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The Roots of Inflation: a Functionalist Approach

We would like to give access to a research work on currency and inflation that is ongoing at The Unicist Research Institute since 1990. This research is based on the unicist functionalist approach to economics. The objective of the research led to the conclusion that inflation is functional to different disequilibria of an economic system until it becomes chaotic, generating hyperinflation where the agents involved do not consider the functionality of the social system to ensure their own survival.

Based on this point of view of inflation, the present inflation of the world was generated by the disequilibria of the COVID-19 crisis that drove to the need of generating financial resources to compensate for the impossibility of generating value.

The end of the crisis establishes a new starting point for the economic systems that still needs to be assimilated. The war between Russia and Ukraine is another structural disequilibrium because it affected the world-economic system.

Inflation and deflation are equilibrators of the distribution of value in an economic system driven by structural disequilibria in macro- or microeconomics.  Inflation is multiplicated by the expectation of inflation that works as a catalyst to accelerate the speed of changes in prices.

The growth of the inflation rate ends when a new equilibrium is accepted in an economic system. It is recommended accessing the origins of the hyperinflation of Germany in 1923 and Hungary in 1945 which have totally different origins, one related to macroeconomic problems and one driven by structural microeconomic disequilibrium.

At the end, inflation is driven by the macroeconomics agents, but the origin is not necessarily there. For example, now the conflict between Russia and Ukraine is the origin of the inflation in Russia while the inflation of Argentina is generated by the structural disequilibrium of its productive system.

Structurally speaking, different economic systems generate different causes for inflation, which necessarily end in macroeconomic disequilibrium although they have multiple origins. Solving the structural origins of inflation allows rebalancing the economic systems and making inflation unnecessary.

We are now preparing an Open International Conference to expose and debate the functionalist approach to inflation. If you are interested in participating, please contact:  

Peter Belohlavek
The Unicist Research Institute

NOTE: The Unicist Research Institute has been, since 1976, the world-leading research organization that introduced the functionalist approach to science to manage the functionality of the real world.

Marx’s Dialectics is a Fallacy

Unfortunately, things do not need to be true to influence the environment. They just need to be believed. Marx’s dialectics is an example of how a hypothetical evolutionary approach is believed and changes the world without being true.

Modern dialectics began based on an idealistic and materialistic-voluntaristic approach to reality.

This dialectics provides an explanation of the evolution of human idealism and human materialism.

It is the way of natural dualistic thinking. It produces rationalistic conclusions of reality that sound incredibly simple and make the producer feel extremely powerful in the sense that with a “push” it is possible to change an existing reality.

Hegel’s Dialectics

Dialectics as defined by Hegel is contradictory with the concept of complex systems. Complex systems are integrated based on the conjunction “and”, and their evolution includes the complementation between the apparent opposites.

This dialectical thinking of Hegel, who considers the synthesis as a result of the opposition between a thesis and an antithesis, permits the construction of parallel realities based on the disintegration of the real world and the construction of a world where the limitless evolution of ideas drives towards an ideal. Hegel builds an apparent upgrading fallacy.

Marx’s Dialectics

Marx perceives the fallacy implicit in Hegel’s approach, but he cannot get rid of his dualistic approach to reality and his need to build a better future that only depends on the promotion of an adequate antithesis.

But his materialistic approach hindered him to accept an ethic of added value in the real world.

He built a dialectics based on the definition that thesis is given by an existent myth and the antithesis is a utopia that will change the myth creating a new environment.

This implied considering that the utopia is a response to the existing myth.

Marxist dialectics implicitly generated a paradoxical effect because it generated the need of materialistic absolute ideologies to sustain it.

The Unicist Approach to Evolution

The Unicist Logic builds a double dialectics that demonstrates that when there is a thesis, an antithesis is a natural step that drives evolution, but the thesis is sustained by a homeostasis that tries to hinder a change of the thesis by covering its implicit weaknesses.

The unicist double dialectics is based on the mental emulation of the ontogenetic intelligence of nature that allows a valid emulation of adaptive environments. Its application to human adaptive systems made the emulation of individual, institutional and social solutions possible. 

Peter Belohlavek
The Unicist Research Institute

NOTE: The Unicist Research Institute has been, since 1976, the world-leading research organization that introduced the functionalist approach to science to manage the functionality of the real world.

Understanding the Archetype of Russia

Russia is in the middle of a transition moving towards economic growth, which requires a new generation of people. Military occupation was a legit way of growing until the XIX Century. This installed colonialism worldwide.

In the meantime, after WWII, the end of colonialism began, and was replaced by the era of growth through economic development. “Military officers were “replaced” by businessmen/women and the Ministries of War were replaced by Ministries of Defense” (metaphor).

