I do not need anything.
and not fame,
I do not need anything.
I only want to be faithful to God.
Economic policies are relative and objective. Deregulations are also relative and objective measures. These are not absolute principles.
Why are regulations eased? One reason is promote competition for the purpose of eliminating companies when enterprises are still standing in their early phase. The second is to encourage technological innovation when the market has stagnated, and growth has slowed The third is when vested interests are derived by regulations and surplus profits become excessive. Fourth, when the efficiency of an organization has declined and it gets bloated. A fifth reason is when mutual restraints do not work and self-cleaning functions have deteriorated. And a sixth is when the work becomes chronic, the organization becomes conservative, and it no longer accepts innovations. Or when it cannot cope with changes.
On the other hand, there are adverse effects of deregulation. One is that excessive competition intensifies and appropriate earnings cannot be obtained. Eventually prices become everything. Second, organizations will strive for only production efficiency, while neglecting distribution and working conditions, and employment. Third, standardization and equalization of employment continue to extremes. Fourth, there are no outlets for surplus personnel. Fifth, monopolies also become oligopolies. Sixth, monetary values are given priority. Seventh, the market is ruined. Eighth, efficiency and streamlining of organizations need to be maximized to extreme limits. Ninth, competitiveness is given priority above all else. Tenth, quantity is given priority over quality, and so on.
Therefore, when the market becomes mature, it will be impossible to control it under the same regulations as used during its growth phase, In other words, it is not just a matter of relaxing regulations in a haphazard way, it is also absurd to lose them altogether.
It really seems like a lie that all industries were once under restrictions due to fear of their becoming monopolies during the high growth period. As a result, petroleum, financial, and electricity industries are becoming oligopolies and monopolies.
It is ironic because it was competition fundamentalists who created this oligopoly/monopoly. That is because in a monopoly all competition is denied.
Let's not forget that the market was established by regulations. Some people hold to an illusion that there are no regulations, but that would mean lawlessness. As for sports, freedom is guaranteed when one follows the rules. That is why players of sports are required to have a law-abiding spirit.
The problem of whether regulations that no longer match the changes of the times, circumstances, and environment should be restructured, or eliminated altogether or just eased is an absurd argument.
Regulations have purposes, such as economic purposes. Or the purpose of maintaining safety. As well as the purpose of maintaining security. Or for defense purposes. As well as the purposes of protecting the rights of citizens, protecting the environment, and so on.
Among economic regulations, it is the Antitrust Law that seems to be the one most related to the functions of the market.
The Antitrust Law has two core concepts. One is literally a ban on monopolies and oligopolies. The other relates to dumping. And the primary factor that brought about regulations to the market is excessive competition.
The most harmful effect of excessive competition is the ruin of the market. First of all, the ruin of the market means a deterioration in the quality of goods and services. Second, it reduces the morale of salespeople. This is an issue of a moral hazard. Third, it causes a decline in the quality of labor. Fourth, the trend of the ends not justifying the means continues, and the environment changes to one that is easily conducive to fraud and crime. Fifth, a profit-centric philosophy takes hold, bringing about greed. Sixth, when the market trends in a certain direction, it is easily swept away. This is like not being afraid to jay walk at a red light if you are crossing the street with everyone else. A revenue-first philosophy was part of the Lehman bankruptcy and economic bubble, and it is said to have led to a decrease in the morale of sales people. Seventh, real work declines due to a decline in quality, and it becomes something akin to just going through the motions. Standardization of goods progresses. Eighth, in an oligopoly/monopoly, appropriate profits cannot be obtained. Trying to increase profits by increasing the scale to expand the turnover rate or sales volume will inevitably suppress profits. Mass production, mass sales, and mass consumption could also impair the original value of a product. In other words, when quantity is required more than quality, quality will decline and management will lose control. With excessive competition, deterioration tends to lead to a condition in which good money is pushed out.
Regulations are something likened to having a banquet dampened, but the crowd will not be able to control it if there is no one to keep an erratic banquet in check. Regardless, things that are regulated are disliked.
When a condition arises in which things cannot be regulated.
When a condition arises in which appropriate earnings cannot be maintained, it is necessary to regulate unlawful dumping.
There are cases in which a monopoly/oligopoly develops. In the past, the oil industry, the financial industry and the construction industry had been overly monitored for oligopoly/monopoly activities, yet an oligopoly developed unnoticed. The spirit of the Antitrust Law has fallen on deaf ears. This will take root for the future.
