Posts Tagged ‘economics’

Economy: Straighten curved graphics

March 31, 2019

I am not a communist or a capitalist. I understand that both systems have advantages and disadvantages. Most economists view the fact that the average standard of living is higher in a market economy. At this stage of development, we need a market economy with all its shortcomings (such as immersing individuals and categories of citizens in poverty, the inapplicability of a market economy to software and technology industries).

Moreover, I am in favor of actively introducing the market into the life of every person and every organization. I emphasize each.

If someone cannot open a bank account, then he is not in the market. If someone can open an account, but cannot enter the exchange, he is also not in the market. And so on.

This is the primary task of the state to bring the market to everyone. This can be described by the well-known proverb about fish and fishing rods. Fish need people with disabilities. Everyone else needs first fishing rods.

The trade economy is straight (linear, mathematically speaking) graphics. If someone (one person!) Gets stuck on a crooked chart on a hundred dollars, this may cause a lack of exponential growth and that he will not earn a hundred billion dollars. This is a very likely scenario for the country’s economy. The fate of the country may depend on such events.

It is necessary not to save money by the central bank on investing them in the task of straightening charts.

Finally, the Bible says: (Isa. 40:3) “The voice of one crying in the wilderness: Prepare the way of the Lord, make straight in the desert a highway for our God; 4 Every valley shall be filled, and every mountain and hill shall be lowered, the curvatures shall be straightened and uneven paths will become smooth; 5 And the glory of the Lord shall be revealed, and all flesh shall see the salvation of God; for the mouth of the Lord spoke it.” (Mat. 3:3) “3 For he is the one whom the prophet Isaiah said about: the voice of one crying in the wilderness: prepare the way of the Lord, make straight his paths to Him.” (Mat. 1:3) “make straight his paths.” (Luk. 3:4-6) “4 as it is written in the book of the words of the prophet Isaiah, who says: A voice crying in the wilderness: prepare the way of the Lord; 5 Every valley shall be filled, and every mountain and hill shall be lowered, the curvatures will become straight, and uneven paths will become smooth. 6 And all flesh shall see the salvation of God.” (John 1:23) “He said: I am the voice of one crying in the wilderness: correct the way of the Lord, as the prophet Isaiah said.”

If we apply the principles of the Bible to economics, then an economic miracle will occur, because the application of the principles of the Bible does wonders.

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A reason for that it’s better for economy when people are rich

June 28, 2016

Not being a professional economist, I nevertheless present in this short blog post of a reason for having people rich is better for economy.

This reason is that when distributing risks between a several entities, it is preferred that richer entities bear the risk.

For example if I’d be proposed to receive $1000000 (million USD) with probability 20% or receive $100000 (hundred thousands USD) with probability 100%, I would prefer the second, despite then mean value of the first offer is two times better. This is because a million is not my urgent need.

Having more money, I would be able to create some (probably not many, such as 1/2, but this is a general principle and the exact sum does not matter) new jobs and/or invest and/or buy some goods so supporting the producers.

So I choose risks in a way inefficient for economy accordingly basic economic laws (it is however efficient, because having more money I’d have more time to volunteer).

The conclusion: Risk distribution is one factor which makes richer people better for economy.