If
would be charged, the most important common characteristic of thinking in economics and in economic policy to designate the Western industrialized countries, the right answer might be that this is in the supply-political thinking.
course, this is only partly correct - at least if the past two years is considered because in these two years different than before and Keynesian measures were taken, so demand stimulation was operated.
But this phase appears to be over - except for Japan. Even in the U.S. is now worked on a conservation concept. (1) In Greece, Spain, Portugal and most recently in the UK is already a drastic austerity program driven by the governments. For most governments, the view has prevailed that they can not afford a continuation of the significant spending rate, given the accumulated through bank rescue and recovery plans huge national debt any more. In addition, these measures do have prevented the worst. But a real success they have not yet. Because the financial markets still walk on the edge of the crisis and the same goes for the real economy. Without question, the
into debt is irresponsible, if not for the rest of the economy and thereby the return flows of Funds in the treasury out. However, be seen to be that draconian saving concepts have a liberal, supply-political reasons. The issue is especially important to create the retreat of the state space for more private sector activity. It is in some ways a kind of liberation of the economy, at least from the perspective of liberal economists and politicians who believe that this works.
In this view, that is, offer a policy perspective, it's all about the supply side - the company as a supplier of products and services also. It is quite appropriate to say pointedly formulated, consider the leading liberal and neo-classical economists, explain and essentially only this part of the market economy to analyze because all that happens on the demand side, both economically and politically from the economic activity on the supply side, depending on viewing and disappears so far as possible.
Liberal policy is supply-side policy, and so the arguments leading neoclassical and liberal dominated economic schools of thought.
If one is convinced that this is so, then this results in no justification for demand stimulation.
The problem is that a hook, or better even two: First, have both liberal and neo-classical economists, in principle, always a static Economy in mind, a circular economy also. A developing economy, they can, as I have stated here before, (2) not explain, however. This is precisely a key reason why the crisis will have neither seen nor could explain. Second, it is not sufficient to consider only the supply side, if you will declare a developing economy.
The development of markets is rather a direct result of the combination and interplay of supply and demand. This is what even the representatives of the economic mainstream of the functioning of markets. However, they generally assume rational behavior, symbolized in the idealized figure of the "homo economicus". Development can not be discerned from a distinction between vendors and buyers of a given design situation and derived therefrom, and all applied behavioral routinely explain out. Rather, development is related just different from, and also in the time varying behavior. Assuming a range of different motivations and behavior types in the offer is made, and on the demand side, it is easy to imagine that many are the consequences for the economic life and for the development.
Exactly how the development of markets such as on the overall economy - as all the markets - is running at whatever stage of the prevailing order and the events shaping behavior types on both the supply and depending on the demand side. Shall be decided by the fact such as whether competition can be to the buyers in a product market successfully on the price, or functional, and in the broadest sense qualitative characteristics are crucial. For it is not for everyone, it depends on the cheapest price, not always rational behavior is present. Also specific additional functions, the design, the preference for a product brand, environmental considerations, social concerns etc. decisive for purchasing decisions . Give To what extent this in a market comes into play, but is also dependent on the supply side. There really there is effective competition, then the provider adjusting their behavior and to rate their products on the demand situation must - unless they specialize in a niche. Because the demand for effective competition is decided on what corporate argue with what behavior and what specific offers.
If we look now to the real situation shows that many markets are dominated by the supply side and not on the demand side. The market structure is expressed in particular that such markets from a small number of very large Provider dominated. This applies to the energy sector (electricity, gas, oil and gasoline), for the food industry, but also for the food trade, telecommunications, computer processors, automobiles, airlines, for the pharmaceutical industry and also for the areas of accounting and business consulting, etc. In this cases of each type of behavior characterizes predominantly on the supply side, the concrete form of competition (usually tend to be mere cost competition) and thus also the specific form of what buyers can purchase under what conditions on a market. Differing offers are under such circumstances - if any - only of niches available vendors.
Due to structural differences - a few large providers on the supply side, but many buyers - it is very possible that companies can sell products and services to a large extent, although the needs of large parts of the demand is insufficient or in the theoretical worst case even do not comply and do so simply because there is nothing else on the market.
'do or die "- that could describe this constellation clearly. There is only the foods that are offered by two, three or four major global players. And if these products on genetically modified agricultural products should be based, then it is from the perspective of the individual consumer are not altered. Or if it were offered by the handful of power companies only nuclear power, so shall it profit a just nothing if you do not even want nuclear power.
