Value orientation is the compass of all economic and social conduct — for governments, enterprises, individuals, and families alike. To resolve today's and tomorrow's knotty problems across the economic, social, technological, and security spheres with half the effort and twice the result, one must trace back to the source of the problem: how value is measured. The fastest route is to translate the overall optimal solutions of the natural, social, and cognitive sciences into systematic technological solutions.
After more than a decade of drawing on the best of diverse fields and integrative R&D, we have forged a distinctive system of thought and practice that links industry with finance and multiplies both righteousness and wealth. Through innovations in the social and cognitive sciences, technology is steered toward good and away from harm, so that employees spontaneously earn, save, and create value for themselves, their enterprises, and society. By distilling complexity into simpler, more stable model structures — one diagram throughout — we achieve systematic integration of theories and methods across disciplines and departments.
Under the core socialist values, we pioneer a foundational core science of the economy and society from 0 to 1, bringing the self-interested market economy and the collective, altruistic socialist system into a unified framework for assessing the substance of value. It not only explains the indigenous economic phenomena that mainstream Western economics cannot, but also, by creating enormous value increments, serves as a sharp instrument for the enduring stability of the state, the lasting prosperity of enterprises, and the common prosperity of the people — a lifelong companion empowering innovation across the entire life cycle.
The Law of Value Conservation
Elaboration of the Law
- If any one variable falls to zero or turns negative, the total value will likewise fall to zero or turn negative — at the mildest, causing celebrated figures to decline and enterprises to fail; at worst, precipitating social and economic turmoil, the ruin of families, the collapse of the state, and the fall of dynasties.
- Only when all three variables are greater than 1 does one enter a period of development and expansion.
- When any variable lies in the 0–1 interval (0<X<1), one enters a period of contraction and recession, eroding the value of the other two indicators and thereby undermining the aggregate value of the economy and society.
- When an actor bears no responsibility for social value or time value, it will sacrifice social value and long-term time value to maximize short-term economic value. Even with the denominator unchanged, shrinking the numerator inflates the result.
- In a laissez-faire market economy that indulges the maximization of market/monetary value — or in companies whose sole end is profit — market actors spontaneously resort to the division formula: they sacrifice social value and long-term time value to obtain maximum short-term value. Even with the denominator unchanged, shrinking the numerator inflates the result. Hence the blindness, spontaneity, and lag of the market economy inevitably occur, continually producing cyclical economic crises.
- Happiness, efficiency, and value creation are, in essence, the application of the multiplication formula of value conservation: making the process of work itself a source of consumable value — endorphin joy during work and dopamine joy during leisure — in a bidirectional cycle of alternating progression that generates work momentum.
For our Party and state, whether it be the common prosperity of XXXX, the Three Critical Battles, the Six Stabilizations and Six Guarantees, anti-monopoly, the rectification of the real-estate, tutoring, and pharmaceutical industries, or the scientific and technological breakthrough, all aim to enlarge increments across the economic, social, and temporal dimensions, preventing economic conduct from eroding social value and undermining the long-term stability of the state.
The formula the Party and state apply to macroeconomics and social governance is, in essence, identical to and seamlessly continuous with the formula enterprises, society, and individuals use in micro-level value trade-off decisions — differing only in wording and in the parameters of specific application scenarios.
Macro Perspective
Micro Perspective
Surveying thousands of years of dynastic cycles, the rise and fall of enterprises, and the vicissitudes of individuals across China and the world, one can discern a law of total-value conservation: within a given period,
The Law of Conservation of Aggregate Economic–Social Value: Just as energy is conserved in nature, so too, from the holistic perspective of the economy, society, and the people, economic value and social value are neither created from nothing nor vanish into nothing; they merely transform from one form into another or transfer from one subject to another, while the total amount of value remains unchanged.
