SHIFT OF ECONOMIC SYSTEM
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SHIFT OF ECONOMIC SYSTEM
TOWARD INFORMATION SOCIETY
Capitalist economic system after the Second World War is characterized as the Keynes-Ford system. Keynes-Ford system is an enlarged type stable circulation system by,
① persistent growth path (monetary and fiscal policy for it and moderate inflation as a result of it )
② continual technological innovation and productivity improvement → relative lower costs → rate of profit ensure
③ keeping and improvement of the labor distribution (including the Health and Welfare) and external market expansion →expansion of demand commensurate with growth.
The place where this economic system has been established is a national economy that monetary system, ownership system, economic management, labor re-production, social security, the management of public goods supply is carried out by the national.
The national economy of the Keynes-Ford system fell into dysfunction from the '70s. The time-series of its details that went dysfunctional by cost-up inflation (originally what would have only a temporary effect) triggered by the oil shocks are known, but its essential cause was not so clear.
The cause of dysfunction of Keynes-Ford system is due to the development of information and globalization. That is,
Decrease in the rate of profit caused by the rapid downward trend of prices due to the development of information technology (oil shock became one opportunity, but not an essential cause).
→ Intention to ensure the profit rate by strive to lower costs in the globalization (overseas investment and production).
→ Deflationary trend by the influx of low-cost products in the globalization.
→ Reduction of rate of profit.
in these circulation the dysfunction were brought.
Information technology has become the cause of both of a lowering of the rate of profit and the end of East-West confrontation that is the socialist economic system collapse. The new liberalists (market fundamentalists) have a illusion that the collapse of the socialist economic system is a triumph of capitalist liberalism, and mistake that the collapse of the Keynes-Ford system by the rate of profit decline due to the development of the information is able to overcome with the new liberalism.
The philosophy and policies of the new liberalism lies in following points,
① general equilibrium theory that the economy is possible to achieve the best allocation of resources by the left to free competition market.
② deregulation policy that can be achieved efficiency by ensuring the free competition,against that the management of the national economy carried out by the bureaucracy bring about abuses due to enlargement of bureaucracy and inefficiency.
③ globalism that can sustained economic growth by liberalization of the economy and further promote the globalization of the market economy, especially by the liberalization of financial as well as trade.
The new liberals was denied both of effective demand creation policies using fiscal and monetary means by Keynesian government in the Keynes-Ford system (economic control) and the welfare economic policies (as required by the East-West confrontation). This is what has led to have the potential realized by the elimination of East-West confrontation along with the effectiveness of Keynesianism is lost by stagflation.
However, a result yielded by new liberalism is as follows. That is ,the expansion of social instability due to the increase of disparities and non-regular employment ,and a financial collapse and the global Great Recession due to speculation for financial instruments. Speaking or became why so, in spite of the profit rate serving as the source of capital growth has been reduced by the development of information technology, it was to ensure by force the rate of profit by deregulation and speculative system based on the market fundamentalist ideas,so it was a matter of course that its toll come on the weak and the overheated speculation collapse.
It should be noted that, with regard to the information and globalization was promoted by the new liberalism, although at present condition as prerequisites are not enough that is remaining the capitalist economic system side of negative appeared strongly by the upheaval, there is a historically positive meaning as it itself. In addition,because of this positive aspect it is precisely said to the new liberalism had a reality.
Now, it become an issue that what kind of capitalism is able to establish as new capitalism after the new liberalism. In or der to survive the capitalism,it should be necessary to build a system to continue the economic growth to secure the profit rate against the downward trend of the rate of profit due to the development of information technology.
The reason of necessity of economic growth in the capitalist system is due to the nature of the capital of endless self-propagation,that cycle of capital investment → profit recovery → re-investment of expanded capital. Considering "capital" once more, capital is an integrated body of value embodying in things, hence the invested capital dominate the production point and monopolize the fruits of production, and invested capital get the profit by selling the produced goods at their value, thus the cycle of re-investment of enlarged capital is repeated. Therefore, in capital regime, if considerable profit is not ensured and enlargement of capital is not expected, capital is not re-invested, consequently production is stopped, recession becomes, and the unemployment occurs. Thus the capitalist economy of which existence condition is re-investment of expanded capital is not able to exist without economic growth.
