How Economic Changes can boost US Economy and save Free Entrepreneurship


How Economic Changes can boost US Economy and save Free Entrepreneurship

Under the brand new global market conditions

  • of rapid market (i.e. of economy, economies) globalization and rising productivity;
  • of China’s industrial growth;
  • of improving technologies in manufacturing and the Internet;
  • of colossal size transnational corporations;
  • of Vietnam, India, Brazil, and e.g.;

the theory of Market Equilibrium, Philips Curve, Productivity Effect^, Starving the Beast, Frontier Economics^^ the Frontier Thesis^^^ and many other theories of economics, sociology or politics do not  explain comprehensively the needed changes that could prompt under these new conditions the US economy into longer term market development (i.e. economic growth). The 2007-9 Recession with its deep global equity reduction effect and the post recession sluggish rebound is a good example for how dysfunctional modern day economics is where it comes to predicting and countering the effect such upheaval had on the US and many other economies. The WTO, WB and IMF and the entire international financial system, which was suppose to prevent the spreading of economic decline in production and capital failed to do it.

The monetary, stimulus packages, quantitative easing, and e.g. measures taken and being in process by the US, Japan, and China were counter-cyclical by nature far beyond Keynesian theories or even farther the rigid Austrian Economics so much practiced. Moreover, these have been acts of desperation pressured by the real market forces, however the governments helped save the global market from total collapse, whereas the ideological in its nature science of economics has been predicting inflation and doomed dollar that never materialized. Only the European Union continued following the ideological postulates, and the results has been catastrophic, indeed. Throughout this time, the US, Japanese and Chinese governments have been taking over business functions by physically buying share of companies, by giving easy money to different sections of the markets, and by interfering with the market balance (i.e. equilibrium). Many forms of wealth distribution have been implemented too. It has become obvious for the governments to save the market is necessary to raise demand and to help large financial institutions get rid of their evaporated equity, thus lending could be ignited, so the government acted for which high appreciation to President Obama and his decisive approaches.

However, what the US and other governments have been doing by direct market interference should be supplemented and extended into long-term economic program to boost the market share of Small & Medium Size Businesses and Investors (SME&I) bringing them to the front-line as market agents.

The market transmission-ability, whereas large sums of liquidity have been injected into the market through QE and other ways, is a paramount issue needing immediate solution; the options are two either the government takes bigger role in the overall business activities, or the SME&I are given such, thus the choice is between the inept governmental market interference or the market forces and competition to prompt a long-term market development. It is clear who should be doing it: the SME&I, but for them to do it the overall Market Security should be enhanced to raise SME&I’ lower-rate borrow-ability; through changes and enhancements of the intellectual property protection, the contract laws, the insurance and bonding provisions, of the corporate governing bodies personal liability laws, e.g. (http://bx.businessweek.com/market-economy/)

^Australian Economic Papers, Vol. 48, Issue 2, pp. 105-123, June 2009
^^http://www.frontier-economics.com/_library/publications/frontier%20bulletin%20-%20closing%20loopholes.pdf
^^^by historian Frederick Jackson Turner in 1893

that will raise the Market Security and bring the related relative Market Competition Equilibrium in favor of SME&I.

The overall globalization and rising productivity that brought deindustrialization of many developed markets followed by high unemployment and declining middle class and fiscal reserves could be positive to these markets if diverse business activities expands; the Productivity approach (only) cannot keep up with these new global market developments, therefore more diversified business environment is needed to boost employment, whereas the Inflation/Deflation are the main indicators for Market Balance (Equilibrium).

The R&D and Better Education are equally important, however, diverse market activities will expand overall capital and bring more opportunities for connecting R&D and Education to the real markets.

The Social and Infrastructural Expanses under these new conditions will become more equitable thus equally been used for Market Balance, however their Market Share should be limited to additives whereas the free Market Completion should be considered for primary market agent.

To comprehend the market possibilities such approach a detail and comprehensive research (http://joshuakonov.wordpress.com/) of should be taken in consideration.

On the question, can the US economy succeed and maintain long-term Market Development under these new global market conditions? The answer is definitely yes, because in the equity based new arriving global economics the well developed and with high equity flexible US market/economy could be a leader; however, the revolution of prioritizing SME&I role should be implemented.

2011

  1. 2001 & 2007 Recessions prompted remaking of the international organizations
    MPRA Paper, University Library of Munich, Germany View citations (1)
  2. Piercing the Veil’s Effect on Corporate Human Rights Violations & International Corporate Crime (Human Trafficking, Slavery, etc)
    MPRA Paper, University Library of Munich, Germany

Joshua Ioji Konov, 2012

 

 

 

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