What is good? What is evil?
Good people are persecuted, while evil ones are protected.
There are times when I want to ask God why this is so.
But, after all, this is a human issue.
When we seek an answer from God, God transcends issues of what is right or wrong.
In God, neither good nor evil exists.
What there is, is the sins of people.
Each one of us must accept the just rewards for our deeds.
If that is so, then we will have to figure out the answers by ourselves.
Everyone must do this — from the wealthy, poor, saints, dictators to prophets —everyone alike.
No one can escape from the sufferings in the cycle of birth, illness, old age and death.
The circulation of money can be likened to the circulation of water.
Rain falls upon the land, flows as rivers, and eventually flows into the oceans. This water that has flowed into the oceans will also spring up as clouds and rain again upon the land. This circulation of water moistens the land and nurtures many plants.
However, lands are not uniform. There are deserts as well as jungles. There are also lands that are composed of ice. These differences occur because the amount of rain and the periods of rain are not uniform.
Similarly, the circulation of funds is not uniform. This lack of uniformity is the reason why there are barren lands where it does not rain, and abundant lands that are blessed with water resources.
Water sometimes turns into floods or tsunamis and sweeps everything away.
The use of water has crystallized the many years of human knowledge. Just as is difficult to control the flow of water, it is also difficult to control the flow of money.
If left unattended, money will not be uniformly circulated.
Money does not reach equilibrium naturally. There are markets that are like deserts, and there are markets that are like jungles. We cannot expect to receive benefits if we do not make the best use of money just as we do when using water.
GDP represents added value in the overall economy. The added value of funds becomes a remaining balance item formed by the excesses or shortages of funds that arise from transactions between sectors.
This represents one aspect of the nature of the economy.
The flow of funds as represented by GDP are tracked through stages from production, intermediate consumption, to final consumption. The funds flow between sectors. Therefore, the flow and functioning of funds can be analyzed by looking at the equilibrium between sectors for each stage.
With respect to cash flow, added value is operating cash flow.
The meaning of GDP lies in added value. On the other hand, it can be said that the multiple aspects of added value are represented by a three-sided equivalence.
For instance, it can be said that the difference between the direct method of operating cash flow and the indirect method represents the production side of GDP and income (or distribution). However, there is no side for expenditure. That poses a problem in the analysis of business. The part that relates to expenditure is the part that relates to investment cash flow and financial cash flow.
Added value forms a flow as a time value. Added value is a reflection of stock at the same time. The individual elements that comprise added value are linked to some sort of stock.
The connection with that stock is first of all important. Therefore, with added value, the equilibrium of the horizontal ratio and correlative ratio determines the functioning and character of the individual elements. And the mechanisms of added value control the mechanisms of the economy.
Profit is based on the market, and the profit rate is expressed with revenue as the denominator is an important index. Interest rates are expressed with debt as the denominator. Depreciation expenses are expressed with assets as the denominator. Income is expressed as the labor ratio with gross profits as the denominator. Taxes are expressed as a tax rate with taxable income as the denominator.
What one needs to be careful about is the fact that long-term funds are at work behind the depreciation.
And the relationship of the functioning of each element is expressed as a ratio of added value.
Therefore, the functioning of the economy will become visible depending on the relationship between the denominator and the ratio of added value.
In addition, added value is also influenced by the relationships between sectors. For example, personnel expenses are related to households, interest rates are related to finance, and taxes are related to fiscal issues.
The functioning and character of added value will change depending on the state of the market, environment, stage of economic development, etc.
During a high-growth period the harmony in a market is maintained by promoting vertical expansion through the horizontal expansion of the market. However, when the market becomes saturated and horizontal expansion cannot be expected, added value changes from quantitative to qualitative expansion, and the density needs to be harmonized.
When a market becomes saturated, forced quantitative expansion will damage the very mechanisms of the economy. During Japan's period of rapid economic growth, there was room for secondary industries to absorb the excess of personnel that was brought about by technological innovations. As a result, those excess personnel from primary industries were absorbed by secondary industries and the production efficiency of the primary industries also increased. That created a virtuous circle that promoted the development of the tertiary industries. And that is a driving force for high growth. But the problem is one of disparity.
High economic growth creates disparities depending on the degree of growth. There are class disparities, regional disparities, national disparities, and industrial disparities. These disparities cause cracks throughout the world that are difficult to repair.
If these disparities widen and fall into a state where liquidation is not possible, the market will try to resolve the situation by violent means. These may include a depression, hyperinflation, financial collapse, revolution, or war.
It would be strange for managing a business or making a living to be possible without revenue or income. If it were not for revenue or income, from what would we derive our earnings. We are not self-sufficient, so we would have to borrow money or draw upon our savings. In either case, making a living is derived from stock. Stock is essentially the remaining balance.
Nothing is produced by borrowing money or withdrawing savings. There is no productivity in that.
Therefore, the utility of society will not increase. Beyond the utility of society, the amount of debt increases, and savings decrease. This sort of situation cannot be allowed to continue. In short, it is nothing more than just using money to make ends meet.
Roughly speaking, the balance is positional, or stored, energy.
Flow momentum, power and speed are determined by the size of the balance.
Flow is what makes recurring economic activities happen. Income and revenue are what makes up the recurring economic activities of managing a business and making a living. If you forget this point, the relationship between stock and flow will be strange.
National added value, that is, GDP, is what supports a country's recurring activities.
Income and revenue are what makes up the recurring economic activities of managing a business and making a living.
If you forget this point, the relationship between stock and flow will be strange.
Therein lies the strangeness of the current economy. It is improper that even though revenues in core businesses have not increased, it seems that profits are increasing in finance and speculation. It is the same as making a living by gambling without earning a living in a legitimate business. This cannot be considered decent. Although this cannot be considered decent, even the taxes cannot be sorted out.
It is no wonder that the economy is in decline. It is strange to make a living by borrowing or gambling.
The current economy is being managed only by finance and speculation.
In that case, we should first of all restore our lives and make a living through decent business.
Just as global environments are not equally uniform, global markets are not equally uniform. There are markets like jungles, and there are markets like deserts. Unless appropriate measures are set for each environment, funds will not circulate.