The Analysis of the Meaning of Establishing the Best Dynamic Analog Model for the Network

Lujun Zhou

System Consisted of  Demand Chain and Value Chain， for the Make-up of the Circulation of Demand Chainand Value Chain， and for the Ideal Running State of the Network System Consisted of Demand Chain and Value Chain

【Abstract】Behind all kinds of economical phenomenon there is the demand which is the inter driving power of social economic， deferent demands consist demand chain and value chain， and make up the network system which is consisted of the Circulation of demand chain and value chain. It visually reveals the inter rule of the running of social economy establishing the best dynamic analog model for the network system consisted of demand chain and value chain， for the make-up of the circulation of demand chain and value chain， and for the ideal running state of the network system consisted of demand chain and value chain， it is scientific way and method to develop economic. Only if there is the strong guarantee from politics and social system the best dynamic analog model can be successfully employed.

【Key words】best demand chain value chain circulation network dynamic model politics

With the constant progress of science and technology， and the continual enhancement of the level of productive forces， human society makes unceasing progress， it presents different state in the aspect of politics， economic and culture etc. of different country. For the economic construction， some country develop well， and some develop rather badly， there is obvious difference of the state of economic development between different country， under the background of economic globalization， phenomenon of all kinds of economic is numerous and complicated. Benhind all this numerous and complicated economic phenomenon， is there any science law， better scientific way and method to develop economic ？ To my opinion， the answer is positive.

Primitive society、slave society、feudal society、socialism or capitalism society are the several phases which human society roughly goes through， in the different phases of human society there is the same inter driving power of the running of social economic， the driving power is exact demand， demand which is the inter driving power of the running of social economic runs through all the phases of the development of human society.

There is different demand in the various phases of human society， there was rather little demand in the early phase of human society， with the development of human society， the kinds of demand raises gradually. Coming into modern society the kinds of society demand is much more than ever， division of labor in society becomes more and more delicate and professional.

Demand of material and mental aspect are the two kinds of society demand， society demand reflects the demand of human being. Looking from the different phases of the development of human society， the demand level of human being presents from low to high developing trend with the development of human society.

Demand is corresponding with value， different demand consists demand chain and forms circulation. The formation of demand chain creates corresponding value chain， the circulation of demand chain drives value chain to circulate. In the running of the social economy， the demand of different people are different， and the value which they create are also different. Peoples status can be roughly classified as famer、worker、intellectual、student， famer is engaged in agricultural production， mainly provide agricultural product（in this article agricultural product is a generalized concept， the writer define agricultural product as the product which is created by farmer by physical labour， for example， rice、cotton、sea food、agricultural product simply processed etc.）， the main demand of farmer is industry product（industry product is defined as the product which is created by professional skill by physical labour hereinafter， for example， car、computer、food can etc.）、science and technology product（science technology product is defined as the product which is created by professional knowledge by mental work hereinafter， for example， achievements in scientific、new technology researched and invented、result of design etc. Services relies on entity economic， product of services is classified into corresponding agricultural product、industry product、science technology product hereinafter， and shall not be listed individually）; Worker is engaged in industry production， mainly provide industry product， the main demand of worker is agricultural product、science technology product; Intellectual is mainly engaged in science and technology work， mainly provide science technology product， the main demand of intellectual is agricultural product、industry product; The main task of student is study， the main demand of student is agricultural product、industry product、science technology product、science knowledge（included in science technology product）; thus， the circulation of demand chain and value chain， and the network system of the circulation of demand chain and value chain form（see the following figure）.

Every people who are capable of work， usually reach adult age， are creating value to satisfy the demand of other people in the society meanwhile when they gain the demand which they need. Peoples demand varies corresponding to different line engaged in、different age stage、different culture level. With the elapse of time， peoples demand changes continually. The whole life of one person from birth to death， can be roughly divided into several phases as follows， baby→child→early youth→teen-agers→youth→middle age→old age. According to growing up phases peoples life can be divided as following， baby→preschool education→primary school→junior middle school→senior school→higher education→work→retirement→death. Peoples demand and the value which they can create are different in the different stage. There are many social occupations， generally it can be classified as the first industrial、the second industrial、the third industrial， people in all kinds of trade are creating value satisfying other people in the society at the same time when they gain the demand needed， every people is in the circulation of demand chain and value chain， thus， the network system of the circulation of demand chain and value chain of the running of social economic forms. With the circulation of demand chain and value chain， the running of the network system of the circulation of demand chain and value chain， and the elapse of time， the level of productive forces is constantly enhanced and human society makes unceasing progress and development.

