воскресенье, 1 декабря 2013 г.

... to help the most successful has proved that they can multiply the investment.







 

If you are interested in my theory, outlined in the MANIFESTO OF THE NEW ECONOMIC THEORY then I can write a book or an article for your order to be published in your journal.

Suppose that the government has resorted to printing money. Most often this is done in order to overcome any crisis. First, as a rule the most money is received by structures which need it most of all. That is, the structures that either do not add entropy, or do it in a minimal volume. Taking into account the subsequent inflation, it is hidden redistribution of entropy from those who know how to receive it, to those who can not.



But if you need to get out from under the collapse, who do you trust  your pick and other tools? Those who know how to use them and walk quite well, or those who have never used them and could barely walk? Of course, the money issue should be directed to the most successful projects and companies. No matter how paradoxical it may sound: to help the most successful has proved that they can multiply the investment. But in fact the opposite is reality- the state takes away the tools of those who would use them efficiently and gives them to those who can not. Can  you predict the effectiveness of such emissions?

They often  say about the impossibility of refusing to help unprofitable businesses because of the danger of rising unemployment and increasing social tensions. But then it is even more necessary to provide financial support to profitable businesses  so that they  can expand and create new jobs.

Entropy traps

 
So, to increase the entropy, it must first be reduced .However, if the level of entropy is minimal, then this is not possible. This condition will be called entropy trap. Its peculiarity is that to get out of it is impossible, relying on the natural course of events .Investors are looking for objects  to invest which will generate entropy, and thus they  do not invest those who have fallen in the trap and have extremely low freedom and almost no options. This is where  a state is needed .It can be said that overcoming such traps at different levels – is  one of the main objectives of the government. But it does not mean to help financially those who are in an entropy trap, people and businesses.  

Several factors can facilitate the way out of such traps. The first - to lower the threshold of investment. The higher the subjective idea of the acceptability of the standard of life is, the higher the threshold at which people can invest is. In contrast, the more modest consumer appetite is, the less money is spent, the lower the threshold at which to start investing is. The volume of investment is increasing and the economy is growing.
Now stimulation of demand is considered to be the main task of the state  in the way out from the crisis. One more bought sausage, umbrella, hat ....All money should be included in the consumer turnover .As a result, the economy has not a single chance to break out this vicious circle, like a squirrel in a wheel. 

It is necessary to break this cycle, to pull out part of the entropy, some of the money from this turnover, which is predetermined, and in which there is some uncertainty. And you have to take a chance ... investment - always a risk, but without it there is no uncertainty, no uncertainty- no entropy, no freedom and no development. Money torn from the consumer race  is free money.