Prescription for the current situation.
- Purpose of this memo is to try to improve current situation for everyone on the earth.
B. Background: I wondered why world economy started dysfunctioning these days?
Why invisible hands do not work well?
I came up with the following several reasons/causes.
Although it looks like very complicated, we only need to handle a couple of real factors in order to solve current issues, which are securing healthy money flow, controlling overpopulation, and controlling monopoly as follows:
A. Current Issues.
1. Changed Assumptions:
1. Assumption of Economic Theory has been changed:
One of assumption of Adam Smith’s economic theory is abundant resources while oil resources are no longer abundant.
This factor contributes dysfunctioning of invisible hands.
a. We need substitution energy as everyone is aware of,
b. Although substantial amount of money flow goes into oil producing countries, money is not re-invested in an ideal way in my opinion.
In other words, we need to handle oil money issue together in order to make invisible hands work well.
2. Issue of Overpopulation:
Issue of global warming is mainly caused by overpopulation in my opinion.
Since majority of CO2 is created by activities of human beings, if # of population is reduced, CO2 emission will be reduced accordingly.
Currently, governments are only talking about CO2 emission, which is just a symptom and short-term solution.
Instead, we have to talk about controlling overpopulation issue, which is a real cause and long-term solution.
Anti-trust, anti-monopoly laws are not functioning well globally, since we do not have global regulations for it.
In order words, we have no global rules and regulations right now, which is why we have chaotic situation right now.
we must have gloval regulations ASAP.
Both fund money and oil money has too much influential power in the market.
As economic students know, where there exists monopolistic condition, invisible hands do not work well.
We should apply concept of monopoly onto both fund money and oil money since these two have monopolistic power already.
C. My prescription for the current situation:
As you can see from the above stated, one very important thing is missing, which is a global government.
Unless we establish a global government, we will not be able to solve the current issues since those are all global issues.
1. Issue of overpopulation:
China once conducted one kid policy but it did not succeed because China did it alone.
If we try to implement 2 kids policy globally, it should work.
In other words, we should keep birth rate less than one in order to control population, in my opinion.
Of course, we should always accept exceptions on absolutely necessary basis.
2. Issue of monopoly:
We can control monopolistic conditions if we establish a global government and enforce global anti-trust anti-monopoly regulations.
3. Issue of oil money:
Some percentage of Oil money should be spent on R＆D of substitution energy in my opinion.
Somebody should work together with oil producing countries.
With respect to Dubai’s case, I do not believe that Dubai went through Business procedures such SWOT analysis, pilot marketing research, and test marketing, etc.
As you can tell, this is theoretically very simple but extremely difficult to implement but we have to do it anyway if we want to improve our life.
I hope that this message reaches to Mr. President Obama because he is the only hope we have got in my opinion who can implement the above stated.
To be realistic, since we do not have a gloval government yet, we should hadle above stated issues at G20 and start controlling global monopoly issue at least.
Thank you very much for reading this far and we need your help.
Please pass this memo to those who can help us in your opinion.
Jan. 4th, 2010
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Keynesian's Supply Side Economy updated
Simple version of Keynesian's Supply Side Economy updated
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No more deregulations, please!
From blind-individualism to conditional individualism!
From Free Economy to Conditional Free Economy!
Solve both climate change issue and economic issue at the same time!
We need an Earth Government!
Link English Site Buzzle.com