Governing in Market Economics


The theory of Orthodox Economics makes government either accomplices to shady business environment as per pure Capitalism or an alternative employer, business incubator as per Social Capitalism taking some of the functions of an economic competition. The self-adjusting theory is suppose to help reduce redundancies from the business and governments alike with its final target more competitive overall economy that establish the right conditions: less debt, less bureaucracy, less expenses on government spending to boost investment, business, productivity that finally had proven through centuries to improve living standard, economic power, growth. That’s how the theory goes: a pro-supply economy needs easy business environment to make startups easy, private entrepreneurs supported by trickle down capital would create enough business to employ, improve infrastructure, stabilize fiscal reserves, then ensure some social expenses, pensions, basic education. When an economy goes into down turn, the government expenditures, regulation, employment must be reduced, as mentioned before, to kicks off investment, business, productivity; thus it goes on and on. The dialectic spiralis of such economics should go upward with short downslopes of self-adjusting. 

The right role of a government and the International Finance Institutions in a Market Economics should be an ‘invisible hand’ along with investors: national or foreign; the principles of how a market/economy is organized compiles of Market Agents: strict laws in business, unlimited corporate liability, enhanced and strict environmental, consumer protection, labor, insurance, bonding laws – laws that will create market conditions for competition, boost business activities, increase demand, alleviate poverty, establish middle class; why in the developed markets the governments are the ‘invisible hand’ to succeed Market Development in the poorly organized countries lacking capital the International Finance Institutions through Commercial Banks, Transnational Corporations must target environmentally friendly market developments by separating economics, economies from politics; thus corruption, disorganization, mismanagement do not overrun targeted Market Leaps as it has been experienced. Economic policies must be separated from politics by requiring the implementation of the Market Agents into the market, economies structure: the Rule of Laws in Business! Market Economics in its fundamentals is full implemented Market Agents that raise its Market Security: lend-ability, marginalized advantages of the Big Business and Investors to the Small to Medium Businesses and Investors, marginalizing the advantages most developed markets, countries, economies hold to the developing, underdeveloped, undeveloped markets, countries, economies. However, the big businesses, investors, the most developed markets would play substantial role in the process of market development that will benefit them substantially giving to them even further boost as manufacturing, market, educational, technological, Internet hubs. 

What the Market Economics does is kicking off environmentally friendly business,  employment, consumption, demand, alleviation of poverty by using the globalization and rising productivity to offset inflationary forces. 

To succeed Market Development the market agents are implemented as a compulsory but the market tools are used on an ‘as it comes; as it goes’ approach: used flexibly in synchrony with  the individual market specifications; the Market Tools are the Quantitative Easing, Market Leaps, targeted Subsidies, low interest Lending, Fiscal, Monetary Policies, International and National Investment, Social (including education, pensions, social security, Medicare) and Infrastructural Expenses. The major difference between Market Economics and the Orthodox Economics is the in the usage of such Market Tools not based on political ideas but on purely economic, data, situation. (as an example: if  a market, economy needs to be balanced by expanding Social Expenses, Fiscal, Monetary means to boost consumption, demand the Social Tool as a Market Tool must be used indiscriminately, the other way around goes the same: if the Social Expenses boost inflation counter measures may include not further expanding such, or even reducing some).

Market Economics is using the most enhanced developments in economics, the globalization, the rising productivity to boost business, employment, fiscal reserves in the individual markets, countries through using Market Tools pinned to the Inflation/Deflation variances. Whereas, the Orthodox Economics bases economic growth purely on budget, investment, productivity, self-adjusting approaches pinned to Debt/Deficit. What makes Market Economic possible are the mostly exogenous forces of the Globalization and rising Productivity that offset Inflationary forces; the Market Economics is artificially adjusted on Macroeconomic level, and self-adjusting on Microeconomic level. How is it possible to split Macro and Micro economic levels is by implementing the Market Agents that create unifying market condition for working economics – micro market level independency, competition, self-adjusting. The Market Tools are to be used as parameters in a very complex market environment to either boost business activities on a sectors based approach. The Game Theory may not work in such situations because of the high complexity exogenous forces prompted by the globalization and rising productivity. 

The necessity to find new approaches in economics to handle the 21st Century economy is aggregated by the weighing Global Warming that requires immediate action to protect Earth Environment – the EU most developed countries, China, the US and a few other like Morocco have taken actions to clean environment by using more and more green energies, however, the most polluted cities, countries are not the most developed once but those using old vehicles, mass fossil fuels, wood for heating, the improperly disposed garbage The sources of current pollution lays into widespread poverty, underdevelopment; thus the only conceivable way to reduce, eliminate it goes through the poverty alleviation by not using uncontrolled industrialization, even though by using the improving technologies the widespread industrialization is not probable at all, the robotization, the improving corporate organization, the over all high productivity reduce any possibility for such; however, the shady business laws, the corrupted governments, the need for employment opens the doors for any possible pollution in these developing markets, countries. From any prospective the Earth protection and cleaning is paramount therefore the Market Economics take Environmental Protection, Poverty Alleviation as targets overwriting budgetary constrains – Debt, Deficit, the lack of Capital must not stop Market Economics from actively pushing Market Development so the Global Poverty is alleviated thus the Earth Environmental Protection is accomplished. But these developments are implemented through market competition, preserving individual freedoms, relying on private enterprises not on the governments take over. 

The most developed economies will have to expand Social and Infrastructural expanses much further than it has been accepted to keep market balance in tact: the accelerated business activity are the only alternative to it, and such must be targeted by Stimulus, Lending, Fiscal, Monetary sectoral policies; the Quantitative Easing to become a supportive tools to supply the needed capital; what comes first is not the Capital but the Development, employment, business activities; the Inflation is only indicator that must be taken to limit or expand the active market tools.