The Value Pyramid of State, Family, People, and Enterprise in a Unified Market
The Grand Way of Governance and Commerce
No organization — state, family, or enterprise — is a hollow concept; it is composed of living, breathing individuals. Will it become a mob of the masses, a hierarchy riven by top-down estrangement, or a highly effective organization united in purpose? The foundation lies with the people, not with officials; the key lies in coordination between top and bottom. In production, the enterprise is the smallest organizational unit; in daily life, the family is the smallest organizational unit.
Applications in Enterprise, Family, and Individual Contexts
Alternative Representations of the Wealth–Wellbeing Value Conservation Formula
Macro Formula for Economic and Social Governance
Micro Formula for Individuals, Families, and Enterprises
Bilingual (Chinese–English) Notation
Chinese Notation
Applied Analysis
Why is it that monetary over-issuance to stimulate the economy, with wages nominally rising, increasingly fails to motivate people to work, fails to stop people from "lying flat," and is followed by 15 consecutive years of falling divorce rates and a cliff-like drop in new births?
Because people find that the money earned from grueling 996 work cannot buy back more happiness-experience time: while f(m)Monetary Value grows, f(h)Happiness Experience× f(t) Time Value shrinks, so the total value declines. Superficial media indoctrination and the numerical games of money can no longer move the seven-level-deep iceberg of the people's happiness experience. Without long-term hope and lacking short-term confirmation of happiness value, "lying flat" — neither marrying nor having children — becomes the optimal solution for the individual. Scaled up to the entire economy and society, Social ValueS and Time ValueS shrink, which in turn shrinks Economic ValueE and Aggregate Economic–Social ValueY, ultimately leading to social and economic disorder.
The optimal solution is to make the process of work itself a source of happiness experience.
Why does the capital market always "harvest the leeks," with retail investors losing in 8 out of 10 cases, breaking even in 1, and profiting in 1, as people's wealth is plundered?
The capital market was established from the outset to serve a minority of capitalists, not the broad masses. Under the law of conservation of aggregate economic–social value, capitalists, in seeking the maximization of f(m)Monetary Value with yTotal Wealth–Wellbeing Value held constant, shrink f(h)Happiness Experience and f(t)Time Value — making the sacrifice of the broad masses of shareholders their optimal solution.
Because capitalists are answerable only for economic value E, not for the social value S and time value T sacrificed by shareholders — yet for the Party and the state, the losses borne by shareholders translate into governance costs for the economy and society and tax burdens on the people.
Because the social value of listed companies is not bound by any visible monetary constraint, they need answer for neither social value nor long-term value; hence even public companies remain rife with disorder.
The optimal solution is to bring the market value, social value, and time value of listed companies into a unified value-measurement system.
Why Does the State Conduct Counter-Cyclical Macroeconomic Regulation?
In essence, it enlarges social value S and extends time value T, so as to achieve the enduring stability of the state and the prosperity and stability of society.
How to Open a New Frontier in Political Economy?
Competing over increments is the way of the gentleman; competing over stock reveals the petty face of the small man; competing over shrinkage is a fight to the death.
Guiding change with increments — turning crisis into opportunity — is the true path: the series of Sino-American contradictions, the brutal competition in stock markets, economic conduct that undermines social benefit, and the mutual harm of shortsightedness all testify to this.
The key to the solution is to clarify the connotation of monetary value, bring state, family, people, and enterprise under a unified measure of value, and then coordinate all parties — not to derive relative increments through the division formula of value conservation, but to create absolute increments through its multiplication formula.
Why Is This a Foundational Core Science?
Disruptive Significance
- The value measure of the unified market runs through the economic, social, and personal value systems, achieving holistic, self-organizing coordination — overturning the old, fragmented model of value measurement.
- It overturns the old industrial relations of "work first, consume later," building happy and efficient relations of production in which one consumes while working — a transformation of the business-consumption model that multiplies wealth and wellbeing, opening up the potential for tripling GDP.
- It overturns the foundations of Western economics, the three golden laws of twentieth-century Western economics, and transforms the traditional financial hegemony into inclusive finance perceptible to the people.
- Let technology serve good and reject evil.
