Sixteenth International Conference on New Directions in the Humanities

Abstract

This paper uses works of literature to develop a non-equilibrium model of the economy. Such a system then consists of two flows, one into the system and one out of the system. Entropy returns everything to a state of undifferentiated homogeneity. The flow into the system maintains heterogeneity and differentiation. There are several aspects to this system. First, a control parameter initiates and sustains the flow of resources into and out of the system. Secondly, an order parameter directs this flow in ways that create an internal identity for the system. Thirdly, this flow has a definite cyclical causal structure. “Gulliver’s Travels” is used to argue that non-equilibrium wholes take priority over isolated individuals. “Candide” is used to argue that the control parameter is one that oscillates between optimism and pessimism. “The Cherry Orchard,” “The Adventures of Franco,” “The Gilded Age,” “The Great Gatsby,” and “Player Piano” are used to argue that the order parameter consists of a changing technological/financial configuration. There have been three of these: the cotton system, the railroad system, and the internal combustion engine cycle. We are in a period of transition to a robotics/biotech system. “Oedipus Rex” and “Birds” (Aristophanes) shed light on the stages in this process. The stages in this movement are: confidence, alarm, relief, panic, false hope, and despair, caution, false panic, boldness, false alarm, and confidence. It is then argued that, since 2009, our economy has been in a false hope rally. The worst of the decline is still ahead.