What it is
Finance is the management of money.  Finance relates to all
economic activities carried out within our society.  When we buy
goods for cash or credit, take a bank loan to finance the
purchase of a car, or use our savings to buy government bonds, we
become participants in the world of finance.  At the individual
level, the activities I have just described are called Personal
Finance; the economic activities of all levels of government are
referred to as Public Finance; and lastly, when the economic
activities are carried out by firms organized for the purpose of
earning profits, we call it Business Finance.  My article will
focus on Business Finance.  Bear in mind, however, that all three
activities are interrelated, none of them can be considered in
isolation.

A plea for simplification
Business Finance (thereafter referred to as finance) has
grown in complexity over the years.  There are many activities
within finance which can be simplified or even eliminated
altogether.  There is a need to undertake a total review of this
complex universe with a view to simplify it and make it more
accessible and less (financially) risky to the public at large.
To clarify what I just said, I will discuss some (finance is a
vast topic, what follows is a small sample) problem areas of
finance.  I will also revisit the financial earthquake that shook
the world in 2008.

Who should carry out the review?  I propose a group made up
of experts (examples:  economists, accountants, financial
analysts, bankers, actuaries, former corporate executives, and
lawyers) and non-experts (examples:  teachers, doctors,
administrators, journalists, and small business owners).

Where should it take place?  Since the U.S. is the financial
heart of the world, it should be centered there, but it should
include as many countries as possible.

What will the end result of this review be?  Recommendations
will be made and as much as possible should be translated into
regulations.  In turn these regulations will vary from country to
country.  Ultimately, variations between states should take into
account the need to maintain a certain degree of global
uniformity, and should respect the ultimate objectives:  simplify
the system, and put an end to our yo-yo economies (recessions,
followed by financial prosperity, with the cycle repeating itself
ad infinitum).

Who will bear the cost?  The U.S. and developed countries.
There will be a need for a complete administrative structure with
researchers, analysts, and various other bureaucrats.  While the
cost will be substantial in absolute terms, it will be small
change for countries such as France, Italy, Canada, Japan, and
the U.S.  The return on their investment will hopefully be the
end of the present financial madness prevailing on this planet.

One last point before I move on.  If implemented, the review
should be revisited and updated (taking into account prevailing
economic conditions) every X number of years.  In effect the
first review will be our model T.  We will go on to improve this
first draft until we have a stable economy across the world.  You
and I will no longer be around when this dream will be realized.
But we will have the pride of knowing that it all started during
our lifetimes, and in a small or large measure have contributed
to it.

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