Some economic regulations are aimed at protecting industries. Protecting industries is not a norm for dissidents. However, if industries are protected by regulations, individual companies will have to defend their own interests on their own and, as a result, they become oppressive. This is a denial of the law and a lack of understanding that when control by legal means is denied it will be substituted by dominance through violent means.
If asset values decline and liquidity declines, some regulation is needed. The Lehman bankruptcy is a good example.
Rapid fluctuations in exchange rates can directly affect the business foundations of industry. The sharp appreciation of the yen following the Plaza Accord triggered an economic bubble and changed the nature of the Japanese economy thereafter.
Rapid fluctuations in interest rates, land prices and prices, as well as in foreign exchange, make the management of organizations unstable, especially the management of small and medium enterprises. In order to protect overtime from such fluctuations, regulations that temporarily suppress competition are required. Many companies that were in an unprotected condition after the collapse of Japan's economic bubble were weeded out for reasons other than their normal business practices.
Legal and institutional changes may temporarily pose a dilemma for corporate management. A good example is the collapse of the bubble economy.
Regulations may be required in the event of sudden changes due to a disaster such as an earthquake or flooding, accidents, terrorism, wars, and so on. A good example is the times when the oil crises and the Great East Japan Earthquake occurred
Risk is an inherent part of economic activity. Economic activity should be regulated if it is foreseen that the safety and security of citizens cannot be maintained due to fires, accidents, pollution, or for other reasons.
Regulations are necessary when the environment is significantly contaminated and it is likely that the health of the public will be impaired.
There are cases in which extreme disparities in the basic conditions of competitiveness hinder fair competition.
This also causes things like the export of poverty. The market of today is based on the assumption that it is open to the world. To achieve fair competition, the markets in each country must have the same conditions. Trying to put the same conditions in place would require shutting down the market.
Differences between nations are too great to be able to achieve fair competition in open markets. Too many factors of each country's market would require matching, and this includes the political system, the economic system, as well as religion, living standards, economic policies, foreign exchange system, monetary system, thought and educational standards. Therefore, even if some regulations were instituted, maintaining fair competition would be impossible unless some attempt were made to approach the same types of conditions as much as possible.
Some countries and regions achieve low wages due to poor working conditions. However, if it is not possible to directly improve the working conditions in a country, calling it exporting poverty may be inevitable.
Regulations are necessary to prevent bad working environments. There are also other differences among countries, such as safety regulations and approval procedures for medicines, and it would take much time to work out such differences. Unregulated conditions can develop into problems related to the independence of a nation.
Regulations are also required when there is a possibility that traditional technologies and knowledge cannot be maintained, or when they are likely to flow out of the country and end up abroad.
Some of these assets may have a critical impact on national defense. Japanese people today are too insensitive to this problem, it is also a factor that causes international and diplomatic problems.
There is a tendency to use the word "equality" rather freely, but not everything and anything that is the same can be said to be equal. Equality is the state in which humans originally existed. Thereafter, we now have individual differences, and national differences. Saying that everyone is the same is rather an expression of "inequality".
Children and young adults are different. Women and men are different. Countries in cold regions are different from countries in hot regions, and they have different foundations. Countries with resources are different from countries without them. When the structure is different, policies will also be different. Equality is not possible without acknowledging differences.
Equality begins by first recognizing differences.
Market equilibrium consists of four dimensions: horizontal equilibrium, vertical equilibrium, equilibrium between sectors, and temporal equilibrium.
What is important in the current account balance is to maintain horizontal equilibrium.
The market economy is driven by the excess or deficiency of funds among sectors. Basically, in the short term, the household sector and the private corporation sector alternate in turns between being a sector with fund excess or deficiency, and usually, the financial sector is in a neutral, or balanced, position, and when funds are supplied, the financial sector is adjusted and becomes a sector with a deficiency of funds. The financial sector works to keep periodic profit and loss (primary balance) in perspective. From the perspective of an international division of labor, overseas sectors make adjustments so that the current account balance and capital account balance are kept in balance. The financial sector exerts control to maintain a neutral position.
Deficits should not be defined absolutely as something bad. We should try to look closely at the relationship between funds and profit and loss.
The EU should consider introducing periodic profit and loss within the region. Otherwise, the poor will only get poorer. I think that the control within the region will be lost and lead to its break up.
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