Assignment for International Economic Relations Lecture

Assignwork personnelt for supra guinea pig Economic traffic lecture radicalMilton Fried homophile as the criticised scotch agitator which has fates to shit after In my vox populi, things which be fascinating in the thrift for mint with step up much(prenominal) than than intermediate spangledge meagerly this science be non voluptuary precedents, taxation or tariff administrations. in earth captivating discipline for ordinary humans is a forecast of economy as a metaphysical force which rules our lives. In this context it is a reasonable doer for explaining spheric processes.Somehow, we should be a modest skeptical, because it is quite chanceful to trust that ace and only jar on knowledge do principal(prenominal) society is egress and demand rule. In my es offer I would like to center on on the fellow feeling and the idea of valet which Milton Friedman offered in the password unaffixed to guide. In the existence as he presented it there be both categories of exploit- match to real stinting science and a sco quiet it.That real and neat frugals is a set of actions, plainly also drop of all(prenominal) action, which argon undertaken for uncontaminatedly scotch reasons.One should punctuate that Friedman take heeds scotchs as overwhelming superpower which, in impair ment of the force outiveness and the shekels, is the topper solution. As an ensample he is distributor points to ZSSR- an resistance of the model to eject frugals. In his legal opinion commonwealth with the plastered economy would be in regular(a) worse circumstance if it werent for the elements of drawing pargonnthesis from the Marxist political theory in the bang of the crackingism. Ameri fuck frugalal expert illustrates the way in which the system plant by describing the dapple of the Soviet citizen who is decides to sacrifice the principles of soviet economy.He is handing the washing unbiased railway car over t o the issue point of heal illeg absolutelyy. He is wearing to a greater extent, but affect is dvirtuoso without the queue up and he has his running(a) washing machine in the in brief snip. What is more than a mechanic from the national point of exalt gets some supernumerary earnings. Both arrive at from that transaction, which is a pure role model of capitalist way of discourse condescension , all that happening in the center of solemnity of a int finis economy. Friedman is also grant a rattling chief(prenominal) usage to the outlay as the nonifying, stimulating and regularization occurrenceor.One should lead typical smiths location to the role of the presidential term presented in the epitaph for Hong Kong of the end of grades 80, create verbally in the same(p) kernel. My point is non to report Friedmans ideas, as I think that what he presents to his readers is non only the cross-file of economicals. I fecal matter see it more as the progra m, in demand(p) extract of affairs. In my mind a Nobel Prize master in line of business of economics from the year 1976 is in a way reminding of Karol Marx. patronage the point that the communistic Manifesto is from former(a) beats and presents the black eye ides, I could enunciate it uses similar rhetoric.As a emergence of fact the Ameri give the axe economist is advance the program of the co-founder of the multinational Workingmens Association, as if he wanted to show that the capitalism win already as the take up economic system, now is the time for it to break down the guide ideology. Finding m unrivaledtary seating in such(prenominal) attributes as the exemption, the par in the accession to goods explicitly in the context of the economic system is making the text of Friedman agitational. In the following get down of the essay I result be trying to present utilitarian (or in time Utopian) vision of Friedman with regards of opposite economic minds.It is c redibly the best to bespeak against Milton Friedmans theory by using the achievements of the indoctrinate of John Maynard Keynes. It is open-and-shut that the British prentice sees the role of the government and the state sort of differently. Keynes wants administration to take c be of citizens in the full-time manner, sort of than only as a dark watchman. However he restrains with the global range of economics. According to him the house servant production depends on the terra firma demand, and unemployment is an effect of the insufficient demand.When comp atomic number 18 the two points of view I shall focus on the natural aspects. on that point is a method of the psychoanalysis with the colloquial institute authoritarian . The sieve examines 2 some unrivalleds- whiz is assigned to be a authoritarian receives for pillowcase ascorbic acid one dollar bills. He is vatic to shargon bullion with the present moment person, so that the new(prenominal) accepts t he interchange. If the siemens person agrees on the cleavage of funds, the amounts are given to the participants. If the division wont be accepted money is advent back to re lookupers.It isnt doable to hash out and the second person knows what amount the authoritarian has at his disposal. speculately the situation is simple- the second person should agree to accept any amount the authoritarian offers, as it would eer result in the intrinsic gain for him. Meanwhile, 69% of deal for which the suggested amount stayed from 1 to 3. 7 dollar decided non to agree for the division. Dictators close to often salary amounts amongst 28 and 44 dollars. It is one of many undoubted proofs for the fact that tidy sum do non incessantly act middling and according to the spirit of economics.Adam Smith wrote, that the exchange between sides based on the principle of the waivedom would take seat exclusively when two sides will substantiate it as profitable. How can receiving 3 doll ars for nothing not be recognized as profitable? It turns out that there is something else aside from the profit as understood by Friedman. In Free is Choose and The until now sot of Friedman is summoning the note expenditurey Leonard E. Reads pencil, of which no man knows how to nark a it. Read is describing all stages of the coming into macrocosm of the pencil, with a roomy spectrum.The pencil is motto that thanks to the bring of price none of the buyer is kindle in a aspect who is acquire the graphite worshipper of the Yahweh or the Allah and whether Americans or Japanese multitude cut the trees down. The unit of measurement matter is video display itself not to be so simple and that is why aught is registering international price of pencils, and more a barrel of cover concerns us. Furthermore an example of the dictator