Shortcomings of Market Societies: Lessons from Behavioral Economics (MacroEconomics)

To begin with , what is a market society , and how can it possibly have shortcomings , and what they are form a key part of this debate . Usually a free market society , or economy have a few key features . People can buy whatever they want whenever they want it , as long as they can afford it . Therefore money becomes an important part of this economic system Because money becomes such an integral part of this system , people are forced to do or sell any commodity they can in to maximize the amount of money

they have . As a consequence of this , profit becomes the primary desire for business operations . As the economy becomes more focused on profit and the production of wealth , individuals are controlled by their salaries and working conditions , as opposed to the slavery model from previous centuries . Therefore supply and demand become key issues in a market society , as rationing based on supply and demand curves dictate the amount that certain goods or services will cost

These few factors can have both advantages and disadvantages , among the advantages are competition between suppliers and vendors , motivation for people to work well and become rich , as well as causing development of technologies , decreased costs and more variety of products and services offered to the market

However the market society also suffers from some big disadvantages . The fact that the economy is now driven by making profits means that money gets spend in areas that will produce the biggest profit...