duminică, 1 noiembrie 2026

Formula of money

 Once a teacher was asked by an semi litterate rich guy:

If you are smart why aren't you rich ?

This formula responds to this question.

Money are proportional time worked (Tw), gain/payment (G) - irremdiable losses (L) which include death/diseases/ bankruptcy.

Money is invers proportionally with moral (M)

p = probability of gaining 

q =probability of losing

So the formula is:

$ = Tw*(G*p -L*q - M)

If  M < 0 we are criminal ground

If M = 0 we are in legal amoral ground. Like a pharmaceutical company hiking price of medicine 10x

If M > 0 we are in altruistic moral area: the wallet is returned to owner. 

Soldier or mercenary? Who wins the most.

Both have the same risk, mercenary has a bonus due to low morality, and usually have higher wages than soldiers.

A rebels hire mercenaries to fight against the government, the government hires soldier for a lower pay.

Why a young man should join the army ?

L is the same for both jobs.

M is greater for the soldier

G is greater for the mercenary 

p = 1 , lets consider that both sides pay their people in time.

q is depends of the quality of the army.

If the army is weak q is low for the mercenaries and high for the army. 

If the army is well organized, and numerous the q is low for it. A big army can have logistics jobs that are not front line and attract men that otherwise would go to the mercenaries. A greater fire power due to artilery, aviation reduces q. 

In fact the power of a government is not to pay high wages but to reduce probability of harm.

Next question: what is morality?