Production Economics and Marketism©

Quantum Economics-Philosophy of the Economy

Production (only) based economics tighten its monetary policies and financing guidelines
on economic indicators concerning growth in production (could be agricultural, industrial
and partially services). Thus it (production based economics) curtails inflation by
preventing economies from harmfully over-expanding monetary supplies. Production
based economics are all currently used systems: radical capitalistic (like US, Japan),
socio capitalistic (EU, China) and anybody else cracking in between, and communist
(Cuba, Venezuela). The World Bank, IMF and WTO (lenders-which capital quantities
are coming from the developed capital markets of the developed countries of US, EU,
and now China) are establishments promoted and controlled following the ways of
production based economics; these establishments’ policies and lending matrix require
tight deficit and budgetary control over borrowers mostly less developed countries and
markets; lending is done on relatively high interest rates and borrowers are watched
closely, their budgetary policies are scrutinized, and thus controlled on a daily basis so
borrowers are prevented from wrongfully overextending their budget (social,
infrastructural, etc. expenses; the usage of Internet has helped lenders to tighten control
over borrowers therefore the countries borrowers have much less flexibilities to avoid
this “hug” or spent a few dollars over the limit for Social expenses or fix a bridge or two
over the limits set to them by lenders. The brightest of the brightest minds are hired by
lenders, these mostly young guys would not spare a thing some time to their own nations
if borrowers twist the rules anyhow, they thoroughly believe in the system of
production based economics.

Production based economics is a reasonable philosophical conception defined very

precisely by Karl Marx in his “Capital-Critique-Political-Economy” and clearly very
precisely explains dialectic cyclically self adjustable periods in an economy of
Capitalism, which economy in different proportions apply to the economies of Social
Capitalism and Communism and overall to any system of economics taught ever after by
any educational institution from East to West; when even in Communist economics
throughout nationalization of industrial tools of production the people as owners of
industries are sharing the profit “equally” instead of big fat capitalists smoking cigars
taking the profit, they the people (whatever in reality it means) were reinvesting the
capital from profit and enhancing their standard of life ( in reality blah, blah , blah), but
still the economics of Communism is a production based economics;

Has the production based economics really worked?

Most definitely: yeas, it worked even by experiencing difficulties such as the Great
Depression the production based economics and its following financing and controlling
practices were in the foundations of any most developed and developed country and
market in the world: from the USA and Germany to Japan, all of these countries and their
economies were developed by the system of production based economics: that how they
avoided economic crashes, inflation and deflations, that’s how they enhanced their
standard of life reaching far better life conditions compare anybody else’s; for any poor
country these guys reached the sky…. And they did, but

What new happen that makes production based economics inflexible and
inadequate?

Actually, what happen were mostly products and achievements of production based
economics:

• Eastern Block Communist countries change their totalitarian systems and

embraced Freedom (which wasn’t a political act but a consequence of inadequate
economics: these were the most sensitive to the new developments in a
Globalizing marked with constantly rising productivity in the rest of the world:
lock of competitiveness knock them off)
• Almost any country in the world started pushing toward normalizing international
relationship and opened their markets
• China become a member of WTO, open Her economy for investment and private
enterprises
• European Union started expanding East and Southeast following aggressive ante-
corruption policies in any member country and establishing number of low
interest and subsidiary funds for development and promotion of environmentally
friendly projects
• In the USA productivity was raising wild when risk-management and intellectual
properties were becoming most powerful weapons to getting into China market.
Capital was concentrating into smallest and smallest percentage of the population,
and middleclass income growth after 2000 came to a hold
• High technologies and concentration of capital were making industrial production
and farming much easier to start up, expand and enhance very quickly elsewhere
in a short time limits
• Internet allowed people from elsewhere to exchange information and ideas thus
making the world a small place; access to self education and new inventions, new
marketing strategies and new media approaches
• Etc

All of the above and many others were the new events and developments brought by the
new Globalization which (events and developments) are totally experienced for first time,
but the most important are the Environmental issues consequence of long years of
indiscriminate pollution of experienced most developed and developed countries
industrial revolutions. Environmental issues of Global worming are not just concerns but
scientifically proven facts that effect anyone living on Earth; production based economics
is profit driven therefore high technologies for generation of renewable energies,
technologies for cleaning emission of manufacturing plants are very expensive
preposition in a highly competitive world: in US practically implementing
Environmentally friendly technologies would make for many businesses difficult to
compete to China, Russia and India when even without such burthen competition is
fierce. Not the least is the widespread poverty around the world in where countries and
markets are barely having enough production to feed their populations then to seriously
consider adapting expensive Environmentally friendly technologies and working toward
better environment.

Production based economics does not use economic tools to deal with most of these
new developments:

• Not all countries in a Globalizing market could become industrial: first, because
they cannot compete countries like China and Japan that basically are capable to
flood this Global market with goods; second, if all these countries go through
industrial revolutions the pollution is unbearable to the Earth environment
• Even very developing countries like China and India should not go throughout
industrial revolutions themselves when they could destroy the world easily
• In the existing financial system of lending no country but the lenders could
subsidized their economies if needed to reduce emissions and improve
environment (when even these countries as explained could not do it on a large
scale to not becoming uncompetitive)
• Last Global recession showed that deregulated production based “trickle-down”
Capitalism did not establish “release valves” for handling overcapitalization
neither preventive regulatory policies to avoid it: the wild-wild-west theory of
economics did not estimate the instead to trickle-down the capital went oversees
being invested in more stable markets, or just was not invested in man-engaging
industries in the US particularly when in there these were not competitive and less
profit generating)

What kind of economics could enhance production based economics to address

above issues, and make ongoing Globalization possible?

Changes in Western economies are naturally ongoing: governments are financing lending
institution and insurance conglomerates, buying shares in manufacturers and subsidizing
agricultures…. Governments in most developed countries are doing what they can to save
their economies from total collapses and this process will continue in the future in and
out, but:

Is this kind of Governmental interferences in markets most helpful to these markets

approaches to handle world recessions and is there better ways?

The change of production based economics could be changed possibly by an economics

of Marketism based on parameters and economic tools to accumulate overcapitalization,
and deal with inflation by using “artificial methods” to avoid recessions, using central
banking with allowance to issue capital and lend under low interest rates in a World with
better security

Quantum leap must be done by developing and undeveloped countries and markets in
order industrial revolutions to be avoided thus Earth Environment be protected from
consequential for industrial revolutions pollution.

Quantum leap is possible if economics of Marketism is implemented; the new

developments in the world are empowering this new economics by the Rising
Productivity and Globalizing Markets because of the free trade an d high industrial
capabilities of most developed countries and markets inflation is avoidable even when
production based economics is not used but free entrepreneurship is not replaced by
nightmarish governmental beaurocratization which will be probably unavoidable in
future recessions.

© Joshua Konov, 2009