Supply and Demand

The Theory of Economy

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by Viktor Person

supply-and-demand-01-resized-600This summer I had the mixed pleasure of reading a course in Microeconomics and International trade. In microeconomics the primary focus of the researchers is to establish ‘What is the market really doing and why?’ – and this is attempted to be done utilizing mathematical formulas; primarily utilizing the famous graph where two lines cross each-other, the one line sloping downwards (demand) and the other sloping upwards (supply) – and where they meet each other = that’s apparently the optimal price for the product and the optimal quantity of that product in that given market.

What first struck me as being fascinating about these theories was that they seldom predicted how the market would behave in reality, and neither could they be verified with empirical evidence – and most of the time the authors of the my books where busy trying to find reasons and various viewpoints as to why these theories wasn’t working “as they should” – and how they probably did work but it was just that the inventors missed to take into consideration some important factors and variables.

Though, what was the most fascinating about this entire area of research, was how there was this complete worship to the idea that lower prices = higher consumer satisfaction; and that apparently for a market to be functional, what is required is that we produce as many products as possible, to the lowest prices possible, because then the consumers are able to buy as much as possible, and then we’re apparently okay, happy, and have a fruitful existence here on earth.

Obviously, when I looked at these ideas, I silently chuckled – because the logical flaw of this assumption is glaringly simple = the producers are the consumers! YES – that’s the secret of economy and the reason why we’ve got so many unemployed in this day and age is because we’ve failed to understand that when a product is cheaper, someone at the other end gets less money, which in turns means that a (employee) consumer gets less money, which in turns means that the producer gets less customers = and it all ends up in such a way that most lose but a few that manage to reap the monopoly profits of those very low-priced products – because they’ve priced out everyone else.

It’s clear that we have to develop a new way of looking at economics, and that mathematics and statistics isn’t the way to go – no – we actually require to look at the actuality of what is going on. For example, poverty, what is the actuality of poverty? Why does poverty exist to begin with? It’s not a matter of mathematics, rather it’s a matter of seeing what is behind everything in this world – and that is MONEY – money that in itself is a completely innocent creation meant to be but a way of distributing goods and services to where they are required and wanted the most; but in our current system – money has become a point of control – where those that are already rich and on top of things with all possible means make sure the keep those stricken by poverty in place – else we wouldn’t anymore have a functional slave labor force that can produce all of our various gadgets and other mechanics of entertainment.

Thus, what we must ask ourselves, and economists more importantly, is why have we never used our knowledge to produce a sustainable system where all of us are able to create a life that is dignified, cool and enjoyable? What is required for us to do that? MONEY – and what do we need to bring through such money into this world? Resources – so what is then the solution – the real economic master plan as to how to create a world that would be sustainable and practical for all its inhabitants? To agree that we share the resources – at least the basic and most essential resources – those that we MUST HAVE in order to live.

Thus, I stand behind the Living Income Guaranteed – which is a functional, effective and sustainable way of creating a new world for all people where money will be shared – and for those economists that want to make a difference – I suggest that you investigate this concept and bring your knowledge to the table and help to create something from which we can all benefit!

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Living Income Guaranteed and Public Relations

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It is suggested to read the view of Noam Chomsky which is quite to the point and calls the public relations officers the ‘experts of producing lies.’ Now, if you have ever been in a business where you planned it and you have to work out the advertising and the marketing of it, you will know you’re looking for words to describe the product emotionally and you stay away from the facts. Because the facts are the few things you have put together within the product to produce something unique that can compete with other products and there is obviously always something ‘missing.’ That’s why for instance a product’s warranty is only for one year now because, in one year’s time – that’s what the warranty implies – the product will break. Everyone is kept in the illusion that apparently there is some improvement in the product and that’s why there will be a ‘new version’. But if you have to take away the outside picture and you look at the inside – take a car, for instance – it is essentially the same that it has been before. It maybe got a new name, a new color and here and there a new feature – but you’re paying a lot more and it’s not going to last you and you’re made to believe that this car is a ‘new model’ or this cellphone is a ‘better model.’

If you look at the timeframe you’ll notice that nowadays they are releasing a new cellphone basically every few months. You must understand that in the design stage, when they release the previous cellphone you paid a fortune for, they already have designed and planned another five models! They were ready with ‘the new stuff’ – they could’ve just as well not wasted so many resources and give you the best cellphone, but no! They need you to buy because there is a problem in the capitalistic system where it is said that ‘there is not enough consumption’, ‘there’s not enough spending’ but that’s not the real problem.

