Glossary

of the terminology used in

the books about the

Divine
Economy
Theory
a posteriori: reasoning from observed facts or events back to their
causes.
a priori: working from something that is already known or self-evident
to arrive at a conclusion.

Ablution: the act of washing before prayer.

Active entrepreneurship: a state of alertness where opportunities are

easily discerned to be acted upon.

ad hoc: done or set up solely in response to a specific situation or

problem, without considering wider or longer-term issues.

Arbiter: somebody who can settle a dispute or decide an issue.

Arbitrage: buying and selling to take advantage of discrepancies in the

price of a good.

Atheism: disbelief in the existence of God.

Austrian economics: the school of economic thought that uses

subjectivism as its methodology and which has theoretical and
methodological ties to its founder, Carl Menger.

Austrian school of thought: refers to the Mengerian line of economics

championed by Ludwig von Mises.

Authoritarian law: law imposed by authority, accepted because of the

domination by that authority.

Axiom: a statement or idea that people accept as self-evidently true.

Canonists: those religious authorities that lived in the High Middle Ages
and who expounded upon canon law.
Capital: the financial resources which are necessary for the production
of most current goods and all future goods. It is the use of accumulated
wealth for the purpose of earning profit or interest; an intricate, delicate
and interweaving structure of goods and resources that must be
combined further with other factors to provide consumers goods.

Catallactic: those actions which are conducted on the basis of monetary

calculations.

Catallactics: the analysis of those actions which are conducted on the

basis of monetary calculations.

Catalyst: somebody or something that makes a change happen or brings

about an event.

Causal-realistic: a focus on causal relations to explain realistic behavior

that occurs throughout the market process.

Classical liberalism: the idea that an unhampered market society is

optimal.

Coercive: using force or threats to make somebody do something

against his or her will.

Collyrium: eye cleanser.

Common law: laws set by precedence rather than by the principle of

justice.

Competitive entrepreneurship: the inherent alertness that fascinates

and motivates human action in the real world condition of scarcity of
time and means.

Conscientiously: doing something according to the persons sense of

right and wrong.

Constitutive: essential to the particular nature or character of

something.

Consumer demand theory of value: value and demand ultimately

come from the consumer.

Contemporary price theory: economic analysis based on the

assumption of equilibrium.

Covenant: a solemn agreement that is binding on all parties.

Covenant of God: the promise in all Scriptures that God would always
guide humankind.

Conveyancing: the branch of law practice consisting of examining

titles, giving opinions as to their validity, and drawing of deeds for the
conveyance of property from one person to another.

Customary laws: laws that appeared in society to facilitate social

cooperation.

Deductive: based on logic or reason.

Demand: the expression of wants using income from production.

Derived demand: demand for all factors of production is derived from

the demand for the final good.

Determinism: the doctrine or belief that everything, including every

human act, is caused by something and that there is no real free will.

Disequilibrium: the real economic condition that exists in the world

because of uncertainty and imperfect knowledge.

Dispensation: a religious epoch associated with a specific Manifestation

of God.

Disutility of labor: regarding the three qualities of the human reality

physical, intellectual, and spiritualhumans least prefer the strenuous
pathways; humans prefer ease over hardship.

Divine civilization: the potential appearance of the Kingdom of God on

Earth associated with the dispensation of each Manifestation of God.

Divine economy: the equilibrium force that is at the center of the divine
institutionthe economythat has been bestowed upon humankind by
God; the equilibrium forces of the economy that irresistibly operate
according to the laws and ordinances of the Manifestations of God; God
is the power behind the equilibrium force, which cannot be
comprehended by the limited understanding of human minds, therefore
all human intervention into the economy corrupts rather than improves
the economy.

Divine economy model: a subjectivist model that describes the

economy in the following terms: human spirit, transformation, law,
order, purposeful action, capital structure, market, property rights,
justice, and unity.

Divine economy theory: the theory that uses the subjectivist

methodology to explore how the human identity of being created in the
image of God helps us to understand how the economy works.

