Theory of Constraints Economics: Reality, Freedom and Progress

The only truth is reality.

Unfortunately, it is often the first thing to be forgotten.

“If I have seen further, it is by standing on the shoulders of Giants… Natura valde simplex est et sibi consona (Nature is exceedingly simple and harmonious with itself).” Isaac Newton


How is it possible that humanity keeps suffering from an extremely tragic case of amnesia and does not yet understand that the earth is not flat and that any sort of collectivism only leads to poverty by destroying human prosperity and progress?

The purpose of this book is to dare you to think clearly by concatenating cause and effect to draw logical conclusions using the Theory of Constraints. It is a first attempt to apply the Theory of Constraints as an independent verification of what the Spanish and Austrian schools have proposed. My reflection is that even though we know the value and power of the Theory of Constraints, the world in general does not know it and/or does not apply it. In my opinion, the best way for the Theory of Constraints to be understood for the powerful value that it can create is by showing it can logically and obviously understand the “complicated” macroeconomic environment where we live. Until then, I think that the Theory of Constraints will not be used by the majority of people and that means that we as humanity are losing valuable potential.

This is a first attempt to apply the Theory of Constraints to macroeconomics. The objective of using the Theory of Constraints in Economics is to promote consensus on understanding the problem and offering a direction for the solution, along with providing an answer to the questions: What to change?, What to change to?, and How to cause the change?

One of the key lessons from the Theory of Constraints is that improvements do not translate into real-world benefits unless they solve, overcome, diminish or bypass the core problem. In essence, the goal is to prove, beyond doubt, what the core problem or root cause of all obstacles to human prosperity and individual freedom is and how it can be overcome. The fascinating news is that, if we approach the matter with common sense, we will find inherent simplicity and the answer will become obvious. With unbound human action, the sky is not the limit for sustainable prosperity and progress.

Inherent simplicity means that the more complex a system is to describe, the simpler is to manage.

Equally important to understanding the root cause of all obstacles or core problem to human prosperity, is the introduction of the Theory of Constraints into the field of economics by using the thinking processes, the power of uniting logic systematically, so that more people will help in the effort to turn the field of economics into a hard science. It is also an opportunity for other so-called social “sciences” to become actual sciences by applying this scientific approach.

Additionally, I believe that if the Theory of Constraints and its Thinking Processes can tackle the understanding of the core problem to human progress and how it can be overcome, then the benefits of thinking clearly will become better known to all and we can inspire each individual to put a stop to all the nonsense that we see every day in every single organisation (whether private or state-owned) and every government (whether local or nationwide), and change it into common sense.

The ultimate constraint is the availability of time for human action.


The ultimate goal is to free human action by letting individuals keep the fruit of their honest work and let them create harmonious and sustainable growth: the sky is not the limit


“I concatenate cause and effect; therefore,
I think.
I act responsibly and retain the fruit of my work, therefore,
I am free”