Writing in English : Essay

Publicado en 'Estudiantes' por Inmortal, 21 Set 2009.

  1. Inmortal

    Inmortal Suspendido

    25 Dic 2007

    Corrijanme por fa :S

    The problematic of controlling the prices in the market

    There is an eternal discussion about having a