Capital - Investment, Debt,

Employment to Market
Equilibrium before and in the
21
st
Century
market* - equals - economic, economy, macroeconomic
marketplace
demand^ - equals - income, macroeconomic demand
market development** - equals - economic growth
In the currently used Economics, the employment is still
considered as a market consequence to a natural investment
of capital with rising productivity, whereas tight monetary
supply keeps a hungry pool of unemployed making them
under pressure to comply with the market* driven supply-to-
demand labor and otherwise market*, therefore, a full
employment was considered as counter-productive for the
market* growth to be maintained, moreover, the inflationary
forces of an over-demand would be sustained !he
Economics of "carce #esources of anytime before the $%st
&entury with relatively less developed technologies, limited
globali'ation, political divisions, etc (the rest of the points will
be given in later) had worked in proper for such successful
&apitalism by the markets* of *", some E* countries, *+,
and ,apan
!hen the most developed markets* had used their mostly
manufacturing capabilities empowered by the best at its time
technologies and well developed labor market to dominate
on a less developed, struggling to improve global market*
-owever, the $%
st
&entury has brought a few market
developments that are new by nature to affect the real
economy. developing and undeveloped markets* by tipping
off the supply-to-demand market pressure into a demand-to-
supply such
/ngoing 0lobali'ation - sharply e1panded by the end of
the cold war
#ising 2roductivity. accelerated by the Internet
&hina3s Industriali'ation and 4!/ membership
!ransnational &orporations3 5oving and /utsourcing of
Industrial 2roduction from the 6eveloped &ountries
&apital 76I mostly through the !ransnational
&orporations
!he $%
st
&entury came with very high productivity and large
pool of capital to a globali'ed market* taken literally by the
!ransnationals for a ride8 with the e1ception of &hina, which
well run market* policies boosted its internal market
demand9 to properly capitali'e on its long-run trade surplus.
"timulus packages into Infrastructure and targeted less-
developed (internal) markets*, 7iscal breaks to targeted
market* sectors and less developed areas, to "5E ("mall
and 5edium Enterprises), the usage of "tate-owned
Enterprises to lower unemployment and raise salaries8 or of
0ermany, which highly-competitive e1port oriented
manufacturing kept it afloat in times of the $::;< #ecession
and 2ost-#ecession times to not accumulate e1cessive
=ational 6ebt8 or of a few markets* such as some of the
/2E& countries and =orway eg !he rest of the world has
gone through the deepest $::;< #ecession followed by slow
2ost-recovery, increasing inequality and national debt,
declining middle class, high unemployment, and most
important. the over all lack of vivid market development**
that could be improving the global market in environmentally
friendly ways to provide to the ma>ority a sustained probable
access to employment and the related goods and services
!he austerity measure that followed the ongoing theory in
economics are pro-cyclical by nature, the trickle-down
philosophy of lower ta1ation, the subsidies particularly in the
E*. all prompted inequality lowered the market demand and
established conditions of market imbalance that policies
resulted in their worst in the most of the E* markets* slum,
indeed &asual of high unemployment, deficit, longer-term
recession 4hat the *", *+ and ,apan did through
?uantitative Easing, "timulus 2ackages, 7iscal measures
generally counter-cyclical measures have been avoided by
the E*, and therefore, it could be said with certainty that
these market* policies have helped these markets* to keep
however sluggish market development** following the $::;-
@ #ecessions (the $::@ is added to these markets*
performance while the E* is not included) 4ith certainty the
more active policies with a consistent long term the better
performance eg &hina tops them all with very proactive and
consistent market policies, ,apan follows with the
Abenomocs in action whereas the 25 Abe holds firm
powers, the *" and *+ follow less successful casual of
using unorthodo1 methods more-like preventive as post-
recession ones, than proactive as it come8 as it goes
market* policies, then finally it comes the E* with the most
rigid orthodo1 market* policies based on deficit reduction and
austerity measures that resulted in prolonged recession up
to the end of $:%B, high unemployment and slow recovery
All of this information is supported by reliable data sources in
paper of mine with the same title to be published shortly
!he utili'ation on the conclusions made by the previous
section of this article clearly shows that pro-active market*
policies by a government or governments brings better
results to more consistent 5arket 6evelopment, whereas
inactive policies, or ones based on the orthodo1 economics
prolongs recessions and slow recoveries -owever, contrary
to this conclusion. in different levels all governments lack
business sense and fle1ibility to manage economics,
whereas populism and ideological polari'ation, mostly in the
plural democracies, add substantially to the governments3
inconsistency in their market* policies, and it could be stated
with surety that governments could be blamed for their
offhand deregulation policies particularly in the financial
sector that prompted the $::; #ecession8 therefore, to rely
>ust on the governmental market* intervention will be
incoherent
"econd, the governments are not proficient enough to
maintain adequate market* activities with low unemployment
and underemployment, thus bringing fiscal shortages and
rising social e1penses and inequality
