Economic indicators are relative;
they are not absolute.
Economic indicators are relative; they are not absolute. There are no invariable
or universal economic indicators.
The economic circumstances in each particular country are not the same. The situation prevailing at any given time, geographical conditions, industrial structure, resources, population, standard of living, cultural level of the people, customs and manners, level of development, etc. are not constant.
It is not a matter of whether a deficit is right or wrong. What the deficit is premised upon is the issue. Depending on the premise, a deficit may differ between being right or wrong.
We cannot uniformly decide that a deficit is something bad, and that would be a dangerous thing to do.
A cash balance has a zero sum relationship. But profits are not zero sums.
The current account balance has a zero-sum in international markets.
The cash balances of households, finance, private companies, and the overseas sector are zero sums.
This is a logically self-evident matter.
Ignoring logically self-evident matters amounts to adopting a non-scientific attitude.
Saying that the current account balance of all countries should be profitable, or even that it is possible to make them profitable, is a non-scientific attitude.
And while such a non-scientific attitude may complicate the issue, it cannot improve it.
In other words, the economies of all countries, regions, and economic entities cannot be judged using uniform economic indicators. The preconditions of each are all different.
If we tried to make the current account balances of all countries profitable in all sectors, we would have to put an end to the cash excesses and shortages in all countries and all sectors.
That would mean equalizing all elements, and that would be unrealistic as it would deny the international division of labor.
Trying to make all countries profitable would mean unifying the economic behavior and direction of all countries, and that would send their economies out of control unidirectionally.
Dispersion and equilibrium are what is important in the economy, and the problem lies in the consistency between the working of individual sectors and the working of the overall economy.
Since there are circumstances specific to all countries and all sectors, economic problems cannot be solved unless it is assumed that the differences in their conditions exist.
Deficit in a current account balance is not just a problem for the country with the deficit. It is also a problem for a country with a surplus.
And it is not a problem that can be solved only in the country with the deficit. This is why solving it requires international negotiations between countries.
Individual indicators do not have any meaning unless they reflect the economic conditions and preconditions as well as the circumstances of the individual sectors of each country.
When the current account balance has a deficit it represents a condition, and does not represent ethical values.
Whether to consider that condition as being something right or something wrong is a matter of how the consistency of the overall condition of each individual country is being considered.
Currently the credit investigations of financial institutions are passive and conservative.
The economy cannot be improved, and industries and companies cannot be nurtured.
The passive and conservative evaluations are based upon past achievements.
When caught up in past achievements, one cannot generate future profits.
This does not lead to improvements in cost effectiveness. Only passive measures such as reducing expenses can be evaluated.
Fundamentally, unless it leads to improvements in revenue forecasts and profits, companies and industries cannot be nurtured. Eventually, it becomes speculation rather than investment.
Profits are merely an indicator. Basically, what do profits measure?
The issue is that profits are only a means of making money, and profits are only an indicator to protect the interests of investors.
This also affects the ethics of people who do accounting as a profession.
Just as a lawyer's mission is not for the sake of the law but for justice under the law, the mission of an accountant is not for the sake of accounting. We must not forget that this is a pointer to what makes up our businesses and societies.
This would seem to assume that financial institutions and business people are selfish and act only in their own self-interests.
There is no chance of success leaving the economy and politics to the clergy, philosophers and scholars. The reason for this is that the economy and politics are based upon reality.
The economy and politics are built upon rather ugly emotions like grudges, desire and vanity.
The economy is a reality; it is not an illusion.
The issue is not a matter of whether entry regulations are right or wrong. Economic regulations are relative, not absolute. Questioning whether they are right or wrong should be based upon on the market conditions and environment.
Economic policy is something relative, not absolute.
This is the reason why competition is necessary, and why monopolies and oligopolies should be avoided. Monopolies eventually spawn dictatorships.
Economic indicators exist to identify the things that people need to live. If people cannot get the information they need to live, there is no point in having economic indicators. Economic indicators are not criteria to be used to measure the performance of business operators.
The issue is that the purposes of the economy cannot be found only in productivity and money-making. The economy involves the activities needed for people to live, and the mechanisms of the economy are mechanisms that utilize people.
Assuming that people are able to live by working, giving work to people is an essential purpose of the economy.
Basically, what kind of country do we want to make of this country? What kind of society do we want to make for our society of the future? This means a clear idea of how we should live our lives.
Financiers and business people require integrity and a strong sense of mission.
In order to prevent excess capacity, excess debt, and excess employment, and to nurture sound industries, it is necessary to link cost effectiveness to financing.
Currently, business people and financiers are abasing themselves.
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