This document establishes the constitutional foundations of economic ontology and profit dynamics, highlighting its transformation conditions in systems.
This document establishes the constitutional status of economic categories within the Energy-Efficiency Theory (EET) framework. It answers the question: given the complete constitutional framework of collective structures and interpersonal moral norms established in Social Ontology v1.0 and Ethics v1.0, what economic categories must exist, what dynamics must govern their transformation, and under what conditions must economic systems fail? Economic Ontology is not empirical economics. It does not observe economic phenomena and induce "what economic patterns exist." It is the systematic unfolding of Social Ontology v1.0, Ethics v1.0, and Human Nature v2.0 into the resource domain. Every constitutional claim about economic categories made in this document is the direct application of constitutional principles already established in the EET constitutional framework. Part II (Constitutional Inheritance and the Constitutional Foundations of Profit) establishes the constitutional foundations of Economic Ontology—the positioning of Economic Ontology in the EET six-stage architecture (§ 1.1), the complete registration of inherited constitutional resources (§ 1.2), the formal constitutional definition of economic activity (D-ECO-2, § 1.2-bis), the constitutional substance of Profit as energy acquisition and expenditure (§ 1.3), the constitutional definition of natural causal templates and their irreversible attenuation (§ 1.3), the constitutional mechanism of surplus Profit generation through labor (§ 1.3), the constitutional definition of land as the spatial carrier of natural templates (§ 1.3), the constitutional dynamics of energy transition (§ 1.3), the constitutional economics of demographic structure (§ 1.3), the constitutional illusion of growth and the four overdraft mechanisms of pseudo-growth (§ 1.3), the virtual-actual transformation cycle as the complete economic circulation of Profit (§ 1.4), the economic constitutional container—the four pillars (P21–P24) systematically unfolded in the resource domain (§ 1.5), the intergenerational foresight system of causal arbitrage (§ 1.6), and the constitutional bridge between Profit and the fourteen moral qualities (§ 1.7). Part III (The Five-Dimensional Constitutional Morphology of Profit) establishes the irreducible coordinate system within which all economic categories can be uniquely located—temporal structure (§ 2.1), liquidity (§ 2.2), ownership (§ 2.3), certainty (§ 2.4), scale and composability (§ 2.5), the exhaustiveness of the five-dimensional coordinate system (§ 2.6), and the unified constitutional dynamics of cross-dimensional Profit operations (§ 2.7). Part IV (The Constitutional Derivation of Core Economic Categories) systematically derives all economic categories from the single root definition of Profit—the constitutional definitions of labor (D-ECO-3), human capital, land, exchange (comparative advantage), and the wealth-Profit distinction (Part IV-A); price as Encapsulated distributed MEER signals, money as the Encapsulate template of trust, and capital goods as locked Profit (Part IV-B); credit as the intertemporal allocation right of Profit, interest as the MEER ratio across the temporal dimension, securities as the liquidation of locked Profit, options and derivatives as the Encapsulation of uncertainty, and insurance as the conversion of η-decline risk into determinate cost (Part IV-C); enterprises as institutionalized Profit-generation constraint networks, banks as institutionalized intertemporal Profit-configuration constraint networks, markets as distributed Adjudicate mechanisms, monetary policy as P24 institutional tools in the Profit dimension, fiscal policy as P23 direct constitutional operation, economic rent as the degeneration of the ownership dimension, economic bubbles as systematic MEER overestimation, and the complete constitutional spectrum of economic governance (Part IV-D). Part V (The Constitutional Dynamics of Economic Systems) unfolds the Ben-Se equilibrium as the systematic governor of all economic dynamics—the constitutional basis of economic expectations (§ 4.0-bis), economic growth as the constitutional enhancement of causal arbitrage efficiency (§ 4.1), economic recession as the Ben-phase expression of the Ben-Se equilibrium (§ 4.2), credit cycles as the large-scale expression of the Ben-Se equilibrium in the temporal dimension (§ 4.3), virtual-actual imbalance as the disconnect between virtual and actual economies (§ 4.3-bis), innovation and creative destruction as the constitutional rhythm of Probe and Meltdown (§ 4.4), economic constitutional degeneration as the joint degeneration of the constitutional container and the virtual-actual transformation cycle (§ 4.5), and the constitutional conditions of economic repair (§ 4.6). Part VI (The Economic Constitutional Indicator System) establishes the constitutional metrics for assessing the health of an economic system—the constitutional foundation of economic indicators (§ 5.1), state indicators measuring the constitutional configuration of Profit at a given moment (§ 5.2), dynamic indicators measuring the rate and direction of change (§ 5.3), and constitutional degeneration indicators measuring the erosion of the Profit-generation base (§ 5.4). Part VII (Cross-Document Constitutional Bridges) provides the consolidated constitutional bridge declarations to Social Ontology v1.0, Ethics v1.0, and Human Nature v2.0, and reserves constitutional citation anchors for Politics and Civilizational Theory. Appendix C provides the constitutional adjudication of ninety-eight fundamental controversies in academic economics. Appendix D provides the constitutional analysis of the geographic dimension of economic activity. Keywords: Energy-Efficiency Theory, economic ontology, Profit, five-dimensional constitutional morphology, virtual-actual transformation, Ben-Se equilibrium, Inverse Entropy Constraint, natural causal templates, labor, land, money, price, credit, interest, constitutional container, economic constitutional dynamics, economic constitutional indicators, constitutional adjudication of economic controversies.
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Hongpu Yang (2026) studied this question.
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