market economy

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Related to Market capitalism: market capitalisation, Free market economy

Market Economy

A social and economic system in which prices are fixed by the law of supply and demand rather than by a government or other body. In its pure form, a market economy is an economy absent of government subsidies, incentives, or regulations. A market economy contrasts with both a planned economy and a mixed economy. No economy is a complete market economy: most countries claiming to have market economies in fact have a market economy combined with greater or lesser government regulation, sometimes called a social market. Proponents of a market economy argue that it is more efficient than any alternatives, promotes fair competition between its participants, and rewards skill and hard work. Critics allege that a market economy perpetuates class differences and rewards ruthlessness over actual labor. Milton Friedman, Friedrich Hayek, and Ludwig von Mises were three major 20th-century proponents of the market economy. See also: Capitalism, socialism, John Maynard Keynes.

market economy

see PRIVATE-ENTERPRISE ECONOMY.
References in periodicals archive ?
On all other counts, the economic record of market capitalism has been inferior to that of managed capitalism.
In fact, the book is animated by the belief that state capitalism's biggest threat is the affront to market capitalism.
But if we do no more than pick up the pieces and carry on as before, we can look forward to greater upheavals in years to come" The problem, though, is that "we seem unable to conceive of alternatives" For much of this short book, Judt traces how the Left lost its way and why the great role of social democracy in the 20th century has largely dissipated in the face of the battle for minds waged by neoconservatives in championing the role of free market capitalism and the notion of government as the problem.
He said one thing was very clear that with social business taking off, the world of free market capitalism would never be the same again, and would that deliver a significant blow to global poverty.
This new high-tech, market capitalism is what Baumol, Litan, and Schramm have favorably labeled "good capitalism" (in contrast to its bad failing forms), and, quite naturally, the leaders of nations now work intensely to figure out how to ignite its fires and thus to banish poverty from their countries too.
The author's blithe announcement that market capitalism is 'good news' mocks Jesus' statement that: 'a man's true life is not made up of the things he owns, no matter how rich he may be.
The "American dream" stresses individualism and free market capitalism, but allows minimum social support for failure.
It strives for a new order--a combination of free market capitalism with a social consciousness.
This is the goal of free market capitalism or globalisation, to give it its fancy name, and only happens in what used to be called the Third World.
But the problem is that both market capitalism and state socialism appear unable to nurture the kind of democracy and freedom he affirms.
Perhaps the greatest contribution of Morgan's book lies in incontrovertibly reminding readers that, for the past several decades, American liberal and leftist political ethos have always been better allies for the African American cause than the conservative and right-wing ideologies of rugged individualism and unbridled free market capitalism.
The first concerns the issue of what happens when social movements inspired by Marxist ideas abolish private property and market capitalism.