The Deindustrialization of Many Markets/Economies

By Joshua Konov, 2012 The ongoing advances in high technologies that simplify manufacturing, the Internet, and the expanding worldwide intellectualization, which are supported by market globalization and rising productivity, make the process of economic deindustrialization in many markets/economies irreversible. It is not just about Marxs imperialistic overproduction that prompts such processes, but mostly about the enhancing openness of the global marketplace for direct investment by Transnationals and the enhancing intellectualization of the labor-force that have given immense acceleration of industrial production of China, India and now Vietnam. The role of the Chinese government in promoting and prompting such industrialization by subsidies, tax breaks and technological assistance is very high too. The speed with which production lines were setup, the enhanced infrastructure for shipping goods, the lifted trade barriers, have established market conditions for limitless expansion of industrial production in China land; not the least is the internal consumption growth in there too, that makes the conditions there perfect for long term moving and outsourcing of such production, indeed. These processes of flawless industrialization growth particularly of China affects straightforward the rest of the world advanced and developing economies by prompting high deficit and national debt. With the exception of Germany, Japan and the USs highly industrialized economies that still hold lead in some industrial spheres all of the rest are struggling to keep up with lowering productivity and harmful fiscal shortages, however even the most advanced economies are not immune from high national debt too. If the markets/economies are reviewed from the prospective of deindustrialization, it is clear that the process of shortening industrial employment is irreversible too. The whole world of high interest rates Capitalism and trickle-down economics of Transnationals and Large Investors superiority is to crumble into constant austerity measures to reducing the middle class and to expanding poverty. Then it comes the possible alternative of socialization of markets/economies and the expanding governmental role in managing businesses and wealth distribution that brings not very positive prospective for the Future, having in mind their inept inflexible managerial abilities.

Therefore, Market Economics using Quantum Factor argues for changing the role of Small and Medium Enterprises and Investors in the markets/economies through a mostly natural enhanced market/economy security by using micro and macroeconomic changes. From generally unfair market competition of the trickledown capitalism that promote Transnationals and Large Investors to a relatively fair market competition of enhanced Rule of Law in Business and by establishing a regulated fair market exchanges that allow more secure access to foreign markets/economies. The unnatural/artificial market/economic agent/tools such as social and infrastructural expanses are well taken in consideration under these new market conditions for balancing markets Demand-to-Supply, however the natural for the markets market/economic agents/tools are preferred to the unnatural/artificial market/economic tools. What the Quantum Factor represents are the random ways market/economic agents/tools are used, instead of the predictable cyclical ways of the trickle-down market/economic agents/tools have been used. The deindustrialization of many markets/economies brings the issues of reducing Fiscal reserves on the front, whereas industrial employment is paid higher, and the lack of it brings the question of the possibilities to maintain and expand an adequate market consumption going along with the ever-rising prices of natural resources and national debt. Under such conditions the suggested impact of productivity (noise) in economics that brings the less developed markets/economies to closing the frontiers (most developed markets/economies) also should change into more general diversified business activities that could be brought mostly by the small and medium enterprises and social and infrastructural expenses, the productivity could not be anymore politicized as an excuse for governments inaction, the neoliberalism should well be taken off for their poor economic results of the last 20-25 years. The industrialization of China, India, Vietnam, and e.g. should not be considered as negative occurrences for prompting deindustrialization of many other markets, but the system of international business should well take in account the irreversibility of this process and establish a relatively fair market competition as mentioned above by raising market security and thus promoting business diversification. In such a context, the global worming and Earth reassures exhaustion should be dealt as additional market/economic agents/tools for business diversification, additional noise into the 1/f noise formula.

Inflation is the main and fundamental problem in such economics, whereas the market balance of Demand-to-Supply is paramount, therefore international cooperation and the same rules play is necessary. The scientific detailed exposition of Market Economics using Quantum Factor follows at: Konov, Joshua Ioji / JK, 2011. "2001 & 2007 Recessions prompted remaking of the international organizations," MPRA Paper 34588, University Library of Munich, Germany. http://ideas.repec.org/f/pko358.html