THE THIRD STEP

We need to develop and deploy the Scientific Outlook Free-Lunch Economic System.^[38]

All religions，arts and sciences are branches of the same tree.

—Albert Einstein

As Einstein pointed out，all religions，arts and sciences come from the same tree of knowledge. Clearly we can unify the scientific method of science with Scientific Outlook of Humanities. We will bridge the gap of the Snow’s “two cultures” by deploying the simple Popper-Deutsch scientific method/outlook which is based on conjecture and falsifications. I believe strongly that we must have one culture for accumulating unlimited knowledge and it must be based on “scientific outlook” art perspective.

Summary of the scientific method and creation and distribution of unlimited knowledge：

Model/conjecture＜=＞scientific verification-falsification＜=＞unlimited knowledge＜=＞unlimited objects of desire. See below the formula for wealth creation and distribution.

From unlimited knowledge we can create and distribute unlimited Wealth-Happiness-Power-Justice. In the nears and far future，with our 3D printers on our desks and in our garages，we can gradually and surely just print any object of desire we wish for such as food，drink，shoes，car，personal airplane，artificial hip，knee，kidney，lung，liver and heart，ultimately our artificial unique brains to allow us to live for thousands of years，and even a personal KQID time-starship to travel across our galaxy and beyond. There is no shortage of anything except due to our own imagination，desire and will. The inputs of these 3D printers are just common varieties of atoms in the air and in the sands everywhere in our universe. What shortages？ We have about 10^80 atoms in our universe. Moreover，this technology is green-tech that means environmentally friendly because everything we used are made of the same atoms which are potentially recyclable into new objects of desire. No shortages for all plus “being green”，what is wrong with this new idea？

Wealth creation and distribution of objects of desire：

Wealth creation and distribution of objects of desire＜=＞f（well-balanced desires）＜=＞f（dreams and aspirations）＜=＞f（unlimited imagination，creativity，innovation）＜=＞f（Popper-Deutsch’s conjectures falsifications）＜=＞f（unlimited knowledge-productivity）＜=＞f（unlimited objects of desire） where f is function of.

Dao/Existence exists as the by product of a regulated by KQID Ouroboros Equations of Dao/Existence^[39]but free and open market operation. Dao/Existence is made of atoms and atoms are made of protons and electrons. A proton is by product of exchange of quarks，gluons and photons，whereas electron exists directly as the result of exchange of photons. In other words，our Multiverse，universe and us are the by product of exchanges of information in a regulated but free and open market system.

Similarly，Wealth is the by product of exchange of objects desire which in turns the by product of the collective society’s productivities which in turns are the by product of mankind’s science and knowledge commonwealth. As Laozi pointed out in Daodejing verse 36 that if one wants to take one must give first. Therefore One must Giving first by creating and distributing objects of desires and then Taking later. One exchanges and distributes one’s objects of desire of wealth-happiness-power-justice for another’s wealth-happiness-power-justice. This way everyone can abundantly accumulate objects of wealth-happiness-power-justice for oneself and for others. In short，first we have a regulated but free and open exchanges then everything emerges naturally.

How to create and distribute Happiness：

Happiness＜=＞f（pursuing one’s dreams and aspirations）＜=＞f（rich experiences，rich memories and rich options） where f is function of.

We accumulate Happiness by Giving first Taking later that creates meaning to one’s life. For example，by planting a seed of a fruit tree first one shall enjoy the taking of the fruits from that mature fruit tree later. This is consistent with a recent studie that a meaningful life and happy life overlap in certain ways，but are ultimately very different. Leading a happy life，the psychologists found，is associated with being a “taker” while leading a meaningful life corresponds with being a “giver.”^[40]

There similarity between happiness and wealth，in which if one is aiming one’s activities in pursuit of happiness one will become unhappy. If one seeks wealthmerely for the sake of wealth，one will not be rich. Happiness is the product of accomplishment. Wealth is the product of productivity. One is productive and happy if one is doing what one is enjoying to do. To be rich one must MAKE objects of desire that one dreams and aspires to have，do，challenge，know，build，and make，and then one EXCHANGES them with others for other objects of desire that one does not have. This way，we create and distribute wealth to one another by exchanging back and forth objects of desire. As a result，everyone is becoming richer and happier because of these voluntary exchanges in a regulated but free and open market system as one of the Five Mandates of Heaven.

Therefore the principle of Giving first Taking later is one affair，one action and one Wang Yangming transaction that produce both wealth and happiness to oneself and to others. Giving is the beginning of taking by oneself and taking is the beginning of giving by others.