This required a higher level of individual freedom in the economic field and a judiciary system to avoid entropy. China, Japan, and South Korea are examples of this new stage. Russia is developing its own model based on its archetype.

The Functionalist Approach to Cultures

The functionalist approach to social evolution allows explaining the functionality of social behavior without value judgements of what is right or wrong. The functionalist approach explains causes and their consequences to make things happen.  

An archetype establishes the structural basic attitudes that define the unconscious collective intelligence of a culture. It establishes the gravitational force that drives the behavior of its members.

The fundamentals of archetypes define the basic values of a culture and establish the purposes of its lifestyles. The functionality of the archetype defines the potential energy of a culture, which establishes its influential power.

Understanding the culture of Russia implies accepting its intrinsic characteristics. The expansive power of Russia lies in its national pride, its intellectual force, and its functional hierarchic behavior. Until the end of the cold war Russia also represented “the” alternative lifestyle, which made it a world leader.

The end of the cold war diminished the influential power or Russia, which could not be accepted by its society, affected by the loss of its expansive role. The archetype of Russia has a totally different structure compared with the archetypes of the USA or China. It drives diverse ways of dealing with life. It is not better nor worse, just different, like any other archetype. People should accept and not judge the values of other cultures unless they are affected by them.

A Synthesis of the Russian Archetype

Since its origin, Russia has been an influential society that sought the wellbeing of its members using the solutions that were functional to each stage. Studying the history of Russia provides the necessary information to understand it.

In Russia, there coexist different operational archetypes that adopt multiple shapes according to the dominant “technologies” of the segments that drive their ideologies. But these differentiated archetypes cannot contradict the functional archetype of the culture.

An example of contradiction were some “States” of the Soviet Union that could never become integrated in the basic archetype of Russia, and remained different. When this is the case, a secession risk begins to exist.

The expansive archetype of Russia includes:

  1. The national pride, which is the driver of all the functional actions of the culture.
  2. The intellectual force, which drives all the cultural, sportive, and scientific activities.
  3. The functional hierarchy, which is a characteristic of Russian consensus building.

The survival archetype of Russia includes:

  1. The exertion of power to ensure survival.
  2. The influential force to make the power work to achieve goals.
  3. The formal hierarchy that protects leaders against dysfunctional participation.

The archetype of a culture defines the values that underlie the social, economic, and political scenarios. The values of the archetype adopt different shapes depending on the circumstances. They define the possible social evolution, the possible economic models, and the natural shape of political power.

  1. To understand the democracy in Russia you have to accept that the Russian culture has a strong influence of hierarchic rules.
  2. To understand the economy, you need to accept that Russia was never truly in the world of consumerism (which is the driver of the economy of most leading cultures).
  3. To understand scientific and technological development you need to learn that Russia fosters intellectual force in its society.
  4. To understand personal freedom, you need to understand the limits established by hierarchical behavior.

The archetype of Russia defines its essential functionality and establishes the possibilities for dealing with their people by respecting their nature. It has to be considered that there are compatibilities and incompatibilities between the values of cultures.

You can see the incompatibilities in the clash of cultures that exists worldwide. The knowledge of the archetypes of countries and cultures makes possible the building of bridges where they are needed.

To understand a culture, it is a question of having the necessary power to avoid needing to impose one’s rules, the empathy to understand others from their point of view, and the interest to find a common ground.

Peter Belohlavek
The Unicist Research Institute

NOTE: The Unicist Research Institute has been, since 1976, the world-leading research organization that introduced the functionalist approach to science to manage the functionality of the real world.

Managing Functionalist Principles

The functionalist principle defines that there is nothing in the universe, which is part of a system, that does not work with a purpose, an active and entropic function, and an energy conservation function. Their interaction defines the functionality of the binary actions that produce results.

Binary actions are two synchronized actions that, one the one hand, open possibilities establishing a functional context and, on the other hand, close processes to generate results.

The discovery of the functional structure of binary actions made the systematic design of synchronized binary actions possible, which simplified and ensured the results of processes of any kind.

This approach was originated on the discovery of the triadic structure of the intelligence that underlies nature that defines the principles of its functionality and led to the development of the unicist logic that manages the functionality of “things”. The unicist logic describes the functionality, dynamics and evolution of things and allows managing them.

Managing the Functionality of Things

This approach is based on the functionalist principle that defines the how and why of the functionality of things to define the binary actions that make things work. The functionalist principle gave birth to functional knowledge to manage the real world by integrating the know-how and the know-why of things.