Why is that? Why are we as customers and consumers seemingly powerless?
has a start, it simply something to do with the developmental stage at which these markets are located. The examples listed markets are "mature", some stagnate at a high level, so they are often saturated. In this phase of development markets typically have a high business concentration on vendors say. Just as typical is how the Term "mature phase" already suggests that production processes, products and services are mature. This means that the products of competing suppliers are located - in terms of its essential characteristics (technology, design, quality, etc.) - have become very similar. Far-reaching improve-ments or innovations, or even technological advances no longer occur. Thus there is a large market transparency - both of the competing providers and for consumers. It is evident that competitive strategy in such a situation, that is, on the supply side, and also on the demand side, namely in the purchasing decision, the cost or the cost of the all-important be criterion.
such a situation prevails for a longer time period and, moreover, not only in individual markets, but in many markets, then solidifies on supplier and for the demand on a broad level, a conservative behavior. In other words, something is being done because it was always done one way or the routine is just as prescribed, and some will be bought because it was getting bought. That is, neither the few established, large producers or to purchase their usual routine and over time on the "qualitative eye blind mass of customers will really change. Providers such as buyers are ultimately renewal savers. This
the demand to a considerable extent complicit in the financial market and economic crisis. Most are, at not aware. Because of this, the phase of "maturity" of markets and for "mature" economies typical behavior allows the dominant party in the big markets to hold their own unchallenged and in some cases even if they offer products and services less and less to the needs of a growing part of the match demand. What's worse, the mass of customers to behave the same time preventing that new, really innovative vendors with different, better can establish the needs of large parts of demand matched products and services in markets and grow, because they have become blind to the far-sense qualitative differences.
Because the competing products and services of large, established vendors, are so similar, that is nearly "homogeneous" become to trust and rely on the demand side of this occurring at all offers on the market then. They have therefore grown accustomed over the years, decisions for products and services ever meet only on the basis of the criterion "price". As a consequence of the vast number of customers qualitative differences possibly even superficially true, because quality standards have been lost and was simply forgotten how to judge quality. The prize will be forfeited to the knock-out criterion, the quality of the products, the spectrum shrinks to different qualities of products and services, truly innovative products have no chance and that is why there are not.
particularly new, but also generally innovative providers, providers of quality services to see today following, the sum of very powerful, difficult to be overcome hurdles to the following:
would be charged, the most important common characteristic of thinking in economics and in economic policy to designate the Western industrialized countries, the right answer might be that this is in the supply-political thinking.
course, this is only partly correct - at least if the past two years is considered because in these two years different than before and Keynesian measures were taken, so demand stimulation was operated.
But this phase appears to be over - except for Japan. Even in the U.S. is now worked on a conservation concept. (1) In Greece, Spain, Portugal and most recently in the UK is already a drastic austerity program driven by the governments. For most governments, the view has prevailed that they can not afford a continuation of the significant spending rate, given the accumulated through bank rescue and recovery plans huge national debt any more. In addition, these measures do have prevented the worst. But a real success they have not yet. Because the financial markets still walk on the edge of the crisis and the same goes for the real economy. Without question, the
into debt is irresponsible, if not for the rest of the economy and thereby the return flows of Funds in the treasury out. However, be seen to be that draconian saving concepts have a liberal, supply-political reasons. The issue is especially important to create the retreat of the state space for more private sector activity. It is in some ways a kind of liberation of the economy, at least from the perspective of liberal economists and politicians who believe that this works.
In this view, that is, offer a policy perspective, it's all about the supply side - the company as a supplier of products and services also. It is quite appropriate to say pointedly formulated, consider the leading liberal and neo-classical economists, explain and essentially only this part of the market economy to analyze because all that happens on the demand side, both economically and politically from the economic activity on the supply side, depending on viewing and disappears so far as possible.
Liberal policy is supply-side policy, and so the arguments leading neoclassical and liberal dominated economic schools of thought.
If one is convinced that this is so, then this results in no justification for demand stimulation.
The problem is that a hook, or better even two: First, have both liberal and neo-classical economists, in principle, always a static Economy in mind, a circular economy also. A developing economy, they can, as I have stated here before, (2) not explain, however. This is precisely a key reason why the crisis will have neither seen nor could explain. Second, it is not sufficient to consider only the supply side, if you will declare a developing economy.
The development of markets is rather a direct result of the combination and interplay of supply and demand. This is what even the representatives of the economic mainstream of the functioning of markets. However, they generally assume rational behavior, symbolized in the idealized figure of the "homo economicus". Development can not be discerned from a distinction between vendors and buyers of a given design situation and derived therefrom, and all applied behavioral routinely explain out. Rather, development is related just different from, and also in the time varying behavior. Assuming a range of different motivations and behavior types in the offer is made, and on the demand side, it is easy to imagine that many are the consequences for the economic life and for the development.
