...FREE MARKET ENVIRONMENTALISM Free market environmentalism is the political position that argues that the free market, property rights, and tort law provide the best means of preserving and saving the environment, internalizing costs, and conserving resources. Many argue that free markets can be more successful than government and this has been proven to be true throughout history. Although free market environmentalism can work, this point of view is kind of sketch because many of the environmental problems stem from market failure. In the traditional view, many environmental problems are caused by decision makers who reduce costs by polluting on those who are downwind. Other environmental problems come from private decision makers failing to produce public goods, such as preserving a national park(Stroup, Richard: Free-Market Environmentalism). For markets to work in the environmental field, rights to each important resource must be clearly defined, easily defended against invasion, and transferable by owners on terms of buyer and seller(Stroup, Richard: Free-Market Environmentalism). Many well-functioning markets require property rights. This allows people to defend themselves against pollution and a standard is set by the community on how much is acceptable. In local communities these standards are often different because many of the people with similar views cluster together. There are not only standards set for air pollution but in some states and local communities people...
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...MSc Development Studies Perspectives of Development Presentation Assignment: The Free-market Theory/The Free Enterprise Theory/Economic Liberalism Key Words: Laissez faire, Adam Smith’s ‘invisible hand’, liberalism, supply and demand, nationalization, privatization, deregulation, rational choice liberalism, neo-liberalism Between 1970 and the last decade before the millennium, there took place a remarkable and dramatic change in the attitude towards the role of the state in economic activities. According to Shutt (1998), during the late 1950 and 60’s, there developed a near consensus among economists especially those linked to the Chicago School of Thought that laissez-faire capitalism was the dominant economic system and that deviation from it was untenable and unsustainable. The argument was that in order to achieve a modicum of development all countries must dedicate themselves to establishing fully liberalized economic, political and cultural systems in which the state plays a minimal role or simply put that of an adjudicator. The rise in what came to be popularly known as the free market economy owed/s much to the failure of the economic models based on extensive state intervention (this was particularly so after the Second World War) to deliver adequate levels of prosperity or security as was signified following the fall of the Soviet Union. As will be argued in this paper using theories from Peter Berger (1985) and Hernando De Soto this apparent logic...
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...the free enterprise system or capitalism. Three essential principles of capitalism are: production is organized for the market, the means of production are privately owned, and investment is privately controlled, and the people who use those means of production to produce goods and services, that is workers, are hired on a labor market to work in firms as employees. Capitalism is a form of market economy in which production and investment are privately controlled, and the work of production is performed by employees, hired from free labor markets. Capitalism is essential to the function of society due to the opportunities that it creates and the augmentation of an individual’s vitality. Individuals can decide which economic decisions they deem most appropriate. Many aspects of capitalism ring a bell of liberty, the positive aspects of freedom and choice, and the hope that is prevalent and the everlasting lure of riches keep the engine going. For example, you may be employed right for $9.25 an hour, but tomorrow you could become a sales person and control your income by your commissions. This mere fact, a potential exits, is inspiring and motivational and keeps the free agents content. A Scottish economist Adam Smith, laid out the foundation for free enterprise in The Wealth of Nations (1776). Smith maintained that a government should not interfere with a nation's economy but instead should let individuals act as "free agents" who pursue their own self-interest. Such free agents...
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...A free market is when businesses are governed by supply and demand and not restrained by government interference, except to enforce taxes and ownership of property. In a free enterprise system, the value of goods and services are determined by the market. For example, if the demand of a good is high then the price will be higher and if the demand is low then the price will be lower. This is why in a “perfect world” free enterprise leads to more efficient production and better response to changing consumer preferences. The free market responds more quickly to the needs of the consumer and promotes the use of better technology to produce goods and services. Supporters of the free market conclude that it contributes to political and economic freedom. Supply and demand is what creates the competition and makes sure prices stay low. On the other hand, free markets are not perfect at all. The simple fact that there is no provision of merit goods, such as education, housing and health, does not benefit the consumers. Another important thing is that the social costs are ignored. For example, private firms would ignore the external factors like road conditions and pollution. The people that are against the free market would conclude that the competitive environment causes a survival of the fittest. They would agree that money is not distributed fairly and the poor stays poor. Another fact is that the economy would no longer be stable and growth would go up and down leading to recession...
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...Hi, David! I really enjoyed your post and I agree with you that Ewert (1989) statements regarding “leftish-Christians” views of the free market were very well defended against. While the “leftish-Christians” argue that the free market is not as moral or justice as socialism, it is a better system in its efficiency and ability to generate financial success (Ewert, 1989). As you indicated many individuals who have found success in the free market are still moral and caring individuals. Warren Buffet, for example, is a very successful business man, but has also created The Giving Pledge with Bill and Melinda Gates (Famous entrepreneur philanthropists, 2012). The Giving Pledge allows for wealthy families and entrepreneurs to give to philanthropic...
