Free Market Economy
by Joy Tripura
Most of the countries in the world are developing or under
poverty countries. All these nations are trying the best to come up with some
good economic strategic or policy in order to escape from the poverty, but
poverty never leave them. There are many economic policies and strategies are
developed but are not able to change the luck of the poor people. Free market
is one of them.
Definition of Free Market Economy
A free market economy is a market-based
economy where prices for goods and services
are set freely by the forces of supply and demand and are allowed to reach
their point of equilibrium without intervention by government policy, and it
typically entails support for highly competitive markets and private ownership
of productive enterprises.
A free market
is a market
in which there is no economic intervention and regulation
by the state, except to enforce private contracts and
the ownership
of property. It is the opposite of a controlled
market, in which the state directly regulates how goods, services
and labor may be used, priced, or distributed, rather than relying on the
mechanism of private ownership.
Advantages
1. Lower product price/cost because
government taxes are deducted.
2. Availability of national and international
products in the markets.
3. Freedom of the customers/consumers to
buy or reject products.
4. National and international Job opportunities.
5. Products can easily enter into
different countries.
6. Consumers/customers will receive good
service and good quality products.
Disadvantages
1. High quality products control the
market and national or local products lose their market demand because they
cannot compete with high quality international products.
2. Government lose their income from
different taxes
3. Resources and production systems are
owned by individuals and the allocation which makes unequal distribution
4. Products’ market is uncontrolled;
there is chance to be corruption.
5. Probability of financial
colonization; rich countries controlling over poor country.
6. Local job holders are under threat as
they have to compete with international experts/leaders.
In context of
Bangladesh
Bangladesh is a poor country though it
is considered as a developing country. It is a importing country. Quality of
local products is very poor comparing to other good quality products. Expert,
skilled and experienced job holders are very few, and incapable to compete with
international job markets.
Considering all these issues Bangladesh cannot
compete with outside countries. There are probability of losing local/national
products’ demand and job market. Government will lose a big amount of money
earning from taxes.
Biblical
Approaches
Biblically doing business is also
encouraged (Matt 25:15-27) in term of gaining interest. It is also encouraged to
earn profit for not to become a poor man, it encourages working hard (Prov
10:4-5 and 14: 23).
On the other hand, it is also encouraged
to utilize money for the betterment of the people (Acts 5:1-4, 2:44-45; Eph
4:28). In the Bible, it is encouraged not to love money and not to run after
money but pursue after the godly things (1Tim 6:9-11).
However, money cannot bring people to
the kingdom of God or money does not give salvation of person’s life.
Conclusion
This market policy or system is very
good for rich countries. It is the best for the big businessmen or business
parties. They can easily enter into different countries and can capture easily
local markets. It means they will be able to sell more products; more sell more
profit. The rich countries will become richer and the poor countries will
become poorer. Rich businessmen will become richer and poor businessmen will
become poorer. Free market economy strategy and policy may be welcomed by the
rich countries and rich businessmen highly but for the poor countries or
developing counties it is highly discouraged. But, still Free Market Economy
system has both advantages and disadvantages.
Discussion questions
1. Do you think Free Market Economy
system is a ethical? Why?
2. Should we welcome Free Market Economy
system? Why?
3. If Free Market Economy system
established, do you think there might be a financial colonization especially in the poor countries? Why?
4. How can we relate Free Market Economy
with the Biblical teaching considering ethical issue?
Sources
Free Market Economy system is very good for rich countries, but for poor countries cannot compete with rich countries. So each country should have some boundary which help their businesses, for their people will not lose their business and incomes. Mini
ReplyDeleteI think it is on the System of the country that more concern of their people, is not free market is bad, what makes it bad is the personal motives in it.
ReplyDeletethank you or the this good blog brother, this blog only focus economy aspect of the people in the country, development of the people's life is not only economic aspect but the wholestic approach of the people, country should focus the overall development of the people.
ReplyDeleteAny kind of economy has its flaws. Free market economy offers opportunities to wealth even for ordinary people. Success in any area of enterprise takes time to be realized. Hail Jesus!
ReplyDeleteFree Market Economy is appreciable for the rich countries and for the rich businessmen. It brings much opportunities to them but it does not bring much advantages to the poor countries and poor businessmen. It is true that rich countries and rich businessmen are indirectly controlling this earth, so it is difficult to protect this policy. However, Free Market Economy brings both positive and negative results to the people. Let's see what will happen in future...............
ReplyDeleteIdeally, we need a theistic system for any type of social institution. However, the full actualization of this can only be fully realized when Satan is completely bound and every social participant is wholly submitted to the Lord Jesus. All Hail the Son of God!
ReplyDeleteI believe there is no such thing as "FREE market." The powerful, the multi-billion industries, the strong will continue to use its might over the weak. One would be so naive as to think that this is indeed happening. The rich and developed countries will continue to exercise and influence the lesser-developed or developing countries and may use sanctions or embargo to follow what they want.
ReplyDeletewow this is very powerful statement! Free market will only exist if the playing field is level. Berne
DeleteFree market economy system may be ethical if it is run properly considering for the advantages of both developed and non-developed countries, and rich and poor businessmen. It is being supported by some group of people though some are against of it. So it is now 50/50 chance to be established..............
ReplyDeleteBro this is a buzzword that people are gossiping but still true. It does not seem to be good for us such as BD. We are import-based country. We will loose much international currency. Personally, I am not with this but even no power to protect it
ReplyDeleteFree Market is not bad but it depends on where we are applying it and who are applying it with what motives. In most of the develop countries they are doing it great with this kind of system whereas a country in Asia are struggling with it. So for me I will support it but will ask the authority to monitor it.
ReplyDeleteI think a completely free market cannot be very helpful in the case when the private companies of the same products like oil, medicine, electronic gadgets will decide for themselves to maintain a high prices for their products. If the government cannot intervene with this the people will suffer. The government should still have the power to intervene and make sure that the people are getting the benefits and not just the companies. The government should also intervene when the local companies are suffering much because they cannot compete with international companies who offer cheaper and better products. I believe the government has the important role of balancing the local economy were in local companies are also thriving without discouraging foreign investors.
ReplyDeleteThis is a one way economic system. It is a way of dominion of rich countries. It may bring some benefits to the poor countries or to the poor people. But it will not, of course, change the luck of the poor..............rather it will make the poor people poorer
ReplyDelete