The unicist ontology defines the unified field of things based on their functionalist principles. Their research requires using ontological reverse engineering and their use is based on conceptual engineering. The unicist functionalist principle uses the unicist logic to define the unified field of things and was developed by Peter Belohlavek at The Unicist Research Institute.

Predecessors of the unicist logic, the unicist ontology, the functionalist principle, and the binary actions to make things work can be found in the metaphysics of Aristotle and the TAO of Lao Tzu.

Core Differences with First Principles Thinking

(*) Defined by a Purpose, an Active Function, and an Energy Conservation Function.

The Functionalist Principle works driven by Binary Actions

The functionalist principle defines the integration of the purpose with the active function based on the supplementation law which implies that the active function is redundant with the purpose but aims at a superior level of evolution. This produced a binary action that expands possibilities.

On the other hand, the purpose is integrated with the energy conservation function based on complementation law, where the second binary actions complement the purpose to ensure the achievement of its objectives. 

The Functionality of Airplanes

The purpose of flying an airplane can be considered to move from one airport to another.

The active function is given by the propulsion and the energy conservation function is given by the lift provided by the wings.

The binary actions to make an airplane fly begin by producing the propulsion that generates the necessary speed of the airflow on the wings of the airplane to generate the lift.

Examples of Evident Universal Binary Actions

  • Learning + Teaching = Knowledge acquisition
  • Productivity + Quality = Production
  • Marketing + Selling = Generation of revenue
  • Root Causes + Triggering Causes = Solutions
  • Efficacy + Efficiency = Effectiveness
  • Empathy + Sympathy = Influence building
  • Participation + Power = Leadership
  • Processes + Objects = Organization
  • Desirability + Harmony = Aesthetics

We suggest that you recognize the functionality
of the binary actions you already use

Social Lab
The Unicist Research Institute

NOTE: The Unicist Research Institute has been, since 1976, the world-leading research organization that introduced the functionalist approach to science to manage the functionality of the real world.

The Functionality of Swimming

The practice of sports is one of the drivers of the sportive spirit of cultures. This sportive spirit of cultures enhances cultural identity and empowers their members. In this context, swimming is a very special sport, which allows people to move away from their comfort zone and enter a hostile environment. In this work, we will be providing the basics of swimming that can be transferred to the entrance to any hostile environment.

Swimming has been considered an essential part of all civilizations. From surviving in the water to the competitive sport, swimming follows basic principles in nature that need to be respected. This synthesis will expose the basic principles as the integration of two binary actions that define the nature of the process of swimming.

The Floating Principle  

The learning of swimming begins by the learning of floating. The Archimedes principle explains this behavior: “Any object, totally or partially immersed in a fluid or liquid, is buoyed up by a force equal to the weight of the fluid displaced by the object.”

When swimmers “push” the water downward they foster this principle. This can happen in a perpendicular position in the water, just by pushing with both extended arms in the water until reaching your body. The equilibrium of gravity and buoyancy make you float.

But it is important to note that we need a horizontal position to achieve an optimal swimming capacity, so for this purpose we change the center of flotation (near the lungs) by strengthening our arms in front of us, so our center of flotation descends (approaching our belly button).

Propulsion: Pushing backward to move forward

In order to swim we need to be able to move from one place to another. In this case, Newton’s laws of motion help us to understand the principles involved in the movement to be able to optimize the process of swimming.

The third law of Newton is the principle of action-reaction, which is named propulsion drag in swimming: pushing the water backwards makes you move forward.

On the other hand, the first law of Newton translated to swimming implies that a swimmer in motion will continue to be in motion unless the body be stopped by another force (frontal drag).

Finally, the second law states that the acceleration of an object is dependent upon two variables – the net force acting upon the object and the mass of the object. So, if we apply more force, the body will increase its acceleration.

So, the speed of a swim is a battle between the propulsion drag and the frontal drag. In order to move faster, we need to increase our propulsion and diminish our frontal drag.

Respecting stages

The awareness of these binary actions helps the guiding of the learning process to optimize results. In the learning of swimming, the first stage is to be able to float. Floating is the active and entropic function since the person is learning to adapt to a new environment. Flotation opens the possibilities for surviving. Once this stage has been achieved, the learning of “moving forward” in the water can be accomplished. Propulsion, in this case, allows arriving to a safe place.

Essentially, the learning of the swimming technique will help to optimize the process of propulsion, with the use of arms and legs through paddling and kicking, moving forward by pushing the water backwards.

Professional swimmers, on the other hand, aim at increasing their propulsion, propulsive drag, and diminishing their frontal drag, optimizing their stroke to increase their speed in the water. The awareness of the integration of these binary actions structurally defines the possibilities of improvement.

