Today, only lazy did not write about the crisis. Only what is written, often recalled stories from the field of current events. Someone is waiting for the lowest point of the fall of the economy and hopes that then begin recovery, prosperity and a new crisis. Someone is trying to do something, but plainly did not understand what to do and how. Many, including well-known experts, argue that the crisis will continue for another few years, and nobody knows how it can be stopped. Many have compared the current crisis to the crisis years 1929-1930.
According to Karl Marx, crises in the capitalist society is inevitable and occur regularly, periodically. Many journalists and politicians are already talking about the new ghost of communism. Here are just want to ask a question. Why are so revered by many a scientist does not offer methods for calculation of cyclicity of these crises, does not offer methods to combat these crises? I think that just because he had such a problem for ourselves and not put. K. Marx was convinced of the inevitability of the transition of society from capitalism to communism, and his task was to convince the society. Because of the fear of the crisis, many began to believe in the idea of communism.
In reality, the economic crisis in capitalist society does not have cycles. Capitalist economic relations have been developing in the society to a different scheme:
- The emergence of capitalist economic relations;
- Rapid development of economy and production;
- Wilting economy and production, the disintegration of society.
The last phase of development of capitalism - a wilting economy and production, the disintegration of society, sooner or later bound to happen if people do not intervene. But human intervention can save, or is likely to destroy society.
To save society from destruction, it is necessary to know the reasons that impede economic development and causing her fall, recession and other negative phenomena, which today are called in one word - a crisis.
The current economic crisis is a continuation of the destructive economic events that occurred earlier, during the development of capitalist society and were called "crisis." In earlier times, society was unable to effectively prevent the collapse of the economy and production. Intuitively, trying to survive, society postdated this decay at a later time. The same is happening now. Many of taken by governments around the world, measures to combat the crisis, really do not bring positive results. They do not cure the disease, but only delay the end. The reason for this is that all their actions were dictated by a mistaken understanding of economic processes in society.
Only by understanding the causes wilt of capitalism can be deleted his death. And yet, there is a cure for the crisis! To win, you must break the existing stereotypes. The first, and it could be said of fundamental misconception is that the governments of most countries are trying to prevent the growth of money supply of the currency in circulation in their States. This measure is very unpopular. But in proportion to increased production of consumer goods and services should grow and the money supply of domestic currency, which is in circulation in the state. Government refuses to print money and put them into circulation, fearing a devaluation of the currency and inflation. Regarding the devaluation of the currency, it is necessary to choose the lesser of two evils. The cause of crisis in the economy is not an overproduction of goods, as argued K. Marx. The cause of the crisis is the imbalance market of consumer goods and services, which arises as a result of slower growth in purchasing power (income), compared with growth in production of consumer goods and services. The population has not been able to purchase and pay for the amount of goods and services, which offered in the market of consumer goods and services for sale.
In such a situation, the task of government is to calculate the necessary amount of money to print and distribute it among the population. Such measures would restore the purchasing power of people. How to distribute among the population of the country, printed money? In the first step would be to support the poor people most affected by the crisis. Methods can be varied:
- To increase pension benefits;
- Increase unemployment benefits;
- To increase scholarships for students;
- To increase child allowances;
- Pay the cost of children in institutions;
- To raise wages to employees of public institutions (doctors, teachers, public servants, the military, policemen, etc.)
- Pay the regular payments on mortgage loans for low-income families;
- Buy from the population older cars and appliances, the purchase of new cars and household appliances that have already done in some Western countries.
There may be other similar measures.
I will say that printing money could lead to inflation. Yes, maybe, but it all depends on how many to print. In a crisis occurs stagnant domestic currency, so money should be printed as long as necessary to compensate for the current stagnation. The increase in money supply of the currency will lead to its devaluation. This in turn will raise prices of imported goods. Is it good or bad? On one side is bad, because it will reduce consumption of imported goods to the population, but on the other hand well, as put in more favorable conditions for domestic producers. Each Head of State should think that to make their own products rather than buy them abroad!
The price of any product consists of two components:
1) Wage workers of all enterprises that took part in the production of the product at various stages (including the amount listed in the budget of taxes). The amount of taxes paid should be taken into account because the wages of employees of public institutions are paid from the budget.)
2) Planned profits of all enterprises that took part in the production of the product at various stages.
As can be seen from the above said, people get their hands on the money, which is less than the cost of the proposed sale of goods. Hence the citizens are unable to acquire the entire product. Of the month - a month, will remain and accumulate unsold goods. Number of unsold goods will increase, which will eventually lead to economic crisis.To this did not happen, you need to artificially raise the purchasing power of the population, ie print and issue the public (not in any way in the credit) some money. How much? In a simplified case, the amount should be equal to the sum of the planned profit, which was included in the price of goods by all enterprises participating in its production.
Thus, it appears that the greater the profit of the company lay in the price of the goods, the sooner the economy will be a crisis. To this did not happen, you will need to print more money. To prevent abuse and to eliminate the receipt of excess profits (as happened recently in the field of housing construction in
Injection of money directly to companies or banks through the provision of government loans (which is done in almost all countries around the world to combat the economic crisis) does not and can not lead to real results as it does not eliminate the causes of the crisis, did not restore balance in the market of consumer goods and services.
More about all you can read in my book «Capitalism without the economic crisis» on the Internet at: http://viktor-remizov6.blogspot.com/
Viktor Remizov.
May 15, 2009.
