- Published: September 18, 2022
- Updated: September 18, 2022
- University / College: Babson College, F.W. Olin Graduate School of Business
- Language: English
- Downloads: 38
– Do you believe that economic democracy (free markets) will inevitably lead to political democracy? Why? Why not?
Generally, I believe that while a country gain its economic democracy, it produces a more educated, intelligent and hungry entrepreneurs and middle class, who will demand improvement and control of their own fate. Eventually, because of this demand from the main contributors of the economic growth, the government will give in and provide for democratic way of maneuvering the politics. This case, however, is not always true as in the case of China, who has opened its market and demonstrated exceptional economic growth for the last couple of years. Nevertheless, its politics lingered slowly and remain stagnant .
– Why did free markets and marketing win in the competition with communism?
Free market is winning the competition against the communism because it primarily addresses the aspiration of human nature of having the freedom to have its own property, protect its own enterprise and gain the sovereignty of buyers over the objectives of production. Similarly, in the free market, consumers choose their own product, guided by the programs of production. In communism, the government dictates and solely has the authority to manipulate the market and leave no assurance for consumers and entrepreneurs to achieve their desire in the market.
– Provide an example of a country market that has transitioned from communism to a free market system.
China is an example of a country market that shifted from communism to a free market. From its closed-door policy for the thirty-five years, the Chinese government has implemented reforms to its market and entrepreneurship based on the marginal revolutions that took place in the country. China took its lessons learned from the West and uses it as a guide to transform itself and slowly adapt the free market system .
Works Cited
Coase, R. (2013). How China Became Capitalist. New York: Palgrave Macmillan.
Paris, L. (2013, March 27). Autocracy or Democracy? Retrieved from The Economist: http://www. economist. com/blogs/freeexchange/2013/03/growth-0? page= 1#sort-comments