To continue the economic growth in situations where information technology is progressing, not only build a system such as to ensure the rate of profit to go the persistent innovation against the downward trend of the rate of profit.However, that is such that scoop water by colander of which openings go roughened more and more, because of fact that information technology can even increase more the downward trend of the profit rate.
On the other hand, in the face of the collapse of the Keynes-Ford system, against the market fundamentalism of the new-liberalist, there is a theory of Regulation school that intend to parturient a new integration of neo-Fordism by the adjustment theory.
In the Regulation school, it has been acknowledged that in the interior of capitalism there is the possibility of transformation such that dynamism of the capital improve the living conditions of wage workers and develop the workers' society. Regulation school, in its theory premised on the continue to existence of this capitalism, is assumed that the Fordism was possible by the long-term downward trend in labor re-production costs and lead to collapse by the rapid increase in collective consumption costs and inflation brought by the measures for it. So, the Regulation school raise that it is possible to realize a neo-Fordism by the consumption style focus and re-structure into collective consumption means and reduce the cost by the informatization at new labor organization style.
The following recommendations have been made as concrete measures of this Regulation school.
① the behavior of pension funds change from as institutional investors to corporate governance by workers holding system.
② building of the social foundation and economic adjustment and guarantee of labor fluidity by the state.
③ change from various social security system to the minimum income security system.
These recommendations itself is rich in many suggestions, but it is doubtful whether it is possible to realize these measures without inconsistent with the growth economy premised the capital. For example, corporate governance by workers holding system is considered that there is a high possibility of falling into a self-disruptive contradiction of positions as capital and workers. That is a question whether the capitalistic welfare economics in the stable (low) growth state is viable. There is a basic question of whether "capitalist economy" but capitalism is able to exist.
It is possible to build a question in turn what to do in order to stand up economic system working steadily under no unemployment even without economic growth.
As specific examples of the corporate structure in such economic system,it is basic that the form of company is communal enterprise composed of the person who brings together under the rational purpose,and the company make a product planning of commodity and a production plan based on amount of demand for the commodity by pre-order on net line or by the high accuracy of market research, ensure the necessary funds for production, perform production in conjunction with production enterprises, sell at a price corresponding to the value of the product, and thereby cover the necessary expenses and obtain appropriate low profit. In addition, above-mentioned production enterprises also take a similar corporate structure.Further,these production enterprises tie organically to constitute production network organization, and constitute the overall production structure of society.
In this way, it is possible to control the production respond to the demand by the increasing of accuracy of the demand forecast due to the development of information technology. And, funds to be provided is not necessity at all the "capital" of self-growth based on the profit, since procurement of funds necessary for production is possible at a low interest rate, and the interest form a part of production expenses. With regard to production item of which the actual demand or the high accuracy of demand forecasting is difficult or impossible, it is possible to apply the insurance system based on advanced data processing that developed under the new liberal economy, and cost required for the insurance may be carried out by production expenses.Thus, the stability of the social production mechanism can be secured by production insurance system.
Further, although corporate entity as a producer needs to be directly connected to consumer because production (supply) is defined by consumption (demand), it can be realized along with progress of the informatization, and development of organization mediating the producer and consumer more directly is expected. Even at the present situation,the communication logistics complex companies that is cooperation of. mail order companies and logistics companies such as JP (post office) or Yamato Transport (Kuroneko Yamato) have been becoming to exhibit a success,taking the place of conventional market and distribution industries of products. Further,it is expected that corporate entity or mediated organization that took the same manner as direct sales method of associating directly producer and consumers will be developing with applying to the more broad range of goods.
The production system by such business entity constitutes a non-capitalist economic system in which the labor is properly allocated in the production of goods selling at a reasonable price, and it is considered that the weight of this non-capitalist economic system gradually raise in the capitalist economic system, and the capitalist economic system is replaced by a economic system working well even without economic growth.
