Marketism – To Avoid Environmental Disaster

Eventually the current system of economics may naturally evolve to accommodate the strong exogenous and endogenous market i.e. economic forces consequential of the ongoing Globalization, rising Productivity,  Chinese Industrialization, and the Internet; however, the fastly developing global warming and occurring sharp temperature variances and disasters urge more quick and radical interference to prevent Earth destruction. The developed economies are taking action by enhancing green energies usage thus gradually cleaning their environment; whereas, the most polluted cities have been moving into the developing world mostly invoked by usage of old vehicles, fossil fuels heating, and the following deforestation, water pollution, and widespread garbage disposal!

 Economically, the poverty and deteriorating (if any) middle class are the driving forces behind such pollution that may destroy Earth in a short term, and therefore prompt actions are necessary for prevention: alleviation of poverty and establishing of middle class but without deregulated industrialization – the Market Leaps are needed to accomplish such targets and the Marketism is one of the ways that will do it without governmental take over, as we all know how inadequate the governments might be when handling business!

 Taking business from the large corporations and investors to the small and medium such by saving microeconomic competition, individual freedoms and democracy are the ways of Marketism.

The market balancing forces are the most important particularly on Microeconomic level: their self-adjusting powers limit markets from exacerbations, worthless items and services, and financial balloons; they also boost market development and productivity. On Macroeconomic level such forces are not capable to self-adjust without interference because of the exogenous and endogenous forces of the globalization, the rising productivity prompted by improving technologies, China’s super-productional abilities, and the Internet. The trend of reducing labor because of the global competition is natural for the markets: the high proficiency is enhanced by the high education: the graduating CEO’s, managers, and consultants are evaluating and comparing how companies function labor and technology’s wise. It is natural for market competition to always reach new heights in proficiency – that raises productivity and profitability. The globalization has opened some unknown doors for foreign direct investment, moving and outsourcing of industrial production and financial services that give to the large corporations and investors access to cheaper labor and quick setup of such production and services. Whereas, the weak international and national for some countries business jurisprudence gave some tax avoidance and money laundering. The lack of reinvestment broke the trickle-down path thus basically creating unfavorable business conditions for the middle and starting up employment.

This market pattern is highly improbable to be reversed but if the small and medium companies and investors are let into the competition by marginalizing the market advantages given to the large corporations and investors: which are these advantages? – the supply trickle-driven economics relied on the down-up concentration of capital and therefore the large corporations enjoyed limited liability corporate structures, shady business laws in contracting, costumer and labor protection, insurance and bonding, environmental protection and other laws. Such disadvantages keep the market security and the following lend-ability in the margins mainly hurting the small and medium businesses and investors:

 On a Macro level, however, the market forces could be used along with market ‘parameters’  to prevent harmful recession, and avoid slangish Market Development: the most important targets of such conditions should be full employment and moderate inflation/deflation – the productivity is important, too: however, considered micro market competition on full swing the market forces will accelerate productivity – on a macro level the targeted Market Leaps into predominantly environmentally friendly energies and industries will steer business activities building equity. 

Joshua Ioji Konov 2016

The Balancing Weights in Market Economics

The developing technologies in a highly organized and globalized marketplace have established conditions of overproduction simultaneously diminishing demand resulted of same these technologies, excessive capital for the large transnationals and investors. Capitalism’s trickle-down economics was founded on industrial production with wide margins that are underperforming under these new conditions of reducing industrial labor and low percentage profitability. Therefore, debt, inequality, and declining middle-class income have become fundamental issues: the service employment is generally less paid. China’s targeted economic policies are exception of the rule; but everywhere else from the most rigid EU economics through the US and UK down to the least rigid Japan the ideology of the budget trickle-down economics has been bringing stagnation, debt, slow development (i.e. growth), declining middle class, thus all the ‘goods’ of inadequate economics that cannot take advantage of the 21st Century’s globalization and rising  productivity. Along with the economic underperformance has come general radicalization based on national, racial, religious, etc differences: the 2007-9 Recession and the Middle Eastern Unrest have aggregated these developments that brought ISIL, refugees, Brexit, Donald Trump, and all similar extremes.

 For balancing market weights, there should be considered two directions of adopting these new global developments: Globalization and rising Productivity –  first approach goes toward more governmental business involvement and wealth distribution and second toward prompting Small to Medium Businesses and Investors by boosting business activities and letting microeconomic forces work its ways out. However, the ways a particular economy should be directed to is individual for this market i.e. economy: meaning some need for enhancing social and infrastructural expenses others may need the opposite  way; but, it is going to be a mixup of economic policies and measures of an ‘as it comes; as it goes’ Market Economics.

 Market Agents and Market Tools are to be used in steering business and enhancing activities:

 The Market Agents (follows) are mandatory to establish relatively fair global market competition.

1. Strict rule of law in business contracting, financing and full corporate liability

2. Strict laws in Environmental, Consumer, Labor Protection

3. Strict laws in Insurance and Bonding

4. Strict laws in antitrust, intellectual property, anti-corruption

5. Strict laws in the open market,

Thus when these Agents are implemented the high Market Security would allow lower rate lending to SME and Investors

 The Market Tools (follows) are flexible in usage differing from market to market

1. Foreign Direct Investment

2. Bank Lending

3. Public Financing

4. Targeted Subsidies

5. Social and Infrastructural Expenses

6. Market Leaps

7. Fiscal and Monetary Policies

Tools to be at an ‘as it comes; as it goes’ approach an individual for markets i.e. economies.

 Marketism i.e. Market Economy is not strictly budgetary constrained whereas investment and lending are on risk and reward principle; even the Business laws are strict it is not a responsibility of governments to impose restrictions or weights based on belonging to nationality or an economic bloc. The Rule of Law in Business must equally apply to all participants.

 On a Microeconomic level the market forces should be decisive for market balance; however, on Macroeconomic level – priorities as environmental protection should overwrite market forces by being used as main economic i.e. market agent/tool for targeted development.

Accelerated Market Development under the balance between the Supply to the Consumption in the conditions of Moderate Inflation/Deflation is what Marketism i.e. Market Economics is all about and since different economies actually differ in the involvement of these variables Market Tools; therefore, the action and taken should change weight depending on their individual characteristics.

The Marketplace must have relatively fair competition under the Rule of Laws in Business whereas employment and development should be done by engaging the majority without damaging the Earth Environment. Budgetary economics must evolve into targeted but still market driven on a micro level Market Development: stability and poverty alleviation are paramount.

 By steering the SME & Investors business activities and proactive Government as  an Invisible Hand a consequential employment/demand/consumption/entropy will expand the Marketplace for the Large Corporations and Investors: the natural for the Micro market balancing forces are going to be very uplifting and prolific for Fiscal and Monetary Reserves, Social and Infrastructure Policy On a Microeconomic level the market forces should be decisive for micro market balance; however, priorities as environmental protection should overwrite market forces by being used as the main economic i.e. market agent/tool for targeted development.

Joshua Ioji Konov 2016