Research Proposal
Among the social
sciences, economics is perhaps the most useful for its applicability in
describing the systems by which resources and people interact, yet is also the
most controversial and political. The question I plan to address is whether the
more objective natural laws of the universe, in particular physics and
especially thermodynamics, are at all analogous to the laws of economics, and
going further, seeing if such an analogy can provide useful insight on
economics. Both thermodynamics and
economics pertain to the ways in which elements of systems interact with each
other and the environment, though the former deals with the objective and quantifiable
universe and the latter deals with the interactions between people. The paper would propose that economics is
nothing more than the principles of physics applied to human societies, and in
addition, once economics is thought of in this way, one can obtain additional
and practical insight about the organization of human systems.
The
first stage of the paper will be to establish the similarity between the two
systems. This will be accomplished by first analyzing autonomous systems as
described by Johnson, which exhibit organized complexity in that there are
simple rules for the interactions between elements (Johnson 203). Adam Smith’s theories on economics, which is
the basis for modern American capitalism (Smith), is a prime example, the many
reasons for which will be explored in the paper. There is a natural law, supply
and demand, that governs the economy and the distribution of wealth. This will be compared to the systems described
in thermodynamic systems, which too have their own simple set of rules. The
paper will briefly summarize these laws of thermodynamics for the purpose of comparison,
but will otherwise assume the reader is familiar with the sciences involved.
While
doing so, the paper will then attempt to re-frame Smith’s theories in terms of
these thermodynamic laws, leading to the second stage of the paper. Many of the
phenomenon described by Stiglitz, Johnson, Lethem, and Smith, can be
categorized into one of these more basic laws. Most of these analogies are explicitly
reviewed by Saslow, for example, the concept of utility in economics, the
measure of an object’s material and subjective worth, is directly comparable to
the concept of energy, the ability to do work (Saslow 1240). The paper will briefly
summarize these connections. There are other, less obvious and potentially less
accurate (the extent to which the paper will explore) connections, such as
equation the rate of economic development with temperature (Saslow 1240).
The
third stage of the paper will attempt to glean insight having made this analogy
and assuming its validity. The major example the paper will explore is how
inequality is therefore an inescapable physical fact of efficient system design,
examples of which are amply provided by Johnson, Lethem, and Stieglitz. The
Carnot cycle, as shown by Saslow, provides a mathematical justification for how
a higher degree of inequality and hierarchical structure is simply more efficient
in terms of production.