Dr. Tamer Momtaz
Economic Expert
Economic crisis is devastating humanity, there is no doubt that painkillers only treat its symptoms, while the disease remains painful if we do not provide treatment.
The problem is lack of production caused by capitalist philosophy since the sixteenth century.
Unchecked market freedom was the primary reason for directing the private sector toward investment in more profitable sectors, which only meet a small portion of society’s needs, The private sector’s productivity is insufficient for society.
Domestic demand is not met by domestic productivity, which has forced governments to compensate for this by borrowing from other countries and international institutions and receiving aid to import society’s needs. However, the problem has continued to worsen over time.
Countries are trying to raise interest rates to reduce the amount of money in people’s hands, while at the same time, they are printing money without regard for economic growth rates.
This has become a global phenomenon, contributing to an increase in inter-state debt and a loss of hope in the ability of debtor countries to repay their debts, which have reached dangerous levels, this has created a state of pessimism and a reluctance to invest due to the growing incidence of bankruptcies.
Prices rise (demand inflation) and production costs rise (supply inflation).
Investors who risk their money in establishing the private sector are limited, and societies are large, they expect business owners to pay salaries to all people in exchange for employing them. This is impossible because each company has a maximum capacity
For this reason, many of qualified and unqualified individuals are present at the doors of companies and factories, waiting for opportunities from employers. However, naturally, companies and factories can only accommodate a limited number of jobs, based on their investment capacity.
Now, we must look for the disease:
The lack of productivity, which is the cause of the crisis that occurred in 1929 and is recurring today – If a solution had been offered – the global economy would not have collapsed, and the situation would not have escalated into a second world war over control of resources.
(The solution)
The reason for the scarcity of productivity is the lack of communication between the four elements of production (land, capital, labor, and organization) – The integration of these four elements leads to productivity.
If the four elements of production are isolated from each other, we will not achieve productivity.
For example, a car owner cannot reach the driver’s location even though he lives next door. A buyer does not know where the shopkeeper or the worker lives, even though they live next door. A merchant cannot find a delivery service even though he also lives next door. Nor does he know where the management of his business is located, even though they live in the same area.
Integration with anyone -in the Past- occurs by chance.
On the other hand, demand does not know where supply is located, even though it is nearby. Supply does not know where demand is located, even though it is also present.
In other words, people do not know where to buy products, and producers do not know where consumers are, even if they all live on the same region. From the above, we conclude that we don’t see each other and have become accustomed to this without even noticing.
The solution is a website to share the four elements of production, where each person can reach the other elements to complete the productivity cycle.
The results:
• Productivity is achieved.
• Income is generated.
• Prices fall because of increasing supply.
• increasing of: Living standards, Price of Local currencies ,Savings and Investments .
• Debts are paid off.
• Recession ends.
• Prosperity is achieved.
Here, we find productivity on demand everywhere humans exist, doubling over time. There are no longer any obstacles. The integration of the four elements of production will halt the global recession and prevent the crisis from recurring for future generations, God willing.
