Disequilibrium of World Economics

Recently, I am looking at the books about economics and trying to understand the economic recession/depression at the moment. I know I am reading something rather obvious or at entry-level in terms of economics; but as a scholar, I always believe in 1 theory: common sense can explain all.

When you take a look at the business cycles, every market or economic system in the world will experience cyclical changes. The peak performance always leads to a downturn. In times like this, you should have some sort of safety net to keep the cash flowing – playing บาคาร่าsa online could totally help out with that. 

This represents 2 things: 1. The system is invalid/unsustainable. 2. The system is not seeking an equilibrium or an upturn is destroying an equilibrium. Because perfect balance can always correct its tension by canceling disturbances.

Interestingly, the economic performance of a country is defined by its GNP. In a graph of GNP, you can see that although cycles exist, the GNP keeps increasing till now since beginning of record.

Intriguingly, what the Earth can give (Earth’s productivity) is a constant that has never changed. In other words, the same amount of our initial resources are available when comparing today and 100 years ago.

If this is the case, where does the money come from?

I tell you the truth. Most of the money of the rich countries comes from the poorer countries. Do you know why?

Basically I want to make 2 points. 1. No increase of initial resources is ever available. 2. Increase of knowledge does happen.

So the answer is: Because the rich countries have methods to provide knowledge that improves quality of life, they are able to take whatever amount of money from poorer countries.

And again, this is another vicious cycle: More knowledge, more money available to support academic activities, more knowledge…more…

Any remedies?

Knowledge increment will slow down in the rich countries, and it’s slowing down right now; while for the poorer countries to catch up, altogether might still need several decades.

Therefore unless the rich countries are willing to devote themselves in fair trade or in more humanity aids, our world will stay divided.

About Jeffery Swanson

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