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Simplified Exposition of Axiomatic Economics


I have written a book entitled Axiomatic Theory of Economics. This book is about a new economic theory. It is not a simplified version of mainstream economics. It does not predict the future, calling neither prosperity or ruin in America. It is certainly not in the "how to be a salesman" genre, nor does it propose to tell the reader how to make money in the framework of current financial institutions. It is an abstract treatise. The purpose of this book is to give an axiomatic foundation for the theory of economics. The success of the axiomatic method employed by Euclid (in geometry), Kolmogorov (in probability), and others is well known and I claim that similar success can be realized in economics. However, by defining economics to be concerned with the creation of wealth rather than the allocation of scarce resources, I have not only solidified it but have shifted its basic paradigm. I address the issue of price and stock. Supply and demand does not work. This is a fundamental departure from mainstream economics comparable to that of Copernicus in astronomy.

The purpose of this pamphlet is to give a simplified exposition which is not too mathematically demanding. This is accomplished by replacing an axiom to assume away the infinite summations so that readers need not be familiar with real analysis. The essential points remain intact, however, as the theorems apply as well to partial sums (including the 0’th partial sum) as to infinite ones. But the proofs are simple enough to facilitate a cursory reading.

There is a glossary in the back of this pamphlet which defines terms unique to Axiomatic Theory of Economics. To read the proofs one must have at least a semester of calculus. The theorems are expressed in words as well as equations, however, so it is possible to follow the theory while skimming over most of the math. A geometrical exposition of axiomatic economics is also provided, which allows one to visualize the demand distribution as an aerial view of the people who value a phenomenon assembled along a line marked "money," where they are asked to stand by the number of monetary units that are equal to a unit of that phenomenon.

Table of Contents


First Axiom
Second and Third Axiom
The Law of Price Adjustment
Money and Credit
Glossary of Terms

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