张璐
Lu Zhang
aka Almaz

Abstract: Inspired by the classical IS-LM model used in macroeconomics, I found a simple mechanism which demonstrates the correlation between perfectionism or hard work and happiness or fulfillment, and the potential conflicts inherent in the social conditioning experienced by an individual (the external world) and what one needs to regain psychological peace (the internal world). The model shows the unique equilibrium point for each individual experiencing simultaneously these two worlds, and what happens when a society goes through a period where people are force to live out of balance.

LM stands for “liquidity” and “money”. IS stands “investment” and “savings”. The vertical axis represents interest rate on government bonds. The horizontal axis represents goods produced, or GDP. The IS curve describes the goods market. The lower is the interest rate, the less people invest, the more people buy, resulting in a larger GDP. The LM curves describes the money market. The more the economy expands (higher GDP), the higher the interest rate because the banks and other financial institutions want to encourage consumers to deposit so they can find funds for new investment. 

With the two markets functioning on opposite directions, the economy finds balance at the intersection point of the two curves.  

The Ex-In Model 

A similar model can be used to describe how an individual finds his equilibrium of happiness between the internal world and the external world, as shown in the following graph. 

In the external world, the more we work hard, the higher standard we have on our work, the more we are rewarded materialistically by the community or society and the more satisfaction we can receive from our life. But on the inside, the more accepting we are of our own imperfections and others’ fault, the easier we can be happy; the more relaxed, the less stressed we are, the more peace we feel inside. These two worlds create opposite forces that impact on us simultaneously. True happiness and fulfillment is only possible when an individual finds the balance of his external world (Ex) and his inner world (In), where the two curves meets. 

As a society develops, scientific and technologic innovation moves the Ex curve towards the right, meaning the same hard work will produce more fulfillment than before. At this time the same individual’s equilibrium point switches from point a to point b. Point b has a higher fulfillment, but a lower level of perfectionism/ idealism hard work. It means this person needs to work less, have lower standard to his achievements, be less perfectionist with himself, and less idealistic about the society in order to be happy. This might be the reason why older generations often perceive the younger generations as less idealistic, less motivated than they were at the same age. But this could be a perception based on their own inner experience (In), rather than the one of the younger generation’s (In2)

While the Ex curve is shifted by scientific innovation, the In curve is shifted by the psychological development or spiritual growth. People are happier in the same condition because the change of their inside world. This could be achieved by art, culture education, religious or spiritual cultivation, healing and therapy, and natural growth. The In curve is shifted toward the right hand side when this happens. As shown in the graph, the Ex2 and In2 meets at a new equilibrium point, c. 

Further Implication of the Ex-In Model

Upon careful consideration it would not be difficult to observe that for the society to remain stable, a narrow band of Y value must be observed. The value of perfectionism /idealism/hard work is a very narrow range because either too low or too high would imply some form of nihilism at the individual level and anarchy at the collective level. We only need to look back at the history to know that throughout the thousands of years of human history the Y value has not changed much. 

This is marked in the graph in color yellow. I have called it the “habitable zone”. In astronomy, habitable zone refers to the region around a star where water can exist on a planet’s surface which makes life possible. This area must be not-too-hot, not-too-cold. As we can see from the image below, the habitable zone around the sun is only a narrow band relative to the space occupied by the whole solar system.

 (Image: © Erik A. Petigura, taken from here)

This is getting interesting, if we think of the Ex as depicting the solar energy or masculine element, and the In curve depicting the lunar energy, or feminine element. Moving In1 to In2 alone without moving Ex will result in equilibrium point at point d, way outside of the habitable zone. Moving the Ex curve alone will result in equilibrium point at point b, way lower than the habitable zone. Hence this model shows us a surprising but important truth: the increase of happiness is only possible when we move both Ex and In curves together. Scientific and technologic development and spiritual and psychological transformation must go hand in hand, both at the individual and the collective level. (End)