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Monday, 23 July 2007

Real Income – The Power of Acquiring and Self-Fulfilment

The purpose of the state intervention in promoting and creating an egalitarian society is no doubt competent especially in the third world countries and in nations that were just about to embrace Capitalism.

The sufficient purchasing power of individuals in a state for his own individual purposes is not considered ample and contributing towards the society he is living in. It is well understood that in a big and wide society, there indeed will be an inequality in terms of purchasing power or income distributions. An individual tends to be unsatisfied comparing ones toils of work with others when their income gap is too wide and broad.

Even though it is unethical for a person to steal from his own fellow being, but due to the large disparity and discontented of the income distributions, an individual will think that it is the only way in achieving equality. Realizing the gap of the income distributions becomes wider, an individual will venture themselves in different errands of gaining purchasing power.

Differing from ones idea, the purpose of purchasing power i.e. for leisure or the acquiring of goods, an individual will need such a power for life or the way of life perseverance. Marx and his idea stating that peasants and farmers had been the victims of the wealthy just only supporting the wrong errands of dissatisfactions among those that had less purchasing power. Thus human and communism tends to go back to the default form of trading where “barter” systems and satisfaction among the traders is considered a fair economic transaction.

That why Khmer Rouge in Cambodia once killed all the wealthy and educated individuals for the sake of being default where agricultural plays an origins of mankind well being. Mao Zedong himself once went into frenzy and anarchist society where he ventured in his Great Leap Forward and The Cultural Revolutions just for the sake of promoting equality and blaming the wealthy for the market differences.

In Malaysian experience of 13th May 1969, the Malays once went into amuck and rioting in expressing their grievances on the wide disparities of the purchasing power among the three main races. Such a course of action is just to gain a fair share in the economic disparity of the market. The power of gaining goods and leisure cannot be seen as the fulfilment of human necessities, but also need to be seen as individual’s objective in the pursuit of happiness.

The money itself cannot be seen as a paper which was deposited such a power of acquiring, but also as a means in gaining a fair and equal term on economic transactions. The well being and liberal economic market is understandable and concurred when a butcher is satisfied with what he will get in selling the meat at the market instead just changing it for something he didn’t need just for the sake of doing business.

Let’s look at in a market environment as pictured by Adams Smith, the well being and well off a society can bee seen and testified when a butcher, a farmer or a fishmonger is satisfied for what he had gained and sold at the market. These happiness and satisfaction of doing business and the flow of wealth and purchasing power among those that involved in the market transaction is the indicator of the well being of a society. A government servants and the increment of its salary cannot be seen as an indicator of a well being of a society if the increment of the purchasing power didn’t been used for the wider market of acquiring and purchasing goods.

In our experience and economic environment, the discrepancies in ensuring the flow of the purchasing power itself is on the losing ends. We rely more than 50% of the purchasing goods in the market by the government servants themselves and not among the business community. The unfair balance of the money flow in our economic perspective came solely from individuals which is associated with government bodies. The role of the government in our economic and social environment is misinterpreted as a welfare agency/ body which responsible in providing money flow through government projects and government endeavour.

Not relying on the power of the free market, our business community in Malaysia posturing towards safety net where business community even though understood as differ body from the government, but can be seen as mini-government agencies executing government projects and social endeavour from the government perspective. There is no encouragement to where our business community or corporate bodies is urge to create its own goods or independent products and charging for the free market outside safety net. Such weaknesses is moving towards depleting government funds in the Treasury if such an action where the business community is encourage to be free-in the economic sphere is not being starting off.

Take for an example where an idea for biotechnology products is first suggested by the Prime Minister himself and indeed the benefits of fruitful idea of its pet project is good for the business community in Asia. Plus the reservoir of herbs and numerous green plants from the forest of Malaysian jungle itself is wonderful. But in terms of executing the plan, there is no finish products perceive and taken into account whereas the sole facts that will ensure the survivability of biotechnology policy is the end products itself. Thus the end products will create wealth by the purchasing power of the consumer and will enhance research and development for certain products.

The money that was invested by the investors is paid up through the flow of the money that is willingly be paid by the consumers and the promotions of the products in the market of the world. Such and outcome for finish products will create unstoppable wealth and probably the wealth will never stop ever. Same as the private sectors it is encouraging when such as scheme of providing companies shares to the employee on certain amount of monthly income when such and idea is promoting persistent competency among the employee themselves when that sense of belonging is instil among the workers as such as sense of competition among other entity.

To be continue

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Faces of Tun Teddy

Faces of Tun Teddy