!he success of the most developed markets with the
e1ception of E* to wrestle the $::;-@ #ecession is real, but
it was necessary because the system of economics well
supported by the governments themselves was not proficient
enough to do not allow it happening in the first placeC !he
possible prevention was not activated whereas the needed
reforms were not implemented on time
!he e1pectations of a shorter and milder market correction
managed by the self-ad>usting cyclical powers of the
&apitalism did not work it outC
!herefore, when leveraging the positive to the negative
effect of the governmental involvement. it appears the
governments3 intervention was necessary, and when for the
future. if the system of economics does not succeed to
prompt enough business activities the governments will be
the only saviors by using total market interventionsC
4hat the &apitalism misses under the ongoing globali'ation
and rising productivity to manage market equilibrium is the
ability to properly use market tools to steer enough business
activity matching the needed demand8 unless in long human
history, when the supply was the ruling market element alone
with always boiling inflation8 however, under the new
conditions, the demand alone with ever pushing deflation is
that issue !herefore, deficit and national debt alone with
inequality are on a rise, the globali'ation has had allowed
large transnational corporation to access ine1pensive labor-
pool, low ta1ation, lack of consumer and environmental
protectionD for the few large transnational corporations and
large investors under such conditions the system has
performed well, but for the many it has not had at all.
declining middle class, high personal debt, unemployment
and underemploymentD, e1panding governmental market
intervention to prevent from total collapse in the recession
time, and in attempts to boost growth in post recession time
4hat distinguished &hina as the best performing market of
the all developed ones has been the combination of social
distribution well inherited in "ocialists3 ideologies, combined
with active market policies, however, even the &hinese
policies and performance has been and still are the best,
under the conditions of the very developed *", *+, E* and
,apan on a global scale if their system of economics is
enhanced by using more proficiently the variable market
tools the results could be very advancing, indeed 4hat
&hina has been and now ,apan are following an as it
comes8 as it goes fle1ible economic policies adapting the
ongoing and upcoming market* realities8 policies that have
been highly recommended by all my articles
-owever, even recommending the governmental
involvement as an invisible hand to boost and maintain
market development** particularly into environmentally
friendly energies and industries, for such policies3 longer
term market equilibrium some definite changes and
enchantments are necessary. thus whereas the current
&apitalism relies on the large transnational corporations to
e1port development under the conditions of shady
business8 lower ta1ation, environmental and consumer
protections, the so called 5arket Economics relies on "mall
and 5edium Enterprises to steer business activities, and
thus prompt employment and 7iscal stability whereas a strict
rule of law in business8 enhanced environmental and
consumer protection laws are considered as preconditions
for marginali'ing the unfair market* competition and thus
raising their market* security and lend-ability !he pro-active
and counter-cyclical governmental invisible hand is
considered necessary to keep deleveraging wealth inequality
through social redistribution8 however, the usage of the
market forces for maintaining market equilibrium is
paramount thus imbalances are prevented 5oreover, a
system of probability in economics when economic tools are
used as parameters is also necessary for succeeding such
relative market equilibrium, because the mathematical
principles would not work in such a comple1 market*
environment In my works the so-called ?uantum Economics
ie 5arket Economics is a foundation for making possible
the rest of the market* approaches be implemented without
causing ma>or market* upheavals !he as it comes8 as it
goes3 economics could only logically work if ?uantum
7actors are used to leverage or deleverage markets*3
buildups when the needs arises, and my works uses such
approaches to setup a market* system of economics called
5arket Economics "ystem that peaches for full employment
boosted by market* noise of a relatively fair market
competition supported by targeted investment national and
global into environmentally friendly industries and products,
and carried on mostly by small and medium enterprises and
investors, whereas the large businesses and investors are
not discounted in anyway. in the opposite their role is
substantial "ocial and infrastructural e1panses are not
considered >ust e1penses anymore, but partial equities used
to leverage the market variances. as market* tools, indeed
!he 5arket Economics comprehends ongoing globali'ation
and rising productivity as main motors for market
development by environmentally friendly approaches on a
global scale in an interdependent and interconnected world
It is not a Eudgetary and "cares #ecourses Economics,
even so market competition on micro and macro economic
levels well complies with such economic principle, however,
on a larger scale neither budgetary nor scarce recourses as
economic principles are considered bounding &apital and
6ebt are considered secondary to Environmental 2rotection
and 5arket 6evelopment whose are attached to the
InflationF6eflation instead 5arket* tools are used as
parameters to maintain full or close to employment when
protecting the Earth environment, 0lobally