New
Economy
Consumption
EXCERPTS
The Theses published below are free reflections on the topics covered in the Concept and excerpts from various sources on the topic of "economics", which are interesting in themselves. The following texts are defined as irresponsible unauthorized publications. Criticism on this section is not accepted.
# The production and sale of cheap goods is a direct reason for the accumulation of garbage. Our homes, cities, forests, rivers, seas and oceans are full of rubbish. Cheap (low-quality) food causes irreparable harm to people's health, their mental and physical characteristics. Poisoned people do not produce healthy offspring or completely lose their reproductive function. The NEС2020 Concept creates conditions for eliminating cheap goods, reducing production without losing profitability, both for sellers and producers.
# In addition to the specified reasons for criticizing the economic person, the NEC2020 Concept gives an understanding of the irrationality of human behavior, in considering him as an Unreasonable Buyer who becomes so under the influence of His Majesty Marketing.
# We are forced to accept the existing economic, technological and social conditions in order to adjust the ways to achieve noble goals and achieve a prosperous life for all people on the planet.
# The concept of NEC2020 Concept synthesizes the economic component, which unites the sale and investment, into one act of relationship between the payee and the payer, where one does not happen without the other. Since one of the main goals of the economy and the ways of its viability is investment, the implementation of the NEC2020 Concept will become a unique way to achieve this goal. NEC2020 Concept, as an effective simple heuristic technical solution, eliminates the permanent problem of lack of investment and creates conditions for the automatic execution of the necessary.
# A consumer is an economic person, by whom, in Economic theory, is understood a rational subject striving to maximize satisfaction of needs.
# Basic economic laws.
1. The consumer behaves rationally.
2. The consumer is subjective.
3. An objective assessment of the value is the market price.
4. Consumer behavior in general is objective.
5. All firms maximize their profits.
6. All participants in market relations are free in their behavior.
7. All markets come to equilibrium.
8. In general, the economy is competitive.
9. The economy is limited.
Laws are objective in nature, ie. do not depend on the will and consciousness of people. However, in the field of economics, laws are not immutable and people can violate them at will. For example, out of two identical goods, a person can choose a more expensive one, guided by his own subjective reason. Nevertheless, violations of economic laws are of a private nature and do not have a significant impact on the economy, which is explained by the fact that the violation of economic laws is irrational.
# Economic theory, all irrational acquisitions, defines as an error, but each of us, on his own and someone else's, definitely reliable example, give the size of this error, which, in percentage and absolute terms, does not in any way correspond to the definition of error .
# Economic relations between people are voluntary, i.e. individual people enter them voluntarily, without any coercion, driven only by their own ideas about the benefits of these relationships. But some of the economic relations, especially between a person and the state, are regulated by law, and therefore are of an involuntary nature.
# The recession is translated from Latin as "retreat". An economic recession is a moderate decline in production or a slowdown in economic growth. That is, the indicators of the economy continue to grow, but they are so low that they do not bring any effect. In a recession, wages do not rise, consumer demand and business investment decline. Entrepreneurs strive to optimize costs and cut staff. The country's economic indicators are falling and the unemployment rate is rising. In a recession, fewer goods are produced and demand for them falls. For the economy as a whole, this is the first call to take appropriate measures. If there is no stimulation of economic growth, for example, through a decrease in the key rate to make loans cheaper, the recession turns into a depression - a deep economic recession.
# The market economy, that is, a free economy, cannot collapse in principle, since it always finds a fulcrum. Any crisis is not only problems, but also new opportunities. Therefore, when there is freedom of movement of capital, services, goods, information, labor, there is always a flow of them to other industries, spheres that initiate new growth. The onset of the crisis and the direction of the flow cannot be planned - it is always the action of forces that need to find a new balance. In the course of these movements and new economic growth, new goods, products, services appear, new channels for the development of the economy are groped, and after it, society. No state planning will ever foresee or regulate this.
# The authors of the Concept hope that their work will not be in vain, and the idea of the Concept will be noticed and included in the economic activities of suppliers of goods and services. Also the Authors dare to hope that the NEC2020 Concept will be taken into account in the upcoming changes in the economic policies of states, as well as the inclusion in the economic and everyday terminology of the terms and concepts they have created, such as, Investment deduction, Investment operator, Inconvenient democracy, indicator PFI (private financial investments) and others. ...
# We can observe the inefficiency of the financial market as a channel for attracting financial resources to an effective business. Money and capital do not rush to where the greatest long-term profits are generated, but to where some kind of price increase has been outlined. Consequently, the most successful are not those who optimally organized production, and not those who run the business best of all, and not even those who pay the greatest dividends and support the long-term growth of the share price, but those who managed to promote their company, attract to her attention from the public and speculators, and then was able to maintain this attention. And these are just financial pyramids, which, as it turned out, are very easy to create in times of super-cheap money, a very long return on investment and a very depressing general economic environment. Injections of money only warm up the financial sector, since their flow into the real sector of the economy is very difficult. And the longer this situation persists, the more financial discipline falls, and the more individuals and legal entities are drawn into the games in the financial market. However, expensive money also provokes a similar behavior by speculators, but with a different set of reasons.
