Georgian parameters of Edgeworth Box from empirical standpoint
Georgia is amazing country and unique people live here. They say something once and then they are defending this thesis by all means. One of my students told a story about my colleague professor, who was proving that value-added tax (VAT) is a direct tax. My student is from Jvari region. He was asserting that the professor was wrong and VAT is an indirect tax. Professor remained adamant! –
– “Nonsense!” You think I do know nothing? It is a direct tax, when some funds come in the organization; they cut off the VAT immediately!!!
Well, what can I say? Maybe my colleague was angry on VAT or maybe once he said something then he didn’t change his mind. This is a matter of principle! I understand him. Empirically it seemed so and thus he didn’t use the in-depth deduction method. The same thing is about Marques. He was bearing family line and faithfully protected it! He was small and couldn’t or didn’t move into depth. This feature is indigenous!
Similarly, once we said that there is no crisis here and that was it… We do not change our minds. Long ago we said that in spring 2009, construction business would be collapsed and crisis of nonpayment and defaults would begin in summer. However, constructors were stubbornly declaring that there is no crisis and construction business is flourishing! They disregarded the fact that crisis is spread in whole world, especially in construction business. How can it be so that this field is flourishing only in Georgia? Numbers became so strained that our statistics burn out and now we are going to restart statistics with already destroyed motherboard. However, its virtual memory is still alive. Isn’t it a wonder!!! One fine day, somebody cried help, construction business is collapsing, but this is banks’ fault.
This is how happens in empiricism – when teenager squanders money, when he wagers all his money in totalizator like my laziest, smattering, but polite students Nozadze and Kapanadze. Afterwards he goes to his mother and tells her – If you would have lend me the money, I would waged more and won! There was a suggestion of truth in what he said. The fact is that construction bubble is blowing out! I imagine urinary bladder and I have heard about it even in empiricism. However, I haven’t heard of a construction bubble. Suddenly I imagine urinary bladder of twenty-storey house that blows out.
Full toxicity is endangering society! In modern economy language this is called appearing of a seabed. Seabed appearing is quite important. Now whole world is looking for the seabed of the crisis. Afterwards we might know what is awaiting us and how long will it last. Something is laid on the seabed that points us how long and in which direction the crisis is developing. Cleverness of Georgians and their uniqueness is expressed in the fact that in remote past, our ancestor was creating the theory of the seabed! We were always looking for something in the bottom of Bazaleti Lake! We are quite experienced both in empiricism and n searching for the bottom. Like Suliko we have not managed to find it yet, but we are quite good at searching it. One thing is important, Bazaleti Lake has limited boundaries and one cannot exceed them – this is our full recourse. This is called Edgeworth box and its main thesis is satisfying one’s interests at the expense of the other and this is called Pareto effectiveness. In other words Bazaleti Lake is the same as Edgeworth box.
The time has come to recognise the parameters of the crisis and the fact that the first accord of the crisis – Do will be stroked by construction business, while Re accord will be played by banks. They will do this gently as they are used to – sensitively. My will be – industry and afterwards deficit together with inflation. Until theses accords sound by turns, the symphony in the country’s economy will be endurable. This lasts till summer and then… Some “Invisible hand” will strike all the keys together and what happens? – Empirical cacophony, disorder of Edgeworth box on a scientific language, blowing out of the bubble on a PR scene. This will be people’s tragedy that will be called in the banks because of their debts. This will be a cascade of indebtedness in whole society –banks, construction companies, developers and population.
It’s time to change ourselves like spring does. It’s time to change our colour like the nature and recognise the problems of Edgeworth box. We shouldn’t be stubborn. Let’s create state program of lightning guard. I don’t think that it would be easy to listen to the cacophony and it’s better to change the nature during the empiricism. The character is most significant. Don’t we know what type of tax is VAT? Don’t we know that we have had Bazaleti Lake theory before Edgeworth box. We haven’t had the meaning of ordinate and abscissa and it’s time to find it.
Georgians, we are extraordinary people. We are empirically good people, we have polyphonic character and we are not afraid of cacophony. However, Edgeworth box and Pareto effectiveness are most significant.