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Asset and Poverty Levels

Under the hypothesis [HPO2] of the Social Field Theory, it follows directly from Bohr’s theory of the Hydrogen atom,

 

Energy of an individual in the society (En) = – Po/n

 

The left hand side of equation (4) is the total energy, a sum of kinetic energy and potential energy. The lowest energy state is Po (that correspond to ground level, n = 1, energy = 13.6 eV, electron-Volts, of Bohr’s theory). In economic analogy (see Table 1), it translates to the lowest level of asset, a sum of capital and capabilities of an individual. Po is a measure of extreme poverty in the absolute term and hence we call it Absolute Poverty on the same logic we define absolute temperature, the Kelvin scale in thermodynamics. The economic entropy[1] [1] of an individual shall be equal to zero at state corresponding to Po. A change in asset (DEn) is an indicator of economic growth. In this formula economic growth and poverty are positively correlated. As our universe’s expansion is accelerating[2] [2], so is probably the poverty field. The postulate [HP01] also backs up Townsend’s (1962) main thesis that both poverty and subsistence are relative concepts because the poverty field is also expanding due to the quasi-conservative nature of the social field.

 

In a book The End of Poverty [3] (2006)  Jeffrey Sachs [4] reflects on a goal to help less privileged people (from failed-states) reach the first rung on the “ladder of economic development”. If there is a ladder in economic development, so must there be one for poverty which should substantiate HP02: the poverty field is quantized.

[1] [5] The entropy of a perfect crystal, at absolute zero (zero kelvins), is exactly equal to zero – the third law of thermodynamics.

[2] [6] The Nobel Prize in Physics 2011:Saul Perlmutter, Brian P. Schmidt, Adam G. Riess