By: Dr Tamer Mumtaz Banking and Economic Expert
The global economic crisis was essentially a production crisis. Initially, a disruption occurred in the productive cycle, and the disruption continued unaddressed for decades. This was under the umbrella of capitalist culture.
The cause was a free market without government regulation. The private sector chose the most profitable sectors in the market for its investments, which led to a tendency to invest in certain areas over others. This created violence in economic cycles as a result of investors’ attacks or reluctance to invest. This stemmed from uncontrolled collective optimism or pessimism.
The private sector was unable to employ all people or achieve sufficient productivity.
People stood at the doors of the private sector in search of job opportunities, but the private sector’s absorptive capacity did not and will not suffice.
A vast untapped human resource stood idle, and societies had unmet living requirements. Countries had to find a solution. The solution was to quickly search for natural resources. However, natural resources are not sufficient for the needs of nations because natural resources are depleted over time, or their extraction rates are not sufficient to keep pace with population growth rates.
There is insufficient productivity for these societies because natural resources cannot meet their consumption or employment needs.
Governments borrowed from each other until global debts became multiples of the gross national product, resulting in global bankruptcy — the Great Depression.
Governments printed their local currencies at rates exceeding economic growth rates. Due to the scarcity of productivity and the increase in demand, prices doubled.
Inflation occurred in both directions: on the supply side, with increased costs, and on the demand side, with people’s desires increasing without sufficient productivity. The result was a successive price increase that spiraled out of control.
To solve the problem, productivity must be accelerated. But how can productivity be achieved when we rely on the private sector to reach individuals with employment and income, a sector that cannot accommodate all of society? The private sector is like the narrow eye of a needle, through which we cannot pass to reach all members of society.
“That is, this is a stifling path.” In economics, productivity is achieved through the integration of elements together—the integration of people, the owners of the four elements of production (land, capital, labor, and organization).
These elements do not see each other, so they cannot connect with each other. As long as they do not integrate, we will not see productivity.
The car owner does not see where the owner of the money is or where the driver is. The employer does not see where the worker or contractor is, and he does not know where the vehicle is to transport the goods except through an advertisement or a broker.
So the first step is to display the offer through a proposed website that I designed specifically and tested in 2015. The offer is first announced, and then the owners of the four elements of production integrate to fulfill this offer immediately, based on available resources and, first, the alternatives present in the local market.
Here, communities will be able to achieve unprecedented development, with growth rates reaching 70% to 80%.
All human resources will be utilized, not just the lives of communities based on natural resources, so that each individual can search for opportunities in their neighborhood and connect with those who possess them. The four elements of production will then be complemented by those around them, thus satisfying the offer and generating income through productivity. This is the beginning of the end of the Great Global Depression.
If this project is implemented in the manner described, we will find productivity everywhere humans exist. Productivity will double, and income will be provided to all individuals participating in the production process without waiting for a job opportunity from the private sector.
This will create opportunities.
The value of local currencies will rise, living standards will rise, abundance will occur, and the economic crisis will end, preventing it from recurring for future generations,
God willing