Divine microeconomy: the attraction to and conveyance of the names

and attributes of God by individuals.

Divine microeconomy model: a model that uses the subjectivist

methodology to trace value back to its source and then opens new vistas
for microeconomic exploration.

Divine spark: the irresistible tendency for humans to search for the truth
that manifests itself as competitive entrepreneurship; the alertness that
triggers transformation.

Divine revelation: the appearance of the Manifestation of God and the

accompanying Word of God.

Division of labor: since every human being is unique, as they pursue

their goals there is the potential that they will make a unique
contribution to production.

Dualism: a state in which something has two distinct parts or aspects,

which are often opposites; a philosophical theory based on the idea of
opposing concepts, especially the theory that human beings are made up
of two independent constituents, the body and the mind or soul.

Ecclesiastical: belonging to or involving the Christian Church or clergy.

Economics: the study of the means to attain the ends chosen.

Ego: the self that can use its free will to turn away from the Will of God.

Ego-driven: the delusion created by the lower nature of a human being

who haughtily refuses to acknowledge the things beyond his or her
comprehension.

Empirical: based on observation and experiment instead of theory.

Empiricism: the use of data rather than theory to explain things; the
application of observation and experiment, not theory, to ascribe
meaning.

Ends: what is sought, a goal or purpose.

Entrepreneur: the agent that is the driving force in the economy
because of the exercising of alertness and the bearing of uncertainty; the
one who is alert to the opportunities that exist in a dynamic economy
and who finds ways to respond to these opportunities.

Entrepreneurship: the station of being alert, of being a seeker.

Episcopal: involving or recognizing church government by bishops.

Epistemological: pertaining to the nature of knowledge, in particular its

foundations, scope, and validity.

Epistemology: the branch of philosophy that studies the nature of

knowledge, in particular its foundations, scope, and validity.

Equilibrium: the tendency towards balance and harmony; the potential

force in the economy that creates the tendency to align the will of all of
humanity with the Will of God.

Ethics: the study of moral standards and how they affect conduct.

Ethical economics: recognition that ethics and economics are

inseparable and that subjectivism is the proper scientific methodology
for further study.

Eudemonists: advocates of the early Greek ethical doctrine that

characterized the value of life in terms of happiness.

Ever-advancing civilization: humans, individually and as a whole,

always aspire towards and potentially achieve greater perfections.

Ex ante: before the event.

Ex post: after the fact.

Exchange: an act of mutual benefit where both sides agree to give
something and receive something.

Federalism: a political system in which several states or regions defer

some powers to a central government while retaining a certain measure
of self-government.

Fractional reserve banking: violating the contractual relationship by

lending more money than has been deposited.

Free enterprise: no artificial barriers, no deterrents facing any of the

participants in the economy.

Hampered economy: this is an economy where acts of intervention

interfere with the equilibrium forces.

Hermeneutics: the science and methodology of interpreting texts.

Homo agens: he or she who exercises human action.

Human civilization equilibrium: the balancing force of harmony and

symmetry and reciprocity underlying all things in the human sciences.

Human operating system: all of the inherent human faculties that serve
as the means to fulfill our human purpose, which ultimately is to know
and love God.

Human rights: God-given rights as defined by the Manifestations of

God.

Huququllah: the Right of God.

Iconoclastic: somebody who challenges or overturns traditional beliefs,

customs, and values.
Id: the part of the psyche that is unconscious and the source of primitive
instinctive impulses and drives.

Ignorant education: education that separates science and religion.

Indemnity: protection or insurance against possible loss, damage, or

liability.

Income: purchasing power that results from production.

Inflation: artificial expansion of the money supply.

Intervention: imposition of finite human acts of control onto an infinite

and divine system; acts imposed from outside the market process and
that prevent the free flow of accurate information; the substitution of
coercion for voluntary actions.

Israelitish: that which originated from the ancient kingdom of Israel.

Laissez-faire: an economic philosophy based on the insight that the

economy works best when there is no intervention.