Exactly how the development of markets such as on the overall economy - as all the markets - is running at whatever stage of the prevailing order and the events shaping behavior types on both the supply and depending on the demand side. Shall be decided by the fact such as whether competition can be to the buyers in a product market successfully on the price, or functional, and in the broadest sense qualitative characteristics are crucial. For it is not for everyone, it depends on the cheapest price, not always rational behavior is present. Also specific additional functions, the design, the preference for a product brand, environmental considerations, social concerns etc. decisive for purchasing decisions . Give To what extent this in a market comes into play, but is also dependent on the supply side. There really there is effective competition, then the provider adjusting their behavior and to rate their products on the demand situation must - unless they specialize in a niche. Because the demand for effective competition is decided on what corporate argue with what behavior and what specific offers.
If we look now to the real situation shows that many markets are dominated by the supply side and not on the demand side. The market structure is expressed in particular that such markets from a small number of very large Provider dominated. This applies to the energy sector (electricity, gas, oil and gasoline), for the food industry, but also for the food trade, telecommunications, computer processors, automobiles, airlines, for the pharmaceutical industry and also for the areas of accounting and business consulting, etc. In this cases of each type of behavior characterizes predominantly on the supply side, the concrete form of competition (usually tend to be mere cost competition) and thus also the specific form of what buyers can purchase under what conditions on a market. Differing offers are under such circumstances - if any - only of niches available vendors.
Due to structural differences - a few large providers on the supply side, but many buyers - it is very possible that companies can sell products and services to a large extent, although the needs of large parts of the demand is insufficient or in the theoretical worst case even do not comply and do so simply because there is nothing else on the market.
'do or die "- that could describe this constellation clearly. There is only the foods that are offered by two, three or four major global players. And if these products on genetically modified agricultural products should be based, then it is from the perspective of the individual consumer are not altered. Or if it were offered by the handful of power companies only nuclear power, so shall it profit a just nothing if you do not even want nuclear power.
Why is that? Why are we as customers and consumers seemingly powerless?
has a start, it simply something to do with the developmental stage at which these markets are located. The examples listed markets are "mature", some stagnate at a high level, so they are often saturated. In this phase of development markets typically have a high business concentration on vendors say. Just as typical is how the Term "mature phase" already suggests that production processes, products and services are mature. This means that the products of competing suppliers are located - in terms of its essential characteristics (technology, design, quality, etc.) - have become very similar. Far-reaching improve-ments or innovations, or even technological advances no longer occur. Thus there is a large market transparency - both of the competing providers and for consumers. It is evident that competitive strategy in such a situation, that is, on the supply side, and also on the demand side, namely in the purchasing decision, the cost or the cost of the all-important be criterion.
such a situation prevails for a longer time period and, moreover, not only in individual markets, but in many markets, then solidifies on supplier and for the demand on a broad level, a conservative behavior. In other words, something is being done because it was always done one way or the routine is just as prescribed, and some will be bought because it was getting bought. That is, neither the few established, large producers or to purchase their usual routine and over time on the "qualitative eye blind mass of customers will really change. Providers such as buyers are ultimately renewal savers. This
the demand to a considerable extent complicit in the financial market and economic crisis. Most are, at not aware. Because of this, the phase of "maturity" of markets and for "mature" economies typical behavior allows the dominant party in the big markets to hold their own unchallenged and in some cases even if they offer products and services less and less to the needs of a growing part of the match demand. What's worse, the mass of customers to behave the same time preventing that new, really innovative vendors with different, better can establish the needs of large parts of demand matched products and services in markets and grow, because they have become blind to the far-sense qualitative differences.
Because the competing products and services of large, established vendors, are so similar, that is nearly "homogeneous" become to trust and rely on the demand side of this occurring at all offers on the market then. They have therefore grown accustomed over the years, decisions for products and services ever meet only on the basis of the criterion "price". As a consequence of the vast number of customers qualitative differences possibly even superficially true, because quality standards have been lost and was simply forgotten how to judge quality. The prize will be forfeited to the knock-out criterion, the quality of the products, the spectrum shrinks to different qualities of products and services, truly innovative products have no chance and that is why there are not.
particularly new, but also generally innovative providers, providers of quality services to see today following, the sum of very powerful, difficult to be overcome hurdles to the following:
- The market power of the small number of established, large Provider and their obsession with status-quo-preservation and pure price competition;
- typical for mature markets, that is for qualitative differences blind and neuerungsaverse behavior of the majority of customers;
- economic policy, the purely supply and politically operates both in improving the environment and in terms of active promotion focuses on one side to the needs of large, established companies in mature markets, which means that those in their pricing and cost competitive support capability.
are the main reasons for remaining in or on the verge of crisis for the right dahindümpelndes growth, continued job losses, falling incomes for real and a weak domestic demand.
What is missing is: a dynamic, innovative competition in which everyone has a chance to provide innovative services - also against the larger, established competitors.
