The Natural & The Managed
Economies
Natural Economy:
Individuals, or small communities decide what
to produce and where to produce and where to
distribute their products and services.
The people is not constrained by the decision
of a few leaders on what to produce, to whom to
distribute and who would consume.
The the three tasks of economy namely (1)
Production, (2) Consumption (3) Distribution are
shared between the people that provides the
people an occupation so as to own wealth to buy
goods to consume.
None of these three tasks are not taken away
from one society to another. When it is done,
people would be deprived of occupation. That
would leave people without wealth to buy the
Products to Consume.
More importantly, the wealth generated by the
society remains largely within the society.
1. Anatomy of Economics
Managed Economy:
There are a few common issues that encompass
the entire society that needs a focused
attention.
Such issues can be addressed in smaller societies
without dedicated people and specialized
skills,.
In larger societies need dedicated people, with
larger resources and specialized skills. Such
issues are:
1. Securing nation’s borders of the society.
2. Scientific & Technological advancement of
the society to match other societies around.
Failing to do so, the developed societes might
exploit those lagging behind.
3. Creating common infrastructure for the
entire society,
4. Fair distribution of wealth. Responsibility of
the managers of the Managed societies is to
ensure that the Nation’s wealth Shared among
the citizen, equitably.
Governments, by co-opting the experts in
various technologies guide people on the
three key aspects of Economy, namely, what
the (1) People do, What to (2) produce and
how much and who would (3) consume.
The disadvantage
It can be argued that that a few leaders along
with their think-tanks, can guide the masses into
prosperity. Cause timely changes to processes in
Economics Basics that every citizen should know
the economy to smooth flow of life
But the truth remains that there no proof of
existence of such leaders in the society, anywhere
in the world, in the past and present, who are:
knowledgeable, patriotic and sensitive
to problems of the common man, capable of
accomplish such a task.
Leaders, place their (self and political) survival
goals before that of the society. Their actions
in favour of common man, if at all, is symbolic.
Falls very much short of the mandate given to
them. This is proved by ever increasing poverty
in developing societies.
World over, the leaders thrive on the lack of
ability to remember and very little to negligible
Learning & Thinking abilities of common man.
With mindless fiddling with the natural economy
to Manage the economics themselves had
resulted in increasing unemployment or under-
employment in most societies. Year after year
more and more people fall below below the
poverty line .
Developed world is no exception: We observe
that, in the last two decades, jobs that were performed
by people in Developed countries were moved to
developing and under developed countries. Now the
same would happen in countries like India when MNCs
are allowed to perform performed by common man, in
India without a reciprocal arrangement or obligation
to buy our products.
1. Anatomy of Economics
Shift from natural economy
Invaders from alien societies changed all the
prosperous natural economy of their colonies
into Managed Economy. (Government decided
who to produce, what to produce and where to
distribute the goods and services.
They took away raw material from their colonies
and dumped the finished goods, rendering the
citizens unemployed.
Managed economy leaves common man, the real
people who produce real wealth and therefore
the power behind the society, totally powerless
and enslaved.
Economics Basics that every citizen should know