Sunday, September 15, 2019
Free Trade In Society Essay
How does the society benefit from an economy built on free trade where both the labor and the buyer only seek personal gain?            On an economy that is built of free trade, society will run like clockwork because of the various incentives that the various sectors of the economy provide. It is human nature for individual to act upon incentives. Children are commonly disciplined by their parents with the use of incentives. It is the same in the case of the laborer and the buyer. Both of them seek only personal gain. It is highly uncommon that either buyer or laborer will act for the greater good of the nation or for world peace. They work because they want to earn a living. They want a nicer car, a bigger home, a good education for their children, and a trip abroad for the summer perhaps. All their efforts are targeted to their personal goals, all of which is quantifiable in terms of money.            The laborer will always look for a place where there is a higher monetary yield for a lesser amount of work. He will work harder if he knows that there is a promotion ahead. The buyer, on the other hand, will always search for a good bargain for any of his purchases. All in all, everyone wants more for their money and time.            Society benefits from this system because it creates more competition in the markets of both buyers and laborers, resulting in more options and better options for both sectors. With this equilibrium, society benefits because the economy benefits, thus increasing the standard of living. If however, there is an oversupply of labor, wages will go down and unemployment will go up, distorting the balance. This is the same for buyers. A lack in competition will increase prices and decrease their purchasing power. It is therefore necessary to maintain a good equilibrium in both labor markets and buyer markets which will result in a better economy, and which will eventually result in a higher standard of living for society.
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