Entropy and Economics

Chiralkine counting offers a novel solution to the double coincidence of wants problem inherent in barter systems. It accomplishes this by mathematically coupling objects into a ring through a counting cycle, as described on the coupling page.


Conserving Quantity, Changing Relationships

The process is inherently quantitative:

  • The quantity of objects remains conserved at every step.
  • What changes is the relationship of the objects to their owners, compared to their original arrangement.

The energy released during the formation of the ring—where all offers and wants are cleared—can be likened to the energy discharged when the ends of a battery are connected in an electrical circuit. This energy can be harnessed to perform productive work.


Economic Activity and Entropy

Once all offers and wants are cleared in the system:

  • Economic activity ceases, unless some external mechanism motivates a change—such as renewed hunger, thirst, or other needs.

This mirrors a fundamental principle in physics: for any process to take place, there must be an increase in entropy. Entropy is often associated with an increase in disorder, where distinctions relative to the original arrangement are erased.

In a marketplace, clearing offers and wants is akin to an increase in entropy. All mismatches are resolved, and distinctions (e.g., between surplus and deficit) are removed. Sustaining economic activity, therefore, entails finding ways to reduce entropy—reintroducing distinctions or imbalances that drive new exchanges.


The Arrow of Time

This discussion aligns with Carlo Rovelli’s exploration of time in his book The Order of Time. Rovelli challenges conventional notions of time, describing it as an emergent phenomenon rather than an absolute, linear flow.

In chiralkine counting, the arrow of time emerges only in relation to an original arrangement:

  • The quantity of objects remains conserved, but their relationships evolve cyclically.
  • Time, in this framework, is not a universal property but a relative construct, defined by the distinctions created and erased during counting.

This perspective resonates with Rovelli’s idea that time may not be a fundamental feature of reality but rather a reflection of how we perceive changes and processes in the universe.


Conclusion

Chiralkine counting provides a powerful framework for understanding the interplay between economics and entropy:

  • It ensures balance by conserving quantities while dynamically reshaping relationships.
  • It captures the energy released through clearing mismatches, enabling productive work.
  • It provokes philosophical reflection on the nature of time and order in both economic and physical systems.

By treating objects and relationships symmetrically, chiralkine counting offers a blueprint for a sustainable economic model, one that aligns with the fundamental principles of entropy while preserving human and ecological balance.

(Acknowledgement: text drafted by Chat GPT using text drafted for web page).