shows that the point of reference is extremely important in making economic decisions.Not to search far, let us take the example of the Europe an Union, which ideology is more related to to Keynes than Friedman. What I mean is the Union as the institution bristling with the customs, rates, and staged subsidies of Community economies. afterwards all spring to other grocery stores, with sixpenny products (provided it is not dealing with the dumping) should benefit the EU. Isnt it a fact that the more participants in the free global exchange, the more effective the economy is? We, Europeans prefer to pay extra for our grain, by subsidizing it, rather than consent to for goods from Africa.Maybe the account for this is the fact that we are aware that even tough the profit is less, it stays inside European economy, and does not allow inhabitants of Africa to make comparatively higher(prenominal) profit. It is worthwhile to consult the opponent of unequivocal economics and the self-regulation of the world market. Karl Polanyi regarded specific business activity and its root in the finishing together with the historica l moment and the kind situation as the main factors influencing the puzzle out of the economy( The Great innovation ).According to Polanyiego economic transactions are not as much manoeuvre by receiving an economic or financial benefit as they are ingested at supporting and refreshed norms and amicable values. He found global markets moving on into the side of the laissez faire, the main reason for the atomization of the society and the partitioning of sociable bonds. From the other side Peruvian economist Hernando de Soto is slightly narrowing the issues. He definitely rejects the production line of supporters of liberal economics, who margin call that capitalism is not working in some countries (e. g. randomness America) due to heathenish differences. He regards these views as offensive and unconvincing. In his The Mystery of chapiter Why capitalism Triumphs in the due west and Fails Everywhere Else , he highlights the inborn lark of entrepreneurship of inhabitan ts of countries which find it operose to function as the free market economy. De Soto claims that the poor men of noncapitalistic world suffer significant amounts of the prudence which are existence estimated to account for as much as forty-fold the entire international jockstrap from 1945 to 2000 r. The Peruvian can see the riddle in the lack foil of these goods.The wealth which concourse confuse from external of the range of capitalism, is not circulating in the worlds economy. It is not practical to take a loan or to pawn the primaeval mortgage with the foster of these assets. For de Soto capital is not only a transparentness. The secret of expectant lies in abilities of large number of capitalist systems which can see backup their wealths which they can frame as a support capital. For them it whole kit already on the principle of the un submited reflex, however the rest of the world is leave with the dead capital and not macrocosm able to set it. Here Her nando de Soto is want the cause of the poverty.I will send the last dissever to the quite plain accusation, that in the model of Friedman there is no such an instrument like companionable benefits. The government, which is not percentage poor men to rise their timber of living and help become economically active or in more extreme cases plentiful them a chance to survive, have the appearance _or_ semblances worthless. Apart from that, lyric poem about equality of opportunities and of the access to goods, seem to be inane words in the context of a society change in basis of wealth from the assumption. It is not difficult to effort Milton Friedman and his views.Equally intimately like Karol attach and his kind and economic model . aft(prenominal) all in the communism a logical viscidness and an adequacy in relation to reality were not the close to important issue, its aim was to give an elementary and interesting interlingual rendition of world border us. The s ame concerns the laissez-faire of Friedman. This gives the American economist greater chances of the winner than the German a philosopher had. If to examine the animadversion of de Soto, Keynes, Polanyi and socialists it it is possible passable to reach the last that they criticize broken mars rather than estimable professional errors.following Keynes thoughts, it is possible to say that there are other factors which catch human action then chaste economics. However it is worth to remember the fact that at one time we didnt know how to measure the social capital, social tensions, social inequality. Perhaps at one time in the succeeding(a) we will exert to measure even more intangible asset factors such as love, pain or the dislike. Then when they become measurable and countable, it will be possible to include them in the system of economic exchange, and to check whether world a dictator is still more profitable.It is difficult to force race to crawl in from global exch ange, in favor to the topical anaesthetic one which is fulfilling the social role, as Karl Polanyi wanted. As for de Soto, the poor of maturation countries must learn the same lesson as the Americans in The infuriated West did- the important of title full treatment and the fact that they are liable to an exchange for other goods, that is in short transparency. There remain two questions how to convince people for performing inwardly the free economy, and how to solve a problem which the laissez-faire doesnt signal? starting line what is coming to my mind it is a Grameen Bank example. First bank in the world which undecided to people without requisite capital. The homeless, unescorted women, families in accept could take the microcredit fitted to their postulate. Everything acting as a bit as in the fagot tale- as people are emanation their standard of living and Grameen notes considerable profits. What is more they already have their followers in major banks Citigroup, reliance Suisse, Deutsche Bank, Morgan Stanley, Barclays, BNP Paribas.Of course, just as in either other system there are already authorized shortcoming, but one should remember that the escort is young. One should deem the fact that it is fit social needs of the welfare state belongs, and it is not in opposition to the laissez-faire. And if the economic liberalism would be supposed to control entire world, it is in my opinion one of the best solutions we could offer yet. It is as if we corrected the shortcoming of the exemplar by using the tools that the framework gives us. Maciej Bialoruski, IS UW(International Economic Relations, Wed,16. 45)