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Abstract
Thermodynamics is the key to solving many economic problems. Since the human body is driven by heat engines, there is a loss of energy source. Measuring this loss means it is possible to indicate the size of a fair wage. Another version of the second principle justifies the amount of depreciation of real assets, such as machinery and equipment. A significant purpose of the article is to indicate that the category of capital cannot be understood without knowing the first and second principle of thermodynamics. The main aim is to present the theory of equitable remuneration developed using the second principle of thermodynamics and the discovered economic constant. Theoretical research leads to the creation of a model of capital and a model of fair pay with the understanding of the existence of an economic constant quantifying the action of natural forces on capital growth. Empirical research estimates the size of the constant and verifies the fairness of remuneration. The research reveals the existence of an economic constant necessary in capital theory, especially in the field of remuneration for work. Models for measuring human capital of employees and formulas enabling calculation of fair remuneration and its updating are presented. Additionally, using the entropic version of the second principle, the depreciation amounts of fixed assets are determined. The main conclusion of the presented research and the formulated theory is that thermodynamics is essential for the correct understanding of the category of capital defining as the abstract ability to perform work. Â
Highlights
Two basic physical principles and the main identity of accounting are at the basis of the considerations presented in this article
Formula (1), in which the constant p represents the natural loss of human capital defined by the second law of thermodynamics, is the basic model used to calculate the fair remuneration of employees with capital H(p)
The article presents the core of the equitable remuneration theory, showing the theoretical formulas and their verification
Summary
Two basic physical principles and the main identity of accounting are at the basis of the considerations presented in this article. Compensating the loss of capital in the form of remuneration prevents depreciation of the employee's human capital, and additional remuneration from profits makes it possible to improve living conditions. This is the essence of fair remuneration, and empirical studies confirm this opinion. The ideas presented are original in relation to the views on the connections between physics and economics known from numerous bibliographies Authors considering these issues do not take into account the principle of dualism, i.e., the basic identity of accounting theory, and treat capital, abstract in its nature, as material assets. Removing this misunderstanding leads to the direct use of thermodynamics for the development of capital theory, which is the content of the article
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