Exam1 Essay Example | Topics and Well Written Essays - 3000 words

Exam1 - Essay Example On the other hand, the competitive philosophy suggests that in a competitive market, the government establish rules that sponsor full and free competition. The competitive philosophy is proposed by its supporters, both as a solution to economic problems and also in moral stipulations: as a ground for freedom, where ideas and ventures are allowed space to thrive. These notions have lately been benefiting from an extraordinary influence. In every society, the government is the sole lawful method of coercion. Forms of government coercion like taxation promote the competitive goal of philosophy, and the higher the burden imposed by taxes on production, the greater the chances that economic growth will decline and falter. Price controls or restrictions encouraging new competitors to enter a market promote market exchanges and others like interdictions on illusory practices and enforcement of contracts can also aid voluntary exchanges. The US government is currently making such an effort t o prevent the concentration of fiscal power that’s been growing for a long time in the investment and banking industries.   The congress is undertaking financial reform and federal supervisors and a few influential state attorney generals are starting inquiries of suspected abuse by the little remaining bank holding corporations, the markets themselves, and other key accomplices like hedge funds. Historically, laissez-faire was a response to mercantilism, a structure of commercial powers in which trade and industry, particularly overseas trade, were only regarded as ways of making the state stronger. Trade monopolies, taxes, Navigation laws, and paternalistic policy of various kinds bore greatly upon the growing class of merchants during the time of European colonial development. French physiocrats, leader economists in the 18th century, on behalf of this class of merchants, initially devised the theories of laissez-faire. State noninterference became a fundamental philosop hy with the physiocrats,; they in particular were opposed to the idea of taxation of commercial endeavors. Resistance to mercantilism and government paternalism also inspired Adam Smith, pioneeer of classical economics, who is directly associated with British laissez-faire policies. Smith supposed that individual benefit rather than state control was the proper objective; he therefore campaigned that trade should be conducted without government limitations. When people had the freedom to follow personal interest, competition or rivalry would turn out to be more effectual than the nation as a controller of economic policy. Smith did not advocate for laissez-faire in an unconditional sense; he created a space for government intervention in public works, such as the construction of docks and canals to assist trade, and in the control of overseas trades to leverage some domestic industries. However, the philosophy of laissez-faire turned into a doctrine of individualism and of functiona l ethics in the hands of Jeremy Bentham, and John Stuart Mill made it to reach what was perhaps its highest point. The theory’s strong individualism was naturally of interest to the merchants and factory owners during the Industrial Revolution; they tried to change society along capitalistic terms and often ended up being hampered by old regulations and the conflict of landed interests. Some real-world examples of programs