On meritocracy，Xuan Yuan according to the Four Canons manuscripts had long prescribed that any position，title and promotion must be based on a fair merit based system. The Four Canons says：“The constant way of using one’s subordinates is to fit their duties to their capabilities，never to assign them anything beyond their strengths.^[41]Similarly，Duke of Zhou said never employ” artful-tongued men “but commission good officers，and get them to use all their powers in aiding the government of our country.”^[42]In agreement，Kongfuzi famously taught that a superior man or a leader is made，not born，through self-cultivation and self-education.^[43]Similarly，Lord Shang Yang further stated in his famous book：“In neither high nor low offices should there be an automatic hereditary succession to the office，rank，lands or emoluments of officials.”^[44]To achieve Xuan Yuan’s lifelong mission from and to each according to his or her dreams and aspirations，we must have a super productive system based on meritocracy to create and distribute objects of desire.

The problem is how can we measure the merit of each person？ From his past performances，examination results，recommendations from respected persons，elections and so on. How can we make the system trust worthy？ How can we measure the productivity of any person and any system at any time and any circumstances？ Fortunately，in modern time，we can do so scientifically. Using the Shannon’s entropy formula，we can measure any productivity of any system or organization. I submit that by using this simple formula we can apply meritocratic system more effectively than in the past when we did not have an appropriate tool that could precisely measure a performance. However，now we can measure each part or each person’s merit in the system as long as we can gather the correct microstates information of each variable part. This way we can reward the right person for the right reason for specific performances according to milestones previously agreed upon. I use the Shannon’s entropy formula and restate it as the Fourth Law （Meritocratic Mandate） of Multiverse：alfaα=1/（1+H^2） where α is coefficient rate of productivity of any anti-entropic system；and H is Shannon’s entropy. We can calculate the anti-entropic bits content of anything，organization，government and state and living system. Applying this formula correctly of course depends upon the accuracy of its inputs into the formula，we can measure any system of its “anti-entropic content”. Any system is efficient only if all its substructures and substrates are based on merit：to minimize waste and maximize efficiency and productivity. Furthermore，as the foundation of this economic system，the Scientific Outlook Rule of Law and Principle must be based on meritocracy because everyone is equal under the law and the law treats everyone equally based on his/her merit before the law. Meritocracy is assumed，to be embedded all the way from bottom-up and from top-down. For example，in an economic theory，we have Cobb Douglas Production Function between the output （Y） and the input Labor （L），input Capital （C）. In my theory we can simply put it simply Y={1/（1+H^2）}*（C+L）.Thus，using this formula we can measure the productivity of each person（L） and each capital input of any system.

However，we must know the purpose of this meritocratic，efficient，and productive system. Naturally，we must adopt Xuan Yuan’s lifelong goal as the mission of the system：

From each to each according to his/her dreams and aspirations.

I propose that any meritocratic system that assists and realizes the dreams and aspirations of each citizen within the framework of the Scientific Outlook Rule of Law and Principle. When each is realizing his/her dreams and aspiration we will achieve Da Tong or the Great Harmonious Unity. I quote：

When the Great Dao prevails，the world is like a Commonwealth State shared by all. Virtuous，worthy，wise and capable people are chosen as leaders. Honesty and trust are promoted，and good neighborliness cultivated....adults are employed in jobs that make full use of their abilities....Every man and woman has an appropriate role to play in society and in the family. They hate to see resources lying idle or cast away，yet they do not necessarily keep them for themselves. They hate not to make use of their abilities，yet they do not necessarily work for their own self-interest.^[45]

Summary of The Xuan Yuan Operating System 2.0：

From Dao comes love that directly produces and reproduces Giving first Taking later as the Golden Rule principle that actually and literally creates and distributes bit by bit our Multiverse itself and us in it，because information is everything or bit is it，and everything is information or it is bit. Furthermore from this Giving first Taking later principle naturally gives birth to the Five Heavenly Mandates：Humanity，Justice，Yang Zhu’s Six Freedoms，the unity of Rights and Duties，a regulated but free and open Market System.

