Your answer should be in a word limit of 150 words :
Student 1 – kayla
“Economists agree that free trade generates widespread economic benefits—helping to efficiently allocate resources and promote growth.” Studies have shown that most Americans oppose the reduction of trade barriers; however, the United States population supports trade, while only a small portion opposes it. (Mansfield, Mutz, & Silver, 2015, p. 303).
The United States economy is essentially considered a free market economy. This economy is run through supply and demand with some government regulation. People who are for government regulations on the free market economy argue that the government should place regulations to protect consumers. These people claim that larger corporations do not look out for the best interest of consumers; and that is the exact reason there is a need for government regulations. People who are against government regulation claim that the free market forces businesses to protect consumers. They also claim that less government restrictions would lead to affordable prices for everyone and superior products or services. “The key is to strike a balance between free markets and the amount of government regulation needed to protect people and the environment” (Seabury, 2013).
Proverbs 28:25 (ESV) states, “A greedy man stirs up strife, but the one who trusts in the Lord will be enriched.” Based upon my research, God wants his people to give to one another. I am for the free market; however, like Seabury, I believe that there should be a balance between free markets and government regulation. If we become greedy, we are not completing God’s will. If a balance was found then American consumers should be able to be protected while being able to buy things or services that are not only affordable, but that are of quality.
References: Mansfield, E. D., Mutz, D. C., & Silver, L. R. (2015). Men, Women, Trade, and Free Markets. International Studies Quarterly, 59(2), 303-315. doi:10.1111/isqu.12170 Seabury, Chris. "Free Markets: What's the Cost?" Investopedia. N.p., 18 Nov. 2013.
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Student 2 - Melonese
Although, I was unable to access the website (the site said it no longer exists); I would venture to say for some parts of New Jersey the loosely regulated markets can range the small carwashes on the corner to the neighborhood Chinese restaurant. The workers at some of these carwashes look like they have been putting in long hours and more than likely are not receiving the greatest pay, if they are being paid at all. As far as Chinese restaurants, the quality of food can come into questioning. For example, New Jersey restaurants received food from the New Yung Wah Trading Company, a major distributor of Chinese food cited in February 2015 for a host of stomach-churning conditions in its Pennsylvania warehouse, including rat’s nests, feces and flying pigeons. (Augenstien, 2015). In this case the USDA was notified and an investigation occurred, “the company refuse to disclose even the most basic client detail, leaving Garden State diners in the dark about the quality of their food.” (Augenstien, 2015).
Government regulations will always be needed because without them, there is no command and control. A free market happens when “buyers and sellers can make the deals they wish to make without any interference, except by the forces of demand and supply.” (Web Finance Inc., 2016). “If demand is up and supply can adequately satisfy it, then the market is strong. Lots of people have money to buy new things, more new things are produced and sold, and wealth is generated. This wealth is then dispersed throughout the society, all strata of which ultimately benefit: Companies require labor in boom times, thus increasing employment; taxes paid on that wealth end up funding government social programs for the poor.” (Clark, n.d.)
The pro of free labor markets would be competitive marketplace encourages companies to do everything in their power to maximize profits. (Clark, n.d.) Some companies will pay higher wages, providing the labors with greater opportunity to provide for themselves. When this occurs, the workforce is stronger, productivity increases thus creating a competitive edge for that company in the marketplace.
The cons of free labour markets would be that some companies will seek to achieve monopolies (sole control of a good or service) and they will be more concerned with setting their own prices with little or no regard for market demands. Wages for labors are low as they are willing to accept and various workplace violations can occur (e.g. long hours, lack of personal protective equipment, etc.).
The Bible provides several instructions concerning the treatment of others (your neighbor) as well as labor and wages. In Matthew 20 we find the parable about the workers in the vineyard. Although the vineyard owner paid everyone the same amount, some felt that they should have been paid more because they had worked more hours than others, yet the agreement was that they would receive a day’s wages. The truth of the matter is simply this…. understanding God’s will for our lives is the foundation needed to operate in today’s marketplace (regardless if is it free labor or not).
References: Clark, J. (n.d.). Is a free market "free" if it's regulated? Retrieved from
https://money.howstuffworks.com/free-market-economy.htm/printable
Web Finance Inc. (2016). What is free market? Definition and meaning. In BusinessDictionary.com. Retrieved from
https://www.businessdictionary.com/definition/free-market.html
SAMPLE REPLY:
Melonese,
I enjoyed reading your forum and you made some really good points that I hadn’t even thought of. When I thought of government regulations, I thought of rules for operating a business, such as business law. You however brought up about the government health department, which is another great example of how we need standards in which we have food businesses operate. You had a competitive market in the pro section to maximize profits, this could also be true for what you were talking about the in the food industry as a con. I’m sure Chinese restaurants want to maximize profits, so the cheaper the food, the better their profits will be. Another thing you brought up was monopolies in the market. We also see this in my town with UPMC hospitals. UPMC is buying up all the hospitals around as well as doctors offices to maximize their profits and get rid of the competition. Competition drives us to do better and make better products, without competition we have no drive to do better or what kind of service we give people (Gruden 2003). Workplace rules also have a play in demand, the boss needs its employees to make good products and do what they say to stay competitive (Budd 2012). In 1 Corinthians 9:24 it says, “Know ye not that they which run in a race run all, but one receiveth the prize? So run, that ye may obtain”.
Ref: Budd, J. W. (2012). Labor relations: Striking a Balance. New York: McGraw-Hill/Irwin , Grudem, W. A. (2003). Business for the glory of God: The Bible's teaching on the moral goodness of business. Wheaton, IL: Crossway Books