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...Defending the Free Market: Critical Analysis Defending the Free Market written by Rev. Robert Sirico is a book about how being a leftist seems like a very moral and right thing to do for people but in turn is not very economically sound. He talks about how back in his younger days he was a socialist and leftist but in turn with many talks with people and intense fact searching he figured out how the free-market system is the only way to solve many of the world’s problems. What I thought was Sirico’s strong points about the book was that he applied religion to a lot of the things he had to say. Usually when someone is talking about economics they try to shy away from including religion into their speech or paper. Also, Sirico was very blunt about what he had to say. He went straight to the point backing his ideas with personal experience and facts. When it comes to Sirico’s weaknesses I could not find anything. He was very direct in what he said and I believe he did not leave anything out. When I first began to read this book I thought that it was going to be a dull strung-out economic lesson as if a robot had written the book. Within the first few pages I was quickly proved wrong when Sirico started to add personal background and experience. He did this throughout the book, which made it actually interesting to read. One of the points Sirico mentioned really caught my eye. In Ch. 4, Want to help the poor? Start a business, he talks about how foreign aid does not...
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...The free market economy is defined as where the price of things is determined by supply and demand. The United States Government just has a few rules or regulations for companies producing products. Supply and demand is a huge factor in a free market economy it decides how much of something should be made, how much, who gets to buy the product or, how much to sell it for. When companies decide how to produce fans they look for the cheapest and best way to produce it so, they can make a profit when they sell it for a higher price than what it took to make it. Such as the labor and materials to make it. For example, if ice cream is in high demand then the prices for leather materials will most likely go up. They prices will both rise because...
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...the marketplace is influenced by the growth of monopolies, mergers, and cartel-type activities which often use their market power to the disadvantage of consumers. a) Examine the arguments in favour of a free-market system of resource allocation b) Explain how market failure can occur and suggest how the government in a country of your choice has sought to correct those market failures. 1.0 FREE MARKET SYSTEM ‘’If you leave the Market going alone, it will balance as there was an invisible hand’’ (Smith,1776). Free markets have many virtues. Arguably, the most recognized is the expansion of individual choice, and thus freedom, through mutually beneficial exchange. (Bauer, 2002, p.171) 1.1 Basis of the free Market: According to Adam Smith ,the free market system was based in: Free enterprise or ‘’Laisser faire’’, individualist, risk, capitalism. * Free enterprise (Laisser faire): The government does not run anything. * Individualist: Only individual matter, not community, not society. * Risk: Everyone can make a lot or can loose a lot. Everyone take his owns risks. * Capitalism: where the main thing is to make profit. 2.0 THERE ARE FOUR MAIN ARGUMENTS IN FAVOR OF A FREE MARKET SYSTEM: 1) DEMAND AND SUPPLY MAKE PRICE 2.1 A free market is a competitive market where prices are determined by Supply and Demand: Where demand and supply intersect, we have what Smith called the natural...
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...Examining the Laws on Commercial Speech and Free Market Competition Our society has advanced to where it is today because of the interaction and exchange that fosters innovation and economic progress. We cannot naively rely on the pure goodness of society to insure that trade and business is fair—society depends on institutions for that, more specifically the institution of law. Good laws are intended for society to capture the gains from trade and interaction. This paper will evaluate whether the laws that relate to commercial speech and free market competition are designed with society in the forethought. Commercial speech is speech delivered by a business or someone speaking on behalf of a business to potential consumers. The first amendment in the United States Constitution protects the freedom of speech, but whether it also protects commercial speech has been subject to debate in the past. A case that tackles this issue is Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council. Consumers in Virginia challenged a statute that prohibited licensed pharmacists from disclosing price information on prescription drugs, deeming that to be unprofessional conduct. What makes this case unique is that the ones who brought forth the suit are not the subject of the statute, the pharmacists, but the consumers. The consumers believe that the poor, sick, and elderly are hit the hardest by this statute because “a disproportionate amount of their income tends to be spent...
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...Nations". It was used to explain what a free market is. A free market is a market system in which the prices for goods and services are set freely by consent between sellers and consumers, in which the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority. Within the healthcare market, a heavily regulated market, there was an opening for VIP care for those that could afford it. It is unregulated and should not be due the fact that the outcome of money paid for the services, pay for bettering the hospital. The Benefactor Society A free-market economy is an economy where all markets within it are unregulated by any parties other than those players in the market. In its purest form the government plays a neutral role in its administration and legislation of economic activity, neither limiting it nor actively promoting it (Meiners, Ringleb, & Edwards, 2011). Within this economy the healthcare market is heavily regulated which causes prices to be high and as well as needs and wants from consumers. The upper class consumers expect a certain level of attention and care. Because of these expectations there was an opening for a new market, VIP patient care. A term used by Adam Smith to describe the natural force that guides free market capitalism through competition for scarce resources is called the invisible hand. According to Adam Smith, in a free market each participant will try to maximize self-interest...
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...TECHNOLOGICAL EFFICIENCY AND FREE MARKET ECONOMIES Evans Gwaro Kisii University 15th July, 2016 Technological Efficiency and Free Market Economies Betz (2011) defines technology as the ability to influence any piece of knowledge to suite the best interest of human nature. While, on the other hand, Zupan (2011) refers a free market to system in which the prices for goods and services are agreed freely by accord between vendors and users, in which the rules and requirements on supply and demand are not interfered with by the authorities, price-setting monopoly, or other power. Free markets have various merits. The most accepted is the extension of individual choice, through commonly appreciated give-and-take situation. Subsequently, free market differs with a regulated market, where the government intercedes in supply and demand through non-market approaches that include regulations forming obstructions to market entry and/or directly setting prices. As such, the concept of a free market is where prices are structured by the equivalent demand and supply opportunities. Subsequently, as aforementioned, the influence of choice which enshrines to the free market alignment employs preeminent use of discrete entrepreneurial skills which inspires technology advancement. Essentially, in a free market economy, there are three components that include competition, active but limited government, and the self-interest. Competition in the market place provides quality goods to consumers...
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...A free market economy is an economy where most means of production are privatized and guided and where income is distributed largely through the operation of the market. To many people, it is seen as ultimate freedom and true economic liberty. Others, however, think that it is corrupt. Ayn Rand, the author of the novella Anthem, strongly believed that in order to have a progressive and stable economy, a country must have a free market. This belief is supported by the history of many post-communist countries. The Russian federation is one of the most well known post-communist countries. This is because once a free market was introduced, the countries scientists and scholars had a chance to develop innovations and advance society. With the freedoms...
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...Question Compare & contrast a market economy and a planned economy in terms of the following; provision of public goods, production and consumption of merit and demerit goods, consumer sovereignty and equity in income distribution. (30marks). A market economy is an economic system where the factors of production, are privately owned, consumers and producers are motivated by self interest, the level of competition in the markets is very high and resources are allocated through the price mechanism. The definition is supported by Lipsey (1992) who also state that decisions about resources allocation are made without any central direction but instead as a result of innumerable independent decision taken by individual producers & consumers hence in the market economy the individuals or market makes the ultimate decision in allocation of resources. Whereas the planned economy is one in which the coordination of economic activity so essential to the viability and functioning of a complex social economy is undertaken through administrative means commands, directives, targets and regulations rather than by market mechanism. The dictionary.com defined this economic system as a socialist economic system in which production and distribution of goods and services are controlled by the government and industry is mostly publicly owned. Provision of public goods These are goods that are non rivalry in consumption and non excludability as alluded by Stanlake (2000) He also added...
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...Social Problems and the Free Market: A Brief Look at Illegal Drugs and Its Market Nicola Jones Baker Kaplan University Professor T. Ayanou, PhD February 17, 2015 The present research report seeks to show the relationship between a “free market” economy and the acquisition and dispensing of illegal drugs. This report will begin with a general look at what constitutes a “free market” economy and how its aspects of supply and demand are the very cornerstones of its existence. After discussing the concepts of supply and demand, the author will then address how the tenants of supply and demand relate to individual freedoms and individual competitions. Following this section of the present report, the author will seek to discuss illegal drug markets. In the final and closing section of this research report, the author will argue that the social problems created by illegal drug addiction could be managed in a “free market” economy that views addiction as a treatable disease rather than a criminal offense. The fundamental underpinning of a free market system is the competition it generates among those who are vying for the consumers’ dollars. The goal of the free market is for person (A) to provide a good or service that is wanted by customer (B). Person (A) and customer (B) then negotiate a price for that particular good or service. If person (A)’s price is too high or the good or service is inadequate, customer (B) then has the right and freedom to go to person...
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...acceptance of a market economy transformed roadside markets into convenient supermarkets. No more haggling for prices over the noise of 20 others doing the same, or dodging children when settling your mobile market. Instead, responsible citizens, like the man in the picture to the right, can spend time recycling household waste in an effort to care for their neighborhood (Nuo). This coordinated and desirable lifestyle is made possible by domestic and foreign businesses that enter the market with permission of the government. Wal-Mart (WMT), an American business, abides by national and international law to assist those in China with their own development goals. WMT claims to conduct more annual internal audits than any other company, at 13,600 reviews. When violations are detected WMT does not hesitate to take harsh measures (Sweatshops). WMT seams its corporate policy with international regulations to ensure their workers the rights they bear as participants in a market economy. WMT labor practices in China promote free market-enterprise. In order to understand how WMT promotes free market-enterprise through its labor practices, first I will define the key terms, such as labor practices and free market-enterprise or free enterprise. Then, I will provide the criteria to evaluate the existence of a free market in China and how its existence impacts labor and vice versa. Finally, I will prove that WMT’s use of Chinese labor is legal and encourages the natural tendency of market economies...
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