free markets perspective, examine the ethics and morality of 'let capitalism rip' allegation made by British Prime Minister David Cameron. (Guide: 750 words)
The competence or incompetence of free markets and the implications of resource allotment to agents in an economy continues to be a passionately debated topic within economic and political circles. "In reality, markets are prone to inefficiencies when a number of factors arise" (Mendes, n.d.). A key principle of the free market philosophy is that businesses should focus exclusively on maximising shareholder value and not allow other considerations, apart from compliance with the law, to intrude on their business activities. This is what governments over the past 30 years have lived by. And that's what still protects big business from having to pay for its own excesses. The speculative banks, the oil companies, the private equity and hedge funds, all steal from the tax payer with total…...
mlaReferences
Beyond 50 years: Building a sustainable future. 2012. [ONLINE] Available at: [Accessed 12 July 2012].http://www.walmartstores.com/sites/responsibility-report/2012/pdf/WMT_2012_GRR.pdf .
Corporate Criminality and the Free Market Philosophy. 2012. [ONLINE] Available at: [Accessed 13 July 2012].http://www.gordonpearson.co.uk/08/corporate-criminality-and-the-free-market-philosophy/ .
CSR Efforts: The slow greening of Wal-Mart. 2010. [ONLINE] Available at: [Accessed 13 July 2012].http://www.justmeans.com/CSR-Efforts-slow-greening-of-Wal-Mart/34672.html.
Foldvary, F.E. 2011. Is the Free Market Ethical? [ONLINE] Available at: [Accessed 13 July 2012].http://www.thefreemanonline.org/features/is-the-free-market-ethical/ .
This information goes both ways, which is essential for the functioning of the free market.
While this information comes and goes in the free market, so does it in the realm of advertising and consumerism. Companies advertise, consumers follow suit with their response, and these companies continue with or adjust their advertising methods to better suit themselves and their consumers. It is this give and take that has made the American business world and its economy so generally successful since the country's inception as a nation. Consumers know what they want and companies understand how to give these desires back to the consumers. In the arena of business, it is rare for any company to succeed who plays their consumers for fools, and companies in the realm of fast food and junk food do not play their consumers for fools either. ather is the consumer base that plays the fool…...
mlaReferences
Chang, H. 2011. 23 Things They Don't Tell You About Capitalism. Print. New York,
NY: Penguin.
Children's Television Report and Policy Statement. 1974. Decision and Report, 50
F.C.C.2d.1. Web. Retrieved ftom: http://www.eric.ed.gov/ERICWebPortal
Proponents of free market systems argue that free enterprise leads to more efficient production and better response to changing consumer preferences. Others point to the fact that markets are not perfect. Consider both viewpoints and respond to both sides of the issue with your viewpoints.
The 20th century contains many examples of the inefficiencies of purely a 'command-based' economy. Command or planned economies keep employment artificially high and the prices of goods artificially low. There is little incentive to create new enterprises to meet consumer demands, and little incentive for workers to be productive. Scarcity seems hard-wired into the system and corruption and bribery is rampant as consumers resort to the black market to get the goods that they desire.
In a free market system, the 'invisible hand' of the market determines what goods and how many goods are produced. "Adam Smith assumed that consumers choose for the lowest price, and that…...
mlaReferences
Joyce, Helen. (2011). Adam Smith and the invisible hand. Plus. 14. Retrieved July 16, 2011 at http://plus.maths.org/content/os/issue14/features/smith/index
Michaels
Moral Status of Advertising in a Free Market Economy
Jane Michaels
Marketing 201
Moral Status of Advertising a Free Market Economy
Despite what many individuals may think, when devising an advertising plan, the planners must carefully pay attention to the motives of not only the business that is selling, and the perceptions of the target audience. Understanding the audience and paying attention to how one sells an idea or product is the core of affective and positive advertising (Shell and Moussa 313). However, persuasion can be a careful line of right and wrong, and in the case of a free market economy. In a free market economy, the concept of supplying a people with a sense of economic freedom can also lead to political and civil opportunities. To follow is the argument affirming a free market economy, highlighting more opportunities then inopportunity for economic growth and underlining freedoms.
Justifying advertising in any market economy is…...
mlaWorks Cited
Goldman, Alan. The Justification of Advertising in a Market Economy. New York: Random House, 1983. Print.
Shell, G. Richard, and Mario Moussa. The Art of Woo: Using Strategic Persuasion to Sell Your Ideas. New York: Portfolio, 2007. Print.
Von Hayek, Friedrich. The Non-Sequitur of the 'Dependence Effect'. Southern Economic Journal, April 1961.