Latent entrepreneurship: a state of potential unachieved due to

discernment dormancy.

Laxity: the condition or fact of being not strict or careful enough.

Legislation: the process of writing and passing laws.

Leisure: the desire to satisfy ones highest valued physical, intellectual,

or spiritual aspiration instead of working.

Logic: any system of reasoning and inference; the branch of philosophy

that deals with the theory of deductive and inductive arguments to
distinguish good from bad reasoning.

Loss: occurs when marginal costs are greater than marginal revenues.

Macro: the view that encompasses more than one individual.

Macroeconomics: the study of the economy from a perspective of

generality, as a starting point for deduction.

Macroeconomy: a term used to indicate that aggregate indicators in the

economy are being looked at.

Manifestations of God: the Messengers of God, the Prophets of God.

Marginal utility: for all human actions, the change in the utility or value
to an individual associated with an additional unit of a good or service.

Market: the place and process where information flows between and
among participants.

Market clearing price: the price where the quantity demanded of a

good will match what is supplied during that production cycle.

Market process: a natural and universal process that functions like a

language does to facilitate the making of exchanges; the matrix where
the divine economy operates.

Materialism: the philosophical theory that physical matter is the only

reality.

Means: something that is available and makes it possible for somebody

to do something.

Medieval: relating to, involving, belonging to, or typical of the Middle

Ages in Europe.
Meditation: concentration of the mind on one thing, in order to aid
mental or spiritual development, contemplation, or relaxation.

Metaphysics: the branch of philosophy concerned with the study of the

nature of being and beings, existence, time and space, and causality.

Methodological dualism: for humans, no bridge connects the external

world of physical, chemical, and physiological phenomena and the
internal world of thought, feeling, valuation and purposeful action.

Micro: the view from the perspective of an individual.

Microeconomics: the study of the economy immediately surrounding

individuals.

Mixed economy: the same as a hampered economy, an economy

burdened by interventionism.

Monopoly: long-run restricted access, protected by intervention, which

negatively affects production and prices.

Morality: conduct that is in accord with the laws of God.

Moral relativism: morality without a divine standard.

Natural law: each thing has its own particular set of properties or
attributes, its own nature, which distinguishes it from other kinds of
things.

Natural rights: rights that appear once property of any kind comes into
existence from a non-coercive exercising of human action.

NTA (Next Time Around): production for the next planned sales period
based on information and knowledge gained from the previous planned
sales period.

Objective: existing independently of the individual mind or perception.

Ontology: the most general branch of metaphysics, concerned with the

nature of being.

Opprobrium: scorn, contempt, or severe criticism.

Oxymoron: a phrase in which two words of contradictory meaning are

used together for special effect.

Panoply: an impressive and magnificent display or array of something.

Parochial: concerned only with narrow local concerns without any

regard for more general or wider issues.

Partisan: a bias caused by connection to a particular group.

Philanthropic: devoted to helping other people.

Philosophy: the branch of knowledge devoted to the systematic

examination of basic concepts such as truth, existence, reality, causality,
and freedom.

Philosophy of classical liberalism: the philosophical foundation

underlying Austrian economics which places great value on liberty and
justice.

PSP (Planned Sales Period): that period of time by the end of which the
firm expects to sell out of the quantity supplied to the market.

Polis: the city-state form of government.

Positive ethical theory: an irrefutable theory of ethics.

Positivists: the theory that knowledge can be acquired only through
direct observation and experimentation, and not through metaphysics or
theology.

Praxeology: general theory of human action; human action logic over

time.

Praxeology redefined: general theory of purposeful action by spiritual

beings.

Precipice: a high, vertical, or very steep rock face: or a very dangerous

situation.

Price: information conveyed during the market process about the

exchange value of a good.

Price elasticity: the degree of change in the quantity demanded if the

price changes.

Primordial: essential or basic to something.

Production: the creation of useful goods and services.

Production possibilities frontier: a macroeconomic tool using two

opposing aggregates to explain the limits of production.

