2. On macroeconomics and microeconomics - in an objective and considerate way 2.1. Target macroeconomic parameters and the macrolevel managerial tasks
To Understanding of Macroeconomу of State and World · перевод (English) · раздел 2 из 7
Перевод исходного произведения; точность перевода оценивается отдельно.
2. On macroeconomics and microeconomics - in an objective and considerate way 2.1. Target macroeconomic parameters and the macrolevel managerial tasks
By we mean the range of aggregate products, services and industrial outputs for each item of the range, in accordance with which one kind of products or services differs from the others.
Alongside the manufacturing spectrum some other kinds of spectrum can be used, such as needs spectrum, needs spectrum, consumption spectrum, etc.
The needs that the production and distribution in a society are supposed to meet, are conditioned by morals as such, and by cultural traditions, which have imprinted the morals of the past generations and the trend of morals changes for several generations.
Among the whole set of needs there are some, whose satisfaction causes direct or indirect damage to the consumers, to their human environment, to their descendants and the biosphere as a whole. There are some wants, satisfaction of which only obtain such a quality when the industrial output and the (individual and aggregate, regional, or in the society) demand rate exceed some critical values. The above needs generate the degradation-parasite spectrum of production and consumption.
There are the other wants, whose satisfaction does not cause the consequences mentioned above, at least, when the (personal and aggregate) consumption exceeds a certain minimum value, corresponding to the level of demographically sufficient production and consumption. Those needs represent a fraction of the demographically defined production and consumption spectrum.
The fundamental difference between the demographically defined spectrum and degradation-parasite one is the following:
· the demographically defined needs spectrum can be predicted in terms of range and volumes for several future decades to come; the accuracy and details of such a forecast are quite sufficient to prepare the productive forces of the society in advance for its guaranteed and total satisfaction.
This predictability is rooted in the differentiation and limitation of population group needs by such criteria as sex, age, household lifestyle, the demographic pyramid dynamics and cultural traditions, which express the adjustment of the population to living in local natural and geographical conditions. Herein, the publicly secure growth of the population forming the demographic pyramid, is limited by the biocenose stability in the areas populated by locals when it comes to succession of the spices of organisms forming the biocenoses, which imposes one more set of limitations on the demography determined needs spectrum.
· the degradation-parasite needs spectrum does not allow to predict the range, volumes or terms of the beginning precisely. This is one of the reasons why the society is unable to satisfy it under any circumstances.
Wants separation into the two mutually exclusive types of spectrum is not pure imagination, it is not an example of subjectivism or voluntarism; whenever the degradation-parasite spectrum needs are satisfied, it inevitably leads to a biological degradation of the nation and the environment, which in turn, causes the decline in the culture of the society. Degradation-parasite spectrum can be indicated by means of statistical analysis of such connections as ‘a piece of ‘wants ? the consequences of production caused by the needs and the consequences of their satisfaction’.
From what we have said follows that:
· sociology is to constantly identify the degradation-parasite spectrum conformably to its changes in particular circumstances; and it has to develop a system of standards of consumption and production sufficiency all over the demographically dependent demand spectrum.
· the state is obliged to root out (by means of 1st - 6th priority management tools) the degradation-parasite demand spectrum up to its total disappearance, and it has to provide the guaranteed satisfaction of population needs all over the demographically dependent spectrum in the process of generation continuance.
Thus, system banking usury is not the only aspect of life that needs to be crashed and rooted out in order to normalize the life of the nation. However, neither ‘500 Days’ program (by G.A. Yavlinski amp;Co, which dates back to the perestroika йpoque), nor “Typhoon” project (designed in 2000), nor other ‘projects’ of economic ‘development’ of Russia say a single word about the whole complex.
Those problems had not been indicated or sorted out on time by the Academy of Science of the USSR. The contemporary Russian Academy of Science and the Institute of Transitional Economy Issues (headed by Y.T. Gaidar) are unable see these problems. Foreign researchers and politicians keep silence on that issue as well, whereas World Economic Forum in Davos and UNO are rather appropriate places to call a spade a spade; but there is nobody to do so, because ill-will has prevailed.
