ECONOMIC ENGINEERING: Factoring in the Factors.

“For it takes a good deal of courage to say ‘no’ to the fascinations of the age and to question the presuppositions of a civilisation which appears destined to conquer the whole world; the requisite strength can be derived only from deep connection.” (Shumacher, 1993)

Excessive consumption –v- production.

It can be determined at a glimpse that the times we are subjected to have fuelled consumerism more than it has production. Agricultural lands are undergoing change of use to commercial or residential properties and workers prefer clerical jobs. Factories have shut down, and export-import businesses are thriving of off luxury products and material commodities. The economy is functional and money is indeed changing hands. The question that arises thus is whether this form of economic growth is connected to resources or real needs.

Analysing Adams Smiths view of consumption where he stated “Consumption is the sole end and purpose of production; and the interest of the producer ought to be attended to only so far as it may be necessary for promoting that of the consumer.”

The producer is unquestionably meant to produce with the consumer’s need at the forefront. This indicates a need to balance both ends of the stick. Even where living standards are seen to have improved for a percentage of the population who strived through rigorous labour and saving practices yielding fruit over time, there exists a percentage of people who still live quite below dignified standards. The balancing act must now include avoiding the consequences of underproduction and under consumption for those below the alluded standard and overproduction and overconsumption for those well able to maintain some living standard.

Economic engineering at this age and time MUST include a recognition of the collective need as well as the individual need, realizing that the collective need is the individual need. For businesses to prosper in creating products, even where there is a target niche involved, decision makers must analyse whether the product can be collectively consumed, by all persons, despite their economic bracket. Is the product desirable by all, regardless of status? Is it needful, or can it fuel is own demand?

Business owners and individuals with their mind set on penetrating the different markets ought to awaken their minds to background factors such as market control, unfair competition, inequalities, government and sector intervention, exploitation and the potential of being bought out. Markets are made according to an agenda, and there exists no perfect economy. Producers of well-made, affordable products are not rewarded and neither are the producers of poorly made expensive products punished (Galbraith,1977).

AJ ACQ. seeks to help businesses identify their potential in a global economy, with best interests of production capability being analysed and risk assessment established. It is our belief that value is regenerated to whatever currency depending on the structured implementation of an idea and the well-marketed release of a product and/ or service. There are no winners or losers in a failing economy.

“At the precise point where money trumps production and trade, an economy sows the seeds of its own demise.” (White,2013)

Authored by: Anita Jebichii