Voodoo Anyone? Christopher Warden breaks down economics into a fool proof explanation, and uses terms references which a dummy could understand. As I read this informative book I gathered an understanding for the way in which our economy works, as well as the unseen ways in which our government handles the issues that affect our everyday life. In the first chapter, the author discusses what prices are the difference between the price of things, and the cost of things. He breaks down what the stores charge us in order to sell the product at a price we will pay, so the store can still make a profit on the item.
Explain the viewpoints of classical and Keynesian economists. How did the economy that existed at the time of these theories influence them? Which theory is more appropriate for the economy today? Why? With classical economists believe that people supply things to the economy so they have income to demand things of value they supplied.
Marx’s first point suggests that education surely does not provide equality, this is for reasons being that education is a meritocratic institution that only benefits the student which conform with the desired qualities, such as doing as they are told and being high academic achievers. This brings me on to the second part of the point of social relations in a capitalist society. Education is said to mimic a capitalist working life in which the teachers are the respected bosses and the students are the workers who must conform and do as they are told. Marx’s second function states that education serves to legitimate (justify) these inequalities through the myth of meritocracy. This points suggests that schools aim to legitimise inequalities between students and say that meritocracy is a myth and that students are not rewarded on the basis of merit though examinations and qualifications, although many qualities of the education system suggest it does.
There are governments that totally control their economy and do not do business with other countries. There are governments that rule monetary policy and tax business, but do not become concerned in the markets otherwise. Similar to mixed economies, the positions of a government in the configuration of an economy is crucial to understand in order to understand the economics of the country. Concepts of Macroeconomics and Understanding Business or economic cycles focus on the variations, both anticipated and unexpected, within an economy. Variations in business cycles are able to be seen as short-term and long-term progression developments and they could shift.
Credit crunch and recession are great examples of external factors influencing the business. If the people are suffering from recession, they will not have money to spend money and this is how it affects the businesses. The current instability in Iraq is a good example of what may happen to businesses. In business it’s very important to understand, monitor and adapt to the political environment, because it crucially affects every business. Some of the very important factors are: Government stability effects businesses in a great range by competing with businesses to lower their costs, transparency is another important factor where anything the business does is revealed to the government and the government know exactly what they are up to.
Position Paper Issue 3 – Effective Government The question as to how much government involvement is necessary to successfully operate and sustain an economy and society has been on debate for many centuries. Our history has demonstrated that when humans our given too much freedom, the selfishness of an individual comes into play, and when there is too much government control, the rights of the individual appear to be violated. “The most effective government is the one that governs the least.” This statement argues strongly with the ideological perspective of a capitalist economy, one which advocates a laissez faire economic system where the people are subjected to make the decisions for themselves with little to no government involvement. However, through such events as starvation, extremes of wealth and poverty, palatial estates, horrible slums, child labour and work abuse have successfully proven that when an economy is granted complete freedom to the individual, the selfishness of one’s desire tragically becomes the main focus. From this evidence, it is clear that for an economy to successfully operate a government presence must occur to provide its citizens with a more equitable distribution throughout the entire population, lesson social problems by collecting more taxes to ensure a long term gain, and essentially to protect the rights and freedoms of the “little guy” from the hardships presented when large corporations have control.
Like Durkheim (a Functionalist), Marx believed it was possible to understand society scientifically and scientific knowledge would lead to a better society. However (unlike Durkheim), he believed capitalism would increase human misery before giving way to a classless, communist society, in which humans would be free to fulfil their potential. He believed that history would go through a series of base changes – primitive communism, ancient society, feudalism, capitalism and then communism. The organisation of production in a society shapes the nature of society – refers to this as the base/superstructure. According to Marx – in a capitalist society, the economic relationship of exploitation requires ideologies in the superstructure to cover up inequality – they are not innocent/neutral because they justify inequality and serve the interest of powerful groups.
Lastly organizations must all seek the greatest profits meaning nothing else but profits. When these conditions are meet which isn’t often, organizations can supply goods following their own self-interests in a predictable manner to the market. Suppliers utilize the demand curve to determine the amount of productivity and the right cost for the market. The requirement that all the firms are large ensures no organizations will be able to gain more than another. These types of conditions keep firms from monopolizing the market.
If all goes well, the parts of society produce order, stability, and productivity. I think that functionalism and the whole theory is similar to the human body all organs have to work together in order for the body to function properly and if one organ fails the whole body is affected. [http://www.historylearningsite.co.uk/functionalism.htm] Marxism (Karl Marx 1818-1883) The Marxist theory is based on the unfairness of society through wealth by the capitalist economic system and also the effects it has on individuals and society. Economic structures (financial) and social classes are key to Marxist thinking. Marx’s key principles are: • Humans need to work together to survive • Production is a social activity/enterprise • Human beings need to produce things to survive (food, shelter and material goods) • Land • Natural resources (for production of material goods) • Technology • Labour Karl Marx believed that instead of the above society is made up of economic power and wealth (capitalism).
Economies were created through trading and bartering, mostly through social circles and relationships. Taxes and custom duties were created so that trade could be controlled to protect their economy. Two dominant economic systems exist throughout the world. They are capitalism and socialism. “Capitalism is an economic and social system in which capital and the non-labor factors of production or the means of production are privately controlled; labor, goods and capital are traded in markets; profits are taken by owners or invested in technologies and industries; and wages are paid to labor” (wikibooks.org).