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. The Capitalism’s trickle-down economics was founded on industrial production with wide margins that is 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 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, anticorruption

  5. Strict laws in 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 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 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 of 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 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/anatropy 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 main economic i.e. market agent/tool for targeted development.

Joshua Ioji Konov 2016

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

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