xxx Essays - Economic Ideologies, Economic Liberalism, Capitalism

The world Economy has been threatened by a crisis of massive proportions. Not only it is reflected by the consistent falls in the stock exchanges, the sustained rise in fuel, or the increasing cost of living in general. This would be, according to some, a key moment in history, of those that marking a milestone in time, are remembered, analyzed and understood truly, by further generations. In the same way as we do, those born in the twentieth century, inherited the antique memories of the social and economic crisis of 1929. Perhaps we are only witnessing a demonstration of the fact that history is just a succession of repetitive acts... Or maybe this is the empirical evidence that history continues and evolves, being a process which hasn?t ended at all, as an American author some years ago once predicted. It has been proved that global economy, in simple terms, can only be based on freedom. This is not understood just as a philosophical concept or an abstract term contained in the Fundamental Establishments of most nations, since the exchange and the current financial system, can only be conceived under the eaves of that notion. The freedom with which man, who roles as an active player in the market, makes his decisions, invests, and trades goods and services, in a relentless pursuit of efficiency and productivity, causes an economic order which centre is the spontaneity, the laissez faire, becoming the Economy into an exciting science, for being inaccurate and unpredictable. And where do the government stays in an economy system that is able to efficiently allocate resources by itself? We think it?s regulations should remain under those agents which don?t have the capacity to participate actively in a free market, being excluded from the division of the profits as a trade outcome. The reduction of poverty and the regardless search for social equality are two pillars of the common wealth that by constitutional command, governments must pursue. However, the difficulty of that duty lies, in our view, in coordinating the government?s always visible hand, it?s public and economic policies, in such a smart way that it doesn?t affect the market players, who conveniently to whole society, are able to succesfully combine their forces. Yet, a good regulatory policy may help to deal with some of market?s defects, such as asymmetric information between economic actors or price discrimination. In these cases we think clear rules can favour competition and lead to eco nomic justice. Though, not only economists from two centuries ago but also the nowadays perplexed observers of the current economic crisis, put into question the ability of market?s agents to organize by theirselves. Taking United States as an example, for being a symbol of capitalist economic success, we have as a premise that such advocated freedom, with which the country has handeled it?s economy, has been the main idea that has driven its growth trough reaching world economic power. Its agents have been able to use this abstract tool in an effective way, in search of personal gain, and thaughtless sharing its benefits to society as a whole. The competition between the market?s players has developed in a system in wich only those who could prove their productivity in the economy remain in it, but those who aren?t, won?t share the market and it?s profits, being displaced from it, sometimes to other areas where they can be competitive. But unfortunately, the government hasn?t stayed as a silent spectator. Under the banner of 'free market', regulations have made their intervention through hidden and sometimes pretty obvious strategies, to apparently heal the 'failures' that private free market sy stem would have. One of these 'flaws' in their own particular public view, would be trusts, or groups of companies figured as holdings, with market power. In economic theory terms, monopolies are conceived as prize fixers organizations, which directly violate free competition, having the enough power to influence the prices offered in this seemingly free market. But the author makes us think: What is the reason to attempt an efficient economy agent trough antitrust legislation? Why does the government feels it has the duty to generate free competition where the economy has not freely created it? Curiously, facing