How Markets Development could be boosted by a Market Leap by Joshua Konov


How Markets Development could be boosted by a Market Leap by Joshua Konov

 

The previously discussed market security that could be raised by changing some micro and macro economic laws and regulations (see: joshuakonov.wordpress.com ) will empower small and medium businesses and investors competitiveness. In addition, it (such enhancements) will establish market conditions baring higher flexibility to reflect on market fluctuations, overcapitalization, recessions, and e.g., the abilities of small and medium businesses and investors could be also prompted and enhanced by targeted development of certain areas as alternative energies, environmentally friendly technologies, organic food, e.g. by tax breaks, subsidies and low interest loans targeting these particular areas. The difference from the currently used such approaches will be the high markets’ security that makes fluent and natural to the market demand-to-supply  balance easier achievable, unless the artificial to the market forces currently used tax breaks, subsidies and low interest loans, which make businesses and investors uncompetitive and redundant.

 

A market leap could be provoked and successfully executed only if it does not create overcapitalization and redundancies on the marketplace that could prompt substantial imbalance to the market’s demand-to-supply, therefore the economic agents to carryon such leap should be mostly natural for the markets, meaning as an example: by only tax breaks and subsidies run by governments monetary and fiscal policies in a low security market environment, such market leap could not be accomplished, because it would bring more market redundancies and imbalance that could be dispersed by the market forces, perfectly such case was shown by the real estate overcapitalization bringing the 2007-09 Recession, whereas such overcapitalization did not respond to the overall general market development so it was close to break the economy/market.

 

The theory of Market Economy using Quantum Factor balance the free market competition powers of market agent and tools natural to it with the social and infrastructural expenses which under the conditions of higher market security will become more equity as market value, and thus in certain percentage more fluent to maintaining market balance. However, social and infrastructural expanses are considered artificial to the market development and must be well in limits in compare to the natural for the markets agents for development. To manage the market balance even when market leap is underway a strong monetary and fiscal policies are paramount, however the currently used austerity measures are considered too rigid to succeed market development. Austerity as a market agent is considered by this economic theory counterproductive and self-indulgent, more a product of the ideology of trickle down economics of the past than a rightful economic agent to bring prosperity of the future. In an environment of rapid globalization and rising productivity, of China, India and Vietnam, and e.g. to believe that higher productivity by itself could bring economic/market growth and employment by the powers of large transnational corporations only I consider unrealistic and even utopist in its nature. To shake up business activity that could stir employment, I believe, more than the productivity natural and artificial market agents should be used, the cash accounting summarizing a cash based income to expenses debit/credit high interest lending practice in insecure markets should be enhanced into equity driven accrual accounting debit/equity/credit low interest lending practice in more secure markets. (see related articles, papers)

 

To undergo a market leap without market redundancies, or at least dispersible such without violent recessions, the market security should be enhanced and the approaches of using market agents and tools, too. The productivity is not the only, but one of these agents to be used in an “as it comes, as it goes” depoliticized practice.

 

Market leaps could bring market development by using targeted sectors in these market such as environmentally friendly technologies and products, alternative energies, organic food production, e.g. that could help saving the Earth environment and change the ways business affects it. The small and medium businesses, investors and countries are the one to carryon the majority of employment and consumption, therefore to them should be given equal opportunities market development, which is not necessary by industrialization: in more diverse business environment.

2012, Joshua Konov 

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