简述价值理论 (Economics Notes)

Economics Notes

简述价值理论

March 28, 2003

I. Scientific Methodology Cannot be Simply Applied to Economics

I, 科学方法不能简单的用于经济学研究

Anyone with science background will avoid talking about economics, since the current economics does not provide the predictable result as science does. 任何一个有科学背景的人都会回避讨论经济学问题，因为现今的经济学不能像科学那样给出预测的结果。 Although the current economists tried their best to simulate the market by the similar format as the format used in science, it still can not reach the rigorous standard as science does. 虽然现今的经济学家尽了最大的努力用科学的表达方式去模拟市场，但他们不可能达到与科学一样地精度水准。

Economics belongs to social science, while social science has totally different nature from science. 经济 学属于社会科学，而社会科学与科学有着完全不同的性质。 People’s thinking mentality is limited by the success of science, which has the nature of repeated phenomena, in other words, science only deals with “Time-invariant variables”. 科学的巨大成就限制了人们的思想方法，而科学仅仅研究重复的现象，换句话来说，科学只研究不随时间变化的变量。 In science, our confidence is built on “experimental verification”. 我们对科学的信心是建立在反复验证上。 But social science, especially economics, the phenomena can never be exactly repeated in the future; it deals with all kinds of time-variant variables. 但是在社会科学特别是经济学领域中，研究所涉及的现象是绝对不会在将来完全一样地重复，他所研究的是各种各样随时间变化的变量。

Other than “experimental verification”, there are some other criteria providing the base of confidence, which are logic and mathematics. 除去验证之外，我们的信心还可以建立在其它 的 原则之上，比如逻辑和数学。 Based on mathematics and logic, we can build a deterministic decision making system. 用逻辑和数学作原则，我们可以建起一个有唯一解的系统，用来得出我们对所研究问题的结论。 This is the first step for us to learn the constrains of our social behavior and leads our economy to a relatively stable situation. 这是人类学习控制我们社会行为的第一步，它会引导我们建立一个相对稳定的经济系统。

II. All Economic Problems are Man Made Problems

II, 所有的经济问题都是人为造成的

Let’s have a deep breath, calm down our mind, ignore all the messy, vigorous, seemingly complicated economic formulations, and think at the very fundamental level and answer one question: what are problems in economics? 让我们深吸一口气，静下心来，不要去想那些纷乱、模糊、看似复杂的经济公式，从最根本的思想出发去回答一个问题：什么是经济问题？

We learned science from nature, we made innovation to increase our productivity; 我们研究自然现象，获得科学理论，运用科学理论去创造发明发展生产力； if we exchange our goods at a fair price, our government issue the correct amount of money supply and set the correct interest rates, there will not be any economic problems. 如果我们在市场上用公平的价格去进行产品的交易，政府供应合理的货币量，规定正确的利率，我们就不会有任何经济问题。 In other words, all the economic problems are man-made problems. 换言之，所有的经济问题都是人为造成的。

God has built intelligence in us, we should be able to find out the law of nature, which govern our social behavior, and use them to design a workable, good economic and social (political) system just like we did in science. 上帝已经给了人类智慧，正如我们能够在科学领域内取得成功一样，我们也一定能够找到规范人类社会行为的自然规律，运用它来设计一个好的成功运作的经济体系和政治系统。

III. Basic Economy

III, 基本经济

Three requirements contribute to a stable economy: the rational ranking of basic rates, the price determination and the correct money supply. 稳定的经济需要三个要素：基本增长率地正常排列，正确确定价格和正确的货币发行。

A. Basic rates in economics:

A, 经济学中的基本增长率

There are three basic rates in the economy: inflation rate, interest rate and investment rate of return. The rational ranking for these three rates are: 经济学中有三个基本增长率：物价增长率，银行贷款利率，和投资回收利率。

1. The inflation rate should be higher than zero to encourage investment .

1, 物价增长率必须高于零，用于刺激投资。

2. The interest rate should be higher than the inflation rate. It will keep all the banks and financial institutions in operation. If the inflation rate is higher than the interest rate, people will save goods instead of saving money in the bank.

