Market and Freedom by Professor Dwight R. Lee
The Cold War is the long time war that was taken among the former USSR and the United States of America, and the war started immediately after the end of World War II. This war was essentially a clash, or a war, of two different ideologies; the Capitalism and the Communism. The Collapse of the former Soviet Union and its transition toward the free market economy proved that capitalism and its principles as the proper way of life.
Capitalism's principles such as the privatization, specialization, small state authority, individual rights, freedom, and free market economy became the ideal and the model for many nations to follow. However, in this context the questions that might present themselves for analysis are:
Ø Are there any threats that might undermine this free market economy model?
Ø What kind of threats these are?
Ø How can this model be protected from these threats?
A considerable viewpoint for answering these questions has been presented by Professor Dwight R. Lee, in his article "Market and Freedom". This article is an attempt of providing some visions to protect the values of free market economy.
The author of the article believes that through the social and productive cooperation, the society can reach its wealth and prosperity. The production cooperation has two main elements, freedom and good health. However, the author emphasizes that freedom is more important than good health and wealth as well. He points out that "the sick people can be productive, but without freedom the productive cooperation of the marketplace is impossible." He also clarified that the rich people could not enjoy their wealth without freedom. Moreover, Professor Dwight mentions that there is mutual dependence among the production and freedom. He clarified this idea in two points. First, "Markets requires freedom". The author attacks the centralized government that prevents the freedom and dominates the information flows, which is an important element of the market economy. Second, "freedom requires markets". Professor Lee emphasizes that privatization protects individual freedom. In this context he mentions for an important example that we might experience in everyday life, "the pollution problems." These are real problems in our world today, especially in the over populated cities and countries such as Mexico City and Cairo.
According to Polanyi, a market economy becomes a market society when all land, labour and capital are commodified (Polanyi, 1957). A market society is a structure, which primarily focuses on the production and distribution of commodities and services. This takes place through a free market system, which allows the opportunity for individuals to engage themselves in the market place, through trucking, bartering or exchanging. Polanyi’s fundamental idea of a market society is that all social relations are rooted in the economy as opposed to the economy being submerged in social relations.
Capitalism as an economic system has not been around for a very long time. Stanford indicates that this economic system began in the mid-1700s in Europe . For a considerably young system, it almost seems impossible to imagine a different way of living. Capitalism has become deeply embedded in our social structures; it is naturalized as a way of doing day to day things. If this is the case, then we as humans have a long way to go if we are to achieve social and economic justice. The question I aim to explore is whether capitalism is capable of achieving socio-economic justice. I am arguing that it cannot achieve justice because there is too much focus on profit rather than people and it dislocates the consumers from the modes of production which indirectly promotes social inequality. Our current economic system which I will be interchangeably using as capitalism throughout the paper will examine why the focus on profit is detrimental to the social well-being of people and explain how capitalism is divisive and why this can pose negative outcomes for individuals and communities. It is with these arguments that outline the need for a fundamental change to how our economy is structured and managed.
Economic liberty is an ideal initiated in the late eighteenth century by philosopher Adam Smith (p.40). This domain of liberty pertains to the freedom of the marketplace. It was Smith who stated in The Wealth of Nations that “the consumer is king”, urging also “that government, interfering in the market by granting mercantilist monopolies, abetted this injustice” (p.
The market today has become so important that society takes it as completely natural. From “The Economic Problem” Heilbroner describes three main solutions, with the market being one. Furthermore into the market, Polanyis book “The great Transformation” gives insight on how much society actually allows the market to dominate. To Polanyi a market society is seen as social relations embedded in the economy instead of the economy being embedded in social relations. Examining both of these books gives a great understanding on how life was without the market and how it came to be. Taking note of Rineharts work as well on how the workplace has drastically been changed by the market is key to analyzing the transformation as a whole. As a result of the transformation, not only has human labour been altered, but another author known as Weber states that certain peoples view on the world have also be affected. This essay will establish how “the great transformation” (Polanyi) from a traditional society to one based on a market economy has vastly impacted societal workplaces, and societal beliefs around faith of idealogical conditions.
