1. Brief History of transaction.
We know that, economy activities are the main activity of human life from its beginning to now. In ancient age of human life, people had made products for themselves and if they had made more products, than theirs needed, and they went to exchange for other products, which they could not produce by themselves, this system is called a barter system. That time, people had few demands, society was very small, that’s why they had been living somehow, they abled to manage transactions by using barter system. Slowly society was being big, demands and supplies of products were being increased, then they felt difficulties to run economy activity by using barter system. After somehow, they created idea, and they had been starting by using some special stone, shell, coper etc and they did transactions. there was a rule which they made, to get these special stone and shell, coper etc which they used while they did transaction, products should be produced, otherwise they couldn’t get it, this was the rule of society they made rule for conducting of transaction. After running few years problems had been arisen, some cheated people had got same stone, shell, coper etc by searching and making from outside without producing products, which was created big problem of that time for doing healthy transaction, current corruption is the developed form of same bad acted by cheated people in the past. Again, they created new idea, they made special gold and silver coin which easily others could not make it, and they could run healthy transactions by using gold and silver coin for some years. Here we should understand that gold and silver were used for just making transaction easy, if somebody wanted to get gold and silver, they should produce products, which others had already gold getting through transaction, ready to buy it, it was the basic rule of the society. If somebody could get gold from outside rather than involving transactions, people called them cheaters, they would be punished by society. But large number of people are searching gold holding gold, buying gold, doing job for making gold ornaments, why people are compelling such unnecessary activities still now not only people, countries as well also such unnecessary activities because economists unable and confuse to give good idea to solve this problem even we are in so advance age. I have explained about new idea in solution section, how can we devaluate gold and silver from the world and how can people escape from unnecessary activities by addressing new concept.
2. Invented of Paper money and Central Bank.
Making large scale of transactions by using large scale of coins, people had been feeling difficult to run healthy transactions. So, to make easy transactions people invented paper money and beginning government issue the paper money. First paper money was issued by Tang Dynasty in China at 7th century. After issuing paper money by government those money goes to people and commercial banks started to collect from people and issuing the loan. By issuing huge loan by commercial bank, there were so many problems have been raised.Then to control and regulate activities of commercial banks, central bank had been established by government. After that central bank has been issuing paper money by taking as a deposit of gold and silver from people like government was doing in past. Then gold and silver are being assets of central bank and issuing paper money are being liability of central bank. From beginning to till now central bank should maintain its balance sheet [Assets = Liabilities] otherwise price of all products and service and purchasing power of paper money are fluctuated in market, called inflation, which is not easy situation for run healthy economy activities. Now there are so many countries across the world every country has authentic central bank which print the paper money to run same transaction in large scale now, which happened in small scale in ancient age but purpose and nature are remain same, making healthy transaction between buyers and sellers. Thus, everybody not only normal people economists as well should be clear their concept that money is just medium of transactions as people used stone, shell, coper etc. in ancient era. Finally, we can say that people need products and services for living better life not money. If one person can generate or produce whole goods and service which he needs in his life then money would not come for using as mediator even had not been invented, should be cleared necessity of money for making transactions. After reading above nature of transaction and money we can say that people should produce or generate, goods and service which can sale to others, to get money this is a basic rule of transaction as well as rule of healthy society. But we can see people have been gathering money without produce goods and services, which are making society so mess look current. People are not thinking about how to make well goods and services which is needed to others and satisfy them, and they can earn money by selling to others, but they are intending to gather money from easy way outside of transaction like looted, cheated, murder, making duplicate etc. This is the big drawback of money feature from stone age to till now. But we can mitigate this problem by apply new ideas, which I have mention in solution section.
3. Role of Commercial Bank.
Money had been spreading all over the society. Some people of society in different areas abled to produce large scale of products after invention of machine then they were able to gather huge money, after collecting huge money it was being risk from robbery for holding at home that’s why to save their money and gave for others who is needed as a loan to invest for business or household expenses etc. Increasing business activities compelled to increase commercial banks everywhere. Commercial banks have been collecting money from people who want to deposit and has been dispatching loan who is needed in the same time bank introduce interest concept for paying bank expenses as well as getting profit. Interest and commercial bank were invented for solving past problem, which I already mentioned. Due to interest all products and services are being expensive, then its real value. Money must not be used for getting extra money without produce useful goods and services, so interest is the one big problem of our economy activities. After eliminate interest then price level of products will near to stable in different time period. Huge number of people in every country, have been doing unproductive work in commercial bank just handling paper money. We should not forget that people need goods and service for run life not unnecessary job, but necessary job must be done otherwise we cannot produce necessary products and services. Working in commercial bank is necessary service in the past, but now we can eliminate it from country by addressing new idea, which I have mention in solution section.
4. Company Concept.
In society, few people, who are investing money in private business, they are being richer everyday than who are working in farming and factory. That kind of situation for well society is not good sign, few people can use all kind of available goods and services in their life but rest of the people are suffering by poverty, they even unable to get for just survival goods and services, then this situation can create fighting between employee and investors. Big class struggles, revolutions have been happened in our human history, huge number of innocent people have been killed as name of class struggle. After happening bad situation, people had been thinking about how can profit distribute for large scale of people in society then they abled to create company concept. In company concept, where they made small amount of share which can be bought by large number of people paying small amount of money then dividend can be distributed for large number of people. It is very good idea to operate big company by involving large scale of population who are even poor. But it is our big unfortunate that share of company has been started buying and selling in secondary market by using demand and supply concept then whole world is being messed up due to share market price fluctuated. Large number of people are being busy doing such unnecessary activities regarding share market which is totally worthless. In history large number of people were suffering by poverty and suicided due to share market price failing.
Company concept was invented for addressing Socialism concept where people said profit should be distributed large number of people, then class struggle can mitigate but people have started using buying and selling of share in secondary market by imposed demand and supply concept of free market after that world is being messed up by fusion of both concepts in one area. That’s why people are compelling doing unnecessary job, unnecessary study regarding share market. What a big bad result has been come out in our world after fusion of big opposite two concept in one area, I only can imagine, words do not support me for writing regarding bad result has been happened across the world. Everybody should know that after buying share, shareholder should get dividend if company make profit in particular year, this is the common concept of buying share. Share should not be sold in secondary market for getting extra benefit. It should be stopped as soon as possible. It is worthless activities are being done from decades. Again, here I repeat common sense, money should be used in transaction of goods and services, money should not be used to increase money value, which, I already mentioned in interest section as well, if we use, finally it can create problem in the economy. How can we solve this arising problem regarding share market by addressing new idea? I have mentioned in solution section.
5. Solution for All Existing Problems regarding Economy policy
Most of the veteran economists, who have huge experiences in this fields, are also puzzled, confused regarding economy policy, they cannot figure out that, which is good, which is bad, what should be done, what should not be done. To understand economy, we should observe deeply using common sense rather than using others principles, which have been written already. People need products and services for run life like foods, water, cloths, home, car, health service, education etc. To get these goods and services, works should be done, otherwise we cannot get it. So, we can say that people need products and services not a job but without doing necessary job, products and services cannot be generated, means unnecessary job must be eliminated but necessary job must be done. After understanding above sentences, we can say that it is very good situation if works can be done by using machine, robot and software rather than human. If all necessary products and services are available for human, doing job by machine and robot, what is the wrong happen here? Everything is right but it is not possible, some kind of works should be done by human. So, we can say that unemployment situation is not a problem of economy. Unavailable of necessary products and services are the main problem of economy.
