authors: Mario W. Cardullo, Manhong Mannie Liu
Format: Article
Language:English
Published: University of Warsaw 2017-03-01
Series:Journal of Banking and Financial Economics
Subjects:
Online Access:https://press.wz.uw.edu.pl/cgi/viewcontent.cgi?article=1069&context=jbfe
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Summary:This paper illustrates that basic global economic concepts can be directly related to the First and Second Laws of Thermodynamics. We believe that all economic returns are from nothing except from current and past human expenditure of human energy; this is the result of the First Law of Thermodynamics. It is shown that everything is a product of energy in the form of labor and that the basic principle of Labor Theory of Value is still valid and this principle is validated not relying on economics and fi nance models, rather on thermodynamic principles. This is illustrated by the development of the Labor Value Equation based on the application of the First and Second Law of Thermodynamics and how it can impact employment, asset valuation, supply/demand, productivity, global confl ict, global reserve currency and global stability.
ISSN:2353-6845