Contrasting Friedman and Lindblom on Economic Systems Essay examples

The free marketplace represents a superlative model of capitalism, since it denotes the most proficient and profitable way of production. In a free market, economic actors are capable of conducting business devoid of political interferences, such as the burden of a minimum wage, or trade in tariffs. Without these limits, economic actors are abridged to a state of clean competition, driving costs downstairs and resulting in senior quality and lower price products.

What is ethically responsible management? How can a corporation, given its economic mission, be managed with appropriate attention to ethical concerns? These are central questions in the field of business ethics. There are two approaches to answering such questions. The first one is Milton Friedman’s shareholder theory of management and the second one is Edwards Freeman’s “Stakeholder” theory of management, two different views about the purpose and aims of a business.

In the article, The Politics of Inequality in America: A Political Economy Framework, it is argued that government policies have widened the economic equality since the 1970’s and contributed to the financial and economic breakdowns since 2008. To research this, they analyzed primary documents and popular theories from scholars, such as Mills “power elite” model, and used them to identify economic problems of inequality during those times. The approach used by many political scientists focuses mainly on primary sources which helps discover laws we have that keeps inequality in place.

In sum, the market models can be “simply defined as a social system in which individuals pursue their own welfare by exchanging things with others whenever trades are mutually beneficial.” The polis “conjures up an entity small enough to have very simple forms of organization yet large enough to embody the essential elements of politics.”

“Mocking of the American Promise” is the main inequality that dominates the others. Packer describes this mocking as a force that “pervades every corner of the United States and saps the strength of the country’s democracy,” (p. 60). The author goes on to explain that it is almost impossible to find the source of the mocking to turn it off. For many years, many governmental influences have denied the existence of this force, but over the past couple of years, the evidence of its existence became overbearing. The main factor of its origins has been “tax rates, spending choices, labor laws, regulations, and campaign finance rules,” (Packer,

Beginning in the 1980s, political leaders believed that markets were bad for the economy. Although in the 1990s, there was a faith that presented a need for the markets and that they are the main help for the public. As of now, that faith is being challenged. The financial crisis evoked awareness that markets and morals have separated. It has become our job, as consumers, to find a way to rejoin them without any way of knowing how to.

national-level market. The concept of a market is one that Meredith L. McGill tactfully delves

Through its exquisite examples, and compelling tone, Michael Sandel's article "What Isn't for Sale" advises that we need to recognize that our markets are taking over our personal lives and we have become a market society. Anything and everything are for sale these days in our nation. Sandel affirms that over the past thirty years our markets have changed from market economies to market societies. In agreeing with Mr. Sandel on this issue, we must understand the message he is trying to convey. It is possible to do so with the following reasons. We can’t allow for causes such as greed to take place, the consequences of inequality and corruption to happen, and open dialogue and debate need to take place so we all can agree how far

Social inequality exists in the United States through the Elite’s power to maintain their dominance in the United States capitalist system. The Elite Ruling class is made of the upper class and this class of individuals share similar ideology and are the members of the United State’s Superstructure. The Elite Ruling Class members of society are the decision and policy makers in the United States. Research and history has proven that many policies and decisions made by the Elite Ruling Class serve their own interest and promote their ideas. These decisions are the source of the inequality in the United States and it contributes to their ability to maintain their dominant status. The inequality is trickled down to the other classes through social policy and social institutions that affect our lives everyday citizens. A major example of this social inequality can be seen in the United States housing market or home ownership. A significant amount of studies, statics and data supports the evidence of social inequality within the US housing market or home ownership. The following passages will discuss social inequality in the United States as it is connected to Karl Marx’s theory of capitalism’s power and influence of the Elite Dominant i.e. the Ruling Class view as it relates to homeownership within the United States. Karl Marx’s theory however focuses mostly on economic s and the difference between upper and lower class not race. It is also important to point out that the Elite

An average American employee must work for an entire year before he or she earns what the average American CEO earns in one day (Rezvani, Pirouz 6). The United States’ GINI coefficient, a measure of income inequality, sits at 0.590 – one of the highest marks in the entire developed world (4). A majority of wealth sits in the hands of less than one percent of the country and those lucky enough to fall under this percentage are catered to by politicians in search of reelection. That said, it is easy for one to wonder whether the “We the People” mantra has been replaced with a mantra of “We the Corporations” (10). Clearly, economic injustices transcend economic issues and affect more than a citizen’s bank account.

Milton Friedman’s ideas where thought to be radical, but he was the most authoritative figure in the economics field in the 20th century, (Placeholder2) and was known most for his thoughts on free enterprise, classical liberalism and limited government. (Placeholder3) His views shaped modern capitalism. (Placeholder2) He was against government intervention and favored free markets (Placeholder6).

Milton Friedman has been credited with many different achievements, including being one of the most effective advocates of economic freedoms and free enterprise, being the greatest economist to ever walk the face of the earth, and proving every single word that Lord Maynard Keynes ever said to be wrong. Why these may or may not all be true, it is obvious that Friedman was a brilliant man of many accomplishments.

Income inequality is a phenomenon that is undeniably real in our current world, and more specifically, the present United States. Canon describes how the gap between the elite and the poor has been consistently growing for many years and continues to widen (189). Whether the differences between the top and the bottom are a threat to current society is another story. Does income inequality undermine a democracy? Ray Williams argues that societies are strongest when they have a higher rate of equality while George Will challenges that inequality is the very basis of what make democratic processes. A. Barton Hinkle takes a Libertarian approach to the idea that inequality is threatening to democracy and how it can be fixed. Some threats that each article addressed were economic impacts, civility, and fairness. Overall, there is a definite need to evaluate whether the United States democracy is being threatened due to the continuous rise of the elites and the fall of the working class.

To compare and contrast market fundamentalist and protectionist and to tell how these play out in Silicon Valley it is important to understand what Polanyi’s double movements are. Karl Polanyi argues that two opposing movements constitute markets in societies: Marketizers and Protectionists. They disagree whether the market dynamics assure optimal use of market resources or not. They also disagree if the state should play a limited to no role in the economy or if it should play a more important role.

Prevalent flaws within most modern democracies are evident in their social and economic systems. One such problem, in a system that advocates freedom to do whatever you please, is the consequential wealth disparity (Wong, Oct. 24 lecture, tutorial). Aristotle once said that, “democracy is the form of government in which… the free are the many and the rich are the few”. This highlights a paradox of democracy in that it attempts to be equal to all, yet often the rich will get richer and the poor will get poorer, and an increasing wealth divide will influence governance. Constant writes (pg. 12), “wealth is a power more readily available at any moment… more