Philosophy of the Globalizing Market Economics verses Capitalism

With the Globalization and Intellectualization  of the Market the “Trickle down” Economics of Capitalism cannot provide functional system for long term economic development; by shady business practices promoting mostly big businesses, by ideologically motivated system for wealth distribution and by inadequate Fiscal and Monetary policies: Capitalistic Economies could not develop properly to expand and envelope Globally. Social Structures of the Capitalism which are well established and supported by ideologies and governments could not reflect properly to the possibilities of the globalizing markets: when these capitalistic structures historically have given the best and most prosperous tools of Economics and have established the most prosperous economies of USA and Japan in the new conditions are very short of sustainability. The Global Market is to be mainly consumption (Demand) so the Capitalism which is founded on Supply does not provide the needed security for enhanced Monetary and Fiscal policies to carry on such possible Global expansion and the ideologically motivated “Trickle down” deregulated Economics and  Social policies does not provide needed economic flexibility to carry on an appropriate balancing of “Demand to Supply” ratios; Karl Marx’s philosophy of classes’ confrontation, cyclical dialectic development and scarce resources Economics of the Capitalism may work well in an underdeveloped World limited technologically and politically but it has no chance in the new age of communications, rapid technological advances and open borders Global market, therefor instead of cyclically advancing Capitalism a more pragmatical Economics of balancing “Demand to Supply” Marketism  will work much better by enhancing business activities around the World through direct investment and higher security by business regulations and social policies which will expand Monetary and Fiscal reserves.

Karl Marx – A big hit with capitalists
Faced with a crisis of labour due to abolition of slavery, Europe (specially England) started looking at alternatives for a new economic model. They selected a fugitive theorist, whose theories were creating interest in mainland Europe. Karl Marx. Fearing unrest, some European countries exiled Marx. However, Marx was popular with capitalists and in capitalist nations of Europe – and in the USA.
Communism awarded a monopoly over slavery to one employer – the State. Single employer, total monopoly (on labour, political power, economic resources), impress the slaves with the glory and future – were the elements of the new political system that Europe devised. This was the only Western ideology that was born out of design. With the demise of slave trafficking, 1832 in Britain; slavery re-introduced in 1802 by France) Europe was concerned about labour and industry.
France, Brussels, Britain etc. took the lead and provided patronage to Karl Marx and Frederick Engels to devise another system – an alternate to slavery. In the next few years, their publications found eager publishers and sold well. Their books, Economic and Philosophical Manuscripts of 1844, The Communist Manifesto (published in) 1848 laid the basis for an alternative to capitalism. Marx and Engels received significant royalties from the sale of their books – and could survive on earnings from their writing careers.
Obviously, Communism could not be ‘sold’ to the designated victims, that they were the new slaves. It had to be ‘bought’ willingly by the ‘target audience’ as yet another ‘level of freedom’. Slavery sold as a promise of freedom – You have nothing to lose but your chains.
Economics must be a science of parameters in a quantum economics dispersing and enhancing energies of Marketism  instead of a classical philosophical system of cyclical dialectic development of Capitalism.


Some of the differences between Marketism and Capitalism are:

Marketism                                                                  Capitalism

Based purely on Demand to Supply Economics balancing: no ideological and political involvement
Trickle down Economics: ideologically and politically motivated
Totally regulated business and investment activities: business laws more like common laws:
Mostly deregulated business and investment activities: regulated by Governments
Market structures to promote medium to small businesses and investors
Social structures promote big businesses and investors
Expanded Fiscal and Monetary quantities: equity based accounting
Tight Fiscal and Monetary quantities: cash based accounting
Educational, Infrastructural, Medical and Social expenses more like short term equities to balance other business 
Educational, Infrastructural, Medical and Social expenses more like cash based expenses: ideologically distributed
Global market plays under common rules
Individual countries and economic blocks markets have different rules
GNP include Farming, Industrial production, as income plus return  on Investment and short term equities GNP include Farming and Industrial production as income
Tools of Economics are used indiscriminately  to prevent Demand to Supply dis-balances  
Tools of Economics are used politically and ideologically motivated.
Intellectual property  over physical property
Physical property over intellectual property

Marketism Economics is a very sensitive to fluctuations so different tools of Economics must be promptly used to balance “Demand to Supply” ratios: Interest rates will be used in much less then historically variances; Fiscal and Monetary policies will reflect %% of total GNP and will expand or contract appropriately following market fluctuations;   
© Joshua Konov, 2009


About Joshua Ioji Konov
email twitter joshuak2077

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