Keywords: biased equilibrium, capitalists dilemma, information economics, greenhouse care economics, market loop, Pareto improvement, prisoner', s dilemma, poverty, real income, vertical learning, growth compulsion, profit maximisation, green economics
Greenhouse care economics: a solution to the capitalist's dilemma
This paper argues that the challenges like poverty, inequality, debt crisis, recession or environmental damage faced by our current world are created because of the individuals who hold the control of our capitalists institutions are in dilemma similar to prisoner's dilemma. It tells that a capitalist's growth compulsion is driven by his competitors' profit maximisation goal. Whatever the crisis, poor people are the most affected. The subset of the population becoming poorer can be tracked by measuring their Real Income to Contribution Ratio (RICR). The answer to poverty lies in gradually improving their average RICR from a benchmark position. The concept of Greenhouse Care Economics (GhCE) suggests that this can be achieved by bringing them together under a common framework. If the framework is implemented across a country and eventually across the world to solve poverty problems, it will act against the capitalist's dilemma through a vertical learning process and will pave the way toward green economics.