Economic experts like Robert J. Shiller profess an understanding of complex systems but continue to reduce the dynamic environment of our economy down to specific domains, in his case the global communication domain. But interactions among economic participants across multiple domains are inherently more behaviorally rich.
Chaotic systems discoverable in a multitude of naturally occurring dynamic environments are not easily condensed into trivial interactions in open feedback loops between participants in a single domain. We can't use the misinformed technique of club holding, bearskin clothed Economists (use that term loosely) that hold all else constant (including dynamically changing environmental domains) when presenting their dogma inspired view of a complex system like an economy.
Even in our contrived ultra-capitalist economy that is designed to suck income from all available sources into the bloated hands of an elite group of all controlling, all-powerful capitalists (Capital) a rudimentary dynamic system exists operating between domains. It is fundamentally wrong at all levels of logical discourse to therefore abstract from a single domain (communication) that crisscrosses many other complex systems of humanity an all-inclusive theory of how our economy operates.
Enough said, let's move onto the configuration space of what I've termed Rational Capitalism.
Firstly, I'll attempt to provide a primer on complex systems theory per my developments in the realm of system-of-systems by conveying unclassified information from DOD work I've engaged in over a few years. You're probably wondering what the heck all this has to do with Economics. That is not an unusual response because most people aren't aware that artificial intelligence based upon swarms, or neural networks are nothing more than attempts to recreate naturally occurring complex chaotic systems in highly advanced engineered systems used within domains like the military. But it just so happens that an unplanned (relatively, granted it is very contrived) capitalist economic system is also a complex system that adapts to its dynamic environment within certain societal constraints.
The problem with our current ultra-capitalist economy is that these societal constraints that are simply in place to enrich a few elites at the expense of the majority of global citizens. These societal constraints hamstring the ability of the economy to evolve within its dynamic environment - the result is that it reaches an unsustainable state that precipitates deterioration across all societal domains; all the result of this dysfunctional contrivance we called ultra-capitalism that is ultimately doomed to failure.
With all the power resting in the Capital domain (with businesses) and very little power available to the Labor domain (workers, and other non-business entities; excluding government) the configuration space of this economic system-of-systems is out of balance therefore 'self-optimizability' of this economic system-of-systems is never realized. Self-optimizability can only occur (in the case of an economy) within a balanced coordinated economic framework that allows both Labor and Capital to seek out their mutually beneficial desired states.
So in essence, an optimal configuration space that is not stilted towards 1…n sub-system domains at the expense of 1…n sub-system domains must be achieved at the framework level in order to allow the top level system-of-systems (in this case an Economy) to evolve within its dynamic environment. What naturally occur from such a well-conceived non-obtrusive, rule or procedure-based design are individual adaptive sub-systems (like Labor & Capital) that are able to develop their own unique structures and behaviors in response to their dynamic environment. Given this robustness of structure a Rational Capitalist economy would over time adapt, evolve, innovate, and even self-organize to high level forms (not comprehended at the time of inception) that could effectively operate in the unforeseeable unbounded open environment of any society.
Given that we cannot possibly anticipate all the possibilities our economic system may encounter it is imperative that we provide a configuration space (framework) that is unperturbed by the machinations of a few well-connected wealthy elites. We therefore must create sub-systems within our Rational Capitalist top level system-of-systems proper that are uninhibited from exhibiting behavior-rich states when confronted with the vagaries of our dynamic social and natural environment.
What is required of our social systems is basically open-ended discovery instead of dogma constrained guaranteed deterioration.
Therefore, within a Rational Capitalist based society (please read my other essays for more in-depth details) it is imperative that gradations in pay rates based upon skill be reasonable & sustainable, labor unions or labor cooperatives exert proportional power over their business counterparts, lobbyists are outlawed from influencing governments, and term limits be imposed for all government representatives.
These simple adjustments to our existing dysfunctional ultra-capitalist economy (obviously infused into our society) would provide the necessary configuration space or framework for a truly complex economic system able to adapt to the needs of the many instead of the greed of the few with the resulting benefit being that our global community would be propelled towards an incomprehensible shared prosperity.