Finally, consider about labor and social security system in this shifting process towards the information society. For realizing the above-mentioned economic system in the process towards information society, it is a necessary condition to enhance the fluidity of labor. Therefore,it become to necessary to form systems such as the following.
① Establishment of systems to increase the fluidity of labor. Currently, managers who have the initiative of economic management have been strongly demanded to enhance the fluidity of labor from the need to ensure international competitiveness under the global economy and to keep up with flexible production. However,if the managers request to increase the fluidity of labor, that is, if want to discharge from employment with necessity freely workers who contributed to their own business activities, the managers have a responsibility to build a system that workers with peace of mind can go on to a new working environment. The present situation is such that Neo-liberal management and capital house request a reduction in the government and tax cut without having to fulfill any responsibility for the workers who are their own production requirements and while forcing it to the government.
To improve the fluidity of labor, "flexicurity" in Denmark (① low level of employment protection, ② generous unemployment benefits, ③ high level of positive labor market policies, ④ lifelong learning with high participation rate) is the most in reference.
In order to increase the liquidity of labor, in combination with the following minimum income security system, it is a top priority requirement to construct a system that can train the socially required labor faculty for the unemployed and workers due to appropriate guidance and vocational training by excellent caseworker,thereby it is able to skill-up of unemployed workers and eliminate the mismatch of labor placement.
② Establishment of minimum income security system. Due to simplifying of the social security system, such as the various public pension and welfare, by aggregate to minimum income security system, and separating the others as a private pension plan,attempt to ensure the living conditions of minimum of humane for all of the people with achieving of reduction of public burden. Incidentally, minimum wage is of course set to be higher than the minimum income guarantee amount. In addition, it is necessary to improve the character formation by labor with leading strongly the "obligation of labor" as integral with the minimum income security system. For that purpose, the case workers and instructors who have been trained for carrying out really appropriate guidance in accordance with the environment and the ability of each worker is essential and the most important.
In this way, with regard to specific measures it becomes similar to the Regulation school, but in the point of that Regulation school have misjudged or overestimated the capitalism, it is expected to fall to the contradiction between capitalist economic measures and the protection of wage workers.
TOWARD INFORMATION SOCIETY
Capitalist economic system after the Second World War is characterized as the Keynes-Ford system. Keynes-Ford system is an enlarged type stable circulation system by,
① persistent growth path (monetary and fiscal policy for it and moderate inflation as a result of it )
② continual technological innovation and productivity improvement → relative lower costs → rate of profit ensure
③ keeping and improvement of the labor distribution (including the Health and Welfare) and external market expansion →expansion of demand commensurate with growth.
The place where this economic system has been established is a national economy that monetary system, ownership system, economic management, labor re-production, social security, the management of public goods supply is carried out by the national.
The national economy of the Keynes-Ford system fell into dysfunction from the '70s. The time-series of its details that went dysfunctional by cost-up inflation (originally what would have only a temporary effect) triggered by the oil shocks are known, but its essential cause was not so clear.
The cause of dysfunction of Keynes-Ford system is due to the development of information and globalization. That is,
Decrease in the rate of profit caused by the rapid downward trend of prices due to the development of information technology (oil shock became one opportunity, but not an essential cause).
→ Intention to ensure the profit rate by strive to lower costs in the globalization (overseas investment and production).
→ Deflationary trend by the influx of low-cost products in the globalization.
→ Reduction of rate of profit.
in these circulation the dysfunction were brought.
Information technology has become the cause of both of a lowering of the rate of profit and the end of East-West confrontation that is the socialist economic system collapse. The new liberalists (market fundamentalists) have a illusion that the collapse of the socialist economic system is a triumph of capitalist liberalism, and mistake that the collapse of the Keynes-Ford system by the rate of profit decline due to the development of the information is able to overcome with the new liberalism.
The philosophy and policies of the new liberalism lies in following points,
① general equilibrium theory that the economy is possible to achieve the best allocation of resources by the left to free competition market.
② deregulation policy that can be achieved efficiency by ensuring the free competition,against that the management of the national economy carried out by the bureaucracy bring about abuses due to enlargement of bureaucracy and inefficiency.
