Hello world! Markets make their own Economics

Saturday, February 20, 2010

I. Introduction:

1. What is “Philosophy of the Economy”?

2. How “Philosophy of the Economy” employs “Quantum Economics” for System of Economics?

“Philosophy of the Economy” is a fundamental philosophical system which bases the development in human history on ever ongoing intellectualization, on the individual desire for advance (competition) in any society and the economic and social tools for adjustment and balance of individuals’ competition.

Always throughout human history there was a current level of development which was leaded by current at the time most developed countries (clans, tribes, empires, markets) by using the most advantageous at the time socio-economic tools to compete one another.

There is always a possible current level of development that responds to up coming possibilities for such development: usually individual competition had new arousing possibilities to be enhanced in new arousing developments relating ongoing intellectualization;

{Examples: Second World War was based on imperialistic ideas at its time when after the war Colonizing and maintaining Colonies appeared ineffective and were abandoned by the Great Powers, and then European Union was created which is totally demilitarized;

In case European Union was the possible current level of development thus the militaristic approach based on an inadequate attitude at the time caused worthless 50 million casualties: the possibilities for different then the militaristic competition were there even before the war.}

Any country in the world was in individual current level of development in any time of history, when (as said above) most developed countries (at the time) were always best adapted to the most recent current level of development. Usually for a country to be most developed it must include in competition the most of its citizens in response to current possibilities. But when a new possible current level of development is to occur some time a most developed country may well experience difficulties to adapt to the new changing realities and thus loose its most developed status, too.

When a current level of development could be upgraded to a possible current level of development was always a turbulent time because somehow such changes invoke social changes of redistribution of wealth;

{Example: Western Europe changed from feudalistic socio-economic structures to the production based socio-economic structures when fortune changed hands too: new classes were developed by these new structures.}

See: “Philosophy of the Economy” Part I, II, III some of these historical changes are explained in better details;

Economy plays vital role when changes of current level of development to a possible current level of development occurs, because usually by observing the changes of philosophy of economics and the following developing economic structures objective conclusions for ongoing developments could be drawn.

What is most recent for us “current level of development”?

Socio-Economic Philosophy based on Production Economics of Capitalism, Social-Capitalism and Communism (and a mixture of them).

{Examples: (pure) Capitalism of the USA and India, (national) Capitalism of Japan, Social-Capitalism of Western Europe and China, and Communism as it was in Eastern Block countries, and everyone in between.}

Karl Marx was the philosopher to explain production economics by employing a dialectic cyclical (self-adjusting) economic development. He saw these processes as class-warfare related thus He promoted the idea of appropriation of the tools for industrial production by the proletariat as representing of the lower classes which philosophy was used by SSSR and Eastern Block Countries; However Communism was based on a production based economics which monetary and fiscal policies were profit related and profit adjusted to the ways these are done by Economics of Capitalism or Social-Capitalism

Philosophy of the economy is

  • market (based) economics of Marketism
  • not dialectic cyclical system of economics;
  • based on quantum economics’ ‘uncertainty of economic fluctuations and vibrations;
  • not production (only) economics that includes some expenses of production economics as equitable;
  • inflationary and deflationary forces are “artificially” adjustable by using parameters (economic tools) indiscriminately to limit real economy from violent fluctuations and vibration that could provoke crisis;
  • monetary and fiscal policies are expanded to absorb some enhanced “security” in these markets and equitability of some parts of social and infrastructural expenditures, and environment protection expenditures, too;
  • very strong regulatory system (to its maximum made up into laws and regulations executable by courts – not by the Government) is needed for enhancing business laws, business contracts, intellectual property laws, social protection laws and environmental laws);
  • financing institution highly regulated in size and in consumers contracts;
  • corporate entities with enhanced personal liabilities by risk management;
  • intellectual property highly protected by regulations and common laws.
  • environmental policies are to be treated in the same way as public transportation, education, and infrastructure as in some percent equitable (on the demand side of the Economy), environmental policies are with paramount importance in Marketism;
  • central banking is a Global system of banking allowed to issue capital based on formulas to prevent from inflation, central bank can finance particular activities such as environmental technologies and their implementation on project by project financing by using commercial banks on set up underwriting matrix;
  • low interest financing and subsidies in Marketism are considered as tools of economics;
  • quantum leap is an economics advance by a country based not on production but on development of certain individual for this country areas of business by strongly complying with environmental requirements; the believe is that because of on going technological advance and rising productivity by international trade inflation could be avoided: particularly by the highly advanced production capabilities of the US, EU, China, Japan and India;
  • political changes from Governments promoting big business and investors toward medium to small business and investors;
  • internally for the US such enhancements to grow into international, global;
  • etc.;

In number of articles an attempt will be made to explain in details the above points of market economics of Marketism.

Over all even Market philosophy and economics requires personal liability and heavy regulations it is still based on free entrepreneurship and investing thus it is a most related to Capitalistic philosophy and economics by protecting freedom and democracy with liberties for all. Marketism is a system that just responds to the realities of which the alternative is a progressive bureaucratization leaded by Governments. In the last and still going recession this alternative appeared clearly and stated to us its powers ;

And, finally, I believe an axiom in economics: “if someone roof is leaking when someone else is without a job, and someone has the capability to sell the materials for such repair, and someone has the capabilities to manufacture these materials: then the economy is there to provide the conditions for happening as far as everyone in the chain is ready to respond with effort alone these transactions: there should be no excuses for this not happening”.

© Joshua Konov,2010

Posted by Joshua Konov at 11:43 AM