Market Liberalism

8/3/2019 Market Liberalism

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Discussion Task

You have 5 minutes

In pairs

List as many words that you can thinkthat are associated with liberal orliberalism


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Critical Theories

Market Liberalism


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What is it?

Market liberalism tends to assert not only theeconomic benefits of capitalism but also its social,

cultural and political benefits.

It sees freedom as being best provided for and

preserved by markets.


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Capitalism is an economic system based on the

private ownership of the means of production and

distribution of goods, characterized by a freecompetitive market and motivation by profit

The three requisites of capitalism areland, capital (money), labour (peoplewho work for wages)

It requires the first two land andmoney be concentrated into the hands

of a minority This group then purchasethe labour power of others

Labour power Human labour that canbe exchanged for money in the form ofwages


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What does this mean?

How free economic markets in conjunction withdemocracy and personal freedom provide the best

political model for well-being and prosperity

Generally supportive of the capitalist status quo


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Why think about it?

We live in capitalist society so is big part of

our culture

We study Marxism and other critical theory

Spread to all other political ideologies


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Elements of

Free market

Supply and Demand

C

ompetition Profitability

Market Efficiency

Personal Liberty

Capitalism


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Free Market

No intervention or regulation by government

Price based on supply and demand Items are sold at mutually beneficial value

Market liberalism requires the creation of a freemarket with as little as possible government

intervention laissez faire leave alone


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Supply and Demand

Supply and demand

The relationship between what people wantand need and what is provided by the

market. (AQA)


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Example

The gourmet coffee business,pioneered in the US byStarbucks, revealed a demandfor high quality fresh coffee.

Starbucks sales growthshowed that consumers wouldpay lots more for this type ofcoffee.

McDonald's and Burger King,began offering such coffee tohelp satisfy the demand.


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Discussion Task

You have 5 minutes

In pairs

Are there items on the market that you

think people do not actually need?


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Profitability Creation of high demand for products on the

market.

Keep the wages paid to workers as low as

possible in order to maintain a high rate of profit

It is important thing to sustain organisationsability to make profits therefore hindrance

should be opposed

This would include protection of wages, rights atwork, initiatives that address poverty or

unemployment or taxation in order to fund a

public sector


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How many public sector bodies are there inthe UK

Make list of anything you can think of that is

funded by public money How many rights do you think you have at

work?

Make a list of all the rights and benefits you

think you are entitled to at work


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Overview

Market liberals believe in individual freedom as acentral concept

Freedom is found by not being chained to state,

landlord, employer etc

Does the free market that exists today allow

freedom?How is wealth distributed? How does this effect the

idea of freedom through finance?


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Case Study

The Film Industry


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The creation of demand

Prior to film, no demandexisted

First cinemas in tents

Picture Palaces

Silent cinema made moreinclusive

Post WW2 30 million visits

Social experience = Totalexperience


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Changing Patterns ofConsumption

Today 3 million

people

Home consumption /

video DVD-Online

Television

Pirating


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Producer/ studio etc create film to make

Audience must be prepared to part with

their for product Product has to be worth price asked

When audience decides its not film flops

Demand can dictate supply (adaptations) Supply can dictate demand (synergy/ AOL

Time-Warner)


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Activity

In groups, research either a film genre or a film

star. Use the internet if you like. Present back to

the class

How does the creation of this genre/star create amarketable commercial product?

Where does supply and demand come into this?

How are the audience/consumer positioned? Do you consider this system to allow for

individual freedom as market liberals would

hope?


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TheMarket, Capitalism and

Culture The culture of free marketcapitalism is inherently

contradictory

Business culture is said to be

very go-getting, dynamic,

inventive It claims that the

need to survive in capitalist

society makes people creative

and self reliant Yet it opposes any radical

change that would involve

limiting the freedom to make

money


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Summary

Anything produced in this process is owned by

the minority (capitalists)who then sell it in

order to make a profit

Market Liberalism

Documents

Transcript of Market Liberalism