Everything is information.^[46]Information is everything and information is physical：“bit is it and it is bit”. Consequently，everything is programmable. Information computes itself and is bootstrapping itself into existence. Information encoded in human DNA is an example how information computes itself and generates existence by programming our universe，to boot itself into a living human being in our world. Thus，those who just say this is not so and so，and this has never been done before are plain wrong. Just look around，the evidences are everywhere and overwhelming. You and I are the proof of how information is bootstrapping itself into existence. No need to have endless debates whether or not we actually exist. Existence exists. We are aware of our existence. Awareness and consciousness exist. Period！ KQID theory prescribes that Information dreams and aspire itself to stand，touch，smell，walk，listen，talk，sing，dance，think and even ask itself these questions：“who and what am I？ Why am I here？ What are the Multiverse，God（s） and Erosverse？” Thus，I believe that every citizen is in fact a Tianming Ren endowed with the 5 Mandates of Heaven，a learned citizen of the universe，has cultivated himself and is trained in applying “as-one-wishes” 9 steps along with the 5 laws of the Doctrine of Creation and Distribution of Everything. He/She can literally and is doing so every second “hacking” the universe. He is the ruler of his Erosverse and Xuan Yuan of his world，he programs his world to benefit himself，family，friends，community，nature and mankind to create and distribute objects of desire more fairly to all within the framework of the Anti-Entropic Operating System of the Scientific Outlook on Chinese Rule of Law and Principle. This operating system 2.0 acts as the amplifier that accepts，magnifies，and prioritizes it ahead of other programs queuing to be executed and the filter that rejects，modifies，or delays the requesting program to be executed in the system to optimize the anti-entropic activities that will benefit the whole system that abundantly Creates，Distributes，Recreates，and Redistributes objects of desire like wealth-love and power-justice in our world more fairly to all.

As Tianming Ren，we embody these Five Heavenly Mandates. We have the mandate from Xuan Yuan himself，hence we have His power and blessing to change our world for the better than the one we will leave behind. We improve and shape it to our own image. We bring peace，law and order in this world and beyond. We create and distribute wealth-happiness and power-justice everywhere. We must establish humanity，justice，prosperity，peace，law and order-hereby we use incentives，rewards，motivations and persuasions，and we shall never use force or violence. Naturally，in China we are working closely under the leadership of CPC and government，and we must deploy Xuan Yuan’s 9 quantum steps obeying the Five Heavenly Mandates to establish the strong individual，strong business/charity organizations，strong Party and strong government. Thereby，we together shall establish the Scientific Outlook Rule of Law and Principle，and based on these Laws and Principles as rock solid foundation，we shall build the Scientific Outlook Free-Lunch Economic System that has the mission to realize Xuan Yuan’s Da Tong or Chinese Socialism，a prosperous world in which each shall have free education，free health care and free material wealth，and in which from each to each according to his/her dreams and aspirations.

As Tianming Ren，we practice the art of making the impossible happen here and now on earth and to do this，we MAKE our own rule and principle based on the framework of the Scientific Outlook on the Rule of Law and Principle as the sovereign of his/her Erosverse. We are Erosverses that encompass all relationships between our core-selves to self and others including our Multiverse. A Tianming Ren is actually the powerful Ruyi Ren “as-one-wish-person”. He/she creates and distributes heaven and hell here and now on earth. He/she is immortal in the sense that all information uniquely created and distributed during his/her life time will be preserved forever. Briefly，Heaven and Hell here and now on earth are also preserved forever. In pursuit of his/her happiness，Tianming Ren must practice three simple wisdoms：1.Believe in yourself and you must have self-confident that through your sheer determination，your dreams and aspirations can be achieved，because if you are able to imagine those wonderful dreams，you can achieve them；2.In other words，dare to think big，dream big and play big game，determine to succeed，then execute，execute，execute until it is achieved and start all over again；3.Let things as they are and be content with yours，and whatever not yours are not yours and belongs to our universe.

Let us take the opportunity on Qingming April 4，4710 X.Y （2013） to pay our homage to our Remarkable Ancestor Xuan Yuan.

Our Remarkable Ancestor Xuan Yuan，

You founded everlasting Chinese people-first culture-state，

You laid down firmly the Scientific Outlook Rule of Law and Principle，

You decreed the sacred warrant Mandate of Heaven to arrest or kill bandits，

You gave us mission in life to realize Da Tong here and now and from each to each according to his/her dreams and aspirations.

We are grateful to You and to all our Ancestors，our parent，ourselves，teachers，classmates，our schools，friends，CPC，government，community，mankind and Multiverse for whatever we are blessed everyday，

Let us celebrate our birthdays everyday，

Let us have wonderful lives for ourselves and for others，

Let us embrace “His brave spirit pass down”^[47]empowering us to make our world a better one than the one we will leave behind.

To conclude，I wrote a poem. This poem embodies my main idea of an anti-entropic operating system 2.0 of the Scientific Outlook Chinese Rule of Law and Principle and Scientific Outlook Free-Lunch Economic System that came from our Ancestor Xuan Yuan himself.

I，Xuan Yuan

I，Xuan Yuan，command you to follow me！

My dear children，

Having done my mandate on Earth，

I rose up to Heaven and ascended to my golden throne at star Xuan Yuan in the Beidou Constellation.

