An economic reform that let’s society dictate the pricing of items and produce a supply and demand sense for many products is essentially what a free market economy is within society. The United States uses a mixed economy only regulating certain distributions such as guns and ammunition for example where one must abide by the laws of their particular state which they live. You will find throughout this paper different events and examples that give you solid evidence that life in the United States would be different without use of a free market economy as well as a communist economy which is expressed as an economy controlled by the government. I believe you need both to satisfy the needs of the public in general.
The governments main objective is maintain a steady pace to which consumers purchase goods. For example if the economy is lacking then they will adjust taxes, add credits to tax returns for the fiscal year, controlling the use of credit in itself, or producing multiple job opportunities within any given area to boost economic sales. Other examples of regulations to help society is the general rising costs of electric that would certainly put many individuals through hardship, so the government makes it virtually impossible for them to raise prices and reap massive profits. This type of regulation although at times tends to alienate some, for most it’s a better way of living in society.
The real estate industry is one of the largest markets in the economy. Regulations are set that although any one person can affixiate a price on their home, buyers can then compare the house to others and reach a common selling ground. There are many laws that actually coincide with purchasing homes and one of the major questions is “where does my property extend to”? Which brings zoning ordinances and other aspects into play. One of the most interesting is that when you do purchase a home, you physically own the space straight up above your property. Some use this as instances where trees may be hanging over one neighbors fence into your “space” where you can virtually take them to court to have the tree trimmed to meet the specifications of the zoning space. When the economy is low, the real estate market tries to boost sales by lower interest rates and things of that nature to help get the market rolling again.
Would we consider our society fair when it comes to the economy? This question has been left up for debate for a long time with some believing that we should all be treating equally. This stems from Congresses continuous efforts to cut taxes for the wealthy population as opposed to working on helping the thirty million families who live without health insurance. Others take a solid stance that the wealthy have their established write-offs through donations and charities that give back to the communities for good purposes. The estate tax helps them to pass on their estates to their children or anyone they want without the government taking a big proportion out of it when they die. With the ability to donate it allows everyone that opportunity to share the same law.
However many believe that because of millions of families misfortunes we should reach a common goal of helping them satisfy their needs as well. Others believe hard working families already do this by being taxed and that money being taken to help those on welfare, disability, and social security. Unfortunately this system lacks terribly when some abuse the system and live in section 8 areas refusing to work and collecting welfare, unemployment, and food stamps. Which causes the major debates on the subject in the first place as the system is perceived by the majority as not being regulated properly and their hard earned dollars are being squandered through taxation.
Which brings us the the free market economy and everything that is beneficial for society. Alex Smith believed that an economy would be better off with a free market and giving individuals a chance to build their own wealth as opposed as having everything regulated. While many questioned Smith’s thought by suggesting that the reason he thought this way was to benefit himself, however in an argumentative response he believes that if one individual can have the opportunity to create something that other people will want or need, then the economy stays balanced and has a stronger well-being.
Long before our time Smith believed that the people should be able to create there own ideas, then get grant patents, copyrights, and other essentials to create new ideas to enhance the economy. If people were able to do this, roads, railroads, and other forms of transportation would be able to commence so adjacent cities and those farther away would be able to trade with one another on a more frequent basis. If people were allowed to go to college anywhere they chose or where they felt they would learn more from certain teachers the world may have changed overnight with the futures of these individuals.
In our society today you will find that all of these ideas that Smith came up with are bigger than ever right now. People wanting to own their own businesses whether online or offline has never been higher. The idea to be able to be your own boss and create a sense of security for your family and get essentially a substantial amount of tax benefits for doing so in the process. Take a small individual who no one had heard of but those in his local town and let him take an idea that becomes a national phenomenon such as Myspace has over the course of the last three years. The website has enabled people like Tom to build relationships and partners to build and sell a company for $580 million dollars
which not only is obviously beneficial to him as it is the users that go to Myspace on a daily basis. The members of the community are able to converse with friends that are new and old, build relationships, make new friends, and many use it to network their businesses as well. That fact is that this company created a need for the public, a need to not only stay in touch with college classmates, old high school friends, but also for those other people looking to tell others about their businesses hoping to live the new American Dream.
Bill Gates is the considered the poster boy when it comes to the free market and the United States economy. The same free market that boosted America into the limelight passing everyone through the Industrialization Revolution, is here again with the new technology that is available with the Internet. While many consumers are continuing to buy the newest and hottest innovations that the Internet brings, many are bothered that Microsoft is well and above superior in the software world and think that they shouldn’t be allowed to continue to sell their products at the prices they do simply because no one will do it better. Many feel this way not only for innovation, but millions of people wake up early in the morning and do the exact same thing everyday trying to make ends meet while someone learns how to be a computer whiz and is a billionaire. Jealousy is where this country has turned during the New Technology Age and as to why more people than ever are trying to make something by doing virtually nothing. This is a prime reason that most businesses fail within their first year because owners feel that it is simply going to be easy to build an organization, a few “hellos”, and “my name is”, and presto you are in an instant millionaire. If it was that easy there wouldn’t be a need for research to make things better which takes a substantial amount of time and effort to build on to become a great business entrepreneur.
However phenomenons can also create a sense of urgency through retail stores such as the Wii, Playstation 3, and Xbox 3 has which are the newest video game systems out at the present time. It has creating such a competition to own one of these systems when they first come out that reported shootings while people stood in line were happening across the country in November, 2006. New York had a drive by shooting where four people were injured including a television reporter just outside a Best Buy store. With the release of the acclaimed Gears of War game from Xbox people were standing in line until the cashier told everyone they just sold the last copy and a man in line lost it and brawl started which induced a beating of a 15 year old child who was taken to the hospital. There are many more instances, but the main issue is that goes back to the supply and demand of the owners as to what they want to distribute. When items of this magnitude are sought after and people are standing in line for two days or more, the government might want to step in on this issue to make sure everyone is a safe as possible.
One thing the free market economy is unable to do, especially online is create a mutual trust between the buyer and the seller. The two must establish a relationship that constitutes no “foul play” where a transaction can be made securely. Unfortunately with the Internet becoming the main source of many businesses income, and is economically global, there is occasions where predators lurk for fake business transactions that could ultimately result in identity theft. Another growing conflict that is trying to be contained as much as possible until the next scam lurks over the Internet.
A communist or controlling government can hinder ones chance at fulfilling their potential or their self-realization. When someone does not have the opportunity to take that chance and utilize everything within them to create another life or lifestyle within their household they are simply being cheated. This leaves them with an ordinary job, and ordinary working order of the past. The way the economy is establishing itself on the Internet, it won’t be long before you see a transformation of retail stores staying open in only central locations, then building one distribution center to do most of their sales online. This will create less job opportunities, and cut back millions of dollars in employee expenses all around the country. So is this better for the economy or worse? Only time will tell as different avenues I believe will be taken for employment efforts throughout the country. This is what the free market economy has brought for the United States.