The free market theory postulates that there should be numerous participants within the same market engaged in the buying and selling of numerous and varied products. All such producers have the opportunity to take part in production activities …
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The free market theory postulates that there should be numerous participants within the same market engaged in the buying and selling of numerous and varied products. All such producers have the opportunity to take part in production activities Furthermore, it argues that the ultimate gain is to consumers who enjoy the benefits of increased product diversity as well as competitive and affordable pricing on the same; in that the prevailing prices are a consequence of a “push and pull” forces of demand versus supply respectively. These ideal conditions of the free market form the basis and support for an economic practice that has become synonymous modern day trade under the banner of capitalism. For perfectly competitive markets, the ideal economics of a “free market” exist. This was the prevailing economic theory of the period of 1960-80. However, the current trends in economics suggest that big markets hardly operate under perfect competitive conditions since primarily; households are conscious about the markets; producers curve out their market shares therein effectively seeking profit and shutting out other competitors. Most markets in both the UK and the US are not “free markets” but oligopolies where a few firms control a large portion of the market (Hoetzlein).It is however unfortunate that the ideals of the free market are increasingly been used by politicians and technocrats alike as a rallying cry for free healthcare, reduced taxes, unregulated interest rates and deregulation of the aggregate economy. This has led to the erosion of the very fundamentals designed to optimize welfare to the consuming public of which they claim to be pursuant. The basic argument for the proponents of free market policies is in opposition to governmental interference in business operations and instead in favor of a natural restoration of balance within the economy. The ability and willingness to freely engage in exchange of commodities would therefore suffice in creating a natural order within the market that favors all parties involved. It is based on such an understanding that the British Prime Minister, David Cameron faults the previous regimes over their apparent apathy in regard to the exercise of free market policies. The prime minister argues that previous regime’s turbo-capitalism policies have turned a blind eye on corporate excesses plunging the economy into anarchy and violating the fundamental purposes for which it (the government) was formulated. Most apparent under his attacks on previous regimes policy of “letting capitalism rip” is the impact on oligopolies of necessity goods such as healthcare, utilities and housing. Such are the goods that are most pertinent to the civilian population as they are needed to survive; items with which households are unable to exert price elasticity. He condemns the previous regimes for denying the citizenry the enjoyment of these basic amenities at the expense of corporate greed and profit making. The recent global financial crisis has served to further the underlying weaknesses in the free market theory (Kwak). The world financial crisis is viewed as a banking crisis arising from the uncontrolled and misinformed deregulation of the United States’ financial market. This is because the world’s reserves are largely in the US currency (Roberts). Nowhere else than in the developed countries in Western Europe were the effects of the crisis mostly evidenced. However, most unfortunate is the fact that the role of most hard core free market theorists in this collapse seems to have evoked little or no interest. This further evokes questions to mind as to whether the crisis is over and if the supposed recovery is truly on course? Although many point to
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ECON 2022-007 Spring 2011 Dr.Martin Sabe Student Name Title Free Market Economic equality and freedom is still a dream of several nations of this world. Poverty and want are still bothering the societies to a great extent. It is high time to find and follow the best economy policy for the economy of the nations.
He therefore strongly opposed any government intervention into business affairs. Trade restrictions, minimum wage laws, and product regulation were all viewed as detrimental to a nation's economic health. This laissez-faire policy of government non-intervention remained popular throughout the Victorian Era and still plays an important part in present-day economic policy.
British Prime Ministers
The British prime ministers are influenced by their leading styles and decision making processes. The leadership style entails how leaders relate with those that they lead. This includes the reception of information, and the decision making process for such ideologies and visions important there.
The author explains that Major John rose to the position of prime minister after serving for 11 years in parliament; Blair became the prime minister after serving for fourteen years. Gordon Brown waited for twenty-five years before becoming prime minister, and the current Prime Minister Cameron took nine years before becoming prime minister.
The Prime Minister also drives the Labor Party's policies and is most likely to be expected to justify those policies at the time of election. The Prime Minister is a working Member of Parliament. The Prime Minister may be head of the government but he is also seen as 'primus inter pares' - first among equals .Since he chooses his Cabinet, the Prime Minister has to be seen as the head of the executive branch of government.
The free market economy is well discussed in the following paragraphs.
A free market economy is the type of economy(Slavin, 1989) in which the resources are allocated based on the basic economic law of supply and the demand for them. But reality, this is mainly a theoretical concept because we all know that in every country ,including capitalist ones, there are import restrictions or quotas established to protect the countries' local competitors.
no real examples of a completely free economy in the world and no real instances of where an economy is completely controlled by the government (Chomsky, 1996). Therefore, the quest to gain a right answer to the question demands that we look at particular situations i.e. the
At the same time, there has been a weakening in mainstream recognition of and faith in traditional parties and an increase in opposition parties. In the Netherlands and Denmark the separation has been linked to the emergence of
All nations seem to have a well planned and clear rules and policies that guide that country on how it interacts with the other states. This is where foreign policy comes in place.
Foreign policies help nations solve crisis, trade among other interactions. Despite
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