The Notorious Market Society
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The Notorious Market Society
By: A.I.
The majority of the population in our society take for granted the standard of living we are blessed with. We have the capability to make decisions regarding our own self-interests and goals. This is achieved only through the capitalist free market society that allows each individual to flourish on his or her own. There have been many contributors to this economic theory, and in the following paragraphs I will explain more indebt the origins of this market economy, how it came about, and its implications on society.
Historically speaking, there have been three types of economic solutions for a society; tradition, command, and the market. Perhaps the oldest economic system, ‘tradition’ is embedded in the roots and customs of a society, and is used to guarantee the production of goods (Heilbroner & Milberg, p.6). This is accomplished by assigning specific jobs to different families. By doing so, there is a simplified division of labour. A son would be obliged to do what his father does, therefore guaranteeing production; “the universal need of the young to follow in the footsteps of their elders” (Heilbroner & Milberg, p.7). “Thus, a hereditary chain ensures that skills will be passed along and jobs will be staffed from generation to generation”(Heilbroner & Milberg, p.7). Even to this day, traditional economies are present since they are an effective method of dividing a society’s production and distribution. Though this system is successful, most societies are now following command and market economies.
The command economy is one that is managed by the state, in which each individual is given a specific task to pursue in society (Heilbroner & Milberg, p.8). This method is imposed through authority on individuals regarding their economic activity (ibid). Command society, much like tradition, offers a solution to the two economic problems by guarantying a steady production and distribution of goods. “…command diverts...
By: A.I.
The majority of the population in our society take for granted the standard of living we are blessed with. We have the capability to make decisions regarding our own self-interests and goals. This is achieved only through the capitalist free market society that allows each individual to flourish on his or her own. There have been many contributors to this economic theory, and in the following paragraphs I will explain more indebt the origins of this market economy, how it came about, and its implications on society.
Historically speaking, there have been three types of economic solutions for a society; tradition, command, and the market. Perhaps the oldest economic system, ‘tradition’ is embedded in the roots and customs of a society, and is used to guarantee the production of goods (Heilbroner & Milberg, p.6). This is accomplished by assigning specific jobs to different families. By doing so, there is a simplified division of labour. A son would be obliged to do what his father does, therefore guaranteeing production; “the universal need of the young to follow in the footsteps of their elders” (Heilbroner & Milberg, p.7). “Thus, a hereditary chain ensures that skills will be passed along and jobs will be staffed from generation to generation”(Heilbroner & Milberg, p.7). Even to this day, traditional economies are present since they are an effective method of dividing a society’s production and distribution. Though this system is successful, most societies are now following command and market economies.
The command economy is one that is managed by the state, in which each individual is given a specific task to pursue in society (Heilbroner & Milberg, p.8). This method is imposed through authority on individuals regarding their economic activity (ibid). Command society, much like tradition, offers a solution to the two economic problems by guarantying a steady production and distribution of goods. “…command diverts...