New Theory and Practice of Capitalism

The work I do in this book is concrete since it deals with crucial realities of the world today. The entire world is now following and living under capitalism system . Economy is a reality in life of every human being and entire population of the world. Economy in capitalism gets confused itself first for what it is and it should be. Let me remember you that economy is defined as the activities of human beings in order to cover human needs and wants. If capitalism should not be in contradiction with economy, it means then, capitalism should make economy able to play really its role in covering needs and wants of all human beings. Economy is a matter of each human being and nation. The world today is not so as it should be. Economy in capitalism has been itself a contradiction with its own essence, capitalism has created a big gap between Rich and Poor. There is not only the big gap between Rich and poor, but there is also the biggest part of the world population living in the social class of Poor. Those poor do not look to economy as it is said to be. Economy does not give real answers to all needs and wants of poor. They are limited while they can not cover all their needs and wants. The existence of the biggest part of the world population does not yet enjoy the economic blessing that humans should receive. My book today comes in order to give a new orientation of capitalism so that economy get its place in society of human beings. Capitalism system is in crises because it is mostly for maximum of profit in extreme. Karl Marx brought the capitalism system into economy , it was already seen that capitalism will have some crisis in the future of the system. Of course it happens many times in the history of the world since capitalism is practiced, many crises happened and happen still today in our time. The crisis happened and happen because the maximum of profit has been the trend for investment all the time. When the attractive investments with high profit are not seen by capitalists, at the same time we observe that the profit has been decreased since the existing investments which produce goods and services are facing saturated market. The next investments won’t come since capitalists see that in market produced goods and services are no more demanded , then they new investors likely won’t invest their money since they know that the profit is decreasing because market is saturated. When the market is saturated , the consequence is the crisis. This crisis is not only in one dimension, but in all aspects of economy. The first consequence is the investors will reduce the cost of production while reducing first the number of workers, it means people will loose their jobs and unemployment rate will increase. When unemployment rate increases , it means also the number of taxes payers decreases , the State won’t receive more money from taxes like before, and many banks will also have problem when their debtors who are among those who lost jobs won’t be able to repay credit. It is so a long list of consequences when profit decreases and market is saturated. In my work in this book , I tell to the world that , there is the new path to make now and to turn saturated market into continuous and constant market which will avoid all the list of consequences of decreasing of profit. The trend I present here is the Full employment and Full out put model Economy. When employment happens, the biggest part of the world population which is mostly the class of poor will be changed and gets almost into Middle Class. When poor people get into Middle class, we create a process that I call elevation of poor. When we elevate poor people, we will in the same time increase economic actors and co-operators in market. It means more investors will be motivated to invest again their capital since the elevation of poor people will be simultaneously with the realization of poor to get their needs and wants covered since they have income and their purchasing power has been increased. Market won’t be saturated any more while effective demand will increase and producers should consider the new theory that I call here the speed of rotation of goods and services The bankruptcy of businesses and enterprises won’t happen any more since the cash flow will always be in hands of producers in order to continue the cycles of production of goods and services. The new Market theory is the path to follow now in order to extend market constantly and progressively while creating new jobs also progressively. The trend is the trend to full employment and to full out put. Aggregate demand will be constant and progressive when new workers are leaving the class of Poor and getting into middle class and when people are getting well paid. When Market is constant for goods and services, the economy plays its role since goods and services will finally get to more people than before. People will now see the effect that economy has really in the life of every human being and nation. The full employment and full out put Model of Economy that will confirm economy as a matter of all and for all nations should reduce poverty in the world. Humanity will make great progress and big change in the world. Humanity can still reach high level of standard of life than before and build New world. The new capitalism is not only for economy, but also for good governance that is required from each government to use properly the public fund and stimulate investors and regulate employment for protection of both investors and workers , so that everybody play his role happily. My book has a great message for the world today.