Economic liberals argue that ecomonic exchange is a positive-sun game Essay

Economic liberals argue that ecomonic diversify is a positive-sun game - Essay ExampleThese two explain the prevailing capitalistic economic exchange in opposing light. The former upholds the capitalistic ideal while the latter criticize it based on the program line that it such exchange is a breeding ground of exploitation and inequality. Although both of these schools have valid arguments, this base will argue that the liberal point of view holds more legitimate positions than Marxism in explaining the economic exchange in the capitalist system. Free Market The fundamental features of a capitalist economy are unspoilt to private property, make headway-motive, freedom of choice, marketplace forces, and minimal role of government. It promotes individualism and is consisted of individual units like cogitationers, mountain, capitalists, consumers and firms and that social forces obtain the formation of a capitalist economy. A critical aspect of capitalism that is relevant to t he subject of this probe is the labor market. In this case, individuals play an most-valuable role in the exchange of goods. First, they are incapable to cook what they need and what they consume. This is the reason why a highly specialized division of labor emerged so that people rely on others, particularly, the producers, in order to survive. Callero explained that when someone is looking for a job in a capitalist economy, that individual is engaging in a capitalistic exchange using his skill and abilities as a commodity to be traded for wage, which is necessary in the procurement of food, shelter, clothing and other goods (25). The labor market also collectively demonstrates the flow of goods in capitalism and depicts several capitalistic principles. If there is excess in the labor force, unemployment and low wage emerge as a result. The implication of this situation demonstrates two important points. First is that the unemployed or the labor force in general will be set-as ide(p) in fierce competition for the scarce work and this is often characterized by enhancing competitive advantage (Todorova 31). Finally, there is the meshwork motive characteristic wherein people engaging in the economic exchange, especially the producers, operate with profit and self-interest as their primary concern. Each individual, grouping and organization relegate concern for others or the nine secondary to their own interests. At first glance, this appears cruel and unjust but economists argue that emphasizing profit is a driving force bottom of the inning free market economies. It functions as a reward for people, entrepreneurs, and organizations who work hard, invest time and money, take risks and innovate. According to Mink, profit, which critics such as those coming from the redness school assails, is behind efficiency in production because it is behind through competition the efforts of economic actors to constantly innovate (125). The Marxist Criticism Karl Mar xs investigation of the late twentieth-century capitalism resulted in several important criticisms to the economic system. barely these criticisms are based on an important Marxist theory, the theory of exploitation and inequality. Here, an unequal exchange develops in the midst of workers and capitalists. Solimano explains While the workers only asset is labor (in flow terms, labor power), capitalists are in preferential position due to ownership of the productive capital that allows them to organize