Facing south，under the watchful eyes of my lucky Star Su，

I held lovingly in my “sincere” heart Kongfuzi’s compassion rule to establish others first what I seek on myself as my virtuous life principle；I upheld reciprocal justice with courage by repaying evil with righteousness and repaying virtue with virtue.

I upheld firmly Lord Shang’s scientific outlook rule of law in my body as an ironclad framework for what I can and what I cannot do；

I followed closely Laozi-Zhuangzi’s mysterious formless Dao of wu-wei guiding me effortlessly into a spiritual life living in harmonious human relationships and nature as my life companion；

I embraced dearly Yang Zhu’s material-spiritual “for-self” in cultivating his six musical tunes ‘do re mi fa sol la’ in my “six senses”，

singing his art of life “Let there be me”：

“Allow the ear to hear what it likes，

the eye to see what it likes，

the nose to smell what it likes，

the mouth to say what it likes，

the body to enjoy the comforts it likes to have，and

the mind to do what it likes.”

Having learnt this Heavenly wisdom，

I understood clearly the Universe and I are One.

My dear children，

Freedom in any name still smells as sweet as a red rose，

Freedom expressed in many languages still speaks in one mighty voice：

The voice of love and justice from our collective soul，

The voice of hope from our collective heart，

The voice of our sacred melody of six freedoms ‘do re mi fa sol la’ fired up the Beijing Olympic torch that ignited our common eternal flame for a better future in “one world one dream”.

Speaking in one united mighty voice，

In order to build a more just harmonious “one world one dream”，

Where each is blessed with riches beyond belief in wealth，culture，and spirit，

We，the common sovereigns，hereby do solemnly swear：

No more rule by man but by the scientific outlook rule of law and principle，

No more war on Chi You waged anywhere，but peace in our heart，

No more bloodshed but red wine shared，

We fight crimes with strict laws but merciful，

We fight hatred with righteousness，

We fight evil heart with wisdom，

We fight lie with sincerity，

We fight for all，all for one！

My dear children，

Dews of a lingering “one world one dream” are shinning under the morning Sun，

A rare rainbow of the universe shows off its pride，

On our bare hands，the six sacred treasures unveiled，

Let’s go where no one else has gone before，

Let’s carry our six sacred treasures toward their destiny unafraid，

Days of wine and roses are dawning upon us，

Days of pain and suffering by Chi You are gone with the wind，

Days of manmade misery no more！

Days ahead are brighter than our past，

Days of each according to his or her dreams and aspirations have arrived，

Days of plenty blessed by objects of desire are here to stay，

Days of free education，free health care，and free material wealth are free for all for life，

Immortality before birth，immortality after life...

Heaven here and now on mother earth，

Days of red wine and red roses are upon us！

Let us drink the red wine and smell the red roses together...

Having said these words，

The Emperor smiled and said：

“Let us sing together a song of delight：

do re mi fa sol la...

la sol fa mi re do....”

---

[1] Quoted from Sherwin Lu，Trans. “The Yellow Emperor’s Four Canons，10：Lifelong Mission”.

[2] Quoted from Sherwin Lu，Trans. “The Yellow Emperor’s Four Canons，10：Lifelong Mission”.

[3] Quoted from Sherwin Lu，Trans. “The Yellow Emperor’s Four Canons，1：The Dao and the Law”.

[4] See http：//my.opera.com/Aprilsnow/blog/index.dml/tag/Confucius.

[5] See Appendix 1.

[6] See Gongsunchou，Mengzi.

[7] 2013-03-17，Xinhua English.

[8] In November 29，2012，Xi Jinping put forward and explained the conception of “Chinese dreams”. He said，“Now，all of us are talking about Chinese dream. I think the greatest dream of Chinese since the modern time，is to realize the great Renaissance of the Chinese nation”. In March 17，2013，he mentioned the word “Chinese dreams” nine times，on the speech “Pursuing dream for 1.3 billion Chines” at Closing of the first session of the 12th NPC.

[9] See Reference 1.

[10] Positive freedom/liberty is a state where one is free in pursuing towards one’s dreams and aspirations actively assisted by others and by his/her government. I don’t think it is in abstain of coercion by another will as defined by F.A Hayek. Xuan Yuan’s mission in life is a “positive liberty” idea rather than “negative liberty” concept as advocated by Hayek and other Libertarians.

[11] Quoted from Sherwin Lu，Trans. “The Yellow Emperor’s Four Canons，1：The Dao and the Law”.

[12] Quoted from Sherwin Lu Trans. “The Yellow Emperor’s Four Canons，12：Setting Things Right”.

[13] Quoted from Sherwin Lu，Trans. “The Yellow Emperor’s Four Canons，10：Lifelong Mission”.

[14] Quoted from Sherwin Lu，Trans. “The Yellow Emperor’s Four Canons，11：Guan”. Wang Pei thinks this sentence means what people can see is “Fa” and what they can’t observe easily is “Dao”. See Wang Pei，Research on the source of Law Theory in Huang-Lao thoughts，Shanghai People Press，2009.

[15] Quoted from Sherwin Lu，Trans. “The Yellow Emperor’s Four Canons，1：The Dao and the Law”.

[16] Quoted from Sherwin Lu，Trans. “The Yellow Emperor’s Four Canons，14：Order out of Chaos”.

[17] See Lianghuiwang，Mengzi.

[18] See Henry Kissinger，On China，258-259，Penguin Press HC，2011.

[19] Quoted from Duke of Zhou，Duo Shi. See Hereditary Clan of Duke of Zhou in Lu，Historical Records.

[20] See Reference 2.From：http：//ctext.org/shang-shu/establishment-of-government

[21] See Duke of Zhou，Establishment of Government. He said：“The way of Jie.... he employed were cruel men；and he left no successor. After this there was Tang the Successful，who，rising to the throne，grandly administered the bright ordinances of God. He employed，to fill the three （high） positions，those who were equal to them；and those who were called possessors of the three kinds of ability would display that ability. He then studied them severely，and greatly imitated them，making the utmost of them in their three positions and with their three kinds of ability. The people in the cities of Shang were thereby all brought to harmony，and those in the four quarters of the kingdom were brought greatly under the influence of the virtue thus displayed. Oh！ when the throne came to Zhou （of Shang），his character was all violence. He preferred men of severity，and who deemed cruelty a virtue，to share with him in the government of his states；and at the same time，the host of his associates，men who counted idleness a virtue，shared the offices of his court. God then sovereignly punished him...”.

[22] See http：//en.wikipedia.org/wiki/Tang_of_Shang#cite_ref-ba_2-4.

[23] In 2005，the 19th meeting of the Standing Committee of the 10th NPC approved the Decision to Annul the Regulations for the Agricultural Tax of the People’s Republic of China.

[24] See Appendix 1.

[25] Based on my discussion with Prof. Gao Hongjun.

[26] Love is based on equality with distinction. Thus，Giving first Taking later is also based on equality with distinction.

[27] Man by nature is good，a noble being endowed with the 5 Mandates and born blessed with golden bits in his mouth，reigns over his body and mind and over his relationships between his body-soul self，his relationships between his core-self with his God（s）. He is Xuan Yuan of his Erosverse.

[28] See Xianwen，Analects.

[29] See Weilinggong，Analects.

[30] See Yongye，Analects.

[31] Yu-lan Fung，A Short History of Chinese Philosophy，110，Derk Bodde eds，Free Press，1997.

[32] Erich Fromm，Man for Himself：An Inquiry Into the Psychology of Ethics，96-97，Holt McDougal Paperbacks，1990.

[33] Quoted from Sienho Yee，The Perfect Laws.

[34] Quoted from Sherwin Lu，Trans. “The Yellow Emperor’s Four Canons，1：The Dao and the Law”.

[35] http：//politics.people.com.cn/n/2013/0225/c1024-20582899.html

[36] http：//english.people.com.cn/90785/8140980.htm

[37] China Daily，Asia Weekly，p.7，March 22-28，2013.

[38] As soon as possible I plan to write a book solely on the why，how and what Scientific Outlook Free-Lunch Economic System.

[39] See Appendix 1.

[40] http：//www.theatlantic.com/health/archive/2013/01/theres-more-to-life-than-being-happy/266805/

[41] Quoted from Sherwin Lu，Trans. “The Yellow Emperor’s Four Canons，1：The Dao and the Law”.

[42] See Reference 2.

[43] See Shuer，Analects.

[44] See Shangxing，ShangJunshu.

[45] Quoted from Comment by Prof. Leo KoGuan，The Idea of Political Meritocracy：A Nanyang Technological University Interdisciplinary Symposium on January 6th，2012 in Singapore. On Meritocracy in general：this formula can be restated in the form of the Third Law of Multiverse as E=1/（1+H^2）*（A+S） where E is energetic bits of information that can do works. A is anti-entropic bits and S is entropic bits. I don’t discuss further because it is not needed in this conference.

[46] See Appendix 1.

[47] From Mao’s “Offering the mausoleum of Yellow Emperor”.