# A rational consumer, always striving to find a compromise between liquidity, profitability and the safety of his property, refuses to keep savings in cash, since the value of money always decreases. Considering money as property, a rational consumer can convert it into the form of real property, or into the form of financial capital, or into the form of long-term money, i.e. in the form of loans or bank deposits. The financial sector of the economy absorbs most of the financial capital, where the consumer exchanges it for securities, shares and other obligations of various financial players, and sends it to investment and pension funds.
# The basic laws on which the theory of consumer choice is based, considers the consumer to be rational, which implies his ability to assess needs, compare sets of goods and services. Also, the rationality of the choice means the stability of this choice, i.e. a consumer who finds himself in a completely identical situation again must choose the same set of goods as the first time.
# Mass investment of "suddenly appeared" huge and constantly replenished financial resources in local and large-scale national projects, provides abundant food for a positive economic and social forecast. How the "New economy of consumption" will actually be implemented, in what volume and what results will be obtained as a result ... its authors do not know. It is likely that NEC2020 Concept will receive explosive distribution in the original version or a docked transformed local implementation. However, the authors of the Concept are quite sure that the "New economy of consumption" will not be left without attention, and the future of humanity will be as free of the economy as possible. The authors of the NEC2020 Concept considered it necessary to state their vision of the possible consequences of its implementation. It is assumed that the "New economy of consumption" will be adopted as the basis for transformations in the existing economic relations with the aim of transforming them. The expected results are given in their extreme values as desired by the Authors.
# In the system of methods for studying the surrounding world, Economic theory includes the Normative method, which involves the construction of a system of economic knowledge based on general concepts and basic laws. The normative method is presented in economic science by Scientific abstraction, i.e. a method that allows you to discard the insignificant aspects of economic phenomena. In the course of abstraction, basic phenomena, phenomena and relationships are discovered, on the basis of which models of the economic system are built, i.e. the method of mathematical modeling is used. In the course of applying the mathematical model, there is a transition from the abstract to the concrete, that is, the explanation of the observed economic phenomena using the model.
# Criticism of the economic model is that consumer choice depends on the subjective preferences of the consumer and on the objective prices of goods. The prices of goods and their changes are easily observable; therefore, a theoretical problem arises about the relationship between the prices of goods and consumer choice. In addition, the impossibility of a rational choice is due to the volatility of prices for goods and their purchase at "different prices" in one set, where there is simultaneously a retail price, wholesale and small wholesale. The next reason for the impossibility of obtaining an optimal set of goods is the existence of the condition of their indivisibility, i.e. the inability to buy a fraction of the good. In this case, the consumer is forced to either under-consume the goods, or over-consume them. At the same time, he may receive much less satisfaction, will be faced with a more difficult task of choice and in some cases will be unable to make his choice rationally, since several sets of goods are of equal utility.
# Practical economics is the acceptance of a person as a consumer who makes an irrational choice no less often than a rational one, but one can even say that most of the choices are irrational, since a rational choice is not a choice, but the cost of what is necessary, which is verified and known. Yes, rational expenses make up the bulk of consumer spending, but it is this behavior that allows the consumer to ensure his existence and the emergence of means for irrational choices.
# As you know from previous materials and existing reality, the emergence of the Economy as a science took place as a guide to providing the state, through the management of the economic activities of its subjects and the creation of tax collection structures to fill the budget and its rational use. The economy provides state power with a methodology and economic laws for financial and other support of its existence, first of all, since the absence of such support means the loss of state sovereignty, and ultimately the loss of statehood itself. Exaggerating, it can be argued that the economy is a system of exploitation of citizens of the state, with the aim of their protection and well-being. Here comes the political component of maintaining a balance of economic interests of the state and its citizens. Politics cannot exist separately from the economy, since both are created and exist to ensure power, the form and methods of which reflect the level of development and the consistency of society, as an exponent of the will of its members.
# The economic crisis is a constant phenomenon, and is not something completely unpredictable, but it is part of a certain "scenario", since the built-up system of the economy (here, it is worth noting its effectiveness, which (together with the technical and technological progress) and led to the prosperity of many), cannot allow an equal distribution of created and earned benefits. In today's economy, it is cheaper for the rich to distribute money than to share "their" profits, which give certain rights to the "poor." Distribution of money is necessary for feeding the poor, maintaining the balance of interests in society, promoting the "fairness" of the existing situation, receiving "gratitude" to the rich and the dependence of the "poor" on them.
# The investment account, which receives the Buyers' Investment deductions, becomes a source of significant funds for investment, the competent implementation of which allows the Buyer to receive passive income, which, in fact, is the final essence of the NEC2020 Concept.
