Markets and Society Essay

Markets and Society Essay

Length: 2069 words (5.9 double-spaced pages)

Rating: Powerful Essays

Open Document

Essay Preview

Markets and Society

In his famous book, The Wealth of Nations, Adam Smith descried the free market system as a self-regulating mechanism, which maximizes society’s wealth and well-being. Indeed, since the time of Adam Smith, the free market has been an incredibly successful system for improving society. This can be attributed to an increase in overall wealth, innovation, and efficient resource allocation. Unfortunately, the market system also suffered numerous drawbacks, the most important being the inequality and the inequality of opportunity which the system created. These inequalities are best observed in the credit, education, and labor markets. The question of whether the use of free markets is truly preferable method for improving society will be discussed.

To elaborate, Adam Smith stated that man should not try to do good, but let good develop as a byproduct of self-interest. Indeed the principle of self-interest has been and always will be the driving force behind the market’s successes. However, since the majority of people do act in their own self-interest, competition develops in the market both among the buyers’ and among the sellers’. Regardless of whether the product is big and expensive like a car or small and cheap like an apple, the seller will want to sell it for the highest possible price and the seller will want the lowest possible price (with the exception of some luxury/status products). During the process of negotiation, the optimum equilibrium price, which is good for both parties, will be agreed upon. As a result, the consumer and producer surplus is maximized, leading to an overall increase in wealth.

The greatest success of markets is probably in its steady increased in wealth. For example, in t...


... middle of paper ...


...hich was created by the market system, the market, just like humans, is not perfect. It is certainly not a Panacea for all of societies problems (even Smith realized this when he warned that division of labor creates boring jobs). While the creation inequality is an unavoidable sideffect of its mechanism, the jury is still out on whether this flaw is fatal. Despite the fact that inequality continues to grow steadily, the poor cling to the chance that they will be the lucky few to make it to the top. The concept of self-interest continues to drive markets. While time will tell if the prost of prosperity outweigh the cons of inequality, one must admit that some problems, such as discrimination, must be solved outside of the market through government intervention. Markets should probably used in areas where the need for efficiency outweighs the need for “social justice.”

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Markets and Society Essay

- Markets and Society In his famous book, The Wealth of Nations, Adam Smith descried the free market system as a self-regulating mechanism, which maximizes society’s wealth and well-being. Indeed, since the time of Adam Smith, the free market has been an incredibly successful system for improving society. This can be attributed to an increase in overall wealth, innovation, and efficient resource allocation. Unfortunately, the market system also suffered numerous drawbacks, the most important being the inequality and the inequality of opportunity which the system created....   [tags: Essays Papers]

Powerful Essays
2069 words (5.9 pages)

A Globalized Society Brings People, Cultures, Markets, and Beliefs Together

- ... Global Civil Society and Politics Generally, one of the main influences global civil society has in politics has been switching its structure from ‘the previous state-centric sovereign notion to a more multilayered and ‘partially privatized’ governance system’ (Scholte, 245). As a result, this switch has created new forms of citizenship and social identity because the state is no longer the dominate figure in politics. Global civil society’s influence on politics has established things like multilayered governance, privatized governance, and the creation of collective identities which in turn have an affect on accountability and democracy....   [tags: borders, transparency, government]

Powerful Essays
2653 words (7.6 pages)

Business and Society: Principle of Rational Egoism Essay example

- The economic catastrophe of the 1930s radically changed society’s view of free markets. Social concern triggered government intervention aimed at solving the demoralizing problems of the Depression. These services (e.g., education, health care, transportation, environmental protection) when well designed and efficiently delivered can be of great benefit to society as a whole. Although government has stepped in and played a part in developing social insurance and assistance systems to reduce future risk since the early twentieth century, it has been done alongside the growth of corporate capitalism....   [tags: free markets, government intervention]

Powerful Essays
575 words (1.6 pages)

Not Enough Supporting Research for "Addiction in Free Markets" Essay

- So what. After reading Bruce Alexander’s and Stefa Shaler’s essay “Addiction in Free Markets”, this would be the first reaction of many readers, as it was my reaction upon completion of the essay. Although Alexander and Shaler discussed a very important issue concerning ‘Addiction in Free Markets’, they do not provide sufficient resources or correlative research to prove their argument. Firstly, their thesis statement does not agree with many of the facts and statements that are being presented throughout the essay....   [tags: Addiction, Free Markets, ]

Powerful Essays
1725 words (4.9 pages)

Markets and the Division of Labor: Social Impacts Essay

- Introduction Most countries that are developing have familiarized themselves with the theatrical fissure between the raised expectations and the results essentially achieved courtesy of the reforms instituted to widen the function of the market in the social processes, and with an analogous fissure between the outcomes and expectations connected to social cohesion and problems. This paper scrutinizes relations between markets and division of labor and how they encourage or discourage social cohesion....   [tags: Global Issues, Economic Development]

Powerful Essays
2551 words (7.3 pages)

Essay on Tapping Into Global Markets And Global Marketing

- William Bastianelli 2/23/15 MKG-366H-90-142 Research Project Outline Tapping into Global Markets and Global Marketing Introduction In today’s society nothing is confined to just one country, everything is global. With everything being global, were seeing companies that have attained global recognition, and are known on every corner of the globe. It is no accident that companies, like McDonalds, Apple, and Coca-Cola, are known everywhere. These companies have mastered the most important aspect of reaching global markets, and that is global marketing....   [tags: Marketing, Culture, Marketing strategy]

Powerful Essays
1483 words (4.2 pages)

Implications On Free Markets On Global Business Essay

- Implications on Free Markets on Global Business Today in our society we are faced with many problems, which isn’t something we should always be faced and fighting with. Instead of dealing with these problems we should have a way that already works where we are just trying to perfect this method so that its cost is as low as possible, and so that no problems are caused. Global business has always been a major propriety for every country and will always continue to be one till the world ends. Without Global Business our country would not be able to interfere with any other country and we wouldn’t be able to comprise on any problems that this world brings to us....   [tags: International trade, European Union]

Powerful Essays
752 words (2.1 pages)

Essay Freedom in Markets

- Freedom in Markets “Underlying most arguments against the free market is a lack of belief in freedom itself.” (Friedman) As we all recognize, Friedman firmly appraised exertion of a free market. Free marketing is a market that attains no governmental consent in means of acquisition or pricing of commodities. In Friedman’s eyes as Americans we should be independent enough to rectify our own market. America is known for its freedom and rights constructed from the founding fathers into the constitution....   [tags: economy, economic reform, free market economy]

Powerful Essays
1479 words (4.2 pages)

Implications For International Firms In Emerging and Developing Markets:

- Comprising a significant section of the global economy, including approximately 4.8 billion people Emerging markets I are seen in recent times as being an particularly important growth source for multinational corporations (Akbar and Samii, 2005). Emerging market expansions are attractive strategies for multinational corporations due to the lure of potential capital gain and further expansion, however there are several risks associated with the entry into these emerging markets in which there are several implications for multinational corporations....   [tags: business policies, economics, politics]

Powerful Essays
1521 words (4.3 pages)

Emerging Markets Essay

- Globalization is a double-edged sword, smart local companies have used the benefits of globalization to close gaps in technology, capital, and talent with their rivals from the developed world. Local firms act strategically in order to keep the multinational out of the competition, this attempts the local companies to capitalize the local presence & the command over the cultural & economical environment in their home country. In this paper we will try to highlight on the fact that local firms can compete successfully to MNC with close to Kingfisher & Haier as examples....   [tags: Globalization, Companies, Firms]

Powerful Essays
785 words (2.2 pages)