Fair Price and Lasting Efficiency

Author: Jiang Aiqun
Publisher:
Publish Date: 2005-01-01
Features: This is a monograph on justice economics by Chinese scholars, offering new elaborations on quantifying market fairness under the rule of law. It addresses the relationship between employment, interest, wages, taxes, and fairness from the perspective of promoting sustainable economic growth, analyzing the shortcomings of the current system and policy gaps. The book exposes the consequences of domestic and international commercial capitalism squeezing out production profits through the simple formula "Commercialist Profit Maximization—Self-Sufficient Economy," distinguishing it from natural economy and attributing the decline of self-sufficient economies in history not to the fault of laborers but to the actions of commercial capitalism. It also highlights the correlation between intermediary costs and transformation efficiency, validating Adam Smith's theory that "the extent allowed by law" determines the economic level, Marx's theory that production relations must adapt to the mode of production, and Keynes's theory that "one interest rate corresponds to one level of employment and economic level." Additionally, it clearly explains the reasons behind the low productivity levels in developing countries. If rent, interest, and tax reforms are neglected, Schumpeter's innovation would remain confined to a few star enterprises.