Marx

A New Theory of Socio-economics

A new socio-economic theory

by Robert DePaolo

If Although the current economic crisis is formidable, it is not surprising. If you are the sole owner of the hardward store or the chairman of General Motors, you know that a recession every seven or eight years. They occur in all societies. Are presented independently of political parties in power. Occurs when the emphasis is on economic Adam Smth (conservative) or Keynesian economics (liberal) economy.

In the United States that has happened to Presidents Hoover, Roosevelt, Johnson, Nixon, Carter, Reagan, Bush I and now Bush II. If you examine the financial history of this country, it is clear that there is no direct correlation between philosophy and stability economic economy. Although liberal and conservative theorists tend to present themselves as saviors in times of financial crisis, financial – and often succeeded – For Generally, it is that success is only temporary. Most of the ideas of Marx and Engels in Das Kapital are crazy, but that has withstood the test of time is the idea that a capitalist system tend to go into a recession every ten years.

A new administration took office, despite a movement "center", soon to be President Obama likely will have to decide on an approach that differs significantly from that of his predecessor. Otherwise, apart appear misleading, would extend the same policies that apparently led to the current crisis. In fact, he has no choice but to wax Keynesian.

It may well succeed. For example, one could say the wealth has been mixed in one direction over the last decade, leading to less disposable income for the middle class low. The combination of lower incomes and Smith's central claim that "man is a creature acquiistive material" would lead naturally to the consumer spending beyond their means. In this context, the situation could be rightly called, based credit crisis. The owners could not pay their mortgages through Fannie Mae and Freddie Mac crashed. Just as car manufacturers, lending companies and banks. Everyone thought in the myth of endless prosperity, the idea that if enough grip long somehow tickets will be paid. Such a belief is a pandemic among young adults, in particular, who grew up in a fragile culture, self-indulgent in the use of a credit card to pay another … and then another to pay for one, was not only acceptable, but essential.

In this spirit, it might be time to create a socio-economic theory can bring new stability in the long term. One that is regulated intrinsically, ie, under their operating mechanisms. Before this idea discsussing NED elements to consider.

It has been suggested previously that human behavior is the engine of an economy. Socialism fails because it completely ignores the need of individuation in human development. Economy market is also growing and falls in accordance with human nature. Smith was partly right – indeed, surprisingly prescient about human nature a thinker pre-Freudian. The man and procurement. Even the Neanderthals and early humans were bought and sold amulets, ornaments and other products between they. But there's more to us than that. We are materialists, for specific reasons. It has to do with an old phenomenon that precedes the publication not only of wealth of nations, but the evolution of Homo sapiens. This is the hierarchy of primates, and is based on the idea that social status leads to improved mating opportunities and power and influence within the group.

This is where Smith has fallen short. His hypothesis was that companies that compete in a free-market would be forced to lower prices and better products to sell more products. Also assuming that no companies that do not, and should not survive. Underlying his theory was the premise that consumers naturally inclined to buy products cheaper or higher quality products. His vision was of a regulated consumer market and, like all aspects of politics in a democratic society, which depended – absolutely dependent – in the people's common sense.

With the advent of mass communication and progress in the field of advertising, this notion has been largely dissipated – so has the economic theory of Smithsonian. Active than the poor in the ghetto to find a way to buy $ 90 of basketball for their children even if they can not pay the rent this month, even if no difference in the quality or durability between this partner and one that costs $ 15, especially if approved a famous athlete shoe. The influence of television, radio and other media has rejected the presumption, frugality Smith.

His assertion that comptetition to regulate markets will not go very well. Gas prices do not differ much from one institution to another. For the exception of Wal-Mart, few companies are still competing. Many operate under the assumption that high quality products are sell best – the disk image instead of fiscal behavior of consumers. So companies grow, the universities develop franchises multiply until we have equivalent to a range of industries deliterious to be as large and influential role in the economy that the government can not allow it to fail. It is neither Keynesian nor Smithsonian. And like all We have seen that it can be dangerous.

