The Hidden Variable in the Growth Function: Demon (eBook, ePUB)
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This paper advances a theoretical model linking economic growth to moral-spiritual dynamics. By extending the classical Cobb-Douglas production function, we introduce a fifth factor - the Demon or Moral Degradation Index (D) - representing the ethical cost associated with economic activity. The model posits that while technological progress and capital accumulation expand GDP in the short run, they also intensify D, thereby undermining long-term stability. Using historical patterns from medieval Europe to the digital era, the study demonstrates that domination and exploitation, rather than pur...
This paper advances a theoretical model linking economic growth to moral-spiritual dynamics. By extending the classical Cobb-Douglas production function, we introduce a fifth factor - the Demon or Moral Degradation Index (D) - representing the ethical cost associated with economic activity. The model posits that while technological progress and capital accumulation expand GDP in the short run, they also intensify D, thereby undermining long-term stability. Using historical patterns from medieval Europe to the digital era, the study demonstrates that domination and exploitation, rather than pure innovation, were principal accelerators of economic ascent. The resulting framework-termed the Moral Efficiency Frontier-proposes a calculus of balance between production and conscience.
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