The essence of an economy lies in how to increase productive costs.


The essence of an economy lies in how to increase productive costs.
The point here is utility, as well as added value. First of all, economic growth means an increase in added value. You must remember that the cost reductions that are currently being implemented mean reductions of added value.
What this means is that the problems of the economy can be reduced to two points: the distribution of added value and the increase and decrease of the total volume.

Although the total volume has not changed, there is a difference in distribution, and in a modern economy it often happens that this changes the workings of the entire economy.
An economy can not be understood only by paying attention to its individual aspects. This is because an economy is a distribution mechanism, and distribution can not be understand unless you look at its overall state and the workings of the parts together.

If we are assuming that the economy will grow, we must not forget that cost reductions alone can suppress economic growth.

Assuming no changes in population, or in the volume of goods produced and consumed, prices will depend on the volume of money. To be sure, if we are only looking at things superficially, it can be said that the economy is a purely monetary phenomenon.
However, population numbers and consumption volume and production volume are all constantly changing, so we can not conclude that the economy simply involves monetary phenomena.
Although the economy essentially comprises problems that must be reduced to population numbers and consumption volume and production volume, the economies of today are affected by monetary phenomena. In extreme cases, we are trying to understand the economy only through the movement of money. In doing so, we are misunderstanding the essence of the economy.

Current economics has become an academic study that treats symptoms. And for this reason, fundamental measures can not be taken.

The scale of the economy is restricted by people and things, not by money.
This is because money is a numerical entity that has no substance and is infinite. On the other hand, people and things do have entities and they are finite. For this reason, the real conditions that constrain the market scale are formed by people and things.
Money can be quantified only in monetary units. But, on the other hand, people and things possess both quantity and quality. As such, the real economy has mass and density.

It is necessary to understand this density in order to understand the essence of the economy.

Density is involved deeply in economic value. Thus, if we can only grasp the economy in two dimensions as at present, we can not grasp a full picture of the economy. Also, we will not be able to apply physics.
If density has a deep involvement in economic phenomena, it can be said that economic phenomena are rather like statistical thermodynamic phenomena.

A characteristic of the modern economy is that the production areas and consumption areas are separated by a deep social division of labor. Together with this, workplaces and living spaces formed in separate places, and markets and monetary systems formed to fill in those gaps and distances.
And disagreements in regional productivity and consumption will create disparities between regions.
The population is the basis of labor and consumption. And labor is a resource for production, and consumption is the basis of living.
While the population is the foundation of both production and consumption, distortions occur between the population that is doing the work of production and the population that is doing the consuming, and this is the cause of disparities between people.
It is better to seek a balance between labor and distribution, and originally, this is the way the economy was.

Therefore, distribution and bias are important factors. The significance of statistics is to discover and rectify distribution and bias.




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