I am not an economist, not a well-known writer. I write based on my experience. I write how I see the world with my open eyes. And I am always accountable for the words that I choose to evoke in my writings. Well, today I choose to write about the topic economy, how it is going on? How it was? From my understandings.
What do when understand by the economy? Economy means simply a volume of market supply, and importantly it's consumption. The economy is related to three things at the basic level: production, market, and consumption. If we further want to expand our definition, we add customers and goods and their types. Nowadays we don't see things in that way, we see the economy as the size of market and demand and supply. Well, everything is the same as the traditional concept of economy, as we know we are the modern man, therefore, we provoke our norms and values to the market and now we see based on demand and supply.
See, the market is the same, as well as production and consumption. But with time we started to imbue shifts in paradigms into the economy, first, we added rate and now we are at demand and supply, their analysis charts, data, diagrams.
The shift in paradigms at markets are linked to the innovations, newly developed technologies, types of goods, also the rumors in between the customers.
The economy in simple words is the study of the marketplace. The economy is a vast topic, I simply went with the basic definition.
Our market, before the 1970s there we talked only with goods but after the 1970s we start to see the market with goods and services.
Types are easy to track once we know the variables of economy we can find out ourselves.
In an economy, the variables are demand and supply, and market place. Now changing their values we get an economy of four types:
You all know what are they? How are they? I didn't go through it. Now again there we can change values in demand and supply. This gives two concepts in the economy they are:
Open dealing outside the border, closed within the border.
Also, in addition to the above, we can define capitalist and communist based on demand and supply. When demand and supply are controlled it is communism. Where demand and supply chain is open it is capitalism. Sometimes these two are also taken as the types of economy.
Let's go to a short story.
In the 17th century in India, Mumbai, the rate of deaths raised due to the biting of cobras. Now the British Government wants to reduce the rate by decreasing the number of cobras. For this, they announced, " incentives for the skin of Cobra". Seeing this opportunity people started to do farming cobra, which annoyed the Government, and later the incentives were stopped. The farmers released their Cobras.
Though the government wants to reduce in the end, there increase in number. This effect is taken as the Cobra effect in the economy.
This when do certain efforts to reduce risks or certain problems rather than reducing if there increases more is the cobra effect.
Now, let's go back to the topic:
First, let's try to see how the economy is working.
When we turned the pages of the economy to the early days. Our traditional market was purely based on the exchange and was purely based on agriculture. In one region people used to produce one type of crop according to the soil and climate take their products in the marketplace do exchange to another type. The later market evolved to include references of gold and silvers. Later, money was introduced. To date, our markets use money reference. In the international arena, we use dollars. And our market also included services too.
When a reference to exchange was introduced from that time accumulation started. This gave birth to the profits. This how capitalism. Capitalism is now in its fourth phase which is financial capitalism. Capitalism is what made an adverse impact on humanity which turned humans' attraction towards money in such a way that they help another one if there is profit. And also amazing thing is that one wants to get help if there he too finds some profit. Everyone either is a helper or one that is getting help both the parties want to profit. In the world of capitalism both shopkeepers and customers both want profit here. And who is in the loss here?
Capitalism has taught people that, "MONEY IS LIFE IF YOU HAVE MONEY YOU HAVE LIFE"t. We have added money to the variables of life which turned our assumptions and slowly we are being turned into materials. We are now humans without humanity.
And more to it, after the 1970s, those countries who liked to called themselves developed ones to provide financial aid to the developing countries in the form of soft loans, grants, foreign aid, foreign investment. When we see the whole process of helping there we find developed ones are helping undeveloped for their interest. Some countries help to promote their hegemony in what kind of international arena we have built every entity works to promote their national interest.
Besides their national interest and hegemony, developed countries invest in underdeveloped countries to raise their economy. Why raise the economy? In 2000, the united states concluded that terrorism is the by-product of the economy, this helps to eliminate poverty. But in the ground, we don't see this. We are experiencing that underdeveloped countries' economies are raised to make them customers. Being a poor neighbor, he can't afford our goods this we help him to rise and buy our products. This is what going on in the world.
After the 1900s, there was much news that motors are created which works on the water. More than 5 projects were successful, but where are they? They have been hidden by big financial institutions. This is what is going on.
We are forced to buy expensive cars that need oils where there were inventions that vehicles can work on the disassociation of water. These big institutions can buy entire political parties within a phone call of any country. They are walking to promote their products by influencing governments.
There are rumors that scientist who don't want to work with the financial institutions also with big institutions, let's not mention any country name but it is sure that who disagree and wishes that they want to sacrifice for own motherland, have been dying in accidents. How could this be possible? All scientist of developing countries who reject offers is being killed in accidents. Is it coincident? I believe it is not. But is a trap.
Our world is ruled by 10 businessmen, they used to say yeah! It is true. And we are pawns of their moves. We see dreams within their projects. And this is what I call a big trap...
Money is a trap for an individual also for a country to get into debt. And it takes years and years to clear that debt if everything goes on the plan.