The Cold War was an argument between the Soviet Union and the United States of America after WWII. During WWII the USA and the Soviet Union were allies fighting a common cause; Adolph Hitler who was attempting to overthrow the surrounding countries. Although the USA and the Soviet Union were allies, the relationship between the two countries was very tense (What Was). Neither country trusted the other.
Overall, free market is a necessity if there is to be any forward movement and progression of society. In a controlled system nothing ever changes, and while this can prevent change for the worse, it also stunts change for the better. In free enterprise systems, people with brains and determination, such as Andrew Carnegie, are able to take advantage of new opportunities. While this system will not help individuals float along, and they are liable to sink (into debt and/or remorse), those who have the courage to try will find that success is only a risk
Which of the characteristics of a market economy do you believe is the most Important? Explain
The Power of the Market by Milton and Rose Friedman is about central economic planning and the relationship between the government and its role in the economy. Economic freedom “and essential part of economic freedom is freedom to choose how to use our income: how much to spend on ourselves and on what items; how much to save and in what form; how much to give away and to whom.” “Currently, more than 40 percent of our income is disposed of on our behalf by government at federal, state, and local levels combined.” Is that really freedom? In reality there is no economic freedom, the government controls it. They have their hands in almost everyway possible to make money off of every American. We are nothing but “customers” who work hard to survive while the government has their hands in our pocket every step of the way.
Society was portrayed by the split between two classes of people. Capitalist class, which possesses the methods for creating and dispersing merchandise. Workers class, which offer their work to the capitalist class in return for wages. The economy is controlled by the people & companies who manage organizations and settle on choices with regards to the utilization of assets. In any case, there exists a ‘division of work’ which considers differentiation, ordinarily happening through learning and preparing, further separating the two class framework into sub-classes. One is commonly known as the middle class. Another aspect of capitalism is profit motive. Corporations exist for one sole purpose, to create a profit. The thought process in all corporations is to make and offer products and administrations just for income. Corporations don 't exist exclusively to fulfill individuals ' needs. Despite the fact that a few products or administrations may fulfill needs, they may be accessible if the general population have the assets to pay for them. The third aspect of capitalism is minimal government intervention. Capitalist social trust markets to sit unbothered to work without government interruption. A totally without government industrialist society exists in principle only. “Even in the United States--the poster child for capitalism--the government regulates certain industries, such as the Dodd-Frank Act for financial institutions. By contrast, a purely
The distinguished in the nineteenth century and it’s collapse in the twentieth century have led to similar, though much slower and less obvious, process in the course of modern science. Today’s frantic development in the field of technology has a quality reminiscent of the days preceding the economic crash of 1929. The clearest evidence of it may be seen in such comparatively young sciences such as psychology and political economy. In psychology, one may observe the attempt to study human behavior without reference to the fact that man is conscious. In political economy, one may observe the attempt to study and device social systems without reference to man. Political economy came into prominence in the 19th century, in the era of philosophies post kantian disintegration, and no one rose to check its premises or to challenge its base. Political economist-including the advocates of capitalism-defined their sciences as the study of management or direction or organization or manipulation of “community’s” or nations resources. The author goes on to say that the European culture regarded material productions as work that should be done by slaves or serfs but not first class citizens. It must be remembered that the institution of private property, in the full, legal meaning of the term, was brought into existence only by capitalism. In the pre-capitalist eras, private property existed de facto but not de jure, i.e. by custom and sufferance, not by right or by law. In law and in principle all land belonged to the head of the tribe, the king, and was held only by permission, which could be revoked at any time. CAPITALISM, a term used to donate the economic systems that has been dominate in the western world since the breakup of feudalism. Fundamental to any system called capitalist are the relations between private owners of non-personal means of production (land mines, industrial plants, etc.... collectively known as capital) and free but capitalizes workers, who sell their labor services to employers. The resulting wage bargains determines the proportion in which the total products of society will be shared between the class of laborers and the class of capitalist entrepreneurs. Productive use of the “social surplus” was special virtue that enabled capitalism to outstrip all prior economic systems. Instead of building pyramids and cathedrals, those in command of the social surplus chose to invest in ships, warehouses, raw materials, finished goods and other material forms of wealth.
