Axiomatic Theory of Economics

Oct 2015
Simplified Exposition of Axiomatic Economics

I have written a book titled 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 nor 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 article 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.
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