In economy, there are some aspects beyond equilibrium that are not yet considered, this is one of aspects of complexity, the presence of subject.
Economy is science of economic transactions or must be this. Classic economic as D. Ricardo specify, refers as value creation and how this is created and traded from his origin and to final consumer.
But in economic theory there are a elephant in the room that is eluded by economic theorists… This is the subject.
On September 29 1786 the treaty was signed, which established the terms of trade between these nations. This is a surprisingly modern treaty. While the atmosphere was involved in the benefits of Free Trade, the English negotiators calculated in detail the advantages it could bring every branch of production and taxes that could withstand. On the French side there was not the same care. The result is that there was an invasion of English goods that brought uprisings in France due to the craftsmen who were left without a job. Most of them occurred in February 1789, weeks before the fall of the Bastille  . Sigue leyendo
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Economic is independent of state in his origins as Adam Smith said. And this is the way walked for both ricardian and marxists to resolve economics. But if you see the new paradigm in Biology by Lynn Margulis, there is a feedback by totality on individual processes. Evolution to form a biological cell was for symbiotic group of several individual very specialized and this groups form the cell base for modern cells. States and groups that have influence in states are not considered in microfoundations. If you see economy till middle XIX century, bondage and groups specialized in bondage were determining economic behaviour and not the individual preferences. Paralleling, groups specialized in gross exploitation of indian, chinese, latin american,asiatic poverty are determining politic of USA, England and absorbing individual preferences of this part of world population with local military dictators or democrats intimidated by USA power. Actual economic science can’t predict economy behaviour.
I think that boundary or frontier region near a high developed region must be revised. Boundary regions are affected of extreme misery. That extreme misery is the result of trade interchange between highly developed and low developed regions or countries. In this conditions uprise belief like muslim actual and ancient. In extreme misery “universally valid and binding standards of knowledge and action” are builded with the intelectual resources and ideas at scope. Muslims have bring ideas from Jews, from Christians and create or receive his proper belief. They did make a synthesis. But the problem yet exists, a misery that permeates all. In the boundaries of ancient China several such movements begin. Just now in borders of USA, there are in Mexico boundary several groups that develop belief and apply that to everyone. The problem not is to complain on this kind of belief but to understand the unequal trade between regions with different development level or to regulate commerce between regions with different modes of production and different of distribution modes. This problem is skipped by marxists and by economists of all kind.
On general economics (*)
I come to study the value law on classics economic. Value is showed in two forms, one objective in some theories represented as labor value and a subjective view explained as “subjective value theories”. Classic economy explains many economic facts with the labor value, but left out behavior of supply-demand curves. Subjective theories begin in plain air and have not initial values for their deep explanations.
Is it possible to formulate an economic theory like physic results that unify mater and energy, or accept wave particle dual reality?
Capitalist oppression has two main ways, one is Neo liberal politics with privatization of public services and low wages, and dismiss health access of workers, oppressive anti-terrorist apparatus and other evils. Second way is socialist approach like Chinese socialism system with suppression of transit liberty, no health labor conditions, and no environment regulations.
Chavez is in second class of capitalistic politics. Union labor operators are prosecuted; worker union polls are voided for government, Legal establishment make trials without end to union members, with presentation obliged each week to judge. PDVSA state oil is replaced for mixed enterprises with “seven sisters” oil companies. In place of national industries, maquilas of Chinese electronics. 80% of frequencies in TV, Radio are in hands of state to spread Chavez system praises.
Oil profits are augmented for work of Chinese people in isolated conditions and where militarized siege impedes Venezuelans to enter.
Also Chavez participates of Wall Street putting Venezuelan bonds in hands of Goldman and Sachs. Chavez did permits a Wall Street firm take a hostile buy of “Electricidad de Caracas” national private company.
Collaboration with Wall Street speculative bubbles such food bubble of 2008 when in Venezuela Government buys millions of tons of food that after was burned. Also Chavez has a premium action in 2011-2012 Gold bubble when transport gold from England to Venezuela with big nationalistic discourse.
Main coincidence between Capitalistic Wall Street and Chavez is suppression liberty of information and they want down wages under media silence.
And the oil bubble is a big business between Chavez and capitalists.
Venezuelan’s inflation produces very low real wages and additionally, minimum salary is augmented but others wages above the minimum last unchanged, this means a general down in wages.
Capitalists produce for market, but a part is committed and other is estimated in base to general statistics of earnings in potential markets, in population statistics and so on. Some times capitalists engage in war prices to defeat competence. Crisis is not explicable for normal behavior of capitalist system such as expressed for Adam Smith, David Ricardo and Karl Marx.
Capitalism is an asymmetric system, thing that is not considered by classic economy. Asymmetry means several levels of development between regions. In second place, dominant state by all means look to maintain this different high develop level with other states by diplomacy, by bribes and by war. This is the history of capitalism.
Crisis appears first in low level developed countries. Marx in some place recognizes that crisis occur first in France at industrial level and after in England at commercial level.
Is easy to demonstrate with the concept of change value that there is a transfer of circulate capital to high level developed country or region. Dominant state enforce this status quo.
Peter Drucker said that until 1980 all crises begin in underdeveloped countries with fall in prices in prime matter and some time after some problems occur in developed countries. An also after 1980 there are crisis in underdeveloped countries and nothing in developed world explaining this by tiny economies of third world in relation with first world.
In this vision of capitalist system, State has a very important roll in economy.
Symmetric image of capitalism has lead some Marxists like Chinese to accept relations with capitalist dominant country (USA) to locally have few plus value while capitalists obtain big profit in international trade. In the middle they do enslaving workers.