Can anybody write and post essay on the Issue written here?

Question

AWA ESSAYS: Analyze Issues 
 ESSAY QUESTION:  
"Individuals living in capitalist economies suffer a higher degree of personal risk than in other types of economies. Creating regulations that protect a society can’t help but interfere with free market forces, a basic tenet of capitalism."

From your perspective, how accurate is the above statement? Support your position with reasons and/or examples from your own experience, observations, or reading.

heregoesnothing · Answer

I would recommend first giving it a try yourself (untimed if you are having difficulties with the topic).

I'd be happy to review.

chawlavinu · Answer

I tried it during my MGMAT exam. However, it was timed. And whatever things came into my mind I wrote. I am not sure about the correctness of the content because I did not understand the topic fully.

Here is my response during the exam:  
What benefit a society can get by creating regulations in the region which follows capitalist economies? In some cases, the need is to find out the inside things, not to change the things. The conclusion offered by the speaker suggests the same that creating regulations can atleast interfere with free market forces, though it can not help to protect the society. I agree with author's tone.

The free market forces as said by the speaker are a basic tenet of captialism. These forces only drive the captialist economies. The society will have no idea about the so many factors to which it is not exposed. However, by creating regulations a society can at least get into free market forces and come to enhance knowledge on unknown factors; the knowledge that can help them to understand the factors and free market forces. In this way, the society at least can not provide any contribution to protect itself but it can, by understanding of various facts of free market forces, take the necessary actions to help them by indirect way upto certain extent.

For example, in the corporate world when the employees have appriasal cycle annually, the manager provides feedback for his contribution for the whole last year. The employee in such case, is the one who can ask questions to manager to understand the criteria to make him 
fit in certain company grades. But, he is not supposed to change the company policies. The opponents may arue that the employee has every right to raise concerns if he has been not rated upto the mark that he has thought. In practical scenario, its one in million case and we should accept the facts that are already experienced by other hundered thousand people in various organizations.

In conclusion, a society by creating regulations can intefere with free market forces to understand the unknown facts of forces but not to help itself.

chawlavinu · Answer

Can anybody please reply???

heregoesnothing · Answer

Good effort!

Looking at your essay, it appears that you are agreeing to the statement. However, it is difficult to follow your argument and example. Of course, it's quite possible that it's just me. As an example. Which unknown factors about the free market forces are you referring to? How the example support the point you are trying to make?

Also, the size of essay is a bit on the short side. You want at least 2-3 points excluding introduction and conclusion.

This is indeed a very interesting topic. Here are some of my thoughts in favor of the issue.

As I understand, the issue is stating that the basic rule of capitalism is to promote entrepreneurship. If a government tries to regulate the markets in capitalistic economies, it's going against that specific rule.

Regulations kill the spirit of entrepreneurship. People become less inclined to take risks. Risks lead to innovations. E.g. Facebook, if it was banned or it's growth was curbed, it wouldn't be what it is now (might not even exist). You can site more examples of countries where regulations are enforced on the market that leads to less innovations.

Free markets are beneficial for the overall growth of economy. The wages are generally higher. Markets have control. Government doesn't enforce using a product (or service). E.g. Russia before and after it opened the markets.

As a counter argument, regulations are a necessary evil. Markets can go out of control without any regulations. Without them the wealth can accumulate amongst the already wealthy. E.g. the whole banking fiasco in the United States of 2008. Unregulated banks lead to collapse of the market.

Hope that helps.

Keep practicing!!

Can anybody write and post essay on the Issue written here?

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