How we deal with the world begins with our understanding of reality. Metaphysics comprises the study of that reality.

a division of philosophy that is concerned with the fundamental nature of reality and being and that includes ontology, cosmology, and often epistemology.

The creator of The Free Market Center espouses the following metaphysical systems principles.

For more information see Wikipedia: Metaphysics

Ecological Systems

The universe is composed of systems, and each system is folded into a larger system. Thus, systems are ecological, and the dynamics of whole systems is the key to understanding parts of those systems.

In the new paradigm thinking the universe is a system composed of systems. Everything that we observe in our world is either a system, or a part of a larger system. This is one of the overriding attributes of the universe. Every system is, in fact, folded into a larger system, which creates an ecological relationship between all the systems in the universe. What we see are simply patterns in an inseparable mesh of relationships in the whole universe. Ultimately, there are no separate parts; everything is connected. All systems are interrelated and support each other.

Physical Reality

Physical reality exhibits four elementary characteristics: 1) Discreteness – matter is fundamentally discrete – not continuous; 2) Constancy – the fundamental properties of objects tend to be permanent and immutable; 3) Indistinquishability – fundamental objects tend to be indistinguishable from one another; 4) Transformation – fundamental change tends to be discontinuous and partly unpredictable.


The fundamental discreteness of physical reality has been said to be one of the (if not the) most important discoveries of the twentieth century. The ramifications of this discovery are not yet fully understood. Yet, in spite of this discovery we still live for the most part under the influence of the classical world.


Carbon dioxide (CO2) is a common and relatively benign gas – we exhale it from our bodies. To remove one of the oxygen atoms would not change carbon dioxide. It would make a whole new structure – carbon monoxide (CO), which is a lethal gas.


Our world is composed of vast numbers of different compounds. The molecules within each type of compound are, however, identical. Those molecules, in turn, are composed of combinations of different elements. The atoms of one element, again, are indistinguishable. And, each atom contains one or more protons, which are all identical. We find fewer distinctions as we examine more fundamental particles. A similar progression is true of organizations.


In the quantum world the addition or subtraction of protons, neutrons, and electrons are changes of a fundamental nature, and they occur in a discontinuous fashion. They do not progress continuously from one state to another. These changes cause complete transformations of the elements for which the change occurs. For example, the addition of one each proton, neutron, and electron transforms hydrogen to helium. This transformation happens discretely; there is no progressive stage between hydrogen and helium.

Universal Abundance

There is an abundance of resources available to sub-systems of the universe in which there is no known limit of matter and energy.

Modern science has shown us that, if there is a limit to resources, man cannot fathom that limit. We indeed live in a world of abundance. In the development of his general theory of relativity Albert Einstein postulated that the aggregate total of matter and energy in the universe was neither created nor destroyed. The essence of Einstein's oft quoted formula E = MC2 is that matter and energy are interchangeable. There is no known limit to energy in the universe; thus, our resources are theoretically limitless. Matter, which we have found to consist almost entirely of space, is simply the manifestation of energy and information, and reordering energy and information creates new resources. (Information is defined by the lack of randomness in a system.) The concept, although simple to understand, flies in the face of previous logic and has far-reaching ramifications, some yet unknown, for science and society.

This principle seems like a contradiction of the classical economic concept of limited resources. It does contradict the concept that total resources have a limit. It does not, however, contradict the limit of resource to the individual in time and space. This paradox opens the door for the function of the entrepreneur, one of the most important players in economic theory.


Order Generating Processes

1. Systemic structure is the manifestation of a system’s underlying processes.

2. Comprehension of the systemic structure is the key to understanding the behavior of the system.

3. Time-bound systems exhibit hierarchic order-generating processes.

We have come to understand the dynamic nature of the universe. We, therefore, know that the systems of which the universe is composed are also dynamic.

Processes are the representation of the dynamic nature of a system. A process is a series of actions or operations within a system which have the end result of action by the system. Hence, it can be said that systems thinking is also process thinking.

Structure is the representation of the patterns of organization a system. It defines the interrelations of the web, or network of elements of a system. However, structure is in reality the manifestation (i.e. bringing into sight or understanding) of the underlying processes of the system. Generally when we describe a system, it is the structure of the system which we describe and not the process.

Action by the system, which is the result of its dynamics (i.e. processes), is its behavior. The behavior by any individual or group is simply the result of the processes within that individual or group. We tend to think of what is produced by a system as a result of its processes. In fact, behavior is the result of process, and what is produced is the result of the behavior of the system.

Complex Adaptive Systems

Complex systems have a tendency to be self-referencing, self-organizing, and adaptive. Living systems display high degrees of complexity.

Complex systems display the apparently paradoxical traits of diversity and unity simultaneously. They exist in a delicate balance between order and chaos - on the edge of chaos, and disequilibrium is their natural state.

It is now realized that complex systems have self-referencing and self-organizing dynamics which dominate changes in the system. To be self-referencing and self-organizing means that they have the ability to receive feedback from their own behavior and organize their own responses.

Self-referencing, self-organizing systems are structures that seem to be capable of maintaining their identity while changing form. They are able to create structures which fit the moment as the environment changes. They have the ability to constantly adapt to the influences of the feedback from their external environment. Such systems are now frequently referred to as "complex adaptive systems."