# The concept of NEC2020 Concept presupposes the approach of the Seller's interests to their maximum. The authors of the Concept suggest that the Seller agrees with the loss of a part of the total cost of the goods. This loss is determined by the Authors of the Concept as part of today's losses incurred by the Seller as a result of providing discounts to its Buyers. The predetermined popularity of the Concept is associated with the reduction of losses for the Seller from its use, only such a condition (reduction of losses) will arouse interest in the Concept among the majority of Sellers, which will give its distribution and become a key point in the successful implementation of "NEC2020 Concept". Thus, at the first stage of the Concept implementation, there is a reduction in the losses of the Sellers from not receiving the full value of the goods, and at the second stage, this is the absolute elimination of losses of this type.
# The concept of NEC2020 Concept presupposes bringing the Buyer's interests closer to their maximum. The authors of the Concept suggest that the Buyer agree to the purchase at the full price of the product and receive part of its value in the form of funds for investment or replenishment of such funds. Receipt of funds for investment by the Buyer occurs every time he purchases a product or service at full cost from the Seller, who uses the means of implementing the NEC2020 Concept. By means of implementation of the NEC2020 Concept, any solution is determined that allows increasing the attracted financial resources of the Buyers, by any legitimate means. The maximum interest of the Buyer is the return of the paid price for the goods in full, which is not defined as impossible.
# Economic theory does not pay attention to private financial investments and includes their insignificant part in the concept of saving, which is fundamentally wrong. The basis of economic theory is the rational behavior of the consumer and the dismissive attitude towards him as an investor. There are two options for managing private finances, these are expenses or savings, the latter include: keeping money, direct placement as capital, transfer to investment companies, placement in banks at%.
# We live in a capitalist economic system based on commodity-money relations in a broad sense, where property, freedom, competition, social protection and exchange mediated by money are its obligatory attributes.
# The market economy, which has become the locomotive of improving life in the economic history of mankind, has turned it into a society of stupid consumption, the success of skillful exploiters, sly and cunning. An honest, disciplined worker, he has become uncompetitive in the modern economy, and in any case, he plays a low-paid economic role.
# Ignoring a person as an investor is due to several reasons, among which there are political motives. Investing is accompanied by the receipt of passive income, that is, the receipt of freedom or greater freedom by citizens, which can be considered as a condition for reducing their loyalty to the government.
# Purchase of goods for a significant number of people is subordinated to the goal - to buy at a discount or on sale. The consumer's goal - to buy cheap, leads to waste of financial resources and time. A person purchases more than he needs (two for the price of one), purchases goods that he does not need (such a price, only today), purchases products with an expiring shelf life, and so on. The use of the NEC2020 Concept in economic relations will reduce both consumption itself and the negative consequences of unreasonable irrational consumption.
# Modern economic theory does not consider an economic person as an investor, leaving him the role of a buyer of goods and services, that is, a subject spending his funds, and a person who fears for his position in the future, forcing him to insure risks, to acquire something material and expensive, create savings, borrow money from those who have (control) it for risky transactions, and also fall into immoral, fraudulent, illegal and even criminal activities. Involving the population in investment activities will change their priorities, and will improve their social, political and civic position.
# Let's denote once again the existing reality: goods and services are not sold at full cost, but only with discounts, hence the presence in a significant amount of low quality goods and the Buyer's forced need to purchase such goods that (goods) are also forced must be marketed by Sellers and manufactured by Manufacturers. The designated problem is part of the economic problems of not only our country, but the world community. Analyzing what is happening and predicting the future, we have to admit that it is apparently impossible to overcome the current crisis with methods from the arsenal of economists "accurate" painless.
# The seller does not want to sell the product at a price that is critical for its profitability, and he also strives to stay away from the sale of poor quality goods, as this damages his reputation and solvency. Consider the final relationship between Buyer and Seller, where both are rarely happy with the deal. Low-grade goods are direct losses that, in different cases, in different proportions, are borne by the Buyer, Seller and Manufacturer at the same time.
# The Concept of NEC2020 Concept considers the real discount and the real price of the goods, that is, it does not take into account the widespread practice of false prices and false discounts, which, in fact, are fraudulent.
# Comparing the set of economic indicators in the Economic Theory and the Concept, GDP and the parameters associated with Investment deductions (Private financial investments + Private investment income), we come to the conclusion that the authentic indicators from the Concept are the most reliable and mathematical, that much more useful for the analytical and predictive component of the economic policy of any state.
# What we see now, after more than half a century has passed since the appearance of justified reasons for the existence of an Economic man - there is no such person, from generation to generation the "hope" of the Econmic theory is destroyed, human rationality, confidence, independence are lost. But mankind's desire to have a bright and joyful future remains, which is impossible to destroy, and something had to "correct" the created situation.
# "Tonight we managed to close the Concept with reality and Economic theory. NEC2020 Concept can no longer be ignored, the Concept has ceased to be a fiction, it remains to confirm its viability with successful practice."
Publication
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2020.06
2021.02
Article in ORIGINAL language HERE