Debt, Deficit is the ruling Orthodox Economics indicator – Inflation, Deflation is the ruling Market Economics indicator!

The Investment, Capital is becoming less secure more like current Stock Exchanges, even though the Market Risk is very much limited by the high Market Security succeeded by the implementation of the Market Agents. In the overall market development the volatility on a macro level could be only adjusted by using the Market Tools one way or another as Parameters. The value of investment, capital is not to change the idea that only investment, capital means growth, development must change, however, because the unorthodox tools of accelerating market development such as quantitative easing, SDR, stimulus do not rely on investment, capital only. The unorthodox market tools are necessary to boost enough business, employment, social expenses to succeed alleviation of poverty, consistent market development. 

The International Accounting System has to accommodate all orthodox and unorthodox market tools moving to an Accrual Accounting – the investment, capital, capitalization must be taken in their relation to Market Development, and it must be done Globally. Private Investment, Capital brings Return on Investment that comes with the risk; it should be no such thing as protected by the governments, International Finance Institutions investment whereas they pursue borrowers, impose sanctions, require austerity measures – the role of the governments, international finance institutions is to ensure the Market Agents are fully implemented, and all participants play by its rules that are very simple: the Rule of Law in Business. 

Joshua Ioji Konov 2017

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The Imperialism of Economics


The Imperialism of Economics (or as far you are ok I will sell my stuff to you)

By Joshua Konov, 2011

The European Union was founded as an innovation for unity of many old archenemies in Europe, Brittan  against France, France against Germany, and Germany against everyone else…  After the Second World War two main conclusions were made, the first was that by the means of war nothing could be solved while the weapons were too sophisticated and powerful that basically can destroy anything on their way, and the second was that the imperialism is more like liability than equity in terms of economic advanced occupying someone’s countries can bring more headaches than they would gain indeed.  Then the Europeans decided to join together into a market and currency union instead…, and they did the European Union (EU), then the Soviet block disintegrated and more countries like Poland, Latvia, Latvia, and etc. joined the Union too, then most recently Romania and Bulgaria did. Some of the European Union countries adopted the Euro as their currency, other retained their old currencies however pegged the Euro directly like many or indirectly like the Pound. Long trusting governments and bureaucracy the Europeans established in Brussels political institutions which in parallel with the national governments should draw the EU into closest union: political and economic. The doors for the large manufacturers, wholesalers and retailers mostly German corporations for a no customs duty open marketplace were wide open. The doors for Europeans’ freedom to move through their borders, to find opportunities, i.d. was wide open too. However, what they did not do was the export of the successes in consumer protection, standard of life, pensions, i.d. of Germany and mostly of the Northern most developed Countries of Dania, Sweden, and of France. The bureaucratic  approaches these more developed countries used to help less developed ones have been through subsidizing particular industries, farming and some infrastructure by using governmental structures of highly complex procedures (as an example: more than 75% of all agricultural subsidies went to the 10% of large farmers who basically did not need any such subsidies to be competitive), the many scams of fraudulent return of so called VAT (Value Added Tax) have been so well developed in EU that counted for billions of dollars loss in fiscal reserves (see VALUE-ADDED TAX FRAUD IN THE EUROPEAN UNION).

 

The bureaucracy has been adopted very well by some countries like Greece that manipulated such programs to raise its own standard of life, and to create a very large bureaucratic machine itself. Others like Bulgaria could not adopt at all under these new conditions not being able to sustain even its market development inherited from the communist time, However the large Transnational Corporations (TC) were already prepared for such open marketplace and have taken over it in a blink of an eye, becoming the rulers of this universe. They the TC on a side the criminal bosses in the world of the post communist era benefited the most from the corrupted governments in the less developed countries signing questionable contracts… (example is the interest rates in Bulgaria where banks are lending over 12% up to 18% to individuals and businesses alike, the wireless mobile phone providers are maintaining the highest rates in Europe and the most restrictive costumer policies elsewhere, the energy wholesalers that are keeping relatively highest prices too, and all of these in a country with no costumer protection, in which first residence could be foreclosed in two months).

 

On top of all of these, the semi legal privatization done by some of less developed countries allowed robbery in the mid day by those with the money, guess who were those? (example is the privatization of 120 hotels in Bulgaria previously owned by a state own company “Balkanturist” to a criminal founded company owned by Iliya Pavlov (murdered) for less than 20M while the appraised value was 3+ billion dollars, or many banks in Bulgaria, Romania and elsewhere that were acquired by Societe Generale and others far under their nominal values..)

 

The European Union basically allowed Transnational Corporations and criminal bosses to take assets in many member and satellite countries in a ways not too far from the methods of imperialism used before the Second War…, thus the consequences of their actions do not differ from these of the old Empires… no development, no progress, no good to the people of these less developed countries, hence, the lack of fairness in market competition and the boost of bureaucratic crime brought market conditions of the neo-liberalism in its full force, that  seemingly reflects what happen to the European Union most recently. The even further disadvantage European Union was presented under the new globalized world and rising productivity in where the lack of well developed marketplace to support the most Developed Germany and France’s production competing to China, Japan and the Unites States… (see Market Economics by Using Quantum Factor) reflects the crisis ongoing in EU.

 

To change the situation in European Union some general macro and micro economic policies should be adopted, and of consumer protection and fair market competition while the bureaucracy should be reduced indeed, the subsidies should not go to the rich but to the Small and Medium Enterprises. Governmental bureaucracy channel should not be used instead only Commercial banks. The European Union should be a real union of most developed prompting fairness in market competition.