Epilogue – ERS is not only UEM


    The ERM panel of the ERS offers still more insight


    The analysis of the societal development over a sufficiently long period of time, the recognition of the layered structure of the societal system, the establishment of the essential functions of every economic entity, and the choice not to let the description / the schematic representation of that system be based on ideology but on the structured inventory of all flows occurring in that system has led in the first instance to the drawing up of the universal enterprise model (UEM). The text on this website is its abbreviated presentation.

   The UEM is a universally valid micro-economic model by which all possible types and kinds of economic entities, that are usually distinguished in everyday speech, are reduced to variations of one single basic model. The UEM is the micro-economic panel of the economic reality system (ERS).

   The reflection on the development of societies has also led to the insight, that neither the individual strive for progress alone nor the solidarity in a group belonging to the same ‘house’, can claim the merit of the high level of prosperity and well-being that has been reached in nowadays highly technological societies. It is only by letting them function in a complementary way and in a dynamic balance that such a high level has been possible. At the same time however a large and still growing inequality has arisen within the societies, and it has become clear that the ecological substratum, on which everything is based, has been used in a ruthless way that started a lasting disruption.

  The discussion about the ecological destruction has not yet spent its fury on who is to blame for the fault and what steps are to be taken to turn the tide. That all economic players will have to contribute to the necessary efforts can clearly be read from the UEM, for each of the economic entities uses flows supplied by nature and burdens it with waste. The effort will have to be made in concert and in deliberation, for the societal system is one big clew, and passing the problem from one kind of knots to another category will solve nothing.

   The ecological deficit is thé problem to be solved with the highest priority, for when the socle collapses, it does not matter how good or beautiful the monument is that stands on it.

    The other problem of ever greater inequality has arisen from the fact that the equilibrium between the individual strive and the solidarity within the group has got out of control on account of the weak and short-sighted acting of the political men in power managing the different ‘houses’. They lost their power and control as a consequence of the ease, that (large) on profit focused economic entities held out to them, to collect the necessary means for the solidarity tasks.

   The political men in power should, in order to turn the tide, not keep staring solely at the progress expressed in money (profit), but must  start to concentrate on stopping the present-day derailing financial flows, and strive for a system in which the spreading of the flows of goods, services and money as equally as possible over all family-households should get priority, as it is made clear in the macro-economic panel (= ERM) of the economic reality system (ERS). 

   That panel, named ‘economic reality model’ (ERM), gives the general representation of the societal system on the level of the (national) covering ‘house’, based on the same flows as used in the UEM. In that set of schemes one can clearly see the danger that the derailing of the money layer, which sits as an orange peel around the physical economy, leads to a situation where the peel looses the fruit and both peel and fruit die off.

   A short version of the ERM-panel is not to be found on this website, because the extensive set of schemes makes it too large to put it on a website. My hope is that the UEM-part has awaked your interest for the perspective offered by this approach of the flows.