our modern society is built upon debt.
In general terms, I think that debt and expenses are recognized as something that is bad. But, are debt and expenses really something bad? We should not forget that our modern society is built upon debt. The reason for this is because debt is the essence of money.
Becoming familiar with the efficacy of debt, without making debt into a villain, is something that should be asked of our policy makers.
The key points of the money economy are debt and expenses. When debt is condemned as something bad, the economy loses its vitality because expenses are reduced. Expenses are generated when we try to maintain the economy. Excessively reducing expenses promotes an unmanned economy. Personal income is the essence of expenses. A reduction of expenses indirectly leads to a reduction of personal income.
Whatever we want to make of it - inflation or deflation - the economy that appears on the surface of the market is a monetary phenomenon. However, money is not the only driving mechanism that moves the economy. Industrial goods and people play leading roles in the economy. In other words, the main functions of the economy are production and distribution. The workings of "money" are merely incidental.
Taking housing as an example, the role of economic mechanisms is to provide a better living environment for residents, and improving the economy and making money are not the primary purposes. Improving the economy and making money are purposes of secondary importance. As consumers are in need of housing in order to improve the economy and to make money, it is like putting the cart before the horse when we are no longer able to provide the very houses that consumers need.
The mechanisms of the economy are driven by the vibrations caused by the surplus and shortage of "money." Individual economic entities are driven by the inflow and outflow of "money."
The mechanisms of the economy using money as the motive power are driven by the inflow and outflow of money. Therefore, the movement of the economy is measured by the pre-balance, outflow, and post-balance.
To successfully maintain the workings of the economic mechanisms, it is necessary to control the inflow and outflow of "money".
"Money" is supplied to the economy mainly by lending and borrowing, and it is utilized by buying and selling.
Lending and borrowing form the stock part, and buying and selling form the flow part.
Stock indicates the amount of payment preparation, and flow represents the amount of work that money is doing.
The width and period of the amplitude caused by the inflow and outflow of "money" are important to the workings of "money." The amplitude due to the outflow of "money" can be understood by measuring the amount of lending and borrowing, and the amount of buying and selling of "money".
In order to measure the workings of "money," it is necessary to measure the width of the surplus and shortage of "money."
However, since the sum of the surplus and shortage of "money" is set to a zero sum, the sum of the workings of the inflow and outflow of "money" in the overall market would be eliminated.
Therefore, periodic profit and loss is how we try to control the workings of "money" by specifying a unit period of time and measuring the flow and stock of "money" for the period.
We need to be careful about what is set to a zero sum and what is not set to a zero sum. Profits are not set to a zero sum. When profits are set to a zero sum, the overall workings would be eliminated.
A pressure works trying to balance the part that is set to a zero sum. This pressure works trying to make profits zero as much as possible. And this puts a damper on the vitality of the economy.
I believe the source of economic policy lies in urban planning.
And underlying urban planning are ideas.
What will be placed in the center of a city? And what should the functions of the city be? How the urban planning is done will depend on these points.
Ideas are what determine what is placed in the center of the city and what the functions of the city should be.
That is why urban planning is rooted in ideas. The way urban planning is done shapes the political system of the city. Therefore, urban planning is also a matter of life and death for the city's residents.
The living environment also regulates people's lives. Residents are subject to the constraints of the environment they are born in, and where they live and die. Anyone who reacts by saying that this is obvious is not aware that they are being dominated by the way their environment actually is.
And that is why people are unwittingly being dominated by urban planning.
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