If we consider the economic life of a society in terms of the Quite General Management Theory, the demographically dependent demand spectrum represents a management target vector, and the degradation-parasite spectrum includes his own ‘noises’ of the production-and-consumption system, as well as external noise that prevents the management (or self-management) targets from being reached; as a result, the vector becomes a component of the vector of management error.
The vector of management error is a hierarchized list of targets to be reached by management. The targets are listed there in reverse order, in comparison with a traditional successive rejection of targets in case the complete target list cannot be put into practice. In other words, the most significant target is listed first, and the least significant one is listed last.
The vector of management error represents the ‘difference’ between the target vector and the vector of state, which gives a description of the factual circumstances. The vector of management error is an unbiased indicator. It is unresponsive to the attempts of the managers to make everything look better than it really is. The only way of getting rid of it is by enhancing the management quality, when the errors would be reduced to the tolerated values.
In financial terms, the vector of self-management error for a society looks like a price list for products and services consumed by people beyond their production activities and public administration sphere.
Therefore, in a society that, firstly, does not have any degradation-parasite needs owing to the dominance of good-will and, secondly, where the system of production and consumption self-management is performed in a practically flawless mode, the output supply spectrum is at such a level that the market prices diminish up to zero, so consumption becomes free (and keeping non-zero prices can cost the society more than giving the output away for free to those who need it, because it will imply some accounting costs).
The relationship between the supply level and the price, revealed by the common economic science ‘for clerks’ possesses the same features: prices fall as the supply grows, for the price level is the means of elimination of would-be consumers whose paying capacity is limited in case the demands exceed the possibilities of their satisfaction.
However, having disclosed that relationship, the science ‘for clerks’ seeks the ways of artificial stimulation of effectual demand in situations where there is a drop in prices, expecting demand to support the prices and the break-even performance, bolster manufacturing etc, along the cause-effect chains. That leads to product destruction when a crisis of ‘overproduction’ arises, to fashion cult, advertising campaigns and so on.
This kind of approach to the production and distribution matters is a consequence of the fact that the common economic science does not make a distinction between degradation-parasite and demographically defined needs spectrum; as a result, “flies’ are mixed with the ‘ointment’.
In a crowd-‘elite’ society, the ruling elite’s degradation-parasite needs spectrum has a top priority in the target vector, and the economic self-management system tunes to it (the economic self-management system is always tuned to a target vector, even if the targets have not been recognized or understood by the society). As a result, global natural resources are mindlessly destroyed in a race of RAPTIOUS consumption, whereas demographically defined needs of the majority have remained unsatisfied in numerous generations (we should remember that the consumer’s ‘paradise’ of the USA and ‘developed’ European countries is based on the system usury and price-based robbery of ‘underdeveloped’ countries, including the post-Stalinist USSR and Russia, and it was not created by the honest and good-will labour of the population of those countries).
Having agreed on the separation of the total set of needs into degradation-parasite and demography determined spectrum, and on the fact that the price list is identical to the self-management error vector of a production and consumption system, we can say that the task of the government concerning macroeconomic and microeconomic management is following:
· the state has to manage the cost-effectiveness threshold level for all kinds of commercial activities, supporting in such a way the break-even performance of particular producers, as the latter better satisfy the needs of the demographically defined spectrum, which will lead to the drop in prices for its composition.
· the state must prepare the labour force of the society to the guaranteed satisfaction of all the future demographically defined needs in advance; in could be done by direct state investments into education and bringing-up, into state-run industry and mixed ownership companies, or/and by creation of investment friendly environment for private investors in the corresponding branches and regions using tax and subvention policy means.
· the state must oppress and root out the degradation-parasite needs spectrum and the activities, both profit-bringing and non-profit, caused by it, using both economic and non-economic means of management of 1st - 6th priorities.
In the course of such way of understanding of socio-economic reality, the price list for goods and final consumption serviceswill undoubtedly turn into the value of management error vector, which solves the conflict of self-management quality estimation in a production-consumption system, between a manufacturer and a consumer of this product, which we have mentioned in ‘Introduction to the Topic’.