PICING: HAYES VS.SUPEIO
Pricing decisions
When a firm decides to change the price of its good or services, the two driving factors are usually the cost and the competition. There is hardly another reason for change the price. Either the firm does it for itself as its costs are high and revenues are not significant or it does to beat the competition and gain bigger market share. Some theorists might add a third driving force behind pricing decision i.e. customer but this one is usually not as influential as the other two or simply doesn't play as major a role as do the two other factors. (Hyatt)
In the case of Hayes, the decision to change the price of aluminum wheel is driven by competition and not the cost. The firm already enjoys very large market share and is a global leader in this area but since it is Superior that is the…...
mlaReferences
1) Nitin Mohan Gupta, Managerial Economics: Demand Forecasting and Methods foe Demand Forecasting [accessed 20 September 2005]http://www.managementparadise.com/projects/eco/eco2.html
2) Geoffrey Hyatt, Founder & CEO of Strong Numbers, What Drives Pricing Decisions Today? [accessed 20 September 2005]http://www.pricingsociety.com/Art_What_Drives_Pricing_Decisions_Today_FF.htm
Quantity
Papa John’s is the fourth-largest pizza chain in the US, and 20th-largest quick service restaurant overall (QSR, 2018). Its total revenues for 2018 were $1.573 billion, with net income of $1.64 million, according to the company’s latest 10-K. In terms of sales per unit, QSR Magazine (2018) lists Papa John’s with $968,000, higher than Little Caesar’s and Pizza Hut, but lower than Domino’s. The company has over 3300 units in total. According to the company’s website, it has over 5000 locations total, in 45 countries. Founded in 1985 in Jeffersonville, IN, the company began franchising the next year, and has grown steadily since then, although there was a decline in the number of stores in 2017 (QSR, 2018). According to IBIS World, the pizza industry in the US is worth $47 billion, which gives Papa John’s a 3.3% share. The largest competitor, Domino’s, has a 12.5% share, so there is only…...
Robert Reich's "Saving Capitalism"
For the Many, Not the Few
Robert Reich would be an unexpected ally for the movement on the Left, or the more liberal members of the American society. Reich is a classically trained economist that has actually won a Nobel Prize in economics for some of his work. Such awards and achievements would typically be associated with an individual that was more economically conservative than what Reich is arguing. However, the economic conditions that have provided decades of economic growth for many of the advanced nations are changing quickly and the standard economic perspectives are no longer creating the results that they did in previous circumstances. Reich makes many claims that might seem counterintuitive to many people who believe that the free market operates best when it is left to its own devices and not subject to government regulation.
However, the concept that hard work will allow you succeed…...
mlaWorks Cited
Konczal, M. (2015, October 7). Robert Reich on Why Capitalism Needs Saving. Retrieved from Rolling Stone: http://www.rollingstone.com/politics/news/robert-reich-on-why-capitalism-needs-saving-20151007
DevelopmentalismDevelopmentalism is a policy approach that emphasizes the role of the state in promoting economic growth and improving living standards by way of supporting a strong internal domestic market and using tariffs to keep imports from upsetting or undermining that internal strength. It emerged predominantly in the 1940s and 1950s in response to the Great Depression and World War II, and was widely adopted by developing countries during the post-war period. Developmentalism typically involves state intervention in key sectors of the economy, such as infrastructure and manufacturing, in order to promote industrialization and economic development (Klein, 2007). While developmentalism has come under criticism in recent years for its sometimes negative social and environmental impacts, it remains an influential approach to economic policymaking, particularly in the Third World.Developmentalism is best understood as a political-economic doctrine that emphasizes the industrialization of developing countries. The goal of developmentalism is to promote economic growth…...
mlaReferencesEasterly, W. (2007). The Ideology of Development. Foreign Policy July/August 2007, 30–35.Haque, S. (1999). Restructuring Development Theories and Policies: A Critical Study. SUNY Press, New York.Klein, N. (2007). The Shock Doctrine: The Rise of Disaster Capitalism. Metropolitan Books.Smith, T. (1985). Requiem or New Agenda for Third World Studies? World Politics, 37(4), 540–542Yü, B. et al. (1996). Dynamics and Dilemma: Mainland, Taiwan and Hong Kong in a Changing World. Nova Publishers, Taiwan.
Market Equilibration
The process of achieving a market equilibrium relies on some basic principles. The principle of demand holds that, all other things being equal, the higher the price of a good the less people will demand of that good (Investopedia, 2012). There are exceptions to this law, for example goods with inverse price elasticity of demand, but in general the law of demand holds for all goods, even those with very low price elasticity of demand.
