Financial Entropy

Entropy:
Definition: Entropy is the quantitative measure of disorder in a system. The concept comes out of thermodynamics, which deals with the transfer of heat energy within a system. Instead of talking about some form of "absolute entropy," physicists generally talk about the change in entropy that takes place in a specific thermodynamic process.
-physics.about.com

Thus goes the famous definition of a famous thermodynamic function. I tried to "extend" this concept to the financial world using the feeble knowledge of economics that i posses.

A completely "ordered" system in terms of economics, or the idealised system can be considered as one in which every individual has the same financial potential. Each earns the same, can spend the same, and can invest the same amount. All financial powers are identical.

A completely disordered system is one in which no individual has the same financial potential. They differ by atleast one financial unit.

So, is a scenario possible where every individual possesses equal financial potential, is a "perfect idealised system" possible?

Intuition says, "its not spontaneous, but its worth trying out". My point is, its not even worth striving for.

Imagine a world where the prime minister earns an equal income as you. So both of you will have the same meal everyday and will go through the same transport mechanism everyday. Sounds cool right?? But that only leads to huge security uncertainity. So ultimately, to protect the PM's life, money will be spent on security. This money is not actually "earned" by the PM but he somehow spends it. So, this implies that his "financial power" has increased out of nowhere.(the assumption here is that the govt funds form a sink-any amount of money can be deposited and any amount can be spent).

So ultimately, the ideal world only leads to destabilization. Say the cost of a vegetable is made higher. Since everyone has the same potential, no one will buy it and hence the vegetable's cost is automatically lowered causing considerable loss to those who tried to sell the vegetable and those who cultivated it successfully. Meanwhile, there will be a huge demand for vegetables with lower prices causing abrupt changes in the economy of such vegetables and corresponding changes in their production industries(which in the case here is agriculture). Similar problems arise everywhere.

Nature only tries to increase the entropy. So when you create an idealised system, it becomes unstable, as entropy is stored up. A small disturbance and the system breaks down to chaos.

So, will it be worth a try??I guess not. But what can be done is, drilling in a sense of satisfaction in everyone's mind. This might seem a "retrogative" idea. But what is the ultimate cause for all problems is, as Buddha put it, desire. So as long as there are people wishing for more, none will be sufficient.(the grass is always greener on the other side).In my view the Chinese govt has done a decent job towards achieving this state.

And i do propose, to create an open environment, where anyone can progress and where anyone will not have a problem if they stagnate in the same financial position. Such a system is "create-able" and as i view it is the most stable ideal system that can be brought about.(The US, though on track, is far from reaching this state).

Hoping I can do something towards creating such an environment in India and elsewhere.

cheers,