The economy in its house - A New Foundation for Economics

The economy is not in the clouds. Instead, the economy is in its own house, which protects it from environmental hazards and guides its activity and growth. Hence a new foundation for economics. This house does not have agents; it is made up of people, objects, and jobs, all interconnected by statistical links. Moreover, it has two parts: the roof that protects and the hearth that operates the production system and includes men and women. Regularly, the roof and the hearth support each other. However, when subjected to the impulse of the State, the roof can reduce the hearth to servitude. The house theory presented herein detines values. Current prices revolve around the weight of the unit of account of a given society. This weight governs exchange rates, and also the probability of ruin of the house. An original concept, the growth energy makes it possible to address with fruit many topics: growth, economic cycles, crises, inequalities, and ruin of the house. We emphasize the importance of redistribution to make crises more bearable and to support growth. One discovers that the soul of a house - a two component miniature house governed solely by three guiding parameters: exposure to vagaries, security, and performance - represents the entire house ideally. Economists, statisticians, and sociologists should appreciate the content of this book. Its methods may also interest theorists of physics and mathematicians. Finally, all people who want to understand the economy, going to the bottom of things, can find new insights herein.