Wednesday, October 19, 2011

Mass production system, democratic economy in various countries


Democratic economy is an economy in which the people is actively driving the economy and determine the course of the economy by not leaving it entirely to the market mechanism (where the strong is the winner).

Some refer people's economy or democratic economy as understanding where the economy relies on to Small and Medium Enterprises (SMEs).

Neoliberalism is an economic with all its activities on the free market, where people and the government did not intervene. Some opinions expressed Neoliberalism will be controlled by big investors, the strong is the winner. Neoliberalism is the opponent's of democratic economy.

Regardless of the pros and cons to both concept as above, I tried to see the people's economy and its relationship to the mass production system with people involving on certain country.

In a production system, the mass production term is which a large number of products manufactured with the same product type and uniform, so the price become much cheaper with uniform (consistent) good quality.

Mass production of products with affordable prices and concern the livelihood of the people, can drive the country's economy. The following are some countries that are successful with a mass product:

China is famous for cheap products, succeeded in becoming the world's largest economy number two overtaking Japan, with the largest population in the world and managed to absorb the productivity of the workforce so that reducing the unemployment rate to only 4.1% as of October 2010. China is a food producer number one of world ranking. Some well-known branded products move their operations to China as a mass production basis, this is very beneficial because it absorbs Chinese labor and increase income.

Germany with Volkswagen's successful program to be most popular vehicles since 1937 until now.

America with the Ford T model is simple, easily manufactured and inexpensive affordable to farmers and cowboys, a lot of innovation to fill up public demand are found in the U.S., such as: electric light bulb by Thomas Alva Edison, the telephone by Alexander Graham Bell, American fast food famous in the world, various software and computer hardware, etc.. No wonder the American economy to be number 1.

Japan with an innovative system of mass production became industrialized countries even though has no resources, Japan has always have ideas and new products. In other word: give the Japanese steel and fuel, then they will mix them and make the vehicle.

United Kingdom with the steam engine by James Watt ruled the railways, steamship, textile industry, etc..Watt's steam engine managed to drive the industrial revolution and make Europe become developed until now. Perhaps without steam engines, Europe is still like the other areas at that time, only use horses carriage and sailboats as a vehicle.

India is ranked the 2nd largest country in terms of food production after China. Agriculture accounted for 17.5% of Gross Domestic Product, the highest in the world in terms of percentage. Several world-class industries already move their operations to India, therefore absorbing workforce and increasing income.

Brazil does not have oil (fuel), but managed to develop a methanol fuel from sugar cane and make their farmers prosper.

Canada is famous with cheap Internet via Blackberry

Cheap does not always mean no good. If a product is manufactured with a large number with affordable prices, then drive the economy, make people prosper and develop the country. Of course the meaning of mass product here is concerning public demand and produced by the people in the country, and mass production does not always run only by one big company.


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