Adnan Jaafar
Writing Assignment 1
In this paper, I will contrast three different views of free markets from Keynes, Adam Smith and Karl Marx. Adam Smith has the ideas of free market would bring benefits on economic growth on society. “Adam Smith is usually thought to argue that the result of everyone pursuing their own interests will be the maximization of the interests of society” (Bishop 1996). He believed that everyone is striving to accomplish the wealthiest by focusing on their own individual earnings, but the problem is one would not be able to run a business by their own, it would need customers to buy or consume the products. In short, he thought that free market could satisfy the public interest. Adam Smith is well recognized with his metaphor of invisible hand which has included his perspectives of free market. He clarified his perspectives and advised any producers to focus on the most minimal cost. The product price in the market would be driven by the buyer decisions. Customers would show their interest and carelessness toward the products that being sold in the market. Customers interest and demand would put a pressure toward producers to invest more in demanded products. This phenomenon would raise the general economic in the society when customers get their favorable products while producers bring more requested products. Free market is a system when the product price in the market is controlled based on the demand and supply of the products. Smith believed free market is very profitable when producers need to react based on demand of customers. The economy of a society would increase based on the concept of supply and demand.
On the other hand, Keynes reprimanded free market proposed by Adam Smith. He raised a few contestations to critic free market. Keynes believed free market is not appropriate, and he would like to replace the system with his though of new economic policies. Keynes brought up the issues during 1920s and 1930s when free market was failed which leaded the country to economic crisis. He specified free market as slightest compelling and opined that every one of the crises can be dispensed with just through the astute right thoughts of illuminated governments. Keynes mentioned the cautious overseeing over the assets by government could dispose any economic problems. Keynes believed that the accessible assets of the country adequate to explain all the destitution and need issues of the public.
Next, Karl Marx criticized free market proposed by Adam Smith. He believed uneven method of free market circulation would cause uneven dispersion of wage and raise a few conflicts. Singular possession would restrict the assets available for the society. It also would cause amassing of riches in few hands. The sole proprietorship would snatch the most extreme conceivable benefit and no one else would be profited out of it. Marx argued free market would cause the average workers just to destitution and wretchedness. He added free market would only bring profit toward private ownership, but not for society as Adam Smith proposed.
Reference:
Bishop, J. (1995). Adam Smith’s Invisible Hand Argument. Journal of Business Ethics, 14(3), 165-180. Retrieved from http://www.jstor.org/stable/25072635 (Accessed: 30 September 2018).
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