ME
Mixed and Market Economic System- Article review
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Mixed and Market Economic System- Article review
The chosen article is based on Market Economic System or a free market economy, which is based on self-interest. Ideally, a free-market economy is free from government intervention. In this article, the focus has been given on Singapore, one of the highly successful nations in Asia. The researchers have attempted to examine the impact of a free market economy on a nation like Singapore. The reason behind the success of the nation is its free market (Lim, 1983). Although, the myth surrounding the ill-effects of a free market exists, Singapore managed to question the myth. Research suggests that the nation continued to enjoy stable prices and a corruption-free environment. Interestingly, in comparison to other developed nations, the GDP of Singapore is high, and on a positive note, the rate of employment is low as well. Hence, the researcher claimed that notions surrounding market economy are false. Although, it is to be noted that the myth surrounding this type of economy has emerged because advanced capitalist nations have witnessed failure due to the free market system. Free market was previously considered the foundation of economic growth or prosperity in developing and developed nations. However, the model failed due to excessive competition and insufficient production in the 19th century. Contrarily, the intervention of the government in free market economy was not well accepted because the notion of personal liberty of communities and individuals existed at that time. Nevertheless, the myth surrounding government intervention and fall of the economy has been challenged again and Singapore is one of the perfect examples. The policy adopted by Singapore has been emulated by third world countries such as Sri Lanka and Jamaica. This is because Singapore, with its economic model was more successful in comparison to industrialized nations such as South Korea, Hong Kong or Taiwan.
The selected article on Mixed Economic System highlights the complications that are associated with it despite its benefits. The concept of mixed economy is associated with social democracy. Excessive government control is one of the major drawbacks of this system. The researcher in this article has focused on the impact of mixed economy on the quality of life. Quality of life cannot be measured based on socio-cultural, psychological or environmental or economic components only. The researcher has considered the fact that assessing the impact of an incorporated three-sector economies (command and free market) has been a challenging task in the context of Alaska. In this nation, subsistence users are given the highest priorities by both the federal and the state laws. The assessment of impact might be complicated due to the existence of different types of economies. Although, the possibility of studying or rather quantifying the impact of material returns including subsistence goods and income is present. However, interpreting the value or understanding the impact might not be as accurate as expected. Hence, the overall assessment of the developmental impact might become an issue. It can be interpreted that achieving socialistic goals within a capitalist environment as expected in case of mixed economy might not be practical and therefore, the mixed economic system has been subjected to criticism. The capitalist class always has their own interest in mind. Therefore, the power distribution is unequal or disproportionate. “Humanizing” capitalism with the help of mixed economy is questionable and the possibility is also low. This is because within the social democratic programs, capitalist production mode exists. It implies that exploitation and fluctuations or alienation, the characteristic features of capitalism, exists as well. The possibility of individual freedom within mixed economy is low as well. Therefore, the researchers have examined social democracy to understand mixed economy.
References
Glass, R. J., Muth, R. M., More, T. A., & Kruse, J. (1995). Assessing developmental impacts on subsistence fishing: Complications attributable to a mixed economic system. Society & Natural Resources, 8(5), 431-442.
Lim, L. Y. (1983). Singapore’s success: The myth of the free market economy. Asian Survey, 752-764.