The Earth seen from Apollo 17.

Image via Wikipedia

Recently we have found that many things are depreciated, but it is possible that the reason can be a bad understanding of the value of the things. A lot of economists have tried to define and understand the value, but if we are suffering continuously the effect of bubbles in the economy, it could be possible that their theories do not provide a good explanation of it.

While Physics tries to provide general theories to simplify our understanding of the universe, economy understanding is getting more complex every day.

Instead of analyzing how to take advantage of the solar energy on the morning and go to sleep at night, imagine that we manufacture a shield to aisle Earth from the Sun, and we use some kind of device to get energy and light from the Sun that can illuminate any part of the Earth on demand, then there would not be a clear difference between night and day. Of course, we can think that the new lighting system is providing more value because of the functionality increase, but is the human body prepared to an eternal jet lag?

This example seems to be ridiculous, but this is analogue to the financial system for the commerce. Some economists could find that the device could provide more value because it would be possible maintain the same business hours all over the world, making easier the global commerce, although climate and life on the Earth surface would never be the same.

It is important to notice that the new economic value that we found depends on a simplification, because we are reducing the functionality of the device to one possible cyclic state.

Perhaps value is more related to a simpler life provider that other classic definitions, then, value and complexity would have a strong correlation. Can a simple financial system provide more value than a more complex one?

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