Profit: the motivation that stimulates producers to increasingly meet the

needs of the consumer thereby serving as an agent of continuous
economic progress.

Profit margin: it is marginal revenue minus marginal costs.

Property rights: the ownership rights of individuals in their persons and

in their material possessions.
Purchasing power: a measure of the value of the medium of exchange
in terms of the goods that can be purchased per unit of money.

Reason: the ability to think logically, regarded as a basis for knowledge.

Reciprocity: a relationship involving mutual exchange; a relationship

between people involving the exchange of goods, services, favors, or
obligations.

Relative morality: once severed from the ethics brought by the

Manifestations of God a degenerate form of morality becomes normal.

Restitution: compensation for a loss, damage, or injury.

Risk: due to uncertainty and imperfect knowledge there is a possibility

of a loss.

Romanists: those religious authorities that lived in the High Middle

Ages and who expounded upon Roman law.

Savings: the portion of income set aside for future consumption.

Scarcity: available resources at any given moment are insufficient or

inadequate relative to wants.

Scholastics: the scholars of the Middle Ages that combined theology,

philosophy, logic and natural law.

Secession: the right to leave a jurisdictional arrangement in a contractual

society.

Shortage: this occurs when demand exceeds supply.

Speculating: it involves sophisticated guesswork about future changes

that are shrouded in uncertainty; it is alertness in a risk environment.

Standard of living: an aggregate reference point assessing the degree of

well-being and prosperity in relative terms.

Stoics: an ancient Greek school of philosophy that asserted that

happiness can only be achieved by accepting lifes ups and downs as the
products of unalterable destiny.

State: a state is a territorial monopolist of compulsion, an agency which

may engage in continual, institutionalized property rights violations and
the exploitation of private property owners through expropriation,
taxation and regulation. (Hoppe)

Subjective: each person has a unique perspective and therein lies its
value.

Subjective valuation: each person values things according to his or her

own unique system of valuation.

Subjectivism: the scientific approach that recognizes that humans act

subjectively, and this then leads to realistic and relevant scientific
discoveries; the scientific methodology that recognizes that humans
make decisions subjectively.

Subjectivist methodology: using the science of human action to identify

both laws and how they operate.

Subsidiarity: the principle that political power should be exercised by

the smallest or least central unit of government.

Supply: the outcome of production.

Surplus: this occurs when supply exceeds demand.

Surreptitiously: done in a concealed or underhand way to escape notice,
especially disapproval.

Symmetry: when things are balanced and proportional.

Talismanic: something believed to have magical properties.

Tautologies: these are propositions that are, in themselves, logically

true.

Taxation: coercive extraction of wealth by government.

Theology: the study of God and religion.

Thymology: the study of the human mind by human minds in human

terms. (Sunwall)

Time preference: the universal law of human action that states that
people prefer to have a good now rather than that same good sometime
in the future.

Tort law: in civil law, a wrongful act for which damages can be sought
by the injured party.

Totalitarianism: relating to or operating a centralized government

system in which a single party without opposition rules over political,
economic, social, and cultural life.

Unhampered economy: a synonym for a laissez-faire economy and a

free market economy. It is also the condition that exists in a divine
economy.

Usury: the lending of money with an interest charge for its use.

Value-free economics: the attempt to separate from economics the value

attributed to the ends.

Vantage point planes: the two dimensional surface, like a painters

canvas, seen from the perspective that is perpendicular to the plane.

Virtues: the names and attributes of God; the human essence that is the
origin of value, the source of wealth.

Vestiges: a trace or sign of something that is no longer present.

Volition: the act of exercising the human will.

Wealth transfer theory of government: the practice of governments,

out of ignorance of the destructiveness of interventionism, leading to the
creation of two classes: the politically connected and the politically
unconnected.

Wertfrei-neutral: value-free economics.

Western civilization: the emergence of a highly productive civilization,

due to the protection of capital and of property rights, that occurred prior
to the emergence of the State.

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