2 ， 银行贷款利率必须高于物价增长率。这样才能保证银行和信贷行业有运作的空间。如果物价增长率高于银行贷款利率，人们就会用囤积货物取代到银行储蓄。

3. The investment rate of return should be higher than the interest rate. This rule is obvious, otherwise there is no investors will borrow money from the bank. This is also the reason that the inflation rate cannot be too high.

3 ，投资回收利率必须高于银行贷款利率。这条是显而易见的，否则便无人向银行贷款。由此也可以看出物价增长率是不能过高的。

As far as the ranking of these three basic rates is in correct order, the economy is normal. 只要以上三个利率的排列次序正常，经济就是正常稳定的。

Now the question is how to determine certain kind of investment rate of return? This in turn will determine the interest rate to be used for that kind of investment. 现在的问题是如何确定某一类投资的回收利率？它是决定这类投资的借贷利率的根本因素。

B. Money supply:

B, 货币供应：

The Noblest Mr. Milton Friedman has discovered a time invariant in economics, the relatively constant velocity of money circulation, and his famous equation: PQ = VM₂ is the base for the government’s monetary policy. 诺贝尔奖经济学获奖者 Mr. Milton Friedman 发现了一个经济学中的不随时间变化的变量，那就是货币流通的速度，政府发行货币就是依靠他那条著名的公式 PQ = VM₂ 。

In this equation: 在这条公式中：

V : Velocity of money circulation, which is relatively constant in time, but varies in different countries or regions. 货币流通速度，它在一个国家或区域是相对稳定的，但随国家或地区的改变而不同。 ( 美国是 2.5 ，中国是 1.6)

M₂ : Broad money supply in business circulation includes cash, credit, paper notes, … and so on. 广义范围内的货币供应，包括钱币、信用卡、借据， 等等。

Q: Total products in general, which includes all kinds of products, businesses and properties. 广义范围内的产品总量，包括各类商品、生意集团、公司、动产与不动产。

P : Price, this is the most important factor need to be figured out. 价格，这是我们要解决的最重要的元素。

Since V is constant, M₂ is controlled by the government; the variables left to the market are Q and P. There are three major economic phenomenons: 由于速度是常数，货币供应由政府掌握，留给市场的只有产量与价格。这里有三种经济状况：

1. Inflation: 通货膨胀

At one time slice, Q is fixed, too much money supply will make P goes up, which is called inflation. 在一个时间点上，产量是固定的，过多的货币供应就会造成产品价格地过度上升，造成通货膨胀。

2. Deflation: 市场下跌

When the money supply is unreasonably restricted by the government, P will go down. This is called deflation. 当政府不合理的紧缩货币供应，市场价格就会下跌。这叫作市场下跌。

3. Recession: 经济萧条

When the price P gets too low, the inflation rate becomes negative; the rule No. 1 is violated. 当物价降的过低，物价增长率成为负数；这就违背了前面所讲的三个基本增长率的第一条。

The economy slow-down will weak or destroy the investors’ confidence. 经济放慢会减弱或粉碎投资者的信心。 When businesses lost investor’s support, the shortage of capital (M₂) will force them to reduce production (Q) or go bankrupts in the severe cases. 当经营者失去投资者的支持，资金供应的短缺就会迫使降低生产量，严重的会导致经营破产。 One sector’s depression will spread out as chain reaction. 一方面的经济放慢也会漫布开来发生连锁反应。

Two consecutive quarters with negative economy growth indicates recession. 两个连续季度的经济放慢就称为经济萧条。

In order to stimulate investment, the government cuts interest rate to keep investment rate of return staying higher than interest rate. 为了刺激投资，政府降低信贷利率去维持投资回收利率高于借款利率。 Since interest rate has to be higher than inflation rate and lower than investment rate of return, its range is limited. 由于信贷利率必须高于物价上升率，而又低于投资回收利率，所以它的调节范围是很有限的。