Large number of people in the world, have been doing unnecessary works motivating by economists and politician in regarding of increase employment, GDP and Per Capita Income, which is worst practice, has been imposed in economy policy, by simply that reason, people have been compelling to work around 8 to 16 hours per day for getting survival products and services. Global nature and environment have been deteriorating and devastating every day. We cannot even breathe fresh air, just in order to increase employment, GDP, and Per Capita income. Those things are being comparable between countries to figure out, which country is greater than other, after that countries are being competed each other to generate unnecessary products and services. That's why people are compelling by suffering poverty as well as our nature and environment being worst, simply lack of common sense of that, people need products and services not unnecessary job.
I want to make clear about this matter by given example, there are two country name A where is 100 citizens are living, in a rotation 80 citizens are being working, they made good foods, home, school, electricity, water supply, road hospital in a year, these all monetary value is about dollar 1000000. Now There GDP is Dollar 1000000 and per capita is about Dollar 10000. And another country name B, there is also living 100 citizens, all are being working, they made unhealthy foods, weak home, unhealthy water supply, alcohol factory, dance bar, film hall etc. In the same year, this all monetary value is about Dollar 1300000, which is called GDP and per capita income is about Dollar 13000. In comparison of employment, GDP and per capita income is higher in country B, but in reality, citizens of country A are making good and useful infrastructures for making good life. That’s why countries should stop to compare about employment, GDP and per capita income each other, they should compare people using facilities. Countries must not generate and produce to goods and services for intension of increasing their GDP, Per Capita Income and employment. Unnecessary products services, and economy activities must not be produced or done for intention of increasing employment, GDP and Per Capita Income. If we able to understand such common sense, then after necessary products and services can be generated by working very less hours like near to 3 hours per day. Human should not be suffering by over working hours forever. This idea can be easily implemented, in those countries where all economy sectors are in under government control, but question is how to apply those countries where most of economy are in under free market. Observing deeply using common sense, if all economy sectors are in under hand of government, then people unable to motivate for creating new innovation, chance to be lazy, not willing to work, risk to destroy whole economy by entering bad political leader. In other hand if all economy sectors leave under free market, then people are doing unhealthy competition for intension of increasing profit, they are producing unnecessary products and services like unhealthy foods, weak goods, cheated advertise, unsatisfied services etc. They are paying low salary for worker, they are selling products in high price, by that all reasons few people are being richest and rest of the people are suffering whole life by poverty. Only handful people have been gathering 80% of assets of across the world. Which is only possible in free market, that is not good and acceptable for run healthy society. Anytime it is possible to start class struggle and revolution against the investors, we all are known about past revolution and class struggles. So, we can say that both under government control or free market control, are failed in practical. That’s why we should apply best policy from every aspect, by staying middle of government and free market.
How to Implement best policy.
Gold and silver should collect from all citizens by paying current price by central bank of all countries. These are the assets of central bank without gold and silver, paper money cannot deserve its value from beginning to till now. We should make global agreement with all countries to devaluate its. After collecting all in central bank, world bank can create new Intenational accepted money on the basis of countries wise quantity means if country has huge quantity of gold and silver then it gets more international money or vice versa. Now international money is being assets of central bank which is back of circulate money of country, which plays same role like gold and silver, and we can easily use in international trade. Then every country can make museum by using gold and silver in front of central bank, these are our history, we should preserve its. Coming generation should know about that what stupid acted, we are doing for making transaction even we are in advanced era. After that using gold and silver related corruption, works and transactions have been eliminated, people can free from worthless working job, then they can do job in really necessary areas.
Corruption, tax fraud, cheated, looted, suffering poverty, most of the bad activities happened across the world, only possible due to drawback of paper money. So, we should call people to deposit money in account, after collecting all paper money, they should be destroyed, we have already debit, credit card and mobile app for making transaction, why should use paper money. After doing that all transactions are possible directly through central bank, no more any commercial bank needed for making transaction as well as dispatch loan. Invester can get money from central bank without interest. Interest must be eliminated from practice; its plays role to make price unstable as well as expensive. Central bank expenses are paid by government not by applied interest. Again, I want to repeat that money must be used for making transaction for products and services not be used to increase money value. People can apply loan directly with central bank using mobile app. This idea currently can apply most developed countries like Finland, Norway, Sweden New Zealand etc. But most of the countries should take few years' time to apply its in practical uses. After that large number of people are free from worthless working areas, they can work in necessary areas.
