News

From Economics to Demography

2024-06-14

The solution to the financial order pushes people to make bigger decisions, to research, to develop, to seek out new things and to master them. Only free people can restore old or create new brands, new inventions. A person is free when he is economically independent. This means a market economy in which the banking and stock exchange systems are clearly separated from each other. The stock exchange should be completely independent from the state and banks, and its activity should be regulated by the Securities Commission, which would also be independent in its decisions and accountable only to the Parliament. Which means that no other agency can interfere in his professional activities.

On the stock exchange, citizens should be able to freely buy and sell securities issued by companies - shares and bonds. The possibility of even minimal state intervention in such financial operations is unequivocally excluded. People should have free opportunity to buy shares in existing or planned capacities in the country - hydropower plants, ports, airports, railways, terminals, mines, banks and other enterprises. 

In the developed stock market, people make investment decisions independently. Shareholders pay taxes from annual dividends received by purchasing securities. More shareholders mean more taxes to the budget, which is in the interest of the state and through which the government provides the next higher class of security in the country. This means a highly paid policeman, a highly paid border guard and a highly paid fireman. In such a free market order, companies are interested in issuing more securities, attracting more investments, financing business ideas, creating as versatile and high-quality products as possible, and after that, placing them on an independent commodity exchange for sale. The commodity exchange is a place where the fairest price is always determined for the producer and the consumer. If Georgia wants to create a great wine industry, then it must have a wine exchange. It is not the government's job to determine the selling price of grapes. The wine exchange will do this best. And with a powerful budget derived from stock market indices (taxes), security remains the responsibility of the state. The state has no other prerogative. The closer the number of producers and consumers are to each other, the happier the nation. Neither the prices in pharmacies nor the management of pastures is the business of the contemporary state. The task and interest of a developed state is to have as many shareholder citizens as possible.

People immigrate to countries where stock exchanges are developed. And where the exchange system is more developed, they tend to go there more. Because where banks and stock exchanges together create a market economy, wages, labor rights, freedom and dignity are at stake.

The order of the market economy means that births in the country outnumber deaths, and marriages outnumber divorces. And the stock market means that young people invest their small financial resources in securities instead of bookmakers and thus create their own future. A market economy also means that people turn from immigrants into shareholders in their own country.

Finally, the stock, commodity, currency, technological and other specialized exchanges held in Georgia mean the harmonious order arranged by the Georgian nation in the trade between Europe and Asia. Which is the historical, natural and state function of Georgia.

TRACECA.GE