The economy encompasses the activities of people's lives.

All sciences and mathematics prove the existence of God. But scientists consider sciences and mathematics to be that which denies the existence of God or is in opposition to God. They have thus have repeated acts that tempt God.
Those who have no religious piety will be isolated forever.
Joining hands with people who deny God is blasphemy against God.

The most important problem of today’s economy is the absence of people. The economy is often said to be "people, goods and money," but the fact that people do not exist although there are goods and money makes the economy barren.

The economy encompasses the activities of people's lives. In an economy with no people, people cannot survive. An economy in which people cannot live has no meaning at all.
Today’s economy exists not for people but for goods and money.
In such an economy, people's lives will be sacrificed to produce goods, and people will be ruined for money.
If the efficiency of production increases but the efficiency of distribution decreases, that will be a meaningless situation.
A situation in which businesses make a profit but people cannot live happily will be what mistakes the means for the end.
The economy was originally based on harmony between people, goods and money. The economy works through attempts to maintain a balance in the movement of people, goods and money.
The economy is the very lives of the people, isn't it?

The economy of the people is composed of consumption, income and expenditure, and its fundamentals are labor and distribution.

The power that moves the economy is generated from distortion. The power of attempts to correct this distortion is what moves the economy.
If the distortion itself is denied, this power will not be exercised. The problem is the size and scale of the distortion. If the distortion is too great, the power it generates may destroy the mechanism.

Therefore, it is wrong to insist on abolishing all disparities by any means.

Zero sum means the law of conservation.
The power that moves the economy oscillates from a starting point of 0.
This oscillation causes currencies to circulate and moves the market.
For example, the total amount of economic transactions becomes a zero sum. In other words, the total of the value resulting from all transactions is zero. The problem lies the oscillation of the amount of monetary value produced by transactions because the oscillation represents the amount of currencies.
Consumption, income and expenditure have their own oscillations, too.

There are three types of expenditure: expenditure for survival, expenditure for society and expenditure for self-realization.
The character of expenditure is first classified into fixed expenditure and optional expenditure. Then it is also divided into regular and irregular expenditure. Finally, there is essential expenditure and expenditure for nonessentials.

These types and characters of expenditure form the type and character of consumption and of savings.
In addition, expenditure has cycles.
Expenditure has cycles and is classified by its cycles. The cycles of consumption include daily, weekly, monthly and yearly cycles as well as the life-long cycle of people’s lives.

There is not only one type of household expenditure, but rather several types according to the payment method. In addition, each type of expenditure has its own character.
For example, if we analyze household investment in a home purchase from the viewpoint of expenditure, one example is the purchase of a home by incurring debt. The second is the case of purchasing a home with savings, and the third is the case of continuing to rent a home instead of buying one.
In the first case, one borrows money first of all and then continues to repay a fixed amount of money for a fixed period of time. In the second example, one saves money in an optional amount for an optional period of time until one’s savings reach the amount required. In the last case, one continues to pay permanently an amount of money for rent. an amount that is subject to change.
This type of expenditure can be classified as consumption.
As discussed above, expenditure in the form of household investment has several types, and each type has its own character.
In the long run, debt and savings can be regarded as two sides of the same coin. From the viewpoint of expenditure, debt can be contrasted with a time deposit. They differ in that when incurring debt, one first receives the total amount of money from a financial institution and continues to repay the institution a fixed amount of money for a fixed period of time. On the other hand, a time deposit is a mechanism in which one receives the total amount of one’s savings after having continued to save a fixed amount of money for a fixed period of time. Another difference is that a debt must be repaid, but a time deposit is an option. In addition, with a debt, one can obtain the right to use and possess the goods in the beginning by receiving the total amount of money first of all.
This means that the right to own money is transformed into the right to own goods. While money has high liquidity, the liquidity of goods is low. Differences in the value of time are determined by the relative relationship between the rate of price increases and interest rates. The difference between a debt and savings is the difference between saving as money and saving as goods, and in any case, both debts and savings have the effect of adding monetary value to society. The monetary value of goods and the monetary value of money move independently. Differences between the monetary value of goods and the monetary value of money added to society work to stimulate business fluctuations.

Expenditure as described above is supported by stable income.
Income has its own cycles and is classified by its cycles. Income has daily, weekly, monthly and yearly cycles. Income is classified according to these cycles into daily wages, monthly wages, yearly wages, percentage payments, piecework payments, etc.
In any case, one can neither make any planned expenditure nor assume any debt without a stable income.
Now let’s look at the problems of employment. Employment problems include the form of employment, wage levels, wage structures, working conditions and unemployment.

The amount of regular expenditure and repayments of loans of businesses and government finances is fixed to some extent, but their income is not stable. In household budgets, too, a stable income only appears to be so, and in fact, self-employed people and those without steady jobs suffer instability once the economy becomes sluggish. If they lost their job, they no longer have any way to earn income. This is the potential and fundamental problem of the economy.

Considering the foregoing, it is evident that the impact of business fluctuations on fixed cost-based industries differs from the impact on variable cost-based industries. It is wrong to encourage competition at all times. Deregulation is no cure-all.

Economic transactions are conducted between two economic entities. Economic transactions affect both partners.
If there is an action in a given direction, there is always an action having the same strength in the opposite direction, that is, there are both actions and reactions at all times. This means that transactions are balanced.
Movements in two opposite directions have four types: lending and borrowing, selling and buying, paying and receiving, and giving and accepting. The movement of the economy refers to one of these four. In addition, the movements other than giving and accepting are related to money.

With these movements, either of two events occurs through transactions: the flow of goods in the direction opposite to the flow of currencies, which is known as a sales transaction, or the generation of credit and obligation in the same amount of the flow of currencies, which is known as a loan transaction.
For financial institutions, savings mean an increase in debt and the repayment of loans means a decrease in assets.
Without understanding this, one cannot hope to clear up the cause of a financial crisis. If financial institutions collect loans forcibly by reason of a deteriorated economy, it means that they reduce their assets. By contrast, if their saving deposits increase, it means that their debts increase. Reducing loans and increasing saving deposits will work to put pressure on the management of financial institutions.

What one has to know is the fact that the profits of financial institutions are brought about by interest rates rather than by loans. Loans are their assets. When loans are paid back, their assets are reduced. In addition, if as a result of loans being repaid their deposits increase, it means that they have an increase in debts. Further, if they operate their surplus funds on the asset market, that will cause a bubble economy.

It is often argued that government bonds are the state's debts, but one must not forget the fact that from the standpoint of government bond buyers, bond purchases work in the same way as saving money. In other words, the purchase of government bonds can be regarded as a type of savings.

What should be noted then as being important for the entire society are the ratios of consumption and the amount of debt service and savings to expenditure and consumption, and the amount of debt service and savings to the total for each management entity (households, government finances, businesses and overseas subsidiaries).

Unless the government determines its objectives clearly, its finances tend to become rigid through the actions of various interests and vested rights.
Financial income is known as state revenues, and financial expenses are known as state expenditure.
State expenditure is divided into regular expenditure and temporary expenditure. Temporary expenditure encompasses investment and special expenditure. Investment is covered by revenues whereas special expenditure is met by savings. If the government is unable to meet its regular expenditure, its financial deficit will accumulate.
Temporary expenditure is expenditure of a temporary nature and will transform the framework of finances in some cases. Special expenditure may change the dimension of finances, and such expenditure will be required in the event of such occurrences as a war or a disaster.

Financial deficits are caused by the fact that investments and expenses are not divided clearly. In other words, it cannot be determined whether profit has been earned or not because no periodical accounting of profits and losses has been done.
Businesses can liquidate but the state cannot.

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