Free-market economics is
the removal of restriction and regulation by government entities
relating to mainstream enterprise and business. In free-market
economics, the distribution of goods and service is based almost
entirely on demand – that is to say that the higher demand, the
greater production and thus lower prices, whereas current economics
allows business to charge infinite fold in comparison to the actual
production cost.
Free-market economics may
fall in to two political ideologies in the United Kingdom: Socialist
or right winged Conservative. In general, each ideology will view
free-market economics as either good or bad, depending on the then
political climate, and economic stability. Both sides will also have
separate base-line philosophies over the principle purpose of
free-markets.
For example, many
socialists view free-market economics as the removal of large,
multinational corporations in favour of diverse, small business. In
free-market economics, employees are not property of their employers,
and are given wages which directly reflect the wealth generation of
the business or enterprise they are employed by. It is currently used
in companies such as John Lewis, where employees are given shares and
have bonuses calculated at a percentage of the total wealth.
Socialists would view
this as prosperous for employees; however Conservative principles
would see it in favour of business owners, or those wishing to set up
business. In free-market economics, there are no regulations
preventing businesses from buying out competition, nor are there
often strict regulations on the sourcing of materials to make a
project (although, often is the case in traditional capitalism). Such
a lack of competition laws not only allows successful companies to
increase in value from the amalgamation of failing or small business,
but also motivates business to be more successful and sensible with
the output of fiscal – when sharks surround a vessel, not often
will divers jump into the jaws.
My argument for
free-market economics extends to private consumed goods; regulation
of items which are not essential to life would be removed, with items
indispensable to survival remaining regulated on the basis of public
safety – basic water, food and health care supplies/medication;
goods created for the military or police services, and items used by
emergency services.
Capitalism has been
incredibly successful for three hundred years, particularly to this
Island which used currency as a method of encouraging innovation;
greed is an extremely powerful motivational tool.
The fundamental dilemma
with capitalism is that where wealth should be in continuous motion,
business and individuals have reached the point where their income
has reached stagnation. They cannot possible enter their profits back
into society or their business quick enough. Some of the top earners
are simply greedy, with no care for the needs of society.
If the top 100 earners on
Earth invested their stagnated earnings back into the world, then
world poverty would have been ended several times over; we’d have
enough finance to end cancer and much disease, and we’d be having
arguments over politics on Mars!
I see free-market
economics as a way of preventing this from occurring. When customers
and employees have so much power of business, it is fair to say that
business will do the right thing, even if it is for the wrong reason.
Starbucks is the prime example; the people of Britain simply stopped
buying over-priced coffee from their shops. What happened? Did they
leave the country? Did they close down? No, they got to their knees
and begged forgiveness despite fears that taxation would drive
business away. In reality, Britain is a consumer nation – our
currency is a paradise to multinational business for being ahead of
both the Euro and the Dollar. We need to take advantage of this more.
Regulation frightens many
businesses and increases their costs – many lawyers and legal
experts are employed by the largest of companies just to avoid
regulation; avoiding tax and escaping through loopholes.
We shouldn’t make it
harder to trade in this country than it already is, and so long the
citizens have true power of the markets (not the government, but the
people) then regulations aren’t required.
Under socialistic
free-market economies, all the wealth, all the money, all the
resources of individuals who allow them to sit in bank accounts for
tens of years, with no intentions of investment, are forced to share
the profits of their fruit.
Common myths
debunked
A common argument is
that markets would not provide high quality goods or services to
consumers.
Why is this false?
Imagine
you are a customer, and you buy, for example, a laptop computer from
company A. That computer breaks within a week; your partner has also
bought a mobile phone from company A; the mobile phone lasts for 2
weeks, to the despair of the family. John Smith, your next door
neighbour has also bought from company A; his items have
malfunctioned within a week also. You all complain to company A, but
no help is offered.
You,
your neighbours, and fellow dissatisfied customers join to spread the
word that company A produces poor quality items. Company B offers the
same range of product for a smaller introductory price; these items
are of far higher standard and soon company A is out of business due
to poor business ethics.
