Essay Sample on Free Enterprise System: US Market Policies & Systems

Introduction

Market policies and systems are resourceful in the economic order. Free markets are crucial to the financial system as they bring together buyers and sellers to take part in the market. The US uses a diverse economic system where the government and privately owned companies have a crucial role to play (Alexandrakis & Livanis, 2013). The US has a free enterprise system that makes it more of a private ownership economy than it is a public one. The private businesses take up the most significant part of the American economy since privately-owned organizations produce the most goods and services than the state-controlled corporations.

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The American economic system differs widely from that of China and Russia. The US has, for a long time, been the nation with the largest economy in the world, with an estimated global GDP of 22% (Ravikumar, 2010). Moreover, China has recently overtaken America by a small measure of full economic strength via the purchasing power parity GDP. The American economy is highly diversified and sophisticated founded on consumption, economics, and services from the working class.

Alternatively, China's economy major on the growth of resources, whereby it shifts from the manufacturing kind of economy to one that is consumer-driven. Alternatively, Russia's economy is mostly a market-based system with most of its wealth in the hands of the officials. Economic reforms have tried to privatize most of the industries in the country, but the state still controls the private sectors. As a system of government and politics, a political system is made of the political processes, both formal and informal, whereby the decisions are made about the production, use, and resources of a society. It compares to other social systems such as the cultural system, legal system, and economic system (Ravikumar, 2010). As an elaborate scheme with two interdependent properties, a political system allows other institutions to air their complaints and grievances in the social existence. Hence, it involves the views of who should have the authority and the influence of the government on the economy and its people.

From my experience, political systems seem to help maintain recognized procedures for the allocation of valued resources. For a society to be orderly, individuals have to obey the set rules. Political institutions help keep this societal order by determining and enforcing laws as well as punish the ones that go against them. I lean towards the democratic political system. A democracy is a government form that slows citizens to create and vote for the laws of the country directly and, in other times, indirectly through representatives (Waaniewski, 2016). The notion of democracy originated from ancient Greece, but it does not mean that the wishes of the citizens are equally represented at all times.

Governmental guidelines are used differently in the US compared to China. The US uses it to take action against the major issues that affect the republic. In the US, partisan policies are used in different societal sectors such as criminal justice, economic affairs, education, and the environment. These policies are put forward to change the quality of various factors of the society. Moreover, China uses public policies to take away political freedom and ensuring rising incomes as well as more social freedom (Kotschwar, 2014). China's governmental policies are used to reshape the traditional culture of the Chinese and bring out the greatness of the citizens.

Capitalism is alleged to lead to misery and poverty for most workers as the capitalist economy will never allow them self-satisfaction. According to socialists, capitalism wealth does not bring happiness since the average worker is forced to work extra hard to progress. It brings too much prosperity forcing people to buy useless luxurious things. Capitalism also forces people to compete with each other instead of focusing on the essential things in life.

Additionally, socialists believe that capitalism results in a monopoly since it makes the market economy to diminish in competition as time goes. In terms of environmental objections, capitalism is alleged to destroy the planet as many believe it uses up the earth's natural resources (Ravikumar, 2010). Likewise, capitalism creates non-destructible resources that destroy the earth. Feminists also attacked capitalism for enslaving women as it expects them to act as breeding machines and bring forth the next generation of workers.

Economic policies, political and economic systems have significant differences. According to Mihajlovic (2015), the financial system is a scheme that comprises of property relations, commercial entities, decision-making, and management whereby information is based upon the economic decisions that are made and the evaluation system operation. It is a set of standards and methods that a company adopts to enable the decision regarding the limited economic resources to help in the satisfaction of unlimited human needs.

Economic policy is a part of the state policy that deals with the economy and the livelihood of the community. Mihajlovic (2015) argues that economic policy ensures the livelihood of the city by a suitable social environment for economic development. The political system is different since it helps in protecting the citizens from outside invasion and one another. Governments can enforce political systems using large armies, building fortified cities, carrying negotiations with the enemies, and providing border patrols, among others. It differs from economic systems since it allows for protection and security, while commercial systems ensure the needs of citizens are fulfilled.

References

Alexandrakis, C., & Livanis, G. (2013). Economic Freedom and Economic Performance in Latin America: A Panel Data Analysis. Review Of Development Economics, 17(1), 34-48. doi: 10.1111/rode.12013

Kotschwar, B. (2014). China's Economic Influence in Latin America. Asian Economic Policy Review, 9(2), 202-222. doi: 10.1111/aepr.12062

Mihajlovic, L. (2015). Conditionality Economic Policy and Economic System, Journal of Process Management, 3(1), pp. 76-83.

Ravikumar, A. (2010). Market Capitalism, State Capitalism, and Community Capitalism. SSRN Electronic Journal. doi: 10.2139/ssrn.1674745

Waaniewski, K. (2016). The Economic Power of Veto Players The Connection between Fiscal Policies, and Political Systems. SSRN Electronic Journal. doi: 10.2139/ssrn.2742093