The Utilitarian Argument of Capitalism Essay Example

The Utilitarian Argument of Capitalism Paper The use of government intervention is a widely disputed phenomenon. Government intervention In an otherwise free market refers to a somewhat mixed economy. In this economy, government Intervention takes place even though the majority of the market is capitalist. This paper aims to explore the utilitarian argument of capitalism and discuss whether government intervention in an otherwise free market leads to inefficiencies on utilitarian grounds. Capitalism refers to a profit or market system (Shaw, 2008; Gray, 2011). In this system, economic catchy is private and operates with the goal of making a profit (Shaw, 2008). According to Shaw (2008). This activity Includes all businesses. Production, distribution, banking and manufacturing, to name but a few. The government only takes responsibility for national expenses such as health care and education and does not enforce any quotas on private business production levels (Shaw, 2008). This means that in a purely capitalist system, there is no government intervention and a free market exists. Basally and Jones (1993) describe this as a market based, customer-driven economy (p. 2). Capitalism has many key features of which four are most important. These include companies, profit motives, competition and private property (Shaw, 2008). In a capitalist system, companies can exist and act as separate legal entities (Gray, 2011; Shaw, 2008). Being a legal entity means that the company has legal rights and obligations and may be tried In a court of law (Shaw, 2008). The employees, shareholders and stakeholders of a particular company are viewed as being separate from the company even though they may work wealth the company or have a say in how it is run. We will write a custom essay sample on The Utilitarian Argument of Capitalism specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on The Utilitarian Argument of Capitalism specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on The Utilitarian Argument of Capitalism specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The second feature of a capitalist system is that a companys main motive is to make as much money as possible and thereby maximize its profit (Shaw, 2008). Gray (2011) states that the capitalist system assumes that profit is a result of productivity. This in turn means that having a profit motive encourages workers and employees to be more productive. Competition, the third feature, can be seen as a regulator In the capitalist system; a company who sells poor quality products at exorbitant prices will not receive as much business as a company who sells high quality products at lower costs (Shaw, 2008). The company who has poor products and high prices will therefore be forced to better their products and lower their prices in order to achieve their goal of profit mastication. The fourth key feature is private property. A capitalist system requires that the tangible and intangible means of production, distribution, capital and economic catchy are privately owned (Shaw, 2008). Any profits arising from these means will be that of the owners. Adam Smith, when discussing the political economy of trade, noticed that when individuals were faced with unfamiliar business partners and foreign legal systems, hey would prefer to invest in domestic rather than foreign trade (Wight, 2006). Consequently, their home country would gain in investment, which would increase employment Ana production, amongst toner things. I Nils phenomenon lea to ten invisible hand argument: when people pursue their own interests, they will ultimately, without aiming to do so, create the greatest utility for the greatest number of people (Shaw, 2008). This concept of the invisible hand can be used as a proxy for the utilitarian argument of capitalism. Smith (1776) (as cited in Shaw, 2008) illustrates his concept by stating that it is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest (p. 130). According to Shaw (2008), the free and unrestrained market that exists under capitalism is more efficient and productive than any other system. This may be because in a free and unrestrained market an individual has the freedom to pursue his interests without any government restriction. One may then argue that government intervention may move some people away from the realization of their own self-interest. Through this reasoning, it can be said that government policies and regulations would not necessarily lead to the greatest amount of efficiency. Smith (1776) (as cited in Shaw, 2008) suggests that the removal of government policies and regulations on various resources such as raw materials, markets and labor would lead to the greatest amount of efficiency in a system. Shaw (2008) reasons that if consumers were freely allowed to choose what they bought and suppliers were freely allowed to choose what they sold and how they produced it, there would be no need for government intervention. The law of supply and demand would regulate the market and it would reach equilibrium. The law of supply and demand proposes that in the same way competition keeps an individual from becoming a ruthless profiteer (p. 131), it would be in an individuals best interest to sell an adequate amount of goods at fair prices (Shaw, 2008). Since China opened up its socialist economy to free market activities in 1978, it has experienced large benefits in many aspects (Presley, 2011). Expansion in the Chinese economy has led to decreased poverty, increased stability and a better standard of fife (Presley, 2011). From 1978 to 2011, Chinas Gross Domestic Profit has increased from $216 billion dollars to $5. 8 trillion dollars, the share of world economy has increased from 1. 8% to 9. 5% and the annual per income capita has increased from $266 to $4300 (Presley, 2011). This example proves that free market activities can in many ways create a greater good for a greater number of people. The utilitarian argument that Adam Smith puts forward assumes that people are self- interested, rational beings who are fully aware of the diverse range, price structure, laity and differences and similarities of the products available in the market (Shaw, 2008). In reality, large companies use tactics to manipulate the consumer and thereby reach their profit objectives (Shaw, 2008). Therefore, even with aid, it would be difficult for a consumer to make the rational, self-interested choices that Adam Smith assumes we as consumers are able to make. Capitalism requires perfect competition. For tons to occur, all Monolinguals Walton ten system must take market prices as parameters that they cannot control or change (Dobbin, 1991). This, however, is not the case in todays market. Dobbin (1991) suggests that market prices are not impersonal data (p. 7) but the result of decisions and negotiations between companies and individuals. Depending on the amount of power a company has, they could control their prices on their own or collude with other firms to set prices at profit maximizing levels. This means that many companies practice predatory pricing and create monopolies and oligopolies (Winfield, 2011). The lowest possible economic cost to society is therefore not being obtained, which in urn means that the system is not socially efficient and does not create the greatest good for the greatest number of people (Winfield, 2011). John Keynes challenged Adam Smith by opposing the idea that the law of supply and demand regulates the market (Dobbin, 1991). As mentioned previously, Shaw (2008) reasons that if consumers were freely allowed to choose what they bought, and there would be no need for government intervention. Keynes, however, realized that demand determines the amount a business supplies, as a business will only produce what it expects others will buy (Investigated, 2011). Keynes suggests that government intervention through fiscal and monetary policy should be used to control demand, which would enable full employment and levels of supply to be determined (Investigated, 2011). The utilitarian view of capitalism requires information symmetry. Information asymmetry occurs when the producer has more superior knowledge of the product than the consumer does (Investigated, 2011). This problem is illustrated in George Croakers Market for Lemons; sellers of poor quality goods and services have incentive to market their products as though they are of higher quality and better tankard to maximize their profit objectives (Investigated, 2011). This does not lead to price equilibrium. Instead, the distrust in the system may result in a no-trade equilibrium, which can lead to entire market failures. This is known as adverse selection (Investigated, 2011). Moral hazards are also caused by information asymmetry as people are more likely to take risks (Winfield, 2011). When individuals are exposed to poor quality goods, possible market failures, distrust and moral hazards, the greatest amount of good for the greatest number of people is not created. Government intervention can be used to control externalities. Externalities are costs or benefits borne by someone other than the producer or consumer (Winfield, 2011). External costs such as carbon dioxide emissions, pollution, psychological effects and harmful medical effects do not create the greatest good for the greatest number of people. Firms may not consider these social costs and supply too many products. This does not result in equal supply and demand (Winfield, 2011). One of the major criticisms of capitalism is the blatant economic inequality that exalts In many capitalist isosceles ( BIBB). Monolinguals In tense isosceles are not born with equal opportunities and the utilitarian argument for capitalism is challenged on this basis. Some proponents of capitalism have claimed that government intervention is the cause of inequality, but Shaw (2008) contends that these arguments have been disproved by both history and economic theory. To avoid the poverty and inequality that capitalism creates, it has been suggested that some form of government intervention should be used. Critics however argue that because of the capitalist economic and political frameworks this would probably not be possible (Shaw, 2008). Another viewpoint is that inequality can be outweighed if living standards are increasing due to a capitalist system (Shaw, 2008). This is a subjective viewpoint which is both difficult to measure and more favored by people who are advantaged and happy with their current economic situation (Shaw, 2008). Recent events have illustrated that the global financial crisis may have been caused by the move away from Keynesian economics in 1979 to a free operation of the market (Sumo, 2009). This meant that government intervention was kept minimal during this time. In an attempt to rescue economies and prevent complete market allure, governments have resorted to large fiscal stimulus plans. Sumo (2009) states that governments, such the United States of America, have had fiscal stimuli as large as $878 billion in an attempt to rescue the economy. This example illustrates that government intervention may be needed to create efficiency in an economy. As discussed throughout this paper, the utilitarian argument for capitalism states that the greatest good for the greatest number of people will be achieved through the concept of an invisible hand leading the market to social efficiency and equilibrium.

Sample Act Essay Questions - Improves Your Marks

Sample Act Essay Questions - Improves Your MarksIf you are a struggling college student, take heart: sample act essay questions can be used to help you with your test. It is always better to do some practice before you actually take the exam. Take for example the mathematics or English exams. Many students take practice exams before the actual test.There are also some companies that provide very good practice exams. There are even companies that take practice tests from students before they take the actual test. These kinds of studies can really help you in your exam preparation.You can join a study group that meets once a week and you get feedback from other students on what kind of question would best fit your profile. These groups are usually based around a theme. Some topics are like 'partnership building', 'quick tips'lack of confidence'.So joining such a group will allow you to practice exam questions by yourself. Not only this but you can get lots of tips and strategies to imp rove your score.You can also study for the law exams by taking some practice law questions. This method is a bit more tedious and you will have to spend a lot of time, but it is certainly a faster way to get prepared.You can also try one of the popular methodologies of practicing for the law school exam. By reading material on the Internet and following closely the questions that appear on the exam.Try to analyze the 'hard questions' on the test. Look for patterns that might make it easier to answer or questions that you already know how to answer. Study your classmates' answers to also know if you should follow the same pattern or not.If you are serious about improving your grade and becoming a better student, then a lot of time and effort is required to get your hands on sample act essay questions. In case you do not have the time or the money to do so, then you can take help from online study guides. These guides will contain all the sample exam questions and answers.

Kirby Haizlip Midterm Thesis Essays - British Films,

Kirby HaizlipMidterm Thesis December 16, 1998English 10Mr Siuda The subject of people encountering ideas and objects that are alien is a common theme in many modern works of literature, including CS Lewis' Out of the Silent Planet and Ray Bradbury's classic novel Fahrenheit 451. Although there are different types of alien encounters, both of these books center around one or two pivotal encounters which changes a person's perception of life forever. In Ray Bradburys' classic novel of an alternate future filled with censorship and shallowness, the average life of a firefighter named Montag is turned upside down by two encounters with people who refuse to go along with the rules of a censorship-ridden society. The first of these encounters is with a young girl named Clarisse, who always asks questions of Montag which force him to really consider life. The second of these encounters is with an old woman who strikes the match which incinerates her house, killing her and destroying all her outlawed books. As a firefighter of the alternate future, Montags' job is to set fire to houses in which people save books of literature, instead of preventing and stopping fires in houses. The reason that the firefighters' don't have to prevent fires is the fact that all houses have long since been fireproofed. The government has commissioned a new breed of firefighters to eradicate all literature, which may make people start thinking about their lives. Until Montags' encounter with Clarisse, he has never questioned anything, not his life, and not his job. However, he can't help it after Clarisse asks him questions such as what the meaning of life is and why. The free actions and thoughts of Clarisse also mystify Montag, such as when she stands in the rain, catching it in her mouth. This simple action on Clarisses' part shatters any illusions Montag has about the pleasures of life. The second encounter which shatters Montag's disillusions and makes him start thinking is with an old woman whose house has been reported as containing works of literature. The firemen move through the house, spraying everything with kerosene, until they find the old woman, who appears to be crazy. Frightened, they quickly retreat outside, watching the house for any movement. The old woman then steps out onto the porch and is given a choice by Beatty, the chief: either step out of the house or be burned with her books. The old woman, as a response, strikes a match and throws it into the house, causing the house to burst into flame, instantly killing her. Because of these two encounters, Montag's life is forever changed. He goes on the run, killing Beatty, burning down his own house, and planting books in the house of a fellow firefighter and calling in an alarm so his house will be burned. After making his escape by floating down a river, Montag joins a band of rebels who are planning to gradually reintroduce society to literature. In CS Lewis' novel Out of the Silent Planet, a Doctor by the name of Ransom is abducted by two scientists and taken on a great journey to a planet far away from Earth. After arriving on this planet and helping his captor's to set up their camp, Ransom makes his attempt at escape, running from the captors and their allies, who are native to the planet. After running as long as he can, collapsing to sleep, and walking slowly on again, Ransom collapses once again near a body of water, from which a mysterious creature emerges a short time later, frightening Ransom. "Then he saw eyes and mouth-a puffing mouth bearded with bubbles."(pg54) However, Ransom soon realizes the creature means no harm, and is trying earnestly to communicate with him through hand signals and the native language. "The creature ... opened it's mouth and began to make noises. "(pg 550After making small steps in understanding the language of the natives, Ransom is taken by the strange creature( called a hrossa) to a b oat, in which they go on a long journey to the community of Ransoms alien host( named Hyoi). Hyoi and Ransom then go on a hunting expedition for the tribe of Hyoi. While on this