SADI CARNOT AND ECONOMIC ENGINES

This article identifies the fundamental unit of the economy: an econom ic engine. It explores the structure and workings of the economic engi ne. it derives the properties of economies based on the economic engin e. It illustrates the insights that can be obtained and policy leverag es that can be sought with the identification of the economic engines. Although nature's tax on activity is a commonplace understanding now, the fundamental economic identity is not. The organization of nations and economies of our times, the discussions at forums like the UNCED (Bisso, 1992), clearly indicate that the economic identity is not reco gnized. Since identity is the basic prerequisite for communication or action, we present our thesis on the economic engine as the fundamenta l unit of the economy.