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  • Dr. Levent Sümer

New Economy Theory

Updated: Mar 26, 2019

Conventional Financial System Creates Economic Crisis

Today’s conventional financial system and the current fiscal and economy policies are mostly serving for the benefits of small groups, instead of the general benefits of the society which is a very far approach to social-state concept. That is why, there is a big gap between the life standards of the citizens of a society or among the citizens of different states. The reason behind this gap is the egocentric and imperialist approach of the people and states.

The policies that are able to change the current system and increase the welfare of the societies in a balanced way is “producing new economy theories that aims the social justice”. In this article, I will discuss the “New Economy Theory: Sumer Approach” that I developed in that context.

The main principles of being a social state is providing the major needs of the citizens including accommodation, food, health, education and justice equally in all circumstances. Although this may seem as a socialist approach, which is not, it basically defines the main goals of the existence of a state.

This approach does not limit the private business venture, yet it provides a frame which regulates the rules of doing business by aiming the people to live as an individual but by integrating them in a society, to enable them to work for themselves by respecting the needs of the society, and basically carrying the value of “not going to sleep while your neighbor is hungry”. Now, let’s discuss about the ideas behind the establishment of this theory and its principles.

Why do the People Work?

Working is a requirement in order for people to survive and have a happy and peaceful life, but eventually working is not an aim in the life but a tool. From social perspective, working helps to produce benefits for the people by using the individuals’ knowledge, skills, efforts and time. In that context, working can be defined as the total efforts which provide benefits for individuals and societies. An effort that does not make the individuals happy and which does not provide benefits to society means nothing but loss of time, energy and health.

What are the Main Needs of the People?

As I mentioned above, the main needs of the people include accommodation, subsistence, education, health, justice, peace, security, respect to the beliefs, freedom and acting freely without disrespecting and trespassing others rights. A state which is unable to provide these rights and services to its citizens is unsuccessful no matter what kind of economic accomplishment it gains.

What Makes the People Happy?

Although it differs from a person to a person, the main thing that makes the humans happy is providing them the self-actualization. Establishing a mechanism that will help people to actualize the self-expectations, discover their potentials and help them use it will make the people happy both individually and as a society. Eventually, the happy people will create happy society, and happy society will provide the conditions to make the people happy individually.

What is Money for?

Today, even though money is very important for everybody, it is a piece of paper, indeed. What makes money important is the value that the human gives on it, their addiction to it, the will to have it more and the ambitions to make it more. From that perspective, the real value (worthless) of the money which does not provide benefits to the society is understood when it cannot buy the peace, happiness, health, youth and the life. In that context, yes, money is important for transactions, and yet it is not more than an instrument which makes it insignificant. The important point is that how we add value to money and where we use it.

How the Conflicts of the Individuals and Societies can be Avoided?

The main difficult part of the theory that I developed is providing a solution about how to control the egocentric approach of the people and states due to their ego and how to avoid or manage the conflicts among the egos. Indeed, bringing solution to this conflict is the solution of the today’s global political and economic problems. Conscience is the main solution in that context. People with free conscience and who are listening to their inner voice and heart may avoid or at least decrease the disputes and conflicts in a society. That can be provided by a fair state system. A social, systematic and a fair state system that creates justice from individuals to society and from society to individuals is the main solution to avoid such conflicts. When this is actualized, the individuality and the ego of the people can be converted to positive benefits to the society and the individuals.

In the lights of the answers to these questions, I can summarize the main principles of my New Economy Theory as below:

A Productive Society Approach: From agriculture to industry, from education to science, from technology to arts and sports, creating a production focused view to whole society.

Following a Balance between Production and Consumption: Constructing a society which does not purchase more than its need, does not consume more than it produces and be a self-sufficient society.

Widening the Savings to Individuals and Households: By following the production-consumption balance, preventing the unnecessary spending and saving the surplus of the needs, creating an approach that enable people to share their savings with the people in needs without seeking a profit.

Skill Based Education System: From preschool to university, restructuring the education system based on the skills of the kids.

Using Technology as a Tool that Increases the Welfare of the Society: Evaluating the technology as a tool that increases the welfare of the society, creating new technologies without being its slave, and creating a perception of using the technology for the benefits of the society.

Creating Human and Society Focused Financial Systems: Instead of making money from money, constructing a new production-centered financing system that is based on increasing the happiness of the people and the peace of the societies.


This New Economy Theory that I listed its main principles above will sure be evaluated by economy theorists and implementers, but I hope these principles may have a value and response in politicians from social state perspective.

Dr. Levent Sümer

November 2017, İstanbul

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