The real problem is: there’s not enough money because the more and more products are outsourced for instance moving it – let’s take America as an example – to China producing it cheaper. Leaving whole cities in America devastated with people without jobs, then importing the product and selling it cheaper under the justification that ‘now the product will be cheaper, so you should be able to afford it’. This is done without calculating the loss of money due to the loss of jobs that happened. This creates a situation where less people end up being able to buy the product, there’s thus less money and the corporations have to go to the point where they become a monopoly and destroy the competition.  Because if they don’t = they simply can’t survive because there are simply not enough costumers with money with the low profit margins that they’re working on. If we look at this same aspect within the food industry, we have exactly the same problem. That is why labeling for instance is never really specific, you never get real detailed instructions and you never get the truth about how the products are manufactured and/or produced.

Now with Living Income Guaranteed, the total scene will change. Public Relations will be what it should have always been: explaining to the public the relationship they will have with the product and how the product will benefit them, how and why the product was made in a better way to last longer and to be of greater service, why the product is real value for money. Public Relations will be like the person that stands and ensures that the public knows everything, that there are no secrets and is thus the face of the corporation – that is how capitalism is supposed to function, no more lies and deceit.

Public Relations as it exists now, should be banned from politics because politics is and should be where the actual policy of the political party is explained in simple language that every voter can understand and that public policy should be the first thing on the agenda for implementation; and if the political party does not implement it, immediately a referendum should be held on whether they should remain in power under new public policy or not – that is democracy. One cannot change one’s word or go back on your word and get away with it, but the public has accepted this as ‘normal’ – politicians lie, they never keep their word and that’s ‘okay.’

In many cases the corporations are so desperate to keep going that they spend lots of money to ensure that the politicians realize one simple thing “The corporations are supplying a lot of jobs and therefore the laws must protect the corporations to protect jobs” – that’s the justification used. Therefore it’s not so much only the amount of money that goes to the political party, it is about the voters that are able to vote, because those with money = they’re able to vote; those on the streets = they can’t vote because there’s normally a problem: they don’t have a fixed vote, they don’t have the necessary documents or they don’t have the money to go and vote – very simple.

Public Relations must ensure that those that are on the fringe and not necessarily controlled by a corporate or a governmental job, are convinced by promises and hope that the political party is going to produce something, for example that they will ensure there are enough jobs available; if that is achieved, the political party will win. Unfortunately all of this is done under the disguise of competition, under the premise of monopoly, the game we were taught as children, absolutely brutal. And then the human factor is taken out and is called ‘market forces,’ ‘supply and demand,’ the ‘invisible hand’ that determines the flow of the economy, which are deliberate and made up excuses. Bause if you start studying the Living Income Guaranteed proposal as we are putting it together, place what we are sharing on paper and start to assess how one places this together: you’re going to notice that a workable model with enough money that ensures that the corporation makes money is possible, where everybody has got an income and as such, there will be sufficient consumption; this means we can have better products, the environment can be protected, we can produce more effective products, people are not forced to go into all kinds of forced and slave labor situations.

When everything is produced to last longer at a price that is sufficient to ensure the survival of the corporation and to ensure the Living Income Guaranteed of each person, we have a sound and healthy economic system. It’ll also make a massive difference to our food, because a lot of the foods that are allowed to be on the shelves are purely there, placed by people looking at ways to make money to entice the consumer. The fact that the food overall and in many cases is not really healthy, is covered up by ‘bright pictures’ ‘shiny words’ and that’s backed up by the spirituality of the person that is developed and particularly designed by Public Relations. Creating a consumption industry based on ‘like’ and ‘love,’ getting you emotionally involved, ensuring that psychology claims that emotion is important and valid without any information or research into how the mind actually functions, because if the mind is understood = brainwashing cannot happen and the current system cannot continue – this is known! Just not by the people that’s been brainwashed, they don’t understand even why they buy stuff, they feel like ‘they like it,’ they like how it looks, they like what it does, they don’t care that there is engineered redundancy within products just like there is engineered redundancy within the employment sector and everything is driven by a simple thing called profit, and that there’s no real competition in the markets because: “Those with more money will always win.” Go back to your monopoly game, that’s how it works! You’re in this game now.

