What is it that we are really seeking in the mechanisms of the economy?
All in all, just what is it that we are really seeking in the mechanisms of the economy? Actually, it is not at all clear what we require from the mechanisms of the economy. Before we knew what we were looking for, and before we realized what was happening, money began working on its own, and we got swayed by money, even controlled by it, and it is like we are living just for the sake of money itself. Money is a means to live our lives. The mechanisms of the economy are mechanisms to activate people.
When people are sacrificing their lives for the sake of money, they are getting their priorities all wrong.
What is required from the mechanisms of the economy is, first of all what people want from them. What people want from the economy is to be able to live their lives with peace of mind. After that, the next thing people want is to have their dreams come true. In short, what people want from the mechanisms of the economy is to make them happy.
Living does not mean being hounded by the cares of day-to-day life, but being able to have a long-term outlook. When people are anxious about their future, they cannot maintain stable lives. Stability is the basis for peace of mind. With regard to income and revenue, this means maintaining regular jobs and fixed income. When fixed income is guaranteed, people can borrow money with confidence. And even the lenders of that money can secure their future revenue.
In a basic material sense, first of all this means just being able to live. And after the basics are satisfied, what people want is to be able to live better and abundant lives.
The things necessary for living are clothing, food and shelter. And food is the main necessity. Food is the most important thing in the wild. Wild animals have no need for clothing, and many animals don't need to have nests. But without food, animals would suffer immediate extinction. Animals are classified by what they eat. Put another way, food is at the core of the economy.
If we can, we want to produce all of the resources we need to live. In other words, being self-sufficient is the ideal situation. But few countries are completely self-sufficient today. The reason for this is that products have a bias with respect to space and time.
Many of the causes of hunger are related to problems of distribution. Since there are uneven amounts of food being produced, as well as limits to storage, it will not be possible to equalize the inventories if trade is interrupted.
In other words, the key to the economy is food, and the characteristics of food. Food is something that is consumed every day. People cannot live if they run out of food. There are foods that can be stored and foods that cannot be stored. Therein lies the difference between staple foods and secondary foods. The amount of food that is produced varies depending on weather and environmental conditions. In addition, the amount of food that is produced depends on geographic conditions. Foods are influenced by people's tastes, customs and culture.
First of all, it is necessary to always maintain a supply of fresh food. At the same time, the economy is required to equalize food inventories.
Another important point is that there must be an abundance of goods produced.
This leads to mass production. And mass production encourages the uniformity of products.
The problem is how to distribute the goods that are produced and how to allot them. Here is where the market and money come into play. In other words, distribution is created by the market and money. This is a market economy.
And the environment of the economy changes when the market and money play a role in distribution. People cannot live without money. People cannot do anything without money. People are controlled by money.
How could the market be filled with money and how could money be circulated to every quarter of society? This is where the tax systems have worked decisively.
The market, money, and taxes are inextricably linked together.
The important thing is to always keep money circulating in the market. Therefore, a time value was incorporated into the workings of money. That is interest and profit, or an added value.
This added value is the force that is driving the circulation of money.
What is required of the mechanisms of the economy, first of all, is to procure or produce the things that people need to live. Second, is to provide the things that people need to live to the people who need them, and to provide as much of those things as the people need. Third, is to build social capital such as roads. Fourth, is to build means of production such as fields, fishing boats, and factory equipment. Fifth, is to create means of consumption such as housing. Sixth, is to adjust the production to meet the demand. Seventh, is to supply money to the market. Eighth, is to allot money evenly to all consumers according to their work. Ninth, is to circulate money in the market. Tenth, is to make money available where there is a shortage of money.
The problem of the market economy of today is the divergence between the real economy of people and things and the nominal economy created by money. Money formed stock, and stock generated capital. Capital has brought about the leap into a modern economy, but at the same time, it has brought about many side effects.
Information networks are about to change the market of today. However, the market economy will be distorted significantly if we properly understand that the market is a place for distribution but cannot incorporate it into the systems of the economy. And at that time the market economy will crumble from its foundations. If information networks establish new mechanisms of distribution, then humanity will enter a new era.
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