The Business System

Roy Marshall, an American economist analysis, said that the market systems unregulated is defective because not able to solve the problems, like recession, inflation, trade and free and open competitive, environment, same chance, poor and poorest, need for research and long term innovation, and ensuring the national security. Whereas Robert Anderson, Leader of Rockwell International Corporation, said that the market systems regulated is defective because collide with freedom right and conduct to resource allocation inefficient.
In Analyzing about free markets and government arguments is mean we analyzing what in psychology called ideology. Ideology is a system of belief normative that held in particular social group members. The Business ideology is a systems of normative belief about economic problems, especially that believed by business groups.
George Lodge, Harvard Business School, the identification in 2 important ideologies that characterized from several different society, that is :
1. Individualistic
In individualistic society, a government role is limited. The base purpose is to protect the property, develop the contract, and keep opened market in order to competitive intercorporate can stable and free.
2. Komunitarist
Government roles in komunitarist society very different. Here governments in character are prestigious and authoritative, even authorizer. Government functions are determined society needs either long term or short term, and assured whether that needs was complete.

Command system and free market system
The market purpose is to solve the base of economic problems in faced of all society. In command systems, one authority makes decision about what production, who to produce that would and who that would consumed that product. The authority continuous to communicate this decision to the system members in form command or instructions, and distributing within system members in that command. In free market system, all companies make decision about what production and how to produce that. Next, each of company barters their goods with another company and to consumer with favorable price. Price has a role to coordinating production by way of conducted investment at favorable industries and attracts the investment from unfavorable industries.

Free Markets and Rights: John Locke
An unregulated market human have certain “natural rights” that only a free market system can preserve. The two natural rights that free markets are supposed to protect are the right to freedom and the right to private property. Free markets reputed able to protect the right to private property in far each of individual free top choice what would they do about what they held without government interventions.
John Locke (1632-1704), an English political philosopher, is reputed as developing the idea that human have a “natural right” to freedom and a “natural right” to private property. Locke said that if never have government, humans would get itself in “natural condition”. In this natural condition, everybody politically is same and full free from limited except nature laws. Follow to Locke, nature laws teach everybody that he have right to freedom, thus no everybody can out from this condition and submissive to other politics authority without dealing.

Criticisms of Locke rights
1. Opinion of Locke about free markets based on the unproven assumption that people have rights to freedom and property that take precedence over all other rights.
2. Even if human have a natural right to freedom and property, it does not follow that this right must have precedence over all other rights.
3. Opinion of Locke about free markets based on the idea that free markets create different unfair right.
4. Locke’s argument assume human are atomistic individuals that held rights to freedom and property coming from themselves personal nature separate from their relations to the larger community.

Free Markets and Utility: Adam Smith
Adam Smith (1723-1790), father of economic modern, is inventor of free markets utilitarianism argument. According to Smith theory, when individual leaved free to search their interest itself in free markets, they will be aimed toward public wealth by an invisible hands. Here an invisible hand exactly is free competitive market.
Smith said the best policy from government to drumming up public wealth is not doing anything: leaving the individual search their interest appropriate with “natural freedom”. All government intervention just disturbing competition process and reduce gotten benefits. Smith assume that the society have free markets system that also have private property system, eventhough Smith not give his arguments explicit utilitarianism that private property system is better. Private property system is the best because able to give incentives to individual in order to focused working, to increasing and useful their resources and they know that the benefits from that work can have them privately.

Criticisms of Adam Smith
1. That the impersonal abilities of supply and demand will press price down until lowest level because so many the sellers of products.
2. Smith assume that all the resources used to produce something will be paid by the producer and that the producer will try to reduce these costs to maximize profits. The consequence is appearing tend to usefulness efficiently.
3. Smith’s analysis wrongly assumes that human just motivated by a “natural” wants to get profit. In The wealth of nations from Adam Smith assume that in their activities just to get profit.

The Keynesian Criticism
The most influential criticism of Adam Smith’s classical assumptions came from John Maynard Keynes (1883-1946), an English economist. Smith assumed that without any help from the government, the interaction market abilities would ensure usefulness efficiently of all economic resources including labor. If amounts resources used, so the cost will be down and entrepreneur will try to adding commodity output with using cheaper resources.
Government, according to Keynes, able to influences trend to saving or cutting down on, here turn down of demand and creating unemployment. Government can prevent over cutting down with influence interest rate with way adjusted money inventory: higher of money inventory, and also lower loan rate. Second, government can influence directly the total that got of household with way increase or decrease taxes. Third, government expenditure can cover the different between the total demand and total inventory with way increasing the demand of households and businesses.

Criticism Marx
Karl Marx (1818-1883) is critical that struggle and most influential of the inequalities that formed by private property institutions, and free markets.
According to Marx theory that capitalism produces 4 form of worker alienation from what should they owned, that is :
1. Capitalist society gives authority of the products that workers produce to others.
2. Capitalism alienates the workers from their activity.
3. Capitalism alienates workers from themselves by installing in them wrong views of what actually they needs and wants.
4. Capitalist society alienate human from each other by separated them into antagonistic and unequal social classes and destroyed community and caring relationships.

The function of Government
In Marx’s view, societies can analyzed Consist with by two main component : substructure and superstructure of economic. Economic substructure is a society Consist of the materials and social control used by societies to produce economic goods, and superstructure Consist of the government and famous ideologies. Marx claimed that authority class formed by economic substructure unquestionable to control superstructure.

Impoverishment of Workers
Marx also claims that so long as production in economic modern is not planned, but is left to depend on private ownership and free markets, the result no more as combinated disasters that all tend to make loss the working class. This claim based on 2 characteristic as base of modern capitalist.
1. The productive assets held and controlled by owner that just want adding their assets in free market competition with another owner that have same wants.
2. Mass produced commodity in factories with workers group, if they want to life, must working in factories own by entrepreneur that just preference they own.
According to Marx, as a contradiction that unquestionable will be creating 3 preference stimulatingly would to impoverish the workers:
1. Concentration of industrial power will be more centrally to the few hands of people.
2. Capitalist society will repeated downturns cycles or crises. Because of the product in producing is very organized, so the owners able to surplus produce in big amounts
3. Marx said the position of the worker in capitalist society gradually will be worsening. These worsening consequents by owners want to add their assets with bargain away their workers.

Conclusion: The Mixed Economy
Unification among government’s rules, partial free market, and limited private property is what generally called The Mixed Economic. The Mixed economic retains market systems and private property but depend on government policies to solve their inability. Governments transfers used to omit the bad aspects of unequaled with way attract money from richer group in form income taxes and distributed to poorer group like wealth subsidies. The rules about minimum wages, working safety, workers party, and another rules used to protect the workers from exploitations. The monopoly adjusted, nationalization, or with no permitted. Monetary and fiscal policies of government focused to ensuring creating the working chance. Monitoring institutions of government have purpose to controlling the company in order to do not the actions that make the society loss.

Property Systems and New Technologies
Intellectual properties are Consist from abstracts objects and nonphysical. Private property of intellectual properties gives an incentive that required to working hard to creating intellectual inventions.