State Capitalism Model
State Capitalism: a detriment to the economy
Our world today is witnessing dramatic political changes that are effecting the global business environment. Across the United States, Europe and much of the developed world, we can witness examples of state intervention to lessen the pain of the recent global recession to spark long-term growth. It is evident that our world is shifting from free market capitalism to state capitalism but we must ask ourselves, if this is the optimal solution for our economy. The injection of politics into free market decision-making has introduced large inefficiencies, allowing the state to make political investment decisions as opposed to economic focused reasoning. A free market capitalism model is the right …show more content…
Through a free market capitalism model, organizations will be able to compete on a level playing field against their competitors, exercise efficient practices while striving to grow as an organization. A state capitalism model is proven to be unsustainable for governments and does not execute optimal economic investments but rather, decisions based upon political gain. Free market capitalism motivates organizations to compete by producing innovative advancements through R&D and supporting the economy through job creation. By allowing the market to perform without major financial involvement from the government will produce sustainable growth, adequate income formation and encourage ethical business …show more content…
"P.34, P.143." The End of the Free Market: Who Wins the War between States and Corporations? New York: Portfolio, 2010. N. pag. Print. [academic source]
Kissick, W. Peter. "P.34, P.143." Business Ethics: Concepts, Cases, and Canadian Perspectives. Toronto, Canada: Emond Montgomery Publications, 2012. N. pag. Print.
Sim, Stuart. "P.155 (Conclusion)." Addicted to Profit: Reclaiming Our Lives from the Free Market. Edinburgh: Edinburgh UP, 2012. N. pag. Print. [academic source]
Skipton, Chuck, and Dan Verreault. "Business Ethics and Free Markets: A Social Contracts Perspective." Paper Presented at the Academy of Economics n. Print. [academic source]
"OECD Annual Report 2012." (n.d.): n. pag. Web. 31 Jan. 2014.
"The Ethics of Drug Patents." COMM 104 - Course Package Readings. N.p., n.d. Web. 31 Jan. 2014.
"Tackling the Global Jobs Crisis." N.p., Feb. 2009. Web. 31 Jan. 2014.
Bacon, Derek. "The Rise of State Capitalism." The Economist. The Economist Newspaper, 21 Jan. 2012. Web. 31 Jan. 2014.
Wooldridge, Adrian. "State Capitalism." The Economist. The Economist Newspaper, 24 Jan. 2012. Web. 31 Jan. 2014
WORD COUNT:
Our world today is witnessing dramatic political changes that are effecting the global business environment. Across the United States, Europe and much of the developed world, we can witness examples of state intervention to lessen the pain of the recent global recession to spark long-term growth. It is evident that our world is shifting from free market capitalism to state capitalism but we must ask ourselves, if this is the optimal solution for our economy. The injection of politics into free market decision-making has introduced large inefficiencies, allowing the state to make political investment decisions as opposed to economic focused reasoning. A free market capitalism model is the right …show more content…
Through a free market capitalism model, organizations will be able to compete on a level playing field against their competitors, exercise efficient practices while striving to grow as an organization. A state capitalism model is proven to be unsustainable for governments and does not execute optimal economic investments but rather, decisions based upon political gain. Free market capitalism motivates organizations to compete by producing innovative advancements through R&D and supporting the economy through job creation. By allowing the market to perform without major financial involvement from the government will produce sustainable growth, adequate income formation and encourage ethical business …show more content…
"P.34, P.143." The End of the Free Market: Who Wins the War between States and Corporations? New York: Portfolio, 2010. N. pag. Print. [academic source]
Kissick, W. Peter. "P.34, P.143." Business Ethics: Concepts, Cases, and Canadian Perspectives. Toronto, Canada: Emond Montgomery Publications, 2012. N. pag. Print.
Sim, Stuart. "P.155 (Conclusion)." Addicted to Profit: Reclaiming Our Lives from the Free Market. Edinburgh: Edinburgh UP, 2012. N. pag. Print. [academic source]
Skipton, Chuck, and Dan Verreault. "Business Ethics and Free Markets: A Social Contracts Perspective." Paper Presented at the Academy of Economics n. Print. [academic source]
"OECD Annual Report 2012." (n.d.): n. pag. Web. 31 Jan. 2014.
"The Ethics of Drug Patents." COMM 104 - Course Package Readings. N.p., n.d. Web. 31 Jan. 2014.
"Tackling the Global Jobs Crisis." N.p., Feb. 2009. Web. 31 Jan. 2014.
Bacon, Derek. "The Rise of State Capitalism." The Economist. The Economist Newspaper, 21 Jan. 2012. Web. 31 Jan. 2014.
Wooldridge, Adrian. "State Capitalism." The Economist. The Economist Newspaper, 24 Jan. 2012. Web. 31 Jan. 2014
WORD COUNT: