Invisible Hand & Sharp Eye state
The market is a surprisingly strong social and economic phenomenon, thanks to which the entire socio-economic order of society is largely maintained and historical progress is being made. The origins of the market go back to the depths of gray age, when people entered into a sale-purchase relationship by simply exchanging goods, when they mutually acquired what they did not have, but what they needed was vital.
The market, historically being formed as an objective economic and social reality, develops and is civilized with society. This is a natural, basically self-regulating mechanism for identifying existing needs and their satisfaction, the only form of the relationship between the producer and the consumer that is consistent with the mind, a form consecrated by the practice of many centuries of human history. The market is a powerful regulator; it is a kind of whirlpool, which in its inexorable stream literally covers all aspects of society, even interpersonal relations. The market primarily regulates and controls the supply-demand ratio, reveals the viability of certain enterprises, institutions, firms, collectives and even individuals, constantly keeping the intensity of their activity at the highest possible level, stimulating the desire for competitiveness. The market economy is driven by economic motivation, i. internal motives, striving to achieve profit.
The market is an arena of transactions guided by economic interests. But a truly wise and experienced entrepreneur can not be easily deceived by false signs of gain. Naturally, the producer of the goods and the buyer always agree in the sense or in the sense that one wants to buy what the other wants to sell, although, however, not always the same price. But there is always a price, which both ultimately satisfies and reconciles - the purchase and sale took place. What a person buys, he consumes, knowing that he will again and again buy. And the one who sells knows that he will sell again and again. So the endless thread of the web of the market is poking. There are no antagonistic contradictions in the producers' desires, as long as everyone has buyers and sellers while there is demand and marketing. But as production volumes increase, each of the manufacturers wants to produce more and more goods in order to capture the entire sales market. The desires of producers in this case come into conflict, and the struggle between them becomes inevitable. The market is cruel and impartial - there is no shame or conscience on his face. He obeys only the principle of supply and demand. The more demand, the higher the price, and vice versa, - that's his dumb imperative.
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As for consumers, the fewer will be willing, for example, to buy goods of this particular type, the lower its price. Consumers' desires are encountered when the quantity of these things, both basic necessities and luxury goods, is less in the market than the number of those who want to buy them. Before becoming an object of market demand, this or that thing through advertising has declared itself ("how good and necessary it is") to a potential buyer, thus provoking a "warning request about themselves."
The consumer through the market affects the entrepreneur producing goods, and vice versa, an enterprise, with the help of the organization created by it, powerfully acts on the consumer, say, through advertising, thereby exerting a strong influence on the market, pushing new goods, influencing on the psychology of the consumer, changing his tastes and needs.
The market is the very procedure of buying and selling, i.e. the very social human actions that occur in each particular case as an individual action or, strictly speaking, the interaction of the buyer and the seller. And every such action and interaction is full of subtle manifestations of the human soul.
The market is a set of commodity exchange relations in the social and economic mechanism of interaction between the seller and the buyer, the sphere of exchange both within the country and between countries.Today economists usually define state regulation of the economy in market conditions as a system of standard legislative, executive and monitoring measures implemented by eligible government bodies and public organizations to improve, stabilize and adapt the current market system to available conditions. Ultimately, such regulation is aimed not only at improving the functioning of the market itself, but also protecting the interests of the population.
The most high level of state regulation is strategically thought-out economic programming. Its essence consists in the complex use in the global purposes of all essential components of the market system of the functioning of the economy.
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As is known, disputes about the economic policy of the state have been conducted for a long time, they continue to this day. Countries with a developed market economy did not escape these disputes. Here, at least a quarter of the total income, and often much more, is spent on social needs. The state regulates and corrects the market, primarily by monitoring legal institutions that ensure the normal operation of the market mechanism. It is in charge of the judicial system (punishing economic criminals), guarantees the implementation of laws, controls the monetary system on which all market transactions are built. In addition, the state ensures compliance with the legislation in market competition, contributing to the prevention of unscrupulous ways of doing business, say, fraud, bribery, etc., and also prevents the emergence of monopolies or at least regulates their activities. In other words, the state is called upon to correct the "shortcomings" market system.
It is clear that the problems of the market system do not include the provision of public welfare, especially where ownership rights are unclear or where private owners lack economic motivation to use their capital in the interests of the whole society. After all, the market itself can not adequately provide for the needs of the state defense, preserve the environment, guarantee to every citizen normal nutrition, good medical care, and housing. A considerable number of citizens, because of their physical or mental incapacity, is deprived of the opportunity to make an effective contribution to the market economy. Therefore, the state, based on ethical and social considerations, is obliged to help such people.
Thus, those who adhere to the point of view according to which the state should be removed from intervention in the economy, especially in conditions of its reform, are profoundly mistaken. In the transition period, the functions of the state should be more diverse and stronger than in quiet times of stable operation of the laws of the market economy and private entrepreneurship. State economic policy should be aimed at mitigating and preventing a recession and especially the ruin of enterprises or, as economists say, the prevention of overheating " economy. The state is called upon to keep under control the credit and financial system, to monitor the amount of money that is currently circulating, and how this money is spent, to implement the most reasonable collection of taxes. State regulation (during crisis periods) should act as a part of management, but not replace market mechanisms.
In conclusion, we emphasize that the economic processes of modern production are modified as a result of strengthening the influence of the state. This allows the state to seek to alleviate the contradictions between workers and entrepreneurs within the framework of democratic forms of government. Due to this, various kinds of crisis phenomena are shifting from the political and even economic field to the administrative and managerial sphere, which also affects the nature of the crises. Management, which is based on the principles of industrial and labor rationality, is in conflict with the really dominant behavioral motivation in society. Such conflicts are settled with the help of trade unions designed to protect the legal interests of workers.
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