The government’s role is to provide the correct money supply to avoid both high inflation and recession. 政府的作用是提供适量的货币量即不导致通货膨胀又避免经济萧条。 In order for the government to figure out what is the correct money supply and how to set the interest rate for different investments, the key point is to find out the investment rates of return for different investments, which together with the interest rates will determine the prices. 为了帮助政府找出合理的货币供应量，以及确定给不同类投资的不同的贷款利率，就需要找出不同类投资的回收利率，用同类的投资的回收利率加上它的贷款利率，就可以决定这类产品合理的市场价格。

If both money supply and prices are determined in the correct way, economy stabilization could be achieved. 如果货币供应与市场价格都在合理范围内，经济稳定是可以实现的。

C. Price and investment rate of return

C, 价格与投资回收利率

Price is the key for business and for decision-making. Fair prices will settle business deals between buyers and sellers and will bring peace in the international arbitration. 价格是交易和决策的关键因素。公平的价格使买卖成交，给国际冲突带来和平。

Price and investment rate of return have reversing relationship for investors at different time. 对于投资者来说，价格与投资的回收利率在不同的时间有着相对的关系。 In order to achieve high investment rate of return, they prefer lower price when they are buyers and higher price when they are sellers. 为了赚取更高的利润，投资者作为买方时希望价格低，而作为卖方时希望价格高。 The rational price determination has to be fair to both buyers and sellers, and the same logic has to be carried all the way to time infinity to secure all the future investors. 合理的价格应该是对买、卖双方都公平，而且同样的逻辑必须应用到无限的未来以保证所有将来的投资者的利益。 Under such condition, both buyers and sellers are under the same protection. 在这种情况下，所有的买方和卖方都得到同样的保护。

Business has no space limits. International trades; stock markets; oversea investments have broken the national boundaries. 经济活动是不受边界限制的。国际贸易、股票市场、跨国投资已经打破了国境线。 Therefore the price determination has to take all the space factors into consideration. 因而价格的计算也必须把所有的空间界面的因素也考虑在内。 The space factors will be reflected by vacancy, inventory-production ratio, market demand for same kind of business and industrial chain interaction among different industry sectors. 这些空间界面的因素表现在空房率、存货与生产量的比率、一种产业的市场需求，及不同产业间的供求关系等等。

Investment return can be expressed as two parts: monitory return and non-monitory return. 投资的回收可以分为两个部分：金钱上的回收和非金钱的回收。 The monitory return is measured by its profit margin, while the non-monitory returns are the differences among all kinds of investments other than the differences in their cash flow, such as the risks, management difficulties, and special values as personal or cultural, political concerns and so on. 金钱上的回收是以利润来衡量，非金钱的回收是各种各样的投资行为在金钱以外的互不相等的那一部分，比如风险程度，经营的难度，对个人或者文化上的特殊价值以及政治上的考虑等等。

For all kinds of investments, the total return including monitory and non-monitory should be in the equilibrium condition as being adjusted by the free market. 由于自由市场机制的调节，对各种不同的投资而言，它们金钱上和非金钱部分的投资总回收处于动态平衡状态的。 The higher risky and more difficult investments need higher rate of return to attract investors. 高风险和高难度的投资必须伴随高利润来吸引投资者。 The more secured and easier work only deserves lower rate of investment returns. 而相对安全和简单的工作也只会得到较低的回收率。 In the long run under stable economic situation, certain investment will have a constant rate of return since they have the same non-monitory return. 在长期的相对稳定的经济情况下，一种类型的投资的金钱部分的回收利率应该是不变的，因为它的非金钱部分的回收是不变的。

In summary, price determination needs a system including all the factors with a consistent logic to space and time infinity. 总而言之，价格的计算需要一个系统，它要把所有因素都考虑在内的，在无限的时间与空间的范围内，以同样的逻辑对待所有的经济行为。

IV. Infinite Spreadsheet

IV, 无界扩展计算方法

There are a lot of so-called “Mathematical Economic Models” in today’s market, but none of them presents an inclusive and deterministic system. 今天的市场上有许许多多称之为“数学经济模式”的东西，但没有一个是提供封闭式的有唯一解的系统。 These methods are simulating the market, modeling part of the system; the results from all these methods are arbitrary. 这些模式模拟市场或部分市场，它们的结论都是不确定的。 Without taking all the factors into consideration for disclosure and having the consistent logic to time infinity, all these methods can be categorized as finite spreadsheets. 这些不把所有的因素都考虑进去并形成一个完整封闭系统，不把相同计算逻辑使用到无限未来的模式，可以统称为有限扩展计算。

Social scientists, economists make their arguments in pieces. 现今的社会科学家门，经济学家们讨论问题的方法是局部的，一段一段的。 Searching on the stock market Internet web sites, from television news, we see the economic experts talking about quotes, earnings, growth rates, dividends, P/E ratios, all kinds of performance indicators, but without a system for disclosure, the variables are at the loosing ends, you can assign any numbers to them, and helplessly accept any consequences from your decisions. 从网上有关股市的消息，从电视新闻中，我们看到经济学家们谈价格、收入、分红、价格收入比、各种各样的指标，但是离开一个封闭的系统，所有这些变量都处于松动状态，你可以填入任何数据，仍然无可奈何的接受你无法控制的结果。

In mathematics, a system with number of unknown equal number of equation provides a deterministic system. 在数学里，一个由 N 个变量与 N 个线性互不相关的方程组成的系统（或称为方程组）是有唯一解的系统。 The infinite spreadsheet designed by Post-Science Institute is based on this rule, it is inclusive as it has taken all the variables acting in the investment into consideration for disclosure and follow exactly the reality of their relationship and carries this logic to time infinity to reach the value of the final variable in the system, which can be either price or rate of return or any item expected. 后科学学院所设计的无限扩展计算系统正是基于这一数学原理，它是封闭的，因为它把一项投资中所有变量统统考虑在内，按照他们在经济活动中相互的关系建立方程，并把这种相互关系的方程重复使用到无限的未来。去得到它的最终解，它可以是价格，投资回收利率，或者 N 个变量中的任何一个。

The infinite spreadsheet provides a yardstick. 无界扩展计算方法提供了一把尺子。 We can input values for all the variables defining an investment environment, such as interest rate; operation cost; gross income; growth rate, tax benefit; vacancy factors; expected rate of investment return … and so on, the system will determine the last variable, in most case, it is the price or the investment rate of return. 我们可以输入投资环境中的所有变量，比如贷款利率、经营费用、企业成交量、产量、生产上升率、税率、空房率、等等，计算系统会给出我们期待的最后的那个变量值，在大多数情况下，是价格或者投资回收率。

For certain type of investment, the expected rate of return is relatively constant; therefore the price is determined under a defined investment environment. When the market price keeps going up, the investment rate of return will go down. When the investment rate of return gets below interest rate or even goes negative, the market is called overvalued. 对于同一类投资，它的投资回收率是相对稳定不变的，因而当投资环境确定时，价格也是明确的。随着市场价格的增长，投资的回收利率就会下降，当它降到低于贷款利率，以至变为负数时，那时的市场就称为超价市场。

The overvalue phenomenon was clearly demonstrated in 1980s’ US real estate loan default. 这一超价现象明显的表现在美国八十年代房地产的信贷危机上。 The real estate market overvaluation in 80’s was detected by Post-Science Institute (World-Wide Valuation Institute.) They did contact Mr. Alan Greenspan at that time, but there were no responses from him or his staff. 后科学学院在当时已经预测出了八十年代的房地产市场的超价现象，并且预先向当时在任的美国联储局局长格林斯潘先生发函报警，但是没有得到他或者他的办公室的任何回应。 The savings and loan institutions did not realize the fact, they lend out money according to the overvalued market appraisal of the properties. 美国的房地产信贷银行按照当时的超高的市场价发放贷款。 When the market finally crashed in 1991, all the loan values got lost. 当市场在 1991 年终于崩溃时，丧失了所有贷款的价值。 The lost in this savings and loan crises was estimated from half to one trillion dollars. 在这次危机中总共的损失估计在一兆美金。

V. Irrational Behavior in Stock Market

V, 股票市场上的不理性行为

Stock market is a purely monetary system. 股票市场是纯金钱操作系统。 It has eliminated most non-monetary factors such as management headaches. 它取消了大多数非金钱运作的因素，比如经营困难等等。 The function of stock market is make funds available to support the innovations. 股票市场的作用是集资支持新产业的开发。

The stock price has two components, the fundamental value and the market instability. 股价有两个组成部分，股份的实际价值和市场的不稳定性。 The fundamental value reflects the business performance, and the market instability reflects any psychological impacts and blindness due to lacking of knowledge and confidence for the fundamental evaluations. 股份的实际价值反映了企业的经营状况，市场的不稳定性来自于投资者的心理因素，缺乏知识以及对基本估价缺乏信心。

Regardless how are the investors acting, the market in the long run will oscillate around the fundamental values. 不管投资者怎样作，从长远的角度看问题，市场还是会围绕股份的实际价值上下波动。 Periodically crash is the market correction to the overvaluation; and the market rally will bring the price out of the bottom. 周期性的崩溃是市场对价格过高的纠正，同样市场也会从低价的谷底走出来。

Without education, influenced by rumors and political climate, people are guessing the market direction, their behavior only amplify the market instability due to the finite considerations. 缺乏引导，受谣言和政治风云的影响，投资人只能猜测股市的方向，而他们的动作又加大股市的震荡。 When the market is going down, the sell is strong, that will make market overshooting the fundamental value to enter the undervalued region. 当股市下滑时，卖势强劲会使价格冲过实质价进入低价区。 While when the market is going up, people’s buying force makes another overshooting and bring the market entering the overvaluation region. 而股市上涨时，买势过强又会把价格带入高价区域。

If all the investors realize that the infinite spreadsheet is unbreakable mathematical law of nature applied to social science, which control the market prices, as far as we do not violate the law of nature, the market should not crash and the economy should not have recession 。 如果投资者认识到无限扩展计算方法是把不可违背的自然规律中的数学原则运用到社会科学中，用以控制价格；只要我们不违背自然规律，市场就不会崩溃，经济也不会萧条。 T he only variation for the price should be caused by the business performance, technology testing and improvements, which is much solid and predictable, they will be very confident to utilize the infinite spreadsheet as an evaluation tool to make their investments’ decisions. 唯一的价格波动来自于企业经营状况的变化和对新技术的测试与发展，而这是实在的和相对来说容易预测的，他们就会有信心地运用无限扩展计算方法来对自己的投资项目进行评估，从而做出投资的决策。 Same like we did in science, people get educated in using electricity, automobile and internet, the investor also need to be educated to understand the nature of the economy and the constrains of out behavior, such as use infinite spreadsheet to calculate the price before they investing their money in the market. 正如在科学中一样，我们接受教育，学会使用电器、汽车、互联网；投资者也应该接受教育，懂得经济的自然规律和它对我们经济行为的限制，就会在进行投资之前，用无限扩展理论去计算价来作出自己的决定。 If there is good percentage of investor realize the law of nature in social science, the market will never need to crash to be correct and the stable economy will be achieved. 只要有相当比例的投资人认识到社会科学中的自然规律，市场就再也不用以崩溃的形式来调整，经济的稳定发展也就得以实现了。

VI. Rational Behavior and Design Economy

VI, 理性行为与设计经济

In economics or finance, only considering the future conditions make sense to the decision making. 在经济或信贷领域里，只有未来，未来的情况才有意义。 We do study the past, the purpose of collecting historical data is not looking for parallel curves to make future prediction; as we have discussed at the beginning that the market will never repeated exactly, but to discover any time invariant variables, which can be used in the decision making calculation. 我们研究历史，收集历史数据的目的不是要用它来摹拟一条曲线，找出于近期数据的平行曲线来预测未来；正如我们在开始时谈到过的，市场是不会完全重复的，而是要从历史数据中找出不随时间变化的变量，用它来作为对未来决策计算中的变量输入值。

Speed of money circulation and investment rate of return are two time invariant variables so far discovered by today’s thinkers and researchers. 迄今为止的思想家和研究者们只发现了两个不随时间变化的变量，一个是同一区域中的货币流通速度，另一个是同一类投资的回收利率。 Infinite spreadsheet has demonstrated that a deterministic system can be build to help us in achieving rational behavior to stabilize the economy, which is the first step in social science. 无限扩展计算方法已经向我们演示了用一个唯一解的系统来指导我们的经济行为以求达到稳定经济发展的可实现性，这是社会科学的第一步。

Like we did in science, we can design our economy at any speed, just like design a car. Our government is the representative designer to control the speed of the economy. 正如我们在科学中所作的一样，我们可以设计任何速度的经济发展，就像设计一辆汽车。政府将是总设计师来控制它的速度。

Without a deterministic system, any assessments of the economy will be mistakes, and if this is made by the government, it will bring the disasters to the country’s economy. 离开这样的决策系统，任何对经济的指令或分配将是错误的，如果这一指令来自于政府，它将导致国家的经济灾难。

Internet companies have special business character, its market went global without traditional effort, it is benefited from all existing infrastructure, therefore it has high investment rate of return by its own nature. 互联网企业有着特殊的性质，不需要传统市场广告便进入了国际市场，它受利于现有的基础设施，因而它有高回收率的自然特点。 Around 2000, Post Science Institute has followed the market, for the stocks, they have monitored; most of their prices were in the reasonable range as supported by their earnings at the same time. In another words, overvaluation is not detected. 2000 年左右，后科学学院曾经追踪研究股票市场，就他们所追踪的互联网企业的股价而言，价格还是在合理的范围内，换言之，并没有发现股价超高的现象。

The money supply retraction policy carried by Mr. Alan Greenspan has caused depression in the Internet industry by loosing the investor’s confidence and leads a chain reaction of weak earnings in high tech companies, which in turn triggered economic recession. 格林斯潘的货币紧缩政策使投资人丧失了对网络工业的信心，导致了美国网络工业的危机，又产生了连锁反应使高科技工业走软，随即引发了美国的二十世纪末的经济萧条。 His claim of bubbles of Internet stock market has significant impact investor’s confidence. After tremendous lost in year 2000 to 2001, none dare to believe business with greater than 50% rate of return, which has destroyed all the future high return business opportunities. 他宣称的互联网股市的泡沫严重打击了投资者的信心。在遭受了 2000 至 2001 年的巨大损失之后，没有人敢再相信 50% 以上的增长率，从而摧毁了未来所有的高速度增长企业的机会。

According to equation PQ = VM₂, 50% growth (Q) needs about 20% money supply (M₂) as V equals approximately 2.5 in United States. US government reduced money supply from 18% in Mar. 2000 to 3% in Dec. 2000. Internet companies with 15% to 50% (or higher) growth got obsolete by this governmental action. 按照 PQ = VM₂ ， 50% 年增长率的企业需要政府提供 20% 左右的货币，因为美国货币流通速度 V=2.5 。 美国联储局把货币供应量从 2000 年三月的 18% 紧缩到了 2000 年十二月的 3% ，互联网有 15% 到 50% 或者更高增长率的企业就都被这个政府运作杀死了。 ( 后来互联网的企业纷纷向东方发展去利用东方廉价的脑力资源以弥补经营中的资金不足。 )

VII. Techno Democratic Government

VII, 科技民主政府

According to Post Science Institute, physical science deals with about five variables. Social science deals with about fifty variables, and life science deals with five hundreds variables. 按照后科学学院的看法，物理科学研究五个左右的变量。社会科学研究五十个左右的变量，生命科学研究五百个以上的变量。 Human being has got great achievements in science, but social science is still in its infancy. Economics is part of social science; it is the most fundamental and easiest part. Its formats define and support the political systems. 人类已经在科学领域里取得了巨大的成就，而社会科学还在摇篮里。经济学是社会科学的一部分，是最基本和最初始的部分。经济形式定义和支持了社会的政治系统。

In the past hundreds years, most western countries are experiencing free market economy, and most eastern countries are experiencing namely “planning economy”. Theoretically, both economic systems failed. 在过去的几百年里，西方多数国家经历着自由市场经济，而多数东方国家经历了所谓的“计划经济”。理论上，两者都是失败的。

The socialism countries and their “central planning economy”, in fact, is dictatorial system limiting the planning by private citizens, therefore it cannot motivate people’s production, innovation and cannot stimulate economy growth. 社会主义国家的“中央计划经济”，事实上，排除了全民参加计划的机会，不能调动人民的生产积极性和创造性，继而不能刺激经济的发展。

The most famous slogan used by socialism is “Make your best contribution; get the best you deserve.” How to evaluate people’s contribution? How to assess everyone’s contribution is a question of price determination. 社会主义最有名的口号是“各尽所能，按劳分配。”怎样评估一个人的贡献大小？怎样对每个人的贡献分配酬劳是一个如何确定价格的问题。

Without experiencing in free market, none is able to understand the nature of economy. 缺乏对自由市场的经验，人们是无法了解经济现象的自然性质。 Without collect data and study the relationship among all the variables in economics, none is able to reveal the restrictions, the laws of nature in economy. 离开了对大量数据的收集和对经济学中众多变量之间的关系的研究，没有人能够发现经济学里的自然规律以及它对我们在经济活动中的限制。

The failure of capitalism is they cannot avoid cyclic market crash, and the governments in these countries have created so many man-made laws conflicting with law of nature, these man-made laws create economic disasters and human war. 资本主义的失败在于它不能避免周期性的经济危机，资本主义国家的政府制定了太多太多人为的法律，这些法律与自然规律相冲突，带来了经济上的灾难和国与国之间的战争。

With rich experience for free market, people living in capitalism countries are on the good track of gaining understanding of the nature of economy. 在资本主义国家生活的人们依靠对自由市场的丰富经验正走在理解经济自然规律的正确轨道上。 The infinite spreadsheet is a product birthed out from this matured environment. 无限扩展计算方法就是在这样的环境中诞生的。 It discovered the time and space infinity requirements in economic price determination, and this established a foundation for a decision-making system and a new format of government, the Techno Representative Government. 它发现了空间和时间上的无限扩展是价格计算的必需条件，这为决策系统奠定了基础，并且倡导了一个新型的政府形态，那就是科学民主政府。

Under the Techno Representative Government, knowledge should have the highest power, and than are people, the government is only an executive organization to carry out the decision made by the decision system. 在科学民主政府的国家中，知识具有最高的权利，其次是人民，政府只是一个执行机构，它负责履行决策系统所作出的各项决定。

The function of techno representative government is to form a central controlled decision-making system, and fine-tune the free market to stabilize the economy by eliminating irrational market fluctuation and avoiding market crash and economic recession. 科学民主政府的作用是建立一个中央控制的决策系统，对自由市场经济进行调控，取消经济活动中的非理智性的运作，避免市场崩溃和经济萧条。 The stabilized economy will build investor’s confidence and support new technology and any innovations. 稳定的经济会增强投资者的信心和对新科技、新发明的支持。 Designing is better than passively waiting for free market adjustment. 设计经济比被动的等待市场调节要好许多。 With the rational methodology supported by laws of nature, the more Designing, the more the society will be benefited. 有了自然规律支持下的理性方法，越多越仔细的设计，对社会有越多的利益。

Science has no country, no racial, no political boundaries, because science is based on the laws of nature, which governs the behaviors of physical material. 科学没有国家、没有民族、没有政党的界限，因为它是基于自然科学的规律，掌握控制了物质运动的行为。 The goal of social science is to find laws of nature governing people’s activities, which will help us to make decisions regarding what we should do and how to do it. 社会科学的目的就是要找出控制人们行为的自然规律，用它来帮助我们去决定我们应该做什么和怎样去做。

Only when the stabilized economic condition achieved, the other political concerns can be considered as a special factor in the valuation system for any kind of decision-making. 只有当我们取得了稳定的经济环境，其他政治性的考虑才能作为价值理论系统中的一个特殊因素在计算中予以考虑。