Drawing upon nearly three decades of money management insight and experience as a corporate investment advisor, Cunnane developed The Physics to Economics Model (PEM), a practical, usable theory on the mechanics of economics. This ground-breaking work applies the same fundamental reasoning inherent in the laws of physics to unveil how our economy actually operates, and demonstrates how a physics-based approach to the U.S. economy could significantly increase American wealth.
The Physics to Economics Model (PEM)
What is economics? Ask anyone and unless they are academic they will likely struggle for an answer. Even those who are professionals in the field, including academics, still cannot quite provide a clear, useable definition which conforms to observation, science and is universally true. If the definition of economics was reasonably useful it would be able to crosscut through capitalism, communism, or any ideology and be relative to the fundamental concepts for most observations.
‘The current, accepted academic definition of economics as a “a social science relating to the production, consumption, and distribution of goods and services,” is impractical when applied to problem solving.’
Cunnane has never believed in, accepted, or found useful from a practical perspective, the traditional, social science-based economic theories that have repeatedly failed to produce wealth. In fact, he believes that the very social science policies which were supposedly implemented to improve the quality of life for Americans have not only made the nation less wealthy, but are destroying it.
As Cunnane discusses in The Physics to Economics Model (PEM), anyone whose job it is to advise American businesses can clearly see that the rate of business failure in recent years is too high and corporate departures to lower-taxation countries are too numerous. Yet, historically, America was by far the wealthiest nation up until the 1970s. For years, wealth increased as the markets, debt, the cost of capital, and trade historically performed well. However, the American economy abruptly became weaker and weaker.
The Physics to Economic Model (PEM) takes an introspective look at the U.S. economy over the past 50+ years, providing insight and answers to how economic policy has historically operated vs. how it should operate to create and increase real wealth. Cunnane makes a compelling argument for why economics, as a discipline, must follow the rules of natural science, based on the premise that it’s of the natural world. As such, economic policy should follow the reasoning of mathematics and physics, not social science, because the economy is subject to those rules and laws; time, distance, gravity, mass and the interrelationship with energy.
In The Physics to Economics Model (PEM), Cunnane illustrates how the study of economics becomes more logical, rational, and easier to understand within the reasoning process of physics and how this approach can lead to a sustained increase in wealth over time.