Tag Archives: electrochemistry

Markets are a kind of electrochemical cell

There are two processes taking place: adding and using up value from units. When everything is mixed together and these processes are happening in one place, they happen slowly (think of subsistence production by consumers). Separate them to their own containers and they happen faster (think production in factories and consumption in homes). The containers must be joined by a channel for units to move according to their value, and a wire for charges to balance that. The same value is removed from particles in one container as added to others in the other.

The extra energy pushing the charges and value laden particles between the containers can be used to run things like light bulbs and welfare systems. Alternatively it can be used to run a small heat to warm up the reaction, or an advertising industry.

While the charges can move around indefinitely, the particles eventually run out. Then it’s all over. With any luck/sensible policy the metaphor doesn’t continue this far.