Sunday, 13 March 2011

Economic: It is Not About the Growth


Economic was never been a subject of study until 1800s, when Adam Smith introduce the concept of invisible hand (free market) that govern the stability of market. Economic had since become so important, especially in today world, as it is direct matter to the stability of civilization. Stability by means not unlimited growth barrier but balance in term of trade, innovation, consumption and ultimately civilization.

Today, many had caught themselves off guard to the meaning and purpose of economic study. Economist are now obsessed in to find a solution that could bring the economy growth limitlessly. They are against the fundamental principle of the economic study, the nature law of balance. The law of economic are the same as the law of gravity. It act upon regardless people recognize it or otherwise. In the economic study, the rule of thumb is "cycle". Cycle by mean, when there are something is up, something else has to be down. The tree does not grow into the sky. There be a time for it to come back to the ground. In term of so many mainstream economist and policies makers, they advocate of maintaining positive growth, surplus in trade and other economic gains every years, is nothing but a pipe dream. Instead of pursuing growth and surplus, trade balance is what should they pursue. As every surplus in trade, come with a deficit country. A sense of winner is relatively somebody has to be a loser. No one want to be a loser. Therefore, balance trade is the most harmony and jibe with the nature rule of economy. In the end, no one will be happy living alone as the wealthy person, but surrounded with depress and poor neighbor.

Today, many people are afraid of economy recession. They shouldn't be. As it just part of the cycle process as every spring will end with winter. Instead of afraid and panic, they should embrace it, understand it, and think positively toward every recession is a reset time of the game of economy (money). And it also can provide a better clean white sheet to start with for any economy reform, as a result of postmortem of previous economy model.


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