From: spebcg@thor.cf.ac.uk (Mr B G Cetiner 92)
Newsgroups: soc.culture.turkish
Subject: Re: ERBAKAN HOCA ve EKONOMIK PROGRAMI (Islamcilardan secmeler)
Date: 24 Dec 92 12:52:09 GMT
Organization: University of Wales College at Cardiff
X-Mailer: Cardiff Computing Maths PP Mail Open News Gateway

|
|We measure things in n-dimensional space with arbitrary units.
|Length is measured in meters, feet, inches etc. Mass and Force
|in slugs, Kgs, lbs etc. The unit of measure of the dimension called
|value is money. It's an arbitrary unit a lot like feet, hour, minute.
|But unlike others, this particular instrument keeps changing; it's not
|constant. How would the laws of physics look if the measurements were
|done with instruments that kept changing over time ? This only happens
|in physics in relativistic mechanics. But in an economy the value of
|money fluctuates (the instrument--the meter stick--keeps getting
|expanding)--usually increasing. You measure something today, it
|measures 10 (loaf of bread); you measure it 5 years from now, it
|reads 100. The only way to compares apples to apples is to deflate
|the figures or to use the same expanding scale. 
|

Mr.Mark, you made a good point here I think. Yes, the money is very
important. You should be able to buy same amount of loaf of bread with
the same money even years later. If you treat the money as some piece of
paper as all governments did in Turkiye today, and Darphane (?) works 
overtime during the payments of workers and officers. In Ottoman state,
gold was used as money. And even today (I think) if you had money made
of gold there was little inflation.    

|If you lend someone enough money to buy a loaf of bread today, when he
|repays you 5 years from now,it should at least be able to buy another
|loaf of bread. That's interest. There's nothing wrong with it. And if

However, I do not agree with your saying that being able to buy same
amount of bread with the same money even 5 years later is called
interest. This is part of an ideal system, which Ottoman applied
hundreds of years. If you now say this is difficult to use gold as
money, you can use paper or something else instead of gold. 
But we must be strict on that we must produce the money as exactly as we
have in our state treausery. 

|the person who lent it deserves something for forgoing present
|pleasure i.e. Suppose you have enough money to buy a car. Your friend
|needs to borrow it. If you lend it, you can't have a car for five
|years. Should you not be expected to get something for going without a
|car for five years ?  The interest rate that you would want to charge
|(not the bank) depends on how much more you'll enjoy the money, when
|you eventually get repaid. And what if, you're not sure you'll get
|your money back (there goes that risk-factor again), you'd want even
|more interest to make up for the risk.

In such a case I would lend some gold to my friend and even 5 years
later I could buy a car with moreless same amount of gold.

|
|When extrapolating these ideas to the economy as a whole, more 
|care needs to be taken.
|
|If inflation could be stopped by prohibiting interest, the Marxist
|countries would not have instituted strict price and wage controls
|in their economies. AFter all, they have control of the banks.

I think Socialist economies must be out of question because they treat
profit and interest in the same category. And they have nothing to grow
the economy rather than increasing the people's efficiency by force.

|
|> yatirsa sattigi evin tuvaletini dahi satin alamaz. Eger bugun batidaki
|> enflasyonun cok dusuk oldugu ekonomilere bakarsaniz, faiz oranlarinin
|> du$uklugunu gorursunuz. Adamlar neden faizleri 0 a dogru du$urmeye
|> cali$iyorlar? Ben ekonomist degilim ama size soyleyeyim, nicin her
|> ulkede genellikle faiz ve enflasyon oranlari at ba$i gidiyor? 
|
|Points to Ponder:
|
|In some countries (developed ones), an increase in unemployment
|translates to a decrease (drop) in inflation. Why ?
|

As far as I know, the unemployment policy is one of the ways to drop the
inflation. I think it is one of the problems in Capitalist system. I
would like to have more information on that. 

|
|The USA which is richer than Japan has problems raising investment
|capital (money). It is claimed that the people don't save enough 
|i.e. deposit savings in banks.  Countries like Japan, Korea, Taiwan
|etc which are poorer don't have this problem. Is it because their
|people have more money (extra money) to put in banks ? Or is because
|Americans would rather borrow and spend now ? Everyone wants to
|borrow. Why not ? What are its affects? If no one saves money (i.e.
|deposits money in banks) then how do businesses get money to borrow
|for more machines, more land, more raw product, to pay salaries 
|i.e. expanding the business, modernizing the plant etc. These after
|all are what are associated with being a developed and rich economy.
|Everyone wants to industrialize but how ? Check the Marxist 
|techniques and compare them against Iran? 
|-- 

I think this is one of the features of the eastern people. In Germany,
If you look   at the people who are originally from Turkiye, 
they have much more savings than Germans even though Germans earn more.
Eastern people usually prefer saving rather than being extravagent (I am
not sure about spelling). 

Beytullah
|
|	mark	
|
|   hubey@amiga.montclair.edu         hubey@apollo.montclair.edu
|   hubey@pilot.njin.net               ...!rutgers!pilot!hubey    
Newsgroups: soc.culture.turkish