On the macro level， the industrial chain and structure of a country shall generally correspond with the demand distribution of society so as to achieve full employment. For example， the industrial chain and structure of a country in which 90% people are highly educated and another country where 10% people are highly educated are firmly completely different， the state of the employment of the two country also are completely different. People engaged in different occupation lies in the different position of the network system of circulation of demand chain and value chain of the running of total society economic， to dynamicly grasp all kinds of demand of different level of different district and the total society of a country， the investigation and study of the demand of the different phases of near term、medium term、long-term of people group engaged in different trade of different age phase of different culture level shall be carried out， the investigation and study of the possible occupation development of people group of different trade of different age phase of different culture level shall be carried out， the investigation and research of resources and available resources of the country shall be carried out. The overall deep qualitative and quantitative analysis and study of the consists and running state of the circulation of the demand chain and value chain， the network system of the circulation of the demand chain and value chain of one（or some） district（s） or the whole society of the country shall be carried out， dynamic analog model for the network system of the circulation of demand chain and value chain shall be established to find out the best consists and ideal running state of the circulation of the demand chain and value chain、and the network system of the circulation of the demand chain and value chain so as to provide accurate information for making the right decision for industrial and economic policy for one（or some） district（s） or the whole society of the country.

In the wider range， the best dynamic analog model for the network system of circulation of demand chain and value chain for all the countries all over the world can be established to analysis the running state of the economic of the whole world， but the above mentioned best dynamic analog model doesn't has any actual meaning， considering all the countries of the world as one entirety for operation is impractical.

Establishing the above mentioned dynamic analog model，the factor of the changing of the value of goods with the elapse of time shall be considered， the total amount of the issued currency of the whole society of the country（hereinafter including individual oversea territory or special administrative district）shall adjust according to the changing of the total amount of the value of the whole society of the country， so that the total amount of the issued currency of the whole society of the country shall correspond with the total amount of the value of the whole society of the country， and the policy for currency of the country shall correspond with the law of value.

The meaning of establishing the best dynamic analog model for the network system consisted of demand chain and value chain， for the make-up of the circulation of demand chain and value chain， and for the ideal running state of the network system consisted of Demand Chain and Value Chain is significant， by establishing the above mentioned dynamic analog model， the running state of the economic of one（or some） district（s） or the whole society of the country can be accurately dynamicly grasped， the economic of one（or some） district（s） or the whole society of the country shall develop harmoniously scientifically.

On another aspect， to achieve harmonious scientific development of the economic of one（or some） district（s） or the whole society of the country the strong support from politics and the system of the country must be guaranteed， and the country shall have correct country idea. The country idea of building a prosperous strong civilization society of perfect legal system instead of the primitive society of jungle justice shall be pursued in every country. In the country of jungle justice or corrupt prevailing， the above mentioned dynamic analog model can not work effectively， no matter how high the level of science technology and productive forces it is impossible for a country like the above mentioned to achieve the harmonious scientific development of the economic.

Generalizing the above mentioned， it visually reveals the inter rule of the running of the social economy establishing the best dynamic analog model for the network system consisted of demand chain and value chain， for the make-up of the circulation of demand chain and value chain， and for the ideal running state of the network system consisted of demand chain and value chain， it is scientific way and method to develop economic， but， the employment of the dynamic analog model involves not only the aspect of technology and economic but also politics and social system， only if there is the strong guarantee from the politics and social system the best dynamic analog model can be successfully employed.

The above is the writer's understanding of the inter law of the running of social economy. Please oblige me with your valuable comments.

Information about the writer：

Name： Lujun Zhou， First grade registered construction engineer， Senior engineer.

Unit： Studio for the Research of China Politics and Economy Innovation.