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地球を救え Save the Earth

Where are we going? What are we looking for?

Living in a contradictory world    Living a little more quietly
GM Shock - System Failure    Prescription for current situation
Globally Adjusted Economic Theory and a Concept of Country Life Cycles    
Analysis of the Current Global Economic Situation
Three Culprits and a Shadow in global economy Chinese trap - Dangerous Protectionism
Keynesian's Supply Side Economy updated Simple version of Keynesian's Supply Side Economy updated
Where are we going? What are we looking for? Globalization Factor.
Globalization Factor Simplified and Submitted to the White House.
No more deregulations, please! From blind-individualism to conditional individualism!

From Free Economy to Conditional Free Economy! Solve both climate change issue and economic issue at the same time!

We need an Earth Government!

Where are we going? What are we looking for?

Conclusion:

We should have a good balance between efficiency and effectiveness.

I. Background:

I tend to believe that we are only pursuing efficiency, which will lead us to monopolistic conditions and Kings and beggars situations.


1. Environments have been changed:

Due mainly to globalization in addition to lack of proper laws and regulations, large global companies are getting bigger and more efficient, which is good as long as it does not inhibit healthy competitions.

However, as far as I see it, it is no longer healthy because market is not functioning well any more.

Taking an example in the U.S., by virtue of efficiency, although global companies got bigger and more efficient, these companies do not contribute to create more jobs in the U.S. since majority of productions are conducted at off-shore such as in China.

On the other hand, lots of local companies got killed due mainly to tougher competitions against Mega global companies.

One important point here is that local companies provide lots of local jobs as you can notice.

This is one of the reasons that the. U.S. is suffering from high unemployment rate such as over 9% these days.

We are supposed to protect mid-small size local companies through anti-trust/monopoly laws in order to sustain healthy economic conditions.

Nowadays, anti-trust/monopoly laws are not functioning well especially to global companies.

In Nature, there are food-chains and without proper food-chains Nature mal-functions.

Functions of companies are not only for making profits but also providing jobs.

Many mid-small companies are contributing to a society through providing jobs, although these companies do not produce much profits or even making losses.

In this sense, I would say that these companies are contributing to effectiveness in my opinion.



II. Efficiency v. s. Effectiveness:

I tend to believe that we are only looking for efficiency these days; that is why market is mal-functioning because small number of mega-size companies always win and the rest become losers.

The world population is almost 6.9 billion now and we no longer need to increase it because the size of the earth will never expand.

In other words, growth model, which looks for efficiency only, is inappropriate because we are not supposed to grow population in numbers from now on.

Looking for efficiency only is endless, which is similar to a car without a brake pedal.

We need to be more efficient if we want to sustain more population which is not a way to go in my opinion.

What is necessary in my opinion is that a good balance between efficiency and effectiveness, which can be achieved through proper use of anti-trust/monopoly laws and regulations in my opinion.

a. By size:

b. By region:

a. Anti-trust/monopoly laws and regulations by size:

Taking an example of sports such as boxing, we need to categorize competition by weight or size; otherwise, always big guys win or mega-size global companies win.

b. Anti-trust/monopoly laws and regulations by geographical region :

It is most likely that we may want to protect mid-small size local companies through anti-trust/monopoly laws and regulations regionally because mid-small size local companies are major sources for providing local jobs.



photo of HM
Jan. 8th, 2011. Hiroshi Morita

Living in a contradictory world    Living a little more quietly
GM Shock - System Failure    Prescription for current situation
Globally Adjusted Economic Theory and a Concept of Country Life Cycles    Analysis of the Current Global Economic Situation
Three Culprits and a Shadow in global economy Chinese trap - Dangerous Protectionism

Keynesian's Supply Side Economy updated Simple version of Keynesian's Supply Side Economy updated

Where are we going? What are we looking for? Globalization Factor.

Globalization Factor Simplified and Submitted to the White House.

No more deregulations, please! From blind-individualism to conditional individualism!

From Free Economy to Conditional Free Economy! Solve both climate change issue and economic issue at the same time!

We need an Earth Government!

Link English Site    Buzzle.com

HM blog

地球を救え Save the Earth
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