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The economy 1002


This document introduces a new system of supply and demand because the system of curves can be replaced by this new system using the hierarchy as a means of expressing how we can fix the price according to the quantity. Of course, we can further develop this supply and demand model. And we recall thanks to this model how the communism is affected by the equalization of prices or the tendency to want to reduce the prices which has as consequence to reduce the number of choices of products and services in the market.

Updated: 2016-02-24

Created: 2016-02-24

Type of document: News



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The economy 1002
NEW-ECO-0002-v1-EN-economy_1002.pdf
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1. Introduction

The economy 1002 is education to simulate the weak sectors of the economy, the weak businesses and even those who are already strong in some way, why the line work is less effective than the method of production by cells, and in addition, you will understand that the same organizational power pulls his strings in part of what will be taught in this new “The economy 1002.” It is strongly recommended to read the new “Economy 1001” before it to understand the importance of the hierarchy in the economy.


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2. Supply and demand

You will see that the graph has no more curve to express the supply and demand, because one way or another, with the old method, the definition points of the curves of supply and demand were placed randomly. And even with market data… Which market exactly? That is the right question, so the application of market data represented a random application. Here are the new graphics of supply and demand:



Figure 1 – What everyone wants…


Figure 1 – What everyone wants…

In Figure 1, we grant the quantity to the demand, and we grant the price to the offer, because you have to “grant” the variables for an economic model to be “strong” representative. More quantities are high, following the yellow gradient, more yellow represents that demand is concentrated. For a product that is unpopular or nearly useless do not find concentrated demand. In addition, if a product is in high demand, such as oil, for example, it is wrong to say that the product is in demand continuously to infinity as suggested by the old ways of expressing the request with the method curves, because when all consumers got what they wanted, they don’t ask for more: this why the tip of the hierarchical triangle.

In Figure 1, the chart suggests a horizontal axis only, because it is understood that the arrows indicate that demand “pulls the drape” on board and offering did the same by pulling the drape over her side. To explain the offer, the higher the price becomes very concentrated compared to the value of the product or service, the more it tends to be offered, but there is a maximum point, as both material and human resources are not unlimited.

In Figure 1, to explain the chart as a whole, the bottom of the hierarchy of the supply to the top of the hierarchy that expresses the basic product or service must be more sophisticated in order to have concentration in the price. And this expresses that the cheapest products and services are those offered at the bottom of the class hierarchy of an individual class in society. And those at the top of the hierarchy, so more sophisticated rarer, are those offered to the class of the wealthiest society financially.



Figure 2 – Stores at $1


Figure 2 – Stores at $1

We can see the limits of such a business model (store at $1) even if they are making money. It is also close to the idealistic communism of Fidel Castro, we can see prosperity limits of such a system.

Consider also the supply and demand for employment: who wants a job on an assembly line, where the enrichment of the task is not there?



Figure 3 – Medicine


Figure 3 – Medicine

Since doctors are a rarity, hospitals charge the full price. But hospitals are more profitable with more doctors because the maximum quantity has not been reached.


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3. What blocks the equality communism

The egalitarian regime prevents certain products and services are offered, and therefore same commodity becomes inaccessible because the bottom of the hierarchy is shrinking, and therefore it is a divided economy because there is no top of the hierarchy. The division of the economy leads to shortages in the population, because the companies’ prosperity is not there, and then the government alone cannot suffice on its own to assemble the economy, because even the competence doesn’t find place because there is the missing link between the government and the whole population equally.

And to continue to understand what communism blocks, it is not a system that has optimal prices representing the best price/quality ratio, it is a system that has only one function: the government. While in capitalism and democratic country, the government goes to know that it is supported by the people of all classes, and thus it becomes powerful because it is far from low. In a communism country, the government persists in wanting to create power instead of cultivating within the population, so it is a virtual power because it is designed by the government: if the population has no power, then who can have; the gun?

But this is not to overthrow communism with the riots, that’s for communism countries agree to compromise “calmly” to a democratic and capitalist mode, raising awareness of the hierarchy and power, as the example the last class, if people have equal salary, they are all last and therefore all poor. And if they are all equal in power, so all low in power. This is the sad reality…



Figure 4 – Communism power


Figure 4 – Communism power

In fact, every citizen must be able to generate power for the government to cultivate this power.


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