To begin with, what is a market society, and how can it possibly have shortcomings, and what they are form a key part of this debate.
Usually a free market society, or economy have a few key features. People can buy whatever they want whenever they want it, as long as they can afford it. Therefore money becomes an important part of this economic system.
Because money becomes such an integral part of this system, people are forced to do or sell any commodity they can in order to maximize the amount of money they have.As a consequence of this, profit becomes the primary desire for business operations. As the economy becomes more focused on profit and the production of wealth, individuals are controlled by their salaries and working conditions, as opposed to the slavery model from previous centuries. Therefore supply and demand become key issues in a market society, as rationing based on supply and demand curves dictate the amount that certain goods or services will “cost”.These few factors can have both advantages and disadvantages, among the advantages are competition between suppliers and vendors, motivation for people to work well and become rich, as well as causing development of technologies, decreased costs and more variety of products and services offered to the market.
However the market society also suffers from some big disadvantages. The fact that the economy is now driven by making profits means that money gets spend in areas that will produce the biggest profit for the organization or government.Workers will be exploited, made to work harder and for longer to maximize this need for bigger profits. This in turn causes overproduction of goods, unused capacity due to the overproduction of certain goods, more unemployment due to resource allocation for areas that maximize the need for big profits. This can result in a gap between the poorest and the richest, along with the corruption that brings and the kinds of financial exploitation we see in corporate organizations, such as Enron or Worldcom.There can also be potential for a reduction in welfare benefits, healthcare and other social benefits, due to the fact they do not produce a profit. There can also be ecological damage, as company profit is seen as more important than environmental safety.
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All of these negative factors combined affect the end consumer, in that they become so embroiled in the pursuit of money in order to fulfill their personal satisfaction and need for extra money and profit, meaning these market economy forces are responsible for the negative issues seen in macroeconomics today.
