Economy is making cakes

This metaphor is very appropriate. The essence of economy is to create wealth through various production activities, that is, "making cakes". Everyone hopes to get more cakes, which is the fundamental driving force of human economic activities.

Politics is "dividing cakes"

Politics is the process of allocating social resources. Different groups and classes hope to get more "cakes", so all stakeholders will compete for resources through political games. The purpose of politics is to coordinate the interests of all parties and seek reasonable distribution among limited resources.

Institutions are "stipulating who takes first and who takes later"

Institutions are a series of formal and informal rules that determine the way social resources are allocated. A good system should fairly and reasonably stipulate the rights and obligations of all parties to ensure that resources can be distributed fairly and orderly. A bad system may give some groups an unfair advantage.

Good system is "the one who divides the cake takes later"

A truly excellent system should ensure that the final distribution of benefits is reasonable and fair, that is, "the one who divides the cake", that is, the one who holds the power of resource allocation, should be the one who takes the cake last. Only in this way can the enthusiasm and creativity of the whole society be truly stimulated and the benign development of the economy and society be achieved.

A bad system means "the one who divides the cake gets it first"

On the contrary, if the system design allows those who hold the power of resource allocation to divide the benefits first, then the whole society will be inefficient and lack the motivation for innovation. This kind of "act first and report later" system design is very unreasonable and will inevitably cause strong dissatisfaction from all walks of life.

In short, these concise metaphors about economy, politics and system vividly summarize the essential characteristics of these complex fields. A healthy society needs fair and reasonable institutional arrangements so that the process of "making cakes" and "dividing cakes" can achieve fairness and justice. $BTC