The Relative Merits and Demerits of Governments and Markets as Social Organizers
Introduction:
What are social organizers?
Society is build up by many different individuals. In order for the society to function well, social organizers are one of the most crucial factors. By definition, organizers are the ones arrange things within a particular environment to improve the quality of the environment as a whole. Social organizers are one kind of the organizers, which allocate and arrange the society’s resources.
Governments and Markets
When considered governments and markets as social organizers, it is crucial to consider both the pro and con sides of them.
What markets do well?
The most important benefit of having markets is they do a great job in allocating the resources in the society efficiently.
1. Markets can help to mitigate the economic crisis when the domestic demand in one country is not enough. According to the Economic Geography, the international markets provides an opportunity for one country to trade with other country from external market which fix the problem of insufficient domestic demand. For example, Khan uses the case of Indoneisa’s economic crisis to describe the merit of an international market can help to function the export of import in one country since the markets between Japan and Indonesia helped to solve the economic crisis in Indonesia.
What markets do not do well?
Even though Markets can allocate the resources well, it did not assist to prevent the poverty. Also, it is unable to alleviate the unequal distribution of wealth because markets are favored for the ones who have assets such as houses or cars. For the ones who don’t have assets, markets prevent them from joining the trade because they don’t have the products to trade. The other important demerit of market is In contrast to the benefit of an international market, Jim Glassman noticed when the domestic market has some economic problems, it is likely to lead to destruction to the international market because all the markets are closely tied.
What are social organizers?
Society is build up by many different individuals. In order for the society to function well, social organizers are one of the most crucial factors. By definition, organizers are the ones arrange things within a particular environment to improve the quality of the environment as a whole. Social organizers are one kind of the organizers, which allocate and arrange the society’s resources.
Governments and Markets
When considered governments and markets as social organizers, it is crucial to consider both the pro and con sides of them.
What markets do well?
The most important benefit of having markets is they do a great job in allocating the resources in the society efficiently.
1. Markets can help to mitigate the economic crisis when the domestic demand in one country is not enough. According to the Economic Geography, the international markets provides an opportunity for one country to trade with other country from external market which fix the problem of insufficient domestic demand. For example, Khan uses the case of Indoneisa’s economic crisis to describe the merit of an international market can help to function the export of import in one country since the markets between Japan and Indonesia helped to solve the economic crisis in Indonesia.
What markets do not do well?
Even though Markets can allocate the resources well, it did not assist to prevent the poverty. Also, it is unable to alleviate the unequal distribution of wealth because markets are favored for the ones who have assets such as houses or cars. For the ones who don’t have assets, markets prevent them from joining the trade because they don’t have the products to trade. The other important demerit of market is In contrast to the benefit of an international market, Jim Glassman noticed when the domestic market has some economic problems, it is likely to lead to destruction to the international market because all the markets are closely tied.
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