In
free-market economics, the consumer is forced to be as active in the
process of transaction as the manufacturer. This is nothing new to
any society – for hundreds of years, this is the essential workings
of business. If a craftsman produced poor items, his local community
would apply pressure to him until improvements were made. In modern
consumerism, very rarely do customers take the time to actively make
their dissatisfaction known. It was ‘too impolite’; the people of
the nation have often had attempts to brainwash and indoctrinate via
‘politeness’, though happily this has failed, especially in
Scotland where we still use curse words to greet our best friends.
Free-market economics hands power directly back to the consumer;
business is submissive to their clients for the very sake of
survival.
Free-Markets create
slave culture by removing set-wage regulations
Prior
to national minimum wage, the standard of pay was significantly
higher; the problematic nature of national minimum wage is not the
morality of the idea behind the system, rather the inability of the
system to cope with variations In the economic climate. A system of
pay forced by law gives excuse to business to pay no higher than they
are legally obliged to. In older days, wages were negotiated by
unions and the workers directly, and would often be increased with
inflation.
Free-market
economics in a socialist sense treats the employee as having a share
in the company, as an alternative to being a drone to production.
Free-market
economics leads to the destruction of unions and workers’ rights
Historically
this myth is unfounded. The majority of trade unions were introduced,
created and succeeded in free-market Britain prior to the 1970s and
the Thatcher genocide of working class dignity. For example, the
Labour Party has its roots in Glasgow, Newcastle, Manchester and
other Industrial towns where workers were abused. In the 1800s, the
first organised strikes occurred against owners – despite the lack
of any regulation to simply fire employees, the owners were forced to
listen to demand as the workers had blockaded the factories and
brought production – therefore profit – to a complete stop.
The
essential basis of this myth forms from Thatcherite economics,
masquerading as free-market economics. Free-market economics could be
closely related to Marxism socialism, which I am most certain
Margaret Thatcher would not have approved of. Thatcher too away the
power of the working man; socialist free-markets return them in
extensive amounts.
Last but not least –
free-market economics allows business to skip tax and sell apple
juice as flu medicine
No!
No! No!
Our
tax system is broke, regulation and legislation opens up more loop
holes than it closes. Count the number of companies that have avoided
tax. Go on. When you return, I doubt very much you will a) find less
than a handful b) not have used the services of atleast one.
When
there are no regulation bodies to refer to, business can no longer
fall back onto the coined phrase of ‘please refer complaints to X
organisation’. You, the citizen, the consumer are in control of
regulation, even if it is not written into law. Removing regulation
removes the reliance on government to police business.
I
do agree that several industries require regulation, pharmaceutical
being one. I’ll touch on this below. Briefly, pharmaceutical
industry use the same business model as any other industry – they
require their product to be received well by consumes (the sick)
therefore it’s in their best interest that people don’t drop dead
from flu drops, and that their product actually heals.
Industries that need
regulation
There are some industries
that do require regulation over production, I will list them and
allow you to make your own mind up:
Pharmaceutics and medical
production – regulation to protect the consumer and NHS interests;
prevention of placebo drugs and faulty equipment
Transport (public) –
nationalisation, transport is essential to life and the movement of
people is paramount to employability and civil freedoms
Mainstream media –
regulation to prevent articles without foundation being broadcasted
or displayed; media should no longer have such significant power of
voters with scare tactics funded by private individuals
Power, gas, essential
foods and water – nationalisation; these are all essential to life,
and a country such as ours rich in all four commodities should not be
allowed to starve
Vehicles – minimum
regulation to prevent public health hazards, and to assist in
environmental reform
Arms industry for both
military and civil security – regulations to ensure quality of
equipment for armed services, police and fire services; only
government or local authority workers/agents should be charged with
the duty of protecting the people, no private firms
Electronics – bare
minimum regulation for safety standards
So, in closing, I’d ask
you forget everything you have been taught about free-markets, they
are often lies created by those too afraid to embrace the power of
people over business; governments bow to business, the people do not.