The law of supply is the inverse. It holds that all other things being equal the higher the price of a good, the more suppliers will want to provide. Thus, as prices rise, the supply of a good will rise because the profit associated with the production of that good will increase, but the lower the demand will be, because the buyers' marginal utility will decrease.
Those other things that must be equal, however, are the…...
mlaWorks Cited:
Investopedia. (2012). Economics basics. Investopedia. Retrieved April 11, 2012 from http://www.investopedia.com/university/economics/economics3.asp#axzz1rk5hnhyh
Riley, G. (2006). AS markets and market systems. Tutor2U.net. Retrieved April 11, 2012 from http://tutor2u.net/economics/revision-notes/as-markets-equilibrium-price.html
Because of the free-price system, trading exists in various degrees thus causing a lack of organized trading system. Issues also indicate that market economy creates monolopies that threaten the competitiveness of goods and services. Therefore, the solution to such problem that market economy critics find is to support mixed economy because they need a structured and organized system of trading. But what can a mixed economy provide to the economic condition of a nation? To the proponents of mixed economy, this system can prevent unstable economic conditions because the economic system is controlled. A mixed economy presents both the faces of a free-market and capitalism where people have the right to choose which type of economic system they wish to implement in trading. Additionally, even if free-market also exists in a mixed economy, it is still limited which therefore continues to present a controlled economic condition....
The authors use everyday examples, such as "investment in a newly formed small business" to make their economic processes more understandable to anyone who understands modern business, and this is one of the things that makes this book so readable, and so fascinating, even for someone who might not be that interested in economic theory and practice.
The Friedman's support many ideas that would reduce the authority of government in many economic areas, including the "negative income tax, the volunteer army, an improved method of auctioning Treasury securities, the monetary rule for achieving price stability; the voucher system for education, the flat tax, and flexible exchange rates" (Jordan et al. 199). It is quite amazing to see just how many of these Friedman ideas have made their way into our business and political world, including the volunteer army, the educational voucher system, and flexible exchange rates, to name a few.…...
mlaWorks Cited
Economist of the Century." The Washington Times 3 Aug. 2002: A11.
Friedman, Milton and Rose. Free to Choose: A Personal Statement. New York: Harcourt, Inc., 1990.
Jordan, Jerry L., et al. "Milton, Money, and Mischief: Symposium and Articles in Honor of Milton Friedman's 80th Birthday." Economic Inquiry XXXI.2 (1993): 197-212.
Oi, Walter Y. "Milton Friedman, Starting His Ninth Decade." Economic Inquiry XXXI.2 (1993): 194-196.
Pharmaceutical industries have to operate in an environment that is highly competitive and subject to a wide variety of internal and external constraints. In recent times, there has been an increasing trend to reduce the cost of operation while competing with other companies that manufacture products that treat similar afflictions and ailments. The complexities in drug research and development and regulations have created an industry that is subject to intense pressure to perform. The amount of capital investment investments required to get a drug from conception, through clinical trials and into the market is enormous. The already high-strung pharmaceutical industry is increasingly investing greater amounts of resources in search of the next "blockbuster" drug that can help them gain market position and profits. Laws, regulations and patents are important to the industry while spending billions of dollars in ensuring the copyright of their products.
It is the intention of this thesis…...
mlaBibliography
Ansoff, H.I. (1957). Strategies for diversification. Harvard Business Review, 35(5), 113-124.
Ansoff, H.I. (1965). Corporate Strategy. New York, NY: McGraw-Hill.
Ashour, M.F., Obeidat, O., Barakat, H., & Tamimi, A. (2004). UAE Begins Examination of Patent Applications. Tamino.com. Retrieved January 18, 2004, from the World Wide Web: http://www.tamimi.com/lawupdate/2001-01/intprop.htm
Bain, J.S. (1954). Economies of scale, concentration, and the condition of entry in twenty manufacturing industries. American Economic Review, 44, 15-36.
An important contribution to the market ideology is that the authors recognized the existence of a relationship between employment and the market. This relationship was based on that the employment, the division of labor and the "human material progress had proceed in parallel with the growth of the market." Otherwise put, there existed a direct relationship between the market and the employment, with the market being the feature which set the tone. An increase of the market would generate an increase in employment and vice versa. However, an increase or decrease in employment would not affect the market as the relationship between the two is unilateral.
Engels, Moore and Jones believed that the future successful implementation of the communist policies would see no major use of the market; "in the society of the future, there would be no mediation through the market. Wealth would satisfy needs directly. It would be the…...
mlaReferences
Callinicos, a., 2004, the Revolutionary Ideas of Karl Marx, 3rd Edition, Bookmarks Publication Ltd.
Engels, F., Marx, K., 2006, Socialism: Utopian and Scientific, Mondial
Groenwegen, P.D., 2003, Classics and Moderns in Economics: Essays on Nineteenth and Twentieth Century Economic Thought, Routledge
Marx, K., 2005, the Eighteenth Brumaire of Louis Bonaparte, Mondial
Market-State
oth Phillip obbit and Richard Robison offer accounts of what a market-state is. obbit contends that the core features of the market-state are a crisis of the nation-state, a transformation of core state functions, relations of national states to transnational markets, and cosmopolitan culture. Finance is at the center of the culture, the money economy. Governments are more centralized but weaker because power is allocated by the money men, the banks, the managers of finance and capital, and governments are merely their footstools. According to Robison, on the other hand, market-states are neo-liberal, techno-managerial and instrumental, and citizens are clients and consumers. oth describe the materialistic, consumerist society, yet each has its own theoretical approach and unique conceptualization. This paper will compare obbit's and Robison's accounts of market-states and use the writings of Smith, Keynes, Marx and others to help illustrate the nature of the two.
Differences of What a Market…...
mlaBibliography
Bobbit, P (2011) The Shield of Achilles: War, Peace, and the Course of History, NY:
Anchor Books
Keynes, JM (1920) The Economic Consequences of the Peace, NY: Harcourt Brace.
Pabst, A (2010) The Crisis of Capitalist Democracy, Telos 152: 44-67.
Market in Early epublic
James Henretta is a history professor for the University of Maryland. In his article about the market in the early republic, Henretta (1998) outlines the structure of the market during that time period. He opens by pointing out that at the time there were two competing views of what the market should look like. One view, that of Hamilton and the Federalist party, was to "use the power of the state to assist monied men ... to pursue a capitalist path of domestic commercial development" (p.290). Such an approach would focus on building a strong banking industry to support the capitalists. The other approach, as advocated by Jefferson, Madison and the Democratic-epublican party, preferred a model that supported farmers, artisans and other small businesses. Incentives would be offered for these to produce for export markets, a "subsistence-plus" model that allowed people the means to survive while having…...
mlaReferences
Henretta, J. (1998). The market in the early republic. Journal of the Early Republic. Vol. 18 (2) 289-304.
As health care’s share of gross domestic product (GDP) grows, people are struggling with how to estimate the value of the health care industry in the economy. While it might seem like a straightforward answer, simply looking at the total amount paid for healthcare in proportion to the total GDP, that valuation would be a gross oversimplification. Generally, GDP is viewed as a proxy for standard of living, but in the United States standard of living might actually drop for many people as the percentage of GDP attributable to healthcare grows. It is important to keep in....
Persuasive Essay Topic Ideas
Education
The Importance of Early Childhood Education
Should College Education Be Free for All?
Technology's Role in Enhancing Education
The Value of Experiential Learning over Traditional Classrooms
The Impact of Standardized Testing on Student Success
Social Issues
The Necessity of Universal Healthcare
The Right to Bear Arms: A Constitutional Imperative
The Impact of Social Media on Mental Health
The Importance of Gun Control Legislation
The Benefits of a Universal Basic Income
Environmentalism
Climate Change: A Call to Action
The Necessity of Renewable Energy Sources
The Role of Individuals in Environmental Protection
The Impact of Deforestation on Biodiversity
The Benefits....
Capitalism
1. The Impact of Capitalism on Economic Growth: Analyze how capitalism, with its emphasis on private property, free markets, and competition, has contributed to economic growth and development.
2. The Inequality and Social Justice Implications of Capitalism: Discuss the potential drawbacks of capitalism, including the creation of wealth inequality, the exploitation of workers, and the erosion of social welfare programs.
3. Government Intervention in Capitalism: Is it Necessary or Detrimental? Evaluate the role of government intervention in capitalist economies, considering both its potential benefits (e.g., regulation, social safety nets) and its potential drawbacks (e.g., market distortions, reduced economic efficiency).
4. The Evolution of....
Topic 1: Capital Punishment
Opposing Viewpoints:
Proponents: Argue that capital punishment is a just and effective deterrent to crime, while also providing closure to victims' families.
Opponents: Question the morality of state-sanctioned killing, its potential for wrongful convictions, and its disproportionate impact on marginalized communities.
Topic 2: Universal Basic Income
Opposing Viewpoints:
Supporters: Advocate for a universal basic income as a guaranteed safety net that would reduce poverty, stimulate economic growth, and foster innovation.
Critics: Express concerns about the cost, the potential for disincentivizing work, and the inflationary impact on prices.
Topic 3: Abortion Rights
Opposing Viewpoints:
Pro-choice advocates: Argue for the right of women....
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