My article (3)"ON WHATS MARKET REGULATION AND ON RELATIONSHIP BETWEEN MARKET AND GOVERNMENT" <http://www.geocities.com/WallStreet/Exchange/3058/marketaa.html> gives a detailed explanation of what is market readjustment: Chart 2: free flow of labour force. In this way, it is quite easy for the government to make regulation and give guidance of market. When there appears insufficient supply of grain and starvation, what the government should do is to guide labour force and funds to grain production so as to acquire more grain; when there appears surplus of grain, what the government should do is to guide labour force and funds to industrial production so as to acquire more industrial products. And my four-grade division of demand and consumption thus makes the function of government's market regulation and market guidance further clear: when there appears insufficient production of necessary consumer goods of the first grade, the government is to guide labour force and funds to the production of necessary consumer goods of the first grade; when there appears overproduction of necessary consumer goods of the first grade, the government is to guide labour force and funds to the production of ordinary consumer goods of the second grade; and when there appears overproduction of ordinary consumer goods of the second grade, the government is to guide labour force and funds to the production of extravagant consumer goods of the third grade.
-- Sincerely, Ju-chang He
SHENZHEN, P.R. CHINA E-mail address: <chang at public.shenzhen.cngb.com> Welcome to visit My Home Page at <http://www.geocities.com/WallStreet/Exchange/3058/> (Disable your Java and Java script)