It is quite clear that both the economists as well as the economic policies of a rethinking needs to this situation, the deliberately sketched very blunt and analyzed, was to leave the basic reasoning is clear to overcome can. We need to get away from the purely political as well as supply-demand from the purely political View. Instead, the interplay of supply and demand back into focus, not within the usual, limited to the circular economy thinking and analytical framework, but in light of the fact of emerging markets and economies.
especially can help to overcome the misery, however, the demand for, and indeed even the most effective and thus most important force. You must learn to see on the "quality eye again, and this independent, that does not develop from the current product range dependent quality standards. They have to improve their judgments and, alternatively, offered products and services more aware of circumferential assess and thoroughly than you are used from the previous phase, in which apparently it was enough to simply compare the prices only. You must also express, if not all alternative choices available are satisfied, so that it remains the same.
There are many signs that moment something changed in this direction:
What is missing is: a dynamic, innovative competition in which everyone has a chance to provide innovative services - also against the larger, established competitors.
It is quite clear that both the economists as well as the economic policies of a rethinking needs to this situation, the deliberately sketched very blunt and analyzed, was to leave the basic reasoning is clear to overcome can. We need to get away from the purely political as well as supply-demand from the purely political View. Instead, the interplay of supply and demand back into focus, not within the usual, limited to the circular economy thinking and analytical framework, but in light of the fact of emerging markets and economies.
especially can help to overcome the misery, however, the demand for, and indeed even the most effective and thus most important force. You must learn to see on the "quality eye again, and this independent, that does not develop from the current product range dependent quality standards. They have to improve their judgments and, alternatively, offered products and services more aware of circumferential assess and thoroughly than you are used from the previous phase, in which apparently it was enough to simply compare the prices only. You must also express, if not all alternative choices available are satisfied, so that it remains the same.
There are many signs that moment something changed in this direction:
- A good example is the initiative "Move Your Money" in the U.S.. (3) launched over the Internet, the call to the American people to tolerate no longer the high-risk business of large U.S. banks and not more of them high to make charges and credit interest exempt. Rather, the citizens resolve their accounts with the banks and go to small and medium-sized regional banks in order to support this and so change the power structure in the banking sector. The initiative mobilized in the early stages of thousands of Americans. promote
- Or the gas station chain boycott calls in Germany to counter the high fuel prices (4)
- and the resistance against efforts of agricultural and food companies, the patenting of genetically modified plants and animal breeds, ( 5) because it attempts to hide monopolization of plant and animal breeding are seen. (6)
- Another positive indication of a change of demand is the amount of attention received by the Internet platform utopia.de . (7) It calls on citizens to change their consumption patterns and lifestyles towards sustainability. Utopia.de informs, promotes the exchange and is also Advisor for strategic consumption. The goal: The people should decide consciously and support with every purchase environmentally friendly products and fair working conditions throughout the world. (8)
- Or the initiative "Energy in hand citizens" , at the Freiburg citizens who had enough of the dominant energy companies, high prices for electricity and nuclear power, millions gathered to purchase shares of itself and influence at the time of the sale E.on subsidiary Thüga. (9) The initiative reached its destination. (10)
- Another current, with the previous examples, not directly to comparative example is the current protests against the Stuttgart train station project "Stuttgart 21" . For it shows that the citizens of this proposed special "offer" have seen very much conscious and considered, as it until recently for possible would have held. The result of this is that they have now established that the "product" "Stuttgart 21 is compared to" publicly and in detail with an alternative "product" "head station 21" . (11) be visible to the citizens not only in terms of costs, but also other qualitative differences. The Stuttgart have just zurückerkämpft a piece of their critical abilities.
Links:
(1) Commission shall submit to drastic proposals: How to save four trillion dollars? (V. 12:11:10)
(2) manage The Crisis: The Dilemma of economists and central bankers (by 6:07:09);
(3) Protest against Wall Street: U.S. customers revolt against big banks (v. 01.02.10);
(4) call in Facebook and Co.: Helps Network boycott fuel rip-off? (v. 29.04.10);
(5) patents on food: The Broccoli revolt (v. 20:07:10) see also: documentation "Monsanto - with poison and genes" ;
(6) patent dispute: resistance to "Broccoli patent" is forming (v. 20:07:10)
(7) Utopia.de ;
(8) Utopia.de, about Utopia ;
(9) poker for E.on-daughter: electricity planning coup against rebel groups (By 31.07.2009);
(10) competition for E.on & Co.: Experts celebrate Germany's new energy power (v. 12:08:09)
(11) ; Stuttgart round of mediation at odds over head railway project (v. 12:11:10).
recommended addition to articles and documents:
- Uncontrolled Mediakmenteneinsatz in factory farming: antibiotics ineffective controls (v. 18:11:10)
- scandal EU authority: Consumer advocates on behalf of corporations (v. 18:11 .10) and associated: members of the Board of Directors 2010 of the International Life Sciences Institute (ILSI) Europe Branch;
- Cantona action against the banking system: Today "bank runs" is -day in France (by 7:12:10).
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