Meanwhile, RHE liberal approach offers a false premise and incredibly dangerous – the Board should, for the benefit and safety of persons, OT control over wealth, including spending on specific areas to help the poor. It is a humanistic idea, but the reverse may be captured in three words – a decrease of human motivation. Even a psychology student knows that first year when you delete the reinforcement behavior tends to extinguish. Confiscation of production increases jobs and property to inhibit the production. recruitment, expansion and ultimately eventually damage or any government intended to help people.

For these reasons, it could be argued that neither the operation of the system, and certainly not a period extension of time. The question is what to do. If you only have two options both defects are present again in ten years. Unless people come to anticipate this and "nuts store" in the meantime – a practice now discouraged because spending stimulates the economy and saving money at night – .. arise old problems

It is difficult to obtain a roller coaster as it moves, but not impossible. It simply takes some innovation innovative thinking.The at this point is based on a new approach called parallel.

The socio-economic characteristics of socialism in the menu, capitalism, Communism MDS. You could say that they are forms of government rather than economic systems, but in fact the basic principle inherent in any political theory is alotment and regulation of the property. parallelism offered by a new menu item. It differs from other formats as follows. Capitalism requires a clear separation between government and business. OTHE Fed antitrust laws and certain internal procedures required for business and the limits of practice. Members independent board and shareholder rights and privileges, companies are free to act on their own. Socialism involves government regulation – based on the idea that because the contract affects the people and nations can not be allowed to operate freely. The previous government under cost – in theory, the maximization of their income through participation and lower business costs and tax revenues ultimately more growing businesses. The problem is that its relatively laissez fair approach leads to monopolistic practices, the higher prices, inlflation and excesssive and potentially destructive behavior of consumers.

Socialism means spending lots of money on different projects and public programs of social support, but reduces the entrepreneurial motivation so that in Ultimately, the lowest incomes and the ranks of the needy and the poor increase.

In contrast, parallelism means that the government is really in business to compete with businesses – Primarily as a means of maintaining the Smithsonian frugal consumer, but also provide a cost system, product availability is still in line with the cost of living. Furthermore, standards of information is concrete and final – in each case, and for each product, the list include exact material used, the cost of production and profit – all from reading consumers.

Now, as in geometry, parallel lines do not intersect by definition. This means that state enterprises should not influence or regulate the private companies. There would be no capital gains tax in small companies and I in the style of general practice. that the government is not over-regulation and not ignore – was competing.

The public company has a flexible format for the recruitment of unemployed and / or poor, so that welfare and unemployment benefits would be less expensive than now. WORKlNG out the house would be an option.

Parallelism is another Perk – the government of making money instead of spending under their various enterprises. He would not offer the same pay as a society, should not, because the goal is not favored by private companies. He would join a cost of living standard prices, their wages and benefits to any person who works, whether by choice or necessity, should expect an easy life. This would be a productive and regulations of survival for people in financial difficulties.

The issue is evident, and whether private companies can not compete and have foundered in the dough? There are two answers this question, both compatible with conservative economic theory. The first is that private companies should be free of costs and / or development of better products than the Government business. Who would maintain the smallest so that A. failure will not affect its own economy and B. as a result of companies being little more the crop to competition, leading to more jobs in more locations across the country, recessions pocket resulting in less, as shown recently in the states of Central America.

Other safeguards could be put into play. Therefore, flexible rules for bankruptcy, the funds Grant for companies on the rebound could be provided by companies active sources.This government and others could make a more flexible approach and not the recovery process and help the unemployed, reducing the cost of health law, fuel and other goods and freeing companies to run (in the paraphrase Jefferson's theory of natural aristocracy) succeeds in proportion to their talents and motivations).

About the Author

MS Clinical-Neuropsychology. Thirty years experience in fields of neuro/clinical and school psychology. Professor New Hsmpshire University System for twenty years. Currently working as school psychologist. Author of four books, several plays and president of film making company Media Milestones.

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