Our economic system should not be called ‘Capitalism,’ it should be called ‘Monopoly’. And you may have no chance in the system, but you have a chance to become part of a political party that champions the Living Income Guaranteed. If there is no such party established in your country: you start one and you become politically active visiting the voters door to door, selling to them a new economic system, showing that their vote counts, understanding that democracy means 1+1+1 = every vote counts only once, so we need a majority vote, a majority of people that must understand how Living Income Guaranteed functions and why the current economy isn’t functioning for everyone. You also want to explain to them why there are big problems in the future with for instance pensions. One must act now and not wait once the whole system starts collapsing and new laws are made and people are marginalized and you don’t see the suffering and poverty, because we may be one of those suddenly without any support, having nowhere to go.

It is important that one becomes practical, that we become an activist which is someone that takes action, that’s activism: acting on the information available when you see there’s a problem and help with the education of the public because you’re part of the public, so there is one voice and this one voice presents an answer that works for everyone! It is really simple if you get down to it. And at the very least if you can’t do anything, then at least make sure that your money supports a solution, it’s also an investment in your future.

Research the Living Income Guaranteed by the Equal Life Foundation, we are a non-profit organization that researches and puts together economic solutions and educational solutions. We look at how humanity can coexist in a way where there is real freedom, real individual freedom and real happiness and one thing we all know: happiness depends on money. With the Living Income Guaranteed: everybody will have a little piece of happiness.

Equal Life foundation Research

Basic Income Guaranteed - Propaganda

Living Income Guarantees Business Profits

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For the Living Income Guaranteed to work we require an economic model that must be efficient to follow very specific regulations. Just as one would regulate food and certify it for instance as ‘safe for consumption,’ we have to apply the same principle and certify businesses as ‘safe for the economy’. Within this, one will have to establish ways to ensure that businesses are not built on the ideology of competition but rather on the principle of profit and of quality.

Therefore pricing will have to be certified to be sufficient and effective to ensure the minimum wage at least, is paid to the employees, the business owner makes a profit and the resources bought are paid for at a price that ensures such profit. We have to also ensure that the business is compliant and the movement of sales tax/ value added tax is efficient so that both the government and the Living Income Guaranteed is effective; and then the consumer will be able to buy from businesses that ensure a good quality product, knowing that they are participating in an economic system that is taking care of each one’s individual dignified living with Living Income Guaranteed. Doing this will also ensure that things like poverty, debt and the many psychological issues that develop because of stress around money, start to disappear from society.

This also implies that the true supply and demand will be based on quality and preference wherein the necessary research should be done and facilitated before one brings out a new product on the market. This is the part where psychology and public relations also play a role to ensure the person assesses the product as something that they possibly may be interested in acquiring; this ensures you’re not wasting resources on a ‘potentially successful’ product, and instead you secure your investment once you have your market analysis results,  an effective presentation of a product that will have an assured market with sufficient demand which you will supply – so it is demand first, then supply.

Thus a clearly defined and estimated market share is established and cross-referenced according to the income levels available. This means assessing whether the available amount of money that is in the consumer’s budget is in fact realistic so that the business can work effectively. This is how one will ensure profit and sustainability instead of investing on opening businesses that are guaranteed to fail, just because the proper research was not done prior to running it. This effective business planning will ensure that sufficient profit is made as well as providing a good rate of success that will satisfy the business and the population in an equal manner: everybody wins!

Equal Life Foundation Research Team

Also on this topic: Living Income Guaranteed and Business Transparency

Basic Income Guarantees Business Profits

Living Income Guaranteed and Commodity Pricing

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The theories about free market suggest that supply and demand determine the price and that apparently there is a ‘market force’ that is determining at the end of the day who will be wealthy and who will be poor. The odds – if you know from playing Monopoly – are that ‘he who has the money will be wealthy because they will get more’. This is happening very effectively with commodity pricing, because the future’s market and the establishment of pricing through this common oddity instead of common sense – for example, determining the price of food this way like in a giant casino – is certainly not a way for any competent government that represents citizens to enable feeding its people.

Take for instance food in a capitalistic world where labor is a capital and your food is a capital, and the seat of your government is a capital and the money you have is a capital: the creation of food and feeding one’s citizens and then making available the surplus in the open markets is the way it should function. Where the establishment of food prices is based on the labor input and the cost input and the historical growth in value through the accumulated effort of the human’s participation on Earth. These are the aspects that must be part of the pricing system to ensure that those people have no need for a Living Income, because there is sufficient profit for those involved in creating the food to make a decent living, to pay the farm laborers properly so that they can do their work with a loving heart and not because they are forced to do it because they have no other means to make a living.

