How the Globalization prompts a change of Philosophical Priorities: from Social Order to Market Order
August 29, 2012 Leave a comment
In the politicized past, the philosophical accent of the social structures (countries) was on the division in nationality, race, and part of the world one belongs to. Governments and most social organizations have promoted these ideas, thus diluting the effects from general insufficient wealth that was resulted from low productivity and lack of opportunities of ages of exploitation. Some countries/markets like the United States were greatly advanced to others by vest land and better opportunities based on a pro free business and personal freedom, countries like Germany and Japan, which established highly nationalistic societies, well organized and highly motivated, like United Kingdom and France being very much similar. Many others, small and large countries tried following the patterns of the frontrunners with differing success. Great wars and the Cold war gave the economies runoffs and were preventive valves for accumulated by their peoples pressure of economic injustice particularly edgy in time of recessions, war destruction, e.g.
A market i.d. economy is the agent that carryon development, therefore progress of those could be well accounted by the market indicators. In the past even the word “market” was used to comprehend “exchange of supply and demand”, and many developed countries were considered market economies, in reality, as a matter of fact, very large percentage of anyone country economic activity was subjectively related to political decision or their social structures. In the progress of globalization, however, the role of market demand-to-supply (the change of supply-to-demand is not accidental) gradually was taking over, making political decision less influential over these of the market forces. It could be said the “Social Order” should change into a “Market Order”, in which the market forces would have much more given power to model countries i.d. markets, thus the philosophical conception of nationalism, racism, e.g. should change, too, into some new principles that contribute to pure market competition. Also, the underdevelopment and lack of opportunities from the past, which were contemporaneous of low productivity and lack of opportunities should be gone, too, into an age of globalization, high technologies, and ever rising productivities. The markets limits are beyond limits, if right market agents and approaches are used in this brand new world.
However, the Capitalism targets only productivity as an economic agent: it is founded on industrial production, shady business, expenses based accounting, anti-social expenses policies, high landing rates, pro large business and investors, e.g., which economic agents could had worked fine under the “Social Order” pro supply low-productivity economic conditions, but greatly underperform under the new “Market Order” pro-demand high-productivity market conditions that require more diverse than only productivity market agents: such as strict business laws, contract and insurance regulations, unlimited liability corporate laws (for the decision making corporate management, not for the passive investors), accrual accounting to use social expenses equity for balancing markets, lower lending rates based on higher-security, small and medium businesses and investors empowerment, e.g.
Hence, a change of priorities is needed to explore and exploit the opportunities of the global marketplace, thus instead of the currently managed marginal economic growth a longer term market development is succeeded.
The cyclical runoffs of the Capitalism are pretty much gone, too; the violent fluctuations of the last 2007-09 Recession and the slow rebounding follow-up showed clearly the inconsistence of this theory, in reality the fluctuations have been to deep and not self-adjusting that monetary and other prompt actions were required for any corrections. The Market development could be only comprehended as a Quantum Factor economics, in which the fluctuations could not be self-adjusting, but market agents and tools should be used as parameters to limit these fluctuations that actually has been used by the US and other governments by their QE, stimulus measures, and e.g. http://mpra.ub.uni-muenchen.de/34588/
The practical system of market economics, among other things, differs from currently used trickle-down system of Capitalism by its usage of market agents and tools on the principle “as it comes, as it goes”.
2012, Joshua Konov