Today, more than ever, there is great debate over politics and which economic system works the best. How needs and wants should be allocated, and who should do the allocating, is one of the most highly debated topics in our current society. Be it communist dictators defending a command economy, free market conservatives defending a market economy, or European liberals defending socialism, everyone has an opinion. While all systems have flaws and merits, it must be decided which system is the best for all citizens. When looking at both the financial well being of all citizens, it is clear that market economies fall short on ensuring that the basic needs of all citizens are met. If one looks at liberty and individual freedom, it is evident that command economies tend to oppress their citizens. Therefore, socialism, which allows for basic needs to be met and personal freedoms to be upheld, is the best economic system for all of a country’s citizens.
Along with the advance and development of the society, capitalism is acquired by lots of countries among the world. But in the meantime, an increasing number of problems are brought to our attention, one of which is the pros and cons of capitalism. As to whether it is a blessing or a curse, people take different attitudes. Capitalism can be traced back to the Middle Ages in Europe, and this economic system has been contributing to the whole human race for centuries. However, people are attaching more importance to what capitalism is really doing to us, and they start wondering if another world is possible. My paper will focus on the question “Is capitalism good or evil”, and discuss different views about it.
The world’s economies continue to be divided on by whom their means of production benefit, supply, enrich, and protect. Many debates and altercations have been a result of disagreements between capitalists and socialists. Socialists believe the government is essential in providing equality for all and the allocation of capital goods. But the strength of capitalism can be attributed to an incentive structure based upon the three P’s: (1) prices determined by market forces, (2) a profit-and-loss system of accounting and (3) private property rights. The failure of socialism can be traced to its neglect of these three incentive-enhancing components. (Perry) Socialism gives power to the government to regulate the goods produced, the amount of goods produced, where the goods are distributed, and the price of the goods. This command system does not allow for the creativity, wealth, and freedom that capitalism supplies the citizens. Capitalism provides a market system that permits companies to regulate the economies themselves. Capitalism offers the world’s economy the freedom to manage itself, diversify, prosper, fail, and freedom from regulation in order to supply the world based on demand and creativity. Capitalism is the only social system that rewards merit, ability and achievement, regardless of one’s birth or station in life. Capitalism is the only social system that rewards virtue and punishes vice. This applies to both the business executive and the carpenter, the lawyer, and the factory worker. (Thomson) Capitalism is the world’s dominant economic system. Within it, the means of production and distribution are owned by individuals: private ownership and free enterprise are believed to lead to more efficiency, lower prices, be...
Capitalism is a very complex system that is discuss by many authors, scholars and economists. Robert Heilbroner is a famous American economist who creatively discusses the system of capitalism in Twenty First Century Capitalism. He reveals the abstruse capitalism system and its role in society. Heilbroner begins by comparing traditional society with modern capitalist society and differentiate capital with wealth, which facilitate the reader to understand the basic definition of capitalism. He then illustrates the most crucial aspect of capitalism, that is, the two realms of capitalism. According to Heilbroner, the two realms of capitalism are state and economy or government and business. The relation between these realms is interesting in its nature, because one aspect of their relationship make them beneficial for society and another aspect turn them into dysfunctional in society. Realm of the state and the economy are beneficial when they rely on each other, as they support each other they results in peaceful state and economy of a society. At the same time, they have power to proceed independently. As soon as they split, they are dysfunctional for society because state might block the path of the economy to grow freely and economy can independently survive without supporting the government resulting in weak society. Western societies are the living example of capitalism. They present very languish condition of moral and social values, however, they proudly presents their materialistic life. This unbalance situation is because of the contribution of capitalism in modern society. The insatiable feature of capitalism results into accumulation of capital, which diminish the value of the human being and enhance the value of money an...
Therefore a free market is not desirable as maximizing their utility is priority. So government is expected to correct the market failure by choosing to char...