Imagine! all the people that are into the ideas of ‘consciousness’ for instance, already have this inclination that ‘the hands that touch things have an influence on its constitution’. This would imply that if your food is produced by poor people desperate to make a living that are not getting enough money, constantly experiencing anger, anxiety and fear = that would be transferred to our food and because we accept that as ‘okay,’ we accept the consequence of this form of production as ‘okay’ and as such, we accept the consequence of placing this in our body as ‘okay’ without realizing and understanding how is it that within this we contribute and participate in creating more disease on Earth.

Within the commodities’ markets, food pricing and the giant casino, those that make profits do not care about this because they can create another health product to sell and place on the markets, continuing the cycle of supply and demand which results in forced labor and economic slavery.

With Living Income Guaranteed we suggest that we start looking at the real science, not only the genetic modification that is attempted to be controlled through patents and influencing the food supply to influence the palate of the population and have control over it and thus control over price. Price control in Living Income Guaranteed is not a matter of control, it’s a matter of common sense: if the labor part of the food production is not healthy = the food cannot be healthy as the investigation into water crystals by Masaru Emoto indicated – and then it cannot produce a healthy society because the pricing isn’t healthy, the capitalistic system isn’t healthy, there is not enough money moving and your debt will increase! And then, because you are creating the system through a form of conflict, the only way you can then save the system is through conflict. Capitalism throughout time has been proven to ‘need war’ to continue existing and regenerate the economy, to create jobs and to create money for a minority.

Commodity markets and open markets need a new definition where a country produces a particular commodity, it first supplies its own citizens and the surplus – which can be determined as to what is needed in the world, just as it is done with oil – can be sold to all the other countries that need a particular commodity so that they can have access to it on the open market at a price that does not cause poverty and starvation, but that enhances the global economy.

Labor has lost all capital value which means if your labor is worth nothing = you have no power with which to ensure your wellbeing financially, health-wise and in all ways of your own family – and then a country is not able to support its citizens through proper government. And here the capitalist, the wealthy person needs to understand the simplicity of the Living Income Guaranteed. If you have citizens that have more money to spend and you only have a system that focuses on competition based on pricing, will cause less money to flow. Therefore we propose that competition is based on value, technology and effectiveness.

If one competes on things that are genuinely valuable like a better warranty, better quality product or a unique and innovative product, it is a healthy use of competition that doesn’t cause harm: it enhances the product. But to compete based on price alone, claiming that global prices are going to be ‘good for the citizens’ while the quality of the products is dropping all the time indicates that there’s something really wrong in our reasoning! Because the evidence is very clear that this is not how reality works. The very fact that this is even allowed and not seen as treason because of the way it harms the citizen = that is even more revealing to what extent we are not yet aware of how we have caused our own crisis and demise.

How labor loses capital value with lower commodity pricing and that lower prices create job loss, unemployment and starvation, should be part of our common sensical understanding of the economy. Yet, do you see any of this in the news? Do our journalists actually even comprehend the fact that they are not actually reporting the root and cause of the problems we hear and read about every day? This is a massive problem when we fail to see how it is through our common acceptance of economic inequality that we then accept every single problem and consequential outflow that stems from failing to support every single individual to live in the best possible sustainable manner.

The facts are that if the labor that is put into the production of something like food is not compensated effectively in and through the price, and if the distribution is not compensated and all participants within the creation of the food process are not compensated properly = then we are creating poverty through producing food.

How have we created poverty? We have food at a lower price which means less tax = which means a weaker social service = which means there is not enough money to support all the citizens – this is why we end up with revolutions – Why would we do that deliberately, unless it is that we don’t even understand – after our so called evolution – that we are actually creating the problem with ideologies like a ‘free market forces’ and ‘supply and demand.’

Supply and demand is very simple, it should be based on: What is the supply? Is there enough food for everyone? Which means that the demand is how much we need, what’s the surplus and whether the profit made from it actually supports everyone that is involved in the production process to make a decent living – this is what supply and demand is in a practical civil way. The ways that are currently used are downright counterproductive and detrimental to our global economy.

If you can see within integrity and common sense the problem that we are presenting here, then support a solution that is real: educate yourself, step out of your self-interest and realize that we must work together as one within a democracy to bring about real change.

Equal Life Foundation Research Team

Basic Income Guaranteed and Commodity Pricing