Some economic phenomena are caused by recognition, because economic phenomena are based on recognition.

What matters are the preconditions. Today is different from the Great Depression era. We cannot accurately analyze things if we look into them based on the same preconditions of that time.
Firstly, the monetary systems are different. Production capacity, information technology, and infrastructure are also considerably different. Also, international situations and market environments are different. Given the many differences in their preconditions, it is absurd to discuss economic phenomena based on the same preconditions.

What changed? What triggered that change? And how did it change?
Was the event that triggered the change a result or a cause? It may have important implications.

The debit side, which is the positive part, means fund operations, while the credit side, which is the negative part, means fund procurement and assumes the role of money supply. Therefore, the negative aspect itself does not in and of itself mean a bad thing, but rather its scale is what matters.
This holds true not only in corporate accounting but also for public finance.

Why do debts increase, including in the public finance sector? You cannot prevent an increase in debts, unless you understand the mechanism. In order to do so, you should not consider debts merely as villains. Instead, you should understand the true roles of debts and utilize them more positively and actively.
The possible causes for an increase in debts may be increasing assets, raising working capital, or accruing losses.

A money economy is a system in which manufactured goods are distributed to people through the medium of money. There are three types of economic quantities: number of people, amount of materials, and quantity of money. Therefore, economic units are relative units depending on the definition of the unit being applied to a given subject.
That is, revenue per capita, production per capita, consumption per capita, or supply per capita.
The basic elements are: manufactured goods, labor, and distribution; gross production, gross income, and overall consumption; and the quantity of money corresponding to each of them.
Appropriate planning in a statistical format is important, including setting the scale, average values, dispersion, median values and so on.
In the economy, what matters is whether income per capita has been maintained or not. This does not mean equalizing income per capita, but if income distribution is extremely uneven, distribution of wealth or circulation of money could be upset. For example, once an industry has become commoditized, revenue from it decreases.

As for national bonds and money, there is no use making a fuss about their quantities. Such discussion does not result in any solutions, unless appropriate quantities are provided.

We buy goods and services and pay for them with paper currency or metallic currency. We do not use them in any distinctive manner. The point is which is more convenient for carrying or paying. Also, we somehow feel that paper is a high-value currency and metallic currency is low-value.

Different from real money, paper currency does not have such commensurate value itself. Thus, paper currency is associated with obligation upon issuance.
On the other hand, metallic currency is issued by governments and is real money. Thus, metallic currency is not associated with obligation upon issuance, but has a characteristic in that it stays longer in markets, i.e., it is difficult to recover it.
The difference between paper currency and metallic currency has important implications when considering public finance. Although they are collectively called money, there are various kinds of each, and each has a slightly different role. The ratio of issuance of paper currency to metallic currency also has important implications.

Money is supplied through public investments (social overhead capital, national defense, and government expenses).

Money is supplied in the form of paper currency secured by national bonds or in the form of metallic currency which is real money. Then money is converted to assets through public investments, and is returned to investors as revenue in the course of the conversion. Revenue is allocated to profits and expenses, and expenses are charged to revenue. Through this process, money starts circulating.
You should not forget that, in periodical profit and loss, the circulation of money is basically expressed by revenue and expenses. In other words, revenue and expenses express the relationship of the movement of cash to wealth during a unit period.

When based on the principle of periodic profit and loss, elements caused by the actions of money are classified into five categories: assets, debts, capital, expenses, and revenue.

In the private sector, funds are procured in the form of borrowed money, capital, or profits, and are then recovered in the form of revenue through assets, and are distributed in the form of expenses.
Revenue is broken down into purchasing cost, labor cost, expenses, amortization expense, and profits.
The principal of the borrowed money is paid back using amortization expense and profits. If profits and amortization expense run short, the amount of borrowed money increases.

Profits are allocated to tax, dividends, principal of long-term loans, and compensation. Among expenses, amortization expense is appropriated for paying the principal of the borrowed money.

When based on the principle of periodic profit and loss, the public finance sector operates the same as the above.
The public finance sector and the private sector, however, have different components forming individual elements.
For example, revenue in the public finance sector is comprised of tax revenue and operating revenue.

Many taxes comprising the taxation system are collected once in a tax period, except for some taxes based on unit periods. That means, for taxation, there is basically only one turnover time. This is different from operating revenue.

Revenue depends on amounts and turnover times.
There is a limit to increasing national revenue through tax revenue since many taxes are collected only once in a tax period. In order to increase national revenue, we should think of either introducing some taxation systems with more turnover times or increasing the ratio of operating revenue.

For private sector financial institutions, public institutions should be the most reliable loan customers provided, however, that such public projects can be recognized as business enterprises.

In the case of the problems in Greece, the government faced a strong reaction after trying to introduce private sector capital for financial reconstruction.

For private sector financial institutions, public institutions should be the most reliable loan customers provided, however, that such public projects can be recognized as business enterprises. Private sector financial institutions are reluctant to make loans since these public projects cannot be recognized as business enterprises.

When based on the principle of periodic profit and loss, elements caused by actions of money are classified into five categories: assets, debts, capital, expenses, and revenue.

Money is supplied in the form of paper currency secured by national bonds or of metallic currency which is real money. Then money is converted to assets through public investments, and is returned to investors as revenue in the course of the conversion. Revenue is allocated to profits and expenses, and expenses are charged to revenue. Through this process, money starts circulating.
You should not forget that, in periodical profit and loss, the circulation of money is basically expressed by revenue and expenses. In other words, revenue and expenses express the relationship of the movement of cash to wealth during a unit period.

In addition, the balance between income and supply is the key to stabilizing the economy. An appropriate balance and dispersion of income distribution are important. Economic units are used to measure these factors.

The condition of the economy depends on the states of income and supply. The condition of people’s lives depends on factors related to income such as uneven distribution, dispersion, average value, scale, and disparity. The condition of the economy depends on factors such as the composition or the securing of absolute quantities in the supply of manufactured goods. The condition of the economy also depends on the quantity of money that links these factors through its exchange.
At the basis of all of this lies revenue. If revenue decreases, you cannot secure the necessary expenses and profits.

For example, once an industry has become commoditized, revenue from it decreases. As an industry continues to mature, room for innovation decreases and this leads to commoditization. If an industry has already become commoditized but unprincipled competition continues, this results in decreased profitability as well as oligopoly or monopoly. In order to prevent these problems, we require some kind of regulations.

At present, the objective of accounting is recognized as reporting the state of a business to its stakeholders and monitoring it. The primary strength, however, of accounting is displayed when it coordinates and harmonizes the actions of people, goods, and money.
The economy smoothly functions when people, goods, and money act in harmony. People represent desire, i.e., demand. Goods represent production. Money represents the medium of exchange. What matters is the scale of each of them.
In other words, when demand, supply, and quantity of money are in harmony, the economy is stabilized. Demand tends to get unbalanced. So do supply and money. Accounting exists as a means to correct such imbalances.

Demand is expressed as a function of people. Behind demand, consumption comes first and labor comes second. They are linked to money by expenditure and income.
Supply is expressed as a function of goods. Behind supply, production comes first and distribution comes second. They are linked to money by investment and earnings.

Accounting is a function composed of people, goods, and money.