Joshua’s Second Law of Market Economics


“If ‘the House is painted’ and ‘the Painter employed’ in limited Inflation/Deflation and higher than Zero ‘J Factor”s market environment: the market Entropy is boosted and Equity is built; therefore, thus Invested Capital/Subsidies/Low Rate Lending prompts Market Development”.

There are a few ways to finance Demand:

  • Investment
  • Low Rate Lending
  • Fiscal Initiatives
  • Subsidies
  • Social (Including Social Security, Pensions, Education, Unemployment Benefits, etc.) Expenses
  • Infrastructural Expenses

Whereas, the returns vary from straight return on the Investment to built in the market equity; the higher Market Security lowers lending rates and the return on the invested capital. The Monetary Policies on lending, Environmental Protection Laws, Consumer Protection Laws, Business Contracting Laws, Intellectual Property Laws, Personal Corporate Liability, and the Insurance & Bonding Laws guarantee Environmental Protection and proper Business Practices therefore higher than zero ‘J Factor’.

Market Economy under Market Development works mostly in low interest rate monetary environment.

Any ascend of Market Development increases Consumption, lowers Unemployment, and replenish Fiscal Reserves; it is Seasoned Entropy and Equity’s Growth.

The Invested Capital goes through ‘the House’ to ‘the Painter’ in materials, equipment, and proceeds; it adds to the market value and requires more goods, services, education, and improved infrastructure; it gives opportunities for development of many economies now undeveloped and impoverished. Current globalized marketplace and ever-rising productivity has the manufacturing and organizational potentials to offset excessive inflation/deflation in a way never experienced in history that made possible the Second Law of Market Economics.

Joshua Ioji Konov, 2014

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About Joshua Ioji Konov
email joshua.konov@gmail.com twitter joshuak2077

2 Responses to Joshua’s Second Law of Market Economics

  1. Pingback: Joshua’s First Law of Market Economics | Philosophy of Market Economics

  2. Pingback: How Globalization affects Market Economy | Philosophy of Market Economics

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