③ globalism that can sustained economic growth by liberalization of the economy and further promote the globalization of the market economy, especially by the liberalization of financial as well as trade.
The new liberals was denied both of effective demand creation policies using fiscal and monetary means by Keynesian government in the Keynes-Ford system (economic control) and the welfare economic policies (as required by the East-West confrontation). This is what has led to have the potential realized by the elimination of East-West confrontation along with the effectiveness of Keynesianism is lost by stagflation.
However, a result yielded by new liberalism is as follows. That is ,the expansion of social instability due to the increase of disparities and non-regular employment ,and a financial collapse and the global Great Recession due to speculation for financial instruments. Speaking or became why so, in spite of the profit rate serving as the source of capital growth has been reduced by the development of information technology, it was to ensure by force the rate of profit by deregulation and speculative system based on the market fundamentalist ideas,so it was a matter of course that its toll come on the weak and the overheated speculation collapse.
It should be noted that, with regard to the information and globalization was promoted by the new liberalism, although at present condition as prerequisites are not enough that is remaining the capitalist economic system side of negative appeared strongly by the upheaval, there is a historically positive meaning as it itself. In addition,because of this positive aspect it is precisely said to the new liberalism had a reality.
Now, it become an issue that what kind of capitalism is able to establish as new capitalism after the new liberalism. In or der to survive the capitalism,it should be necessary to build a system to continue the economic growth to secure the profit rate against the downward trend of the rate of profit due to the development of information technology.
The reason of necessity of economic growth in the capitalist system is due to the nature of the capital of endless self-propagation,that cycle of capital investment → profit recovery → re-investment of expanded capital. Considering "capital" once more, capital is an integrated body of value embodying in things, hence the invested capital dominate the production point and monopolize the fruits of production, and invested capital get the profit by selling the produced goods at their value, thus the cycle of re-investment of enlarged capital is repeated. Therefore, in capital regime, if considerable profit is not ensured and enlargement of capital is not expected, capital is not re-invested, consequently production is stopped, recession becomes, and the unemployment occurs. Thus the capitalist economy of which existence condition is re-investment of expanded capital is not able to exist without economic growth.
To continue the economic growth in situations where information technology is progressing, not only build a system such as to ensure the rate of profit to go the persistent innovation against the downward trend of the rate of profit.However, that is such that scoop water by colander of which openings go roughened more and more, because of fact that information technology can even increase more the downward trend of the profit rate.
On the other hand, in the face of the collapse of the Keynes-Ford system, against the market fundamentalism of the new-liberalist, there is a theory of Regulation school that intend to parturient a new integration of neo-Fordism by the adjustment theory.
In the Regulation school, it has been acknowledged that in the interior of capitalism there is the possibility of transformation such that dynamism of the capital improve the living conditions of wage workers and develop the workers' society. Regulation school, in its theory premised on the continue to existence of this capitalism, is assumed that the Fordism was possible by the long-term downward trend in labor re-production costs and lead to collapse by the rapid increase in collective consumption costs and inflation brought by the measures for it. So, the Regulation school raise that it is possible to realize a neo-Fordism by the consumption style focus and re-structure into collective consumption means and reduce the cost by the informatization at new labor organization style.
The following recommendations have been made as concrete measures of this Regulation school.
① the behavior of pension funds change from as institutional investors to corporate governance by workers holding system.
② building of the social foundation and economic adjustment and guarantee of labor fluidity by the state.
③ change from various social security system to the minimum income security system.
These recommendations itself is rich in many suggestions, but it is doubtful whether it is possible to realize these measures without inconsistent with the growth economy premised the capital. For example, corporate governance by workers holding system is considered that there is a high possibility of falling into a self-disruptive contradiction of positions as capital and workers. That is a question whether the capitalistic welfare economics in the stable (low) growth state is viable. There is a basic question of whether "capitalist economy" but capitalism is able to exist.
It is possible to build a question in turn what to do in order to stand up economic system working steadily under no unemployment even without economic growth.
