New Understanding of Law of Supply and Demand and Perfect Economic Competition for Effective Economic Growth and Political Systems

Abstract

With the application of the laws of physics in economics and correcting some of the classical theoretical visions of perfect economic competition, the paper explores the possibilities of applying the results obtained in the practice of the global market and political relations. In the work, using the laws of physics, advanced technologies of medicine and other science-intensive branches of the economy, the objective laws of the market are investigated and, on this basis, conclusions are drawn to improve political relations in the modern tense world. For so needed fast effective economic growth to long strategic future, presented article researches comprehension of supply-demand and perfect competition since classical economic theory and shows, that countries with a two-party public policy system are more justice and efficient economically in international relations, than countries with one or much more than 2 parties. In re-thinking the modern clash of civilizations, the study used multifactorial methods of economic extrapolation and elements of analysis from physics and mathematics. Logically, work’s argumentations prove, that maximally productive perfect competition can operate only by possibly equal natural two poles of the market and not under the endless growth of competitors. The different models of a progressive two-party political system act in the United States and other some modern large countries, but those undemocratic imperial countries which have turned into dictatorships or chaotic conglomerations and ignored interests of also needed for progress small countries have disappeared from political life.