Capitalism economy model has been applied by large numbers of countries around the world. By comparing among the countries in the world, the economic condition of those countries seems good condition where have been applying capitalism model. So, people easily can think that capitalism is the best model. Getting facilities by people in the compare of 200 years ago and now, we are in a very good position but we cannot say that we are in a perfect situation. Science has coined so many useful things in compare of 200 years ago and now, but we have still worked hard for getting survival facilities means getting something wrong in our current model.
If we deeply observe the price of any products and services then finally, we can get, it is all about labour cost. In this matter, Adam Smith said that the price of any products and services has consisted of three elements like labour cost, rent of land and profit. But in my opinion, it is all about labour cost because the land is available free of cost by nature so we should not pay any rent to nature, we should pay rent to people who are maintaining land by investing their labour, so we can say that land rent can be considered as a labour cost and another hand how anyone can buy land, it is by paying money and how money can get by anyone, by doing the job means that called also labour cost that’s why all rent of land also labour cost and profit also can be considered that it is the labour cost of the investor.
If one worker buys one normal house in the USA, he should pay Dollar 300000 but he has been getting salary 1500 Dollar per month by doing fulltime work. If he pays all salary to buy a house without interest, he should pay around 17 years. Can you imagine why this terrible situation come in USA society? It is all about a lack of economics knowledge and unmanaged of money handling. Whatever has been installed in the house, all about labour cost like the price of all furniture is consisted labour cost because we should not pay any cost to any jungle, we should pay labour cost who has brought timber from jungle to factory. So, the same way all raw materials are available in free of cost in nature, we must pay for labour cost who has made usable things by using those free raw materials. If, we observe deeply, getting any facilities by people means exchanging their labour. Then why one worker should be working 17 years to get a normal house without buying other things but he must buy other things to survive then if he pays half of his salary for housing, he must pay 34 years instalment to get this house. What a stupid activity is being conducted in such a developed country then how we can improve the lives of people in a poor country. The living standard of normal people is being complicated and worst in the USA by comparing before 40 years. It means they are puzzled in economics that’s why people cannot get the same facilities as they could get 40 years ago by working the same hours.
Price of all necessary products and services is being expensive due to increasing unproductive work in the economy. I have written very clearly about this matter in my previous article called New Economy Model Realism.
One person cannot make all the necessary things which he has needed so that products must be exchanged among the people in any society. In the ancient age, people had been exchanging directly products to products even currently we have been exchanging products to products but by using money. One person has made 100 shoes and getting money by selling those shoes and buying other products which he has needed by paying money, means we are also doing the same thing as ancient age but we have used money.
Here we should be clear that if we want to increase facilities, then we must increase production or productivity but the whole world is heading to increase money rather than increasing production and productivity then how we can buy necessary products from the market. After using money in the economy, there are so many benefits for doing transactions among the people but also has come out so many drawbacks of using money in the economy. The main drawback of money is that economists are being puzzled in money that’s why they can not make a good economic model for making a better world. They all are busy to make policy on how to increase money and profit rather than increasing facilities that is the main problem of the current economic model. If one the world-leading economist able to understand this simple point then the whole world will be changed in a few years.
Comments
Post a Comment