Diana Belohlavek

50-year Plan: The Political Marketing of New Candidates

The introduction of 50-year development plans requires the participation of politicians who are willing to support a long-term plan while they are part of the evolution.

Democracy is defined as a social system (not only political), where the purpose is to work with consensus in an efficient system, which is able to make the necessary trade-offs to maintain consensus and efficiency to govern a community.

It is driven by a legislative power, put into action by an executive power, and equilibrated by a judicial power. The integrated functionality of the three powers is the core of democratic organization. This applies to any type of political organization in democratic cultures. 

The Evolution of Democracy

The evolution of democratic cultures is based on their capacity to evolve in the environment according to the needs to be installed in the world in an adaptive way. The word that is used to define this role is “sustainable globalization”, where the final purpose is sustaining the national interests of a culture.

The introduction of new leaders is what makes democracy dynamic. The introduction of new political leaders happens in a natural way when a culture is in evolution.

Cultures that are in transition tend to “expect” leaders who assume the role of “messiahs” to end with the transition and install a new stage. Cultures are in transition until they have established a dynamic functional cultural archetype that ensures their evolution in the environment. Cultures in transition might have “timeless” governments to avoid entering chaos.

Political Campaigns for Individual Candidates

Newcomers in the political arena provide the next stage in political evolution. They provide the new visions of the world when they are driven by a greater good. Their entrance in politics is driven by the greater good they propose. Their entrance is successful if their preceding reputation makes the worthful.

This reputation establishes the influence on specific segments where they are perceived as a first-choice candidate. Their success fully depends on their capacity to propose a greater good that fits into the latent needs of the society based on the reputation they gained in this field.

They need to earn their place in the political system of their community to be able to influence it. When this has been achieved, their positioning as first choice and their political influence enables gaining voters that allow them to achieve a position in the political system.

Peter Belohlavek

NOTE: The Unicist Research Institute (TURI) is a world leader in its segment. Since 1976, it has been specialized in complexity sciences applied to the research on the roots of evolution and its application to social, institutional, business and individual evolution.

The Unicist Evolutionary Approach is the Antidote to Facileness in Leadership

Facileness degrades, marginalizes and kills social evolution. As is has been researched, facileness is the root cause that underlies involving environments and business failures. It oversimplifies reality by transferring risks and costs to others and avoiding conflicts. This makes the solution of the root causes of problems unnecessary and degrades the value propositions, the reliability and the brand attributes of any culture or business.

The Unicist Evolutionary Approach

While facileness generates involution through short-term maximization, the unicist evolutionary approach drives and catalyzes evolution. 

The unicist evolutionary approach avoids facileness by designing processes as a unified field, using value adding strategies, building objects to ensure results and developing pilot tests to confirm their functionality and learn from the environment.

The concepts and fundamentals that underlie social and business functions are the root-drivers of their functionality. The eventual dysfunctionality of the fundamentals is the root-cause of the problems of these functions.

This is an approach that catalyzes the adaptability of cultures and business, their speed of growth in an environment of customer orientation and sustainability. It is the necessary microeconomic approach in the 4th Industrial Revolution.

Unicist Press Committee

NOTE: The Unicist Research Institute has been, since 1976, the pioneer in complexity science research where the Unicist Evolutionary Approach was developed. 

Social Catalysts, the Accelerators of Social Evolution

All developed, developing and emergent cultures use social objects to foster their evolution. Social objects are “encapsulated” entities that regulate the functionality of cultures. Laws, regulations, and social, economic and political systems, including institutions, and organizations of any kind, are examples of social objects.

Objects in Adaptive Environments

The social functions are regulated by driving, inhibiting and entropy inhibiting objects. The catalysts are part of the restricted context of the process that is being catalyzed, while the gravitational objects are part of the wide context. These catalysts need to be redundant with the gravitational objects that sustain the basic framework of the functions involved.

In developed cultures, legality and legitimacy tend to be overlapped. These cultures use driving, inhibiting, entropy inhibiting, catalyzing and gravitational objects that establish the framework and administrate the operational rules of the environment. See “Microeconomics driven Development”

The gravitational objects, like the constitution of a country, establish the basic framework of a culture considered as a system. The catalyzing objects establish the acceleration that ensures the synchronicity of actions for the evolution of any adaptive system.

The drivers, inhibitors and entropy inhibitors establish the operational rules that have to be followed to be part of the system.

Unicist Press Committee

NOTE: The Unicist Research Institute has been, since 1976, the pioneer in complexity science research where the Unicist Evolutionary Approach was developed.