As specific examples of the corporate structure in such economic system,it is basic that the form of company is communal enterprise composed of the person who brings together under the rational purpose,and the company make a product planning of commodity and a production plan based on amount of demand for the commodity by pre-order on net line or by the high accuracy of market research, ensure the necessary funds for production, perform production in conjunction with production enterprises, sell at a price corresponding to the value of the product, and thereby cover the necessary expenses and obtain appropriate low profit. In addition, above-mentioned production enterprises also take a similar corporate structure.Further,these production enterprises tie organically to constitute production network organization, and constitute the overall production structure of society.
In this way, it is possible to control the production respond to the demand by the increasing of accuracy of the demand forecast due to the development of information technology. And, funds to be provided is not necessity at all the "capital" of self-growth based on the profit, since procurement of funds necessary for production is possible at a low interest rate, and the interest form a part of production expenses. With regard to production item of which the actual demand or the high accuracy of demand forecasting is difficult or impossible, it is possible to apply the insurance system based on advanced data processing that developed under the new liberal economy, and cost required for the insurance may be carried out by production expenses.Thus, the stability of the social production mechanism can be secured by production insurance system.
Further, although corporate entity as a producer needs to be directly connected to consumer because production (supply) is defined by consumption (demand), it can be realized along with progress of the informatization, and development of organization mediating the producer and consumer more directly is expected. Even at the present situation,the communication logistics complex companies that is cooperation of. mail order companies and logistics companies such as JP (post office) or Yamato Transport (Kuroneko Yamato) have been becoming to exhibit a success,taking the place of conventional market and distribution industries of products. Further,it is expected that corporate entity or mediated organization that took the same manner as direct sales method of associating directly producer and consumers will be developing with applying to the more broad range of goods.
The production system by such business entity constitutes a non-capitalist economic system in which the labor is properly allocated in the production of goods selling at a reasonable price, and it is considered that the weight of this non-capitalist economic system gradually raise in the capitalist economic system, and the capitalist economic system is replaced by a economic system working well even without economic growth.
Finally, consider about labor and social security system in this shifting process towards the information society. For realizing the above-mentioned economic system in the process towards information society, it is a necessary condition to enhance the fluidity of labor. Therefore,it become to necessary to form systems such as the following.
① Establishment of systems to increase the fluidity of labor. Currently, managers who have the initiative of economic management have been strongly demanded to enhance the fluidity of labor from the need to ensure international competitiveness under the global economy and to keep up with flexible production. However,if the managers request to increase the fluidity of labor, that is, if want to discharge from employment with necessity freely workers who contributed to their own business activities, the managers have a responsibility to build a system that workers with peace of mind can go on to a new working environment. The present situation is such that Neo-liberal management and capital house request a reduction in the government and tax cut without having to fulfill any responsibility for the workers who are their own production requirements and while forcing it to the government.
To improve the fluidity of labor, "flexicurity" in Denmark (① low level of employment protection, ② generous unemployment benefits, ③ high level of positive labor market policies, ④ lifelong learning with high participation rate) is the most in reference.
In order to increase the liquidity of labor, in combination with the following minimum income security system, it is a top priority requirement to construct a system that can train the socially required labor faculty for the unemployed and workers due to appropriate guidance and vocational training by excellent caseworker,thereby it is able to skill-up of unemployed workers and eliminate the mismatch of labor placement.
② Establishment of minimum income security system. Due to simplifying of the social security system, such as the various public pension and welfare, by aggregate to minimum income security system, and separating the others as a private pension plan,attempt to ensure the living conditions of minimum of humane for all of the people with achieving of reduction of public burden. Incidentally, minimum wage is of course set to be higher than the minimum income guarantee amount. In addition, it is necessary to improve the character formation by labor with leading strongly the "obligation of labor" as integral with the minimum income security system. For that purpose, the case workers and instructors who have been trained for carrying out really appropriate guidance in accordance with the environment and the ability of each worker is essential and the most important.
In this way, with regard to specific measures it becomes similar to the Regulation school, but in the point of that Regulation school have misjudged or overestimated the capitalism, it is expected to fall to the contradiction between capitalist economic measures and the protection of wage workers.