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Summary: The Market Economy

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The Market Economy
Karl Max was of the notion that, the market economy is a transitional economic system, evolving from communism to socialism. This classifies the market economy as a necessary step in human development, one in which all economies should pass through to get to an upper range on the development path (Prychitko, 2002). Means of production are privatised and supply and demand, rather than government intervention are the regulators of the economy (Grigg, n.d.). This economic system depends on the idea that individuals will act in their best interests, so manufacturers will charge the highest prices possible to maximise their profits, while consumers will actively seek out the best quality for the lowest possible price (Metcalf, …show more content…

Demand and supply determines what products are produced and sets the prices these products are sold. The idea is that if prices get too high, then demand is low and so the market corrects itself by lowering prices. Companies have individual say concerning what product or service to provide based on their costs. The government’s participation in the economy is entirely neutral, it does not protect industry from domestic or foreign market pressures nor does it have economic interests in industry or offer subsidies to businesses or R&D (Zuckerman, …show more content…

The country has very few restrictions on investments and enforces no tariffs, however, there is a strong government intervention in macroeconomic management and major sectors like land, labour and capital resources. Both the government and the free market have a high degree of influence (Content, 2010). According to EconomyWatch (2010), Singapore has one of the most open and competitive economies in the world and ranked second on the World Bank Ease of doing Business Index in 2017. The unique combination of the free market system and government intervention developed in Singapore and dubbed the “Singapore Model”, has been highly successful and has seen the country attaining an AAA credit rating from all three major rating agencies, Standard & Poor’s, Moody’s and Fitch (Content,

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John Lauritz Larson the professor of history at Purdue University explores the captivating consequences that result from the market revolution in early America. With a passion for the matter and creative thinking, his research leads him to unanticipated consequences that plunge Americans with the transition to capitalism that relates economic change to the liberty and self-determination of individuals. According to Larson, there are remnants that are still relevant in history today. The mass industrial democracy that is placed in the modern United States bears very little resemblance to the past which was a simple agrarian republic. All because of the market revolution, the transformation resulting in the tangled foundation we know today

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The Market Revolution was a game changer for America. It changed the lives of Americans, especially farmers. It allowed farmers to grow what they did best and bring to the market to sale and be able to purchase things they were unable to grow. The Market Revolution was made up of three parts: transportation and communication, transition to commercialized revolution, and industrialization. This brought on a social change, Transportation and communication were a big art of the Market Revolution and couldn’t have happened without it.

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What are the laws of supply and demand? The increase of demand the high the price goes up. What is private enterprise?

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This is an illustration of someone trying to make the economy accessible for everyone. However severe economic inequality was instead a result of the concentration of wealth and power in the hands of a small number of industrialists. As large corporations dominated their respective industries, they exercised significant control over markets, including pricing, wages, and

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The Market Revolution in the United States originated in the South and then in the north and was a big change in the system of how the laborers worked. The common trade started to become outdated due to the new discoveries of transportation. The North began to gain a more powerful economy as a result of the Market Revolution. The Market Revolution changed farming to become more large-scale farming with cash. Immigration and the growing cities was a result of the Market Revolution.

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The second case – controlling the market – is where the contrast between small firms and big business contrasts is most evident. The small firm lacks the capacity to influence prices, as both their market share and purchasing power are limited; however, big business possesses an abundance of both. Big business is able to exert their power by influencing prices because their decision to buy can be the difference between survival and failure for suppliers. Furthermore, Galbraith (1967, 30) suggests that the influence of size enables firms not only to control price but also quantity sold. Although Galbraith acknowledges that influence on demand is inexact; One should not discount its importance.

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Therefore, a system based on only an economic principle, namely the market system, has no validity. It is an exceptional phenomenon in which the economy is disembedded from the society as an autonomous domain. This disembedding system renders the elements of production, land, labor, and money, into fictitious commodities. Through agricultural transformation land is included to the market system. Those who have private property on certain lands started to make us of it for the pure interest of themselves by excluding the peasants.

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Singapore has an ever growing free-market economy and compared to other developed countries, the Gross Domestic product is relatively higher. (Cia.gov, 2016). 2.0 Unemployment in Singapore The above chart sights the employability rate in Singapore from 2006 to the 1st quarter of 2016 (Stats.mom.gov.sg, 2016). As we can refer here, the rate has been decreasing.

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