The E-Model - Silent Weapons for Quiet Wars

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The E-Model

A national economy consists of simultaneous flows of production, distribution, consumption, and investment. If all of these elements including labor and human functions are assigned a numerical value in like units of measure, say, 1939 dollars, then this flow can be further represented by a current flow in an electronic circuit, and its behavior can be predicted and manipulated with useful precision.

The three ideal passive energy components of electronics, the capacitor, the resistor, and the inductor correspond to the three ideal passive energy components of economics called the pure industries of capital, goods, and services, respectively.

  • Economic capacitance represents the storage of capital in one form or another.
  • Economic conductance represents the level of conductance of materials for the production of goods.
  • Economic inductance represents the inertia of economic value in motion. This is a population phenomenon known as services.
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