What were the outcomes of the market economy? Can you describe major events and contributions?

Question

best answer for whoever gives the best explanation asap!!!

Answer 1

A market economy (also called a free market economy, free enterprise economy) is an economic system in which the production and distribution of goods and services takes place through the mechanism of free markets guided by a free price system rather than by the state in a planned economy.[1] [2] In a market economy businesses and consumers decide what they will produce and purchase, as a opposed to a planned economy where the government decides what is to be produced and in what quantities.[3]

Some theories assume that a free market is a natural form of social organization, and that a free market will arise in any society where it is not obstructed. The consensus among economic historians is that the free market economy is a specific historic phenomenon, and that it emerged in late medieval and early-modern Europe. Other economic historians see elements of the free market in the economic systems of Classical Antiquity, and in some non-western societies.By the 19th century the market certainly had organized political support, in the form of laissez-faire liberalism. However, it is not clear if the support preceded the emergence of the market or followed it. Some historians see it as the result of the success of early liberal ideology, combined with the specific interests of the entrepreneur. In Marxist theory, the ideology simply expresses the underlying long-term transition from feudalism to capitalism. Note that the views on this issue - emergence or implementation - do not necessarily correspond to pro-market and anti-market positions. Libertarians would dispute that the market was enforced through government policy, since that has a connotation of repression, and Marxists agree with them, for different reasons.

A market economy has no central coordinator guiding its operation, yet theoretically self-organization emerges amidst the complex interplay of supply and demand and price regarding a multitude of goods and services. Supporters of a market economy generally hold that individuals pursuing their self-interest through trade has the incidental effect of bringing about a spontaneous order that is effective in supplying the greatest abundance of goods for society and in the most efficient manner. Adam Smith says that the individual who:

"intends only his own gain is led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for society that it was no part of it. By pursuing his own interest [an individual] frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the [common] good." (Wealth of Nations)

The economists' model of a free market is one in which there is no governmental intervention or other coercion. The theoretical model of a large-scale free market economy does not occur legally, however the underground economy may be seen as an actualized free market economy.

In the 1980s, most of the planned economies in the world attempted to transform themselves into market economies, for various reasons and with varying degrees of success. In the Soviet Union, this process was known as perestroika while in China the creation of a "socialist market economy" was one element of Chinese economic reform.

Despite being the largest country whose ruling party refers to itself as communist, the People's Republic of China runs Special Economic Zones dedicated to capitalist enterprise, which are free from central government control. this is contrary to the communist theory proposed by Marx and Engels and later adapted by Lenin, Stalin, and Mao. After opening up trade to the world under Deng Xiaoping, the People's Republic of China runs some of the most economically free regions in the world, including Hong Kong, which is regarded by the Hoover Institute and the Wall Street Journal as the world's freest economy [3].

These Special Economic Zones have few restrictions upon businesses, industries, imports and exports, including the elimination of duties, and a free price system. Since the opening of the Free Trade Zones China has maintained a growth rate of over 8%, and originally saw growth rates around 12%. These Special Economic Zones are different from the State Capitalism, as practiced in the Soviet Union, because the SEZs allow for capitalists to build and expand their industries and private property, free from the control of the central government. SEZ's operate under market economy rather than the state capitalist top down command economy approach.

According to China.org "After opening Shenzhen and other three coastal cities in South China as special economic regions and then dozens of economic and technological development zones in the 1980s, the country introduced free trade zones in the early 1990s in 15 coast cities, including Shanghai, Guangzhou, Shenzhen and Tianjin." [4]

In addition, China has recently declared private property to be a right and as also allowed the opening of foreign capitalist enterprises such as Wal-Mart to operate shopping centers in the Special Economic Zones.

Several other countries ruled by Communist Parties, such as Vietnam, have also made pro-market reforms in the last few decades.

The government is not in charge in this kind of economy.

Answer 2

When the market society goes without regulation, then there will emerge one company above all others which will have the power to dictate political activity within every country. As the sole aim of capitalism is to make more money, then the lives and working conditions of all, except those at the very top, will slowly deteriorate into something very similar to slavery. This is happening now! One company, in the US, has so much power that it effectively tells the government its every action. Several other big businesses that have grown around the globe are using their mind-control-mechanism - the mass media - to turn the masses against politicians and economic arrangements that very much favour the masses; rather than the profit margins of about five companies! For example the people are being turned against politicians over a fantastically trivial expenses story and the reputation of the EU is also being harmed as the EU is probably te only organization on the planet that can keep these "massive" businesses under control. In conclusion: the free market system has produced a very small number of companies that have complete control over everything that we hear and think. They are actively destroying the current political system in an attempt to replace it with something of their making: which will be very bad indeed for the entire human race and our planet! The battle has begun! We must first learn that the TV, radio, newspapers and magazines are all lying to us, on a fantastic scale. If you think that this answer is wrong, then it's probably too late for you. We can fight back! First we MUST stop the wars! Then find a way of putting Lockheed Martin out of business. Then all the other MASSIVE companies.