The New World of 21st Century

The modern day’s economic developments have brought the following very new and enhanced some already existing powers with a force never seen before.: the Internet, the worldwide globalization along with the hugely empowered Transnational corporations and Foreign Direct Investment mostly hold by Big Investors, the Chinese Industrialization that shifted industrial production from the supply to the demand side of Macroeconomics, the highly improving technologies and corporate organization that reduced insufficiency and labor force.

Life, as known, has changed forever, the supply driven philosophies of Communism, Social-Capitalism, and Capitalism deepened in economic incoherence and under-performance: rising inequality, national and private debt have come naturally causal of such not performing Economics. History has shown that anytime excessive economic deficiencies bring extreme political ideologies and current situation from the Middle East to Donald Trump, through rising Far Right and Left Parties confirm such conclusions. The trend to attack the weak, the refugees and immigrants, the different in view or religion has been the same for centuries, but what makes it really different lately has been the speed with which such trends have been developing: nationalism, chauvinism, xenophobia, racism, and ext just broadened to excesses and blindness only such could bring!

The declining US Middle Class looks for someone like Trump to reduce immigration and eventually bring prosperity by using his experience even when he filed 4 bankruptcy and ruined hundreds of businesses! Whereas, in Brussels and Berlin the weak EU economics is directed to all the wrong reasons: from Debt to Productivity: pushing the weak countries to dismantle labor and social protection with the only idea of triggering consistent growth; however, the weakness prevails instead – thus the Brexit, the on the brink of collapse Greece, the high unemployment and underemployment, lost generations and political instabilities in Northern and Southern Post Communist Countries. On top of all the refugees that are flooding most developed economies. The EU Periphery has been the best example of poorly handled economics: high VAT and Subsidies that redistribute taking from the have not’s and giving it to the have’s. While the trickle-down effect has become more like an illusion than reality, indeed. The people in charge, however, have not stopped using all political and financial control means insisting that early or later the system will start working!?

The system of the Chinese economics seems to be the most adequate in comparison to the rest, and guess what if personal freedoms and democracy have been under-performing to a centralized practical Chinese approach many openly deny it by even calling Second or First depends of the view Economy still developing just to not answer the question how such thing happened and is happening? Why deregulated capitalism under-performs to a centralized China?

The same ‘Economists’ that predicted the collapse of the UK economy after the Brexit, wondering why this did not happen, or even before that ‘overlooked’ the 2007-9 Great Recession, mishandled Greek economy and overall the entire EU, or the Abe’s Second Arrow of raising taxes that undermine the Japanese economy revival resulted of his first arrow even though the flow of Quantitative Easing capital could not trickle-down choked by the system.

In the US the economic growth give to the very few the majority of it: the inequality, marginally leveraging income kept the Middle Class further deteriorating and Poverty rising. The lowering unemployment has not helped these development to reverse.

The gross reality is that ‘orthodox’ approaches in economics have brought nothing but even more debt and inequality; underemployment and hard times that finally brought Mr. Trump who ‘has a quick solution’ to any problem: from underemployment and poverty to crime he ‘can fix’ it for a week or two, just entrust him with the Presidency!?

The Chinese economy is bettering others because of its ‘as it comes; as it goes’ approach that has been using any market tools to boost sectors or slow them down. The practicality and flexibility with which these economic tools can work in different economies differ, however the principles are the same: boost Small and Medium Enterprises and Investors under a stable market competition environment: prompt environmentally friendly industries to save Earth, boost consumption but not by blind industrialization and pollution!

The 21st Century has brought exogenous and endogenous forces unknown and powerful with the Globalization and rising Productivity: if these forces are properly used the global market development may eliminate pollution, poverty, and bring stability!

Joshua Ioji Konov, Sep 2016


About Joshua Ioji Konov
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