How individuals suffer in market economy?
Reward : reward of individual’s effort are decided by the forces of Demand & Supply. And “forces of Demand & Supply” are beyond one’s control.
Farmers suffer when there is high production of any crop because prices go down. Many at times majority of them incurr huge losses.
So, in order to earn better returns or to get fair share of your efforts, you have to adjust yourself as per the market.
Many a time, it may mean:
– compromising with your principles
– doing what you don’t like (a job where monetary benefits are greater) than doing what you love because incentives are low. So, many talents die a slow death due to very low or no incentives.
Ex. how can market forces decide who is more talented & who is not? Just out of Supply & Demand curve?
Teachers are paid very nominal as compared to celebrities because celebrities have fans who are ready to pay huge sum of money for their concerts. Such is not the scenario in case of teachers & their lectures.
– intermediaries benefit: businesses that just act as intermediaries make huge profits while people at the receiving end may not be benefitted to that extent.
Hence, market economies tend to subjugate human talents to the forces of demand & supply, thereby destroying the creative freedom of human beings.
With Great Love,
Er. Amit Yadav