The Relationship with Other Economic Sciences

There are numerous categories in economic research. We have encountered political economics, economics, marketing, consumer psychology, quality economics, econometrics, business economics, industrial economics, agricultural economics, finance, public finance, macroeconomics, microeconomics, household economics, and many others. Broadly speaking, they can be divided into three types:

1. Fundamental Theoretical Economics: Includes general political economics, economics, macroeconomics, microeconomics, etc.

2. Specialized Economics: Such as business economics, industrial economics, quality economics, financial economics, etc.

3. Applied Economics: Such as consumer psychology, household economics, economic policy, enterprise theory, etc.
   
   

Surplus economics is first and foremost a branch of general market economics. Many laws and principles in general market economics serve as guiding principles or direct premises for surplus economics. In the study of surplus economics, we directly apply these laws and principles without needing to prove them. At the same time, summarizing new phenomena can supplement these laws and principles, proposing new ones and forming part of general economic theory.

Surplus economics also belongs to specialized economics. Unlike other specialized economics, this category has a comprehensive nature, primarily providing theoretical support for various specialized economic studies.

Surplus economics remains a highly practical science. Researching how to address surplus economics is both the starting point and the ultimate goal of the study. Therefore, surplus economics is also an essential component of applied economics.

The Labor-Capital Balance Theory posits that if monopolies exist at the micro level—meaning corporate profits exceed costs—money will continuously exit the circulation sphere, leading to a "monetary exhaustion" phenomenon. If monetary authorities fail to replenish sufficient money in time, macroeconomic contraction occurs, plunging the economy into recession. As capital accumulation grows, technological advancements are monopolized by a few, and economies of scale come into play, corporate monopolies intensify. Consequently, corporations' capacity to absorb money strengthens, making it impossible for monetary authorities to supply enough money to sustain large-scale production. Thus, economic recession becomes inevitable.

The methods for addressing surplus problems are entirely different from those for scarcity problems. They require:

1. Anti-monopoly measures: Reduce capital gains, adopt low-margin high-volume strategies, and adjust income distribution structures to achieve labor-capital balance.

2. Direct cash distribution: Allow capitalists to profit from the poor through investment—Keynes called this "investment inducement." What is the "inducement"? Giving money to the poor is the way to "induce" investment.