economics Collision

The class struggle isn't what drives the economy; it’s actually the laws of thermodynamics.

April 15, 2026

Original Paper

Land Rent and Technical Rent in a Dissipative Economy: New Foundations for the Labor Theory of Value

SSRN · 6469682

The Takeaway

Traditional economics is built on human behavior, politics, and power. This paper attempts to replace all of that with 'entropy.' By treating the economy as a 'dissipative thermodynamic structure,' it argues that innovation is just a way for humans to overcome energy constraints. Instead of fighting over 'surplus value,' we are just fighting against the natural tendency of systems to fall apart. This reframes every economic decision you make—from buying a car to starting a company—as a tiny battle against the physical laws of the universe. Economics is just physics with a price tag.

From the abstract

This article discusses the tension between ecological and political premises in the struggle for influence over the field of economic science. From an ecological-thermodynamic approach, we present a model that reformulates the Labor Theory of Value and solves the problem of price formation without resorting to exogenous variables, such as class struggle. Framing individuals as dissipative structures and the economy as a dissipative superstructure, we argue that the individual pursuit of greater