Conservation Law of Productivty

The Conservation Law of Productivty:

• mirrors the 1st Law of Thermodynamics that says energy cannot be created or destroyed
• arises from the physical limitation of a mind having one thought at a time.

Tradeoffs

This leads to the concept of tradeoffs.

This is different from demand which has effective and absolute demand, with the latter being arbitrary.

A human can theoretically desire a billion Ferarris at a time. This is due to the arbitrary and infinite nature of the aether.

But he can only make one Ferarri at a time. This is due to the rigid and finite nature of the matter.

The opposing nature of supply and demand is why they have to be managed as a science.

The concept of Tradeoffs leads to the need to harness the 2nd Law to manage investment decisions.