Market (i.e. economy’s) entropy of Market Economics (i.e. Marketism)


Market (i.e. economy’s) entropy of Market Economics (i.e. Marketism)

 

The technological improvements in manufacturing, international trade and communications i.e. rapid Globalization and rising Productivity have established global market (i.e. economic) allowances for expanding business activities into not-necessary-industrial related market sectors without prompting Inflation (called by the Marketism – “market entropy”). The entropy is unpredictable business activities succeeded in a market (i.e. economy), which could be invoked by “natural” to the market competition agents i.e. businesses and investors, or “artificial” to the market competition i.e. governmental interventions, or a combination of both. However, if mostly artificial to a market (i.e. economic) competition market tools are used the possibilities for market redundancies or shortages and therefore market volatility and instability if high entropy is achieved is probable, e.g. the governments’ ineptness in handling market (i.e. economy) is well observed. The probabilities for governmentally run economies to bring market distortion are high. However, the trickle-down economics of the a priory Capitalism has exhausted its strength to spur enough business activity for supporting adequate market development (i.e. economic growth) for employment and fiscal reserves. The transnational corporations and big investors are favored by the “shady” business laws and practices, fiscal brakes, lack of international transparency, weak intellectual property laws, e.g. whereas they cannot prompt and maintain enough business to respond to the global demand for such. The appointed globalization and productivity growth in combination with the China’s industrialization has tipped off the market possibilities for the expansion of manufacturing internationally to the point needed to prompt and maintain global development: the productivity and investment considered as the only market (i.e. economic) carriers for global development under this current condition underperforms greatly. Moreover, the Earth pollution and exhaustion of resources are two factors that additionally load the system because of the necessities for quite expensive environmental protection and the rising natural resources prices. Thus becomes natural for the governments to get involved in markets (i.e. economies) by using stimulus packages, keeping low interest rates, pouring liquidity, e.g. and unorthodox tools such as quantitative easing all in prevention from total economic breakup  or to prompt business activity, low rate lending and subsidies to promote environmental protection. However, the pinned to a tight-budget politicized economics of oligopolies and monopolistic competition has weak transmissionability to the bottom market that the real business activity is needed to balance the market demand in natural for the market competition. The Small and Medium Enterprises & Investors (SME&I) are those that could enhance and diversify such business activity into unpredictable and uncontrollable directions, i.e. entropy, but the unfair market competition does not allow SME&I natural for the market expansion: the shady business environment is weakening the market security.

Named after Boltzmann’s H-theorem, Shannon denoted the entropy H of a discrete random variable X with possible values {x1, …, xn} and probability mass function P(X) as,

 H(X)=E[I(X)]=E[-ln(P(X))]

Here E is the expected value operator, and I is the information content of X.[8][9] I(X) is itself a random variable.

Joshua Ioji Konov, 2013

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