Opportunities to achieve wealth in a market economy

Linda 8P3 & 8P7
December 14th, 2010

Opportunities to achieve wealth in a market economy

Governments can never have full control over an economy. For an efficient economy, people need to take responsibility for their actions, use their energy and creativity for their well being and the benefits of the whole society. Through competition and giving people a chance to make one’s own choices, a market economy, though not perfect, has given many countries the best opportunity to achieve wealth.

In a market economy, strong competition among businesses does not allow them to stay the same, but they have to change and make the best of their products. At first, there are phones that we can call only, and then we have phones which we can also text with. Then phones have cameras to take pictures with, and now, there are touch screen phones. Of course, most people nowadays buy the touch phones because it’s new and modern. The more new and modern the products are, the more people will buy it, and also, the money that the companies will get from the products increases. For that reason, companies have to make more new products. The better products they have, the better their position in competition with other companies which are in the same industry. In a market economy, the price of a product is the price at which the companies are willing to sell, and which consumers are willing to buy. Therefore, new and more modern products will enjoy higher price and bring more profit.

Market economy gives the businesses their freedom to make their own choices and decisions, allow the business people to have more creativity on inventing new products. One example is the US, which has always been a market economy since the early 1800’s. From the World Culture and Geography textbook, “The United States has a market economy, in which individuals and businesses can make their own choices about what to buy and sell.” People traded by themselves, make their own businesses. Producers make products from what the clients usually buy then they will set their own prices for the products. In market economy, people can make their own decisions in business. Businesses decide the wage to pay the workers, and the price of their products. Businesses pay a lot of money to the creative people so they would think of and invent more new and creative products for the companies. Like the Google Inc., they give their employees a 10% pay raise and a $1,000 bonus next year to keep the good and creative employees. Then the companies would sell the products and clients would buy it at a higher price and the companies would make lots of money. People whom do businesses can be more creative with their works and make their own choices on making the products.

In the “How much land does a man need” story – by Leo Tolstoy, Pahóm, a Russian peasant, was very rich by buying, selling, and negotiating to have cheaper price lands. He moved to a larger land and had grown the crops a lot then sold it to get money. This land business made him a lot wealthier. This story shows how the market economy helps citizens make their own decisions in business, work with full personal responsibility, and how it can help them become wealthy and live a happy life. If we have a good opportunity in business, we have to use it immediately so we won’t miss the big chance and we will get lots of money from the opportunity.

Market economy helps businessman understand and have more experience in businesses because they will have to make their own decisions, have their own responsibility about what they chose to do. Market economy helps lots of countries or people become wealthier in different ways. People who do businesses can be more open minded with their creativity and it will help, not only a country, but the whole nation becomes richer and stronger.