Security, health, education, insurance, electricity, water supply system, social benefit system, these all are should be run under directly government control. Health and education should be free for all citizens. Health, education, insurance, electricity, water supply, social benefit, should not be allowed open by private company.
Analysing deeply current existing problems, it is good to apply company model, all rest of business, which are not in government direct under but some fundamental changed should be needed for applying. To operate company minimum 500000 to 1000000 share should be needed this number depends under country population size. One person can buy one share. Share should not be sale in secondary market. If somebody wants to sale share, company should return their share by calculating net worth of company. Share price should be fixed, and published by calculating company net worth in every 3 months. Dividend should be paid every 6 months. Company should be paid 25% profit tax it may be changed as government policy. If company get net profit more than 25% of its share capital in a year then excess amount should be paid government. If share applications are more than its maximum limit then those get priority who has no other company share. Every company has 4 level employees like unskilled, semiskilled, skilled and management level. Salary should not be much different in every level I prefer like euro 2000, 2500, 3000, 3500 in Finland per month. Every company should run research and development department in related field that’s why company will able to upgrade their products and services. All transactions and daily report should be access in every shareholder in mobile app. All transactions are operated by using card money and mobile app, we don’t have any paper money in using so it is not easy to be frauded and cheated by sitting management level as well as other level. All financial decision and activities are transparent, everyone check by mobile app. Price of products and service determined on the basis of cost price. We don’t have any more interest of loan so all products price is remaining near to stable.
We can see in small city so many small shops are there, they are waiting customers morning to evening hardly gets some customers, they are doing unhealthy competition, selling unhealthy foods for increasing their profit even they are not satisfied from their routine life. They are compelling their life doing unnecessary work by applied wrong economy policy, even they don’t know why they are compelling to do in life. After introduce company model, thousands of small shop work can conduct by working around 50 people. Then many people are free from unnecessary area, they can work where really work should be done.
After applying digital money, interest free nation, commercial bank free nation, share market free nation, gold and silver related activities free nation, small shop free nation. Then those works must be done, which are really needed for producing. Then large number of people are freed from unnecessary works. If working desired people are more than really needed people then we can decrease working hours per day or we can decrease working days, or we can do job in rotation system. We can apply so many options for divide available job. Those are got basic benefit by government, who are unemployed.
7. All unnecessary worked are stopped forever, which are created for intention of increasing employment, GDP, Per Capita Income. Unnecessary travel, products, services are totally stopped which help to save human life as well as our environment. People can get all goods facilities like good home, car, bank balance, by working less hours compare current situation. I can imagine If people are working around 5 years in seating management level, they can afford to buy private helicopter and people who are working 5 years under seating unskilled level work, they can afford to buy world branded car. We can say that after applying this idea poverty, migration, corruption pollution and a lot of bad things, which are existing, these problems are decreased from the world.
Must be focus points for making best economy policy.
1. People need best products and services for run their life not job. But necessary job must be done. Unnecessary job must be eliminated, which help to people living better life and save the environment.
2. Money must be used in transaction of products and services not to be used to increase its own value without produce useful products. If money use without produce any useful product and services like interest and gain of secondary share market. Then most of the people pursue the interest and exchange gain then who produce useful products and services.In current practice interest has been using in monetary system for control excess circulate money in market. But after applying new company model all products and services prices are fixed on the cost basis so inflation never would be happened and more people are doing job in real needed area then products and services would never be shortages until natural disasters happened.
3. People must not persuade money; people must persuade to produce best products and services in their life. After that people never should be suffering by getting products and service in their life. Everybody can enjoy their life tremendous happy way without any reason, people start enjoy with nature, this may be the breakthrough of our generation.
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