Thursday, April 3, 2014

Chapter 1 McMillan - The Only Natural Economy


            According to McMillan, “a market for something exists if there are people who want to buy it and people who want to sell it.”  However, both the buyer and seller must see eye-for-eye in order for the exchange of the good to be successful.  The majority of the time, a good exchange cannot always be made face-to-face, and other methods have to be utilized.  In order for a buyer and seller to come into contact with another, technology acts as the catalyst to speed up the exchange of the good in the marketplace.  Transportation, telecommunications, and computers are all technological methods that are utilized in order to make a successful transaction.  According to McMillan, “the internet has transformed markets by allowing exchanges between buyers and sellers” from around the globe.  It is technology that serves as the driving force that links both parties together (buyer and seller).
            Some people view markets as a source of “exploitation and poverty”, while others view them as the “font of liberty and prosperity.”  Both opinions appear to be evident in our lives.  The poor individuals want to buy goods that they cannot afford rather than buying goods that will allow them to survive.  Others have the option of buying leisure goods because they have additional money that they can support themselves and their families with.  Some people distrust the market because the prices of goods become too high, and the customers cannot afford these good because of their job circumstances.  Also, some people distrust the government control over economic decisions because the government doesn’t provide enough jobs to assist the unemployed.  However, I believe that in order to keep the economy going, individuals should only buy what they can afford.  Everyone has an equal chance at making something of their lives in the marketplace and the decision is totally up to them.
McMillan uses folk football as an analogy for a lawless market and claims that modern markets are governed by rules.  In order for modern markets to be successful, rules must be placed and attained.  Keeping the price of the goods at a reasonable price is the primary rule for a business to run.  This will not only make the buyers satisfactory, but will also allow the company to prosper as well.  Moreover, proposing deals for the goods will further attract these customer’s interests too.  In addition, the rule of trust is another component that is essential for a successful marketplace.  The owner has to trust that the manager and other employees are doing their jobs efficiently and effectively.  By providing rules for a market, this provides structure for the market so that the business is not a “free-for-all” battle like folk football.  Business and marketplaces must be run in an organized fashion in order to be successful in this world.

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