Reply to the below discussion in approximately 250 words and cite all work.
Rebecca Peters
YesterdayOct 11 at 1:11pm
A Market Dominated Economy is an economy where the major economic decisions are made primarily by individuals and businesses rather than government or public regulatory entities 1. The government’s role in this economy is limited to maintaining infrastructure and an effective judicial system to support businesses 2. Since a market economy is based on supply and demand, among its strengths is a sufficient supply of goods 3. Another strength is that it encourages entrepreneurship in that new innovative ideas that appeal to consumers or solve a problem for them can be supported. Competitiveness is another strength of the market economy because the businesses with the best quality products offered at the most reasonable prices will win more sales thus insuring a happy customer base. More businesses and larger businesses is also a good thing because employment rates rise 4. Critics of a market dominated economy maintain that without governmental regulations fraud and abuse will thrive 5.
In contrast to a Market Dominated Economy, a Social Market Economy places priority on social values and those are managed by the government 6. Social Market Economies are considered to be rather a middle ground between the Market Dominated Economy and the State Dominated Economy 7. Social Market Economies are also capitalist economies that use markets for many economic decisions, but their governments take a more prominent position than in countries with a Market Dominated Economy 8. An interesting effect of this type of system is the human rights advantages. These systems believe certain rights should be afforded everyone. Rights such as child care, health care, free education though college, housing and food 9. Of course, to balance these services tax rates are high.
The citizens in a State Dominated Economy do not receive much consideration or control. Governments under this system are able to take land and goods by force and control who receives food and how much they have to pay for it. The government determines the availability and price of goods by controlling production.
1 Lynne Pierson Doti and Larry Schweikart, American Entrepreneur (AMACOM, 2010).
2 Geoffrey Schneider, The Evolution of Economic Ideas and Systems (Routledge, 2018), Ch 8.
3 Editor in Chief, “10 Significant Pros and Cons of the Market Economy.”, August 16,2015, https://connectusfund.org/10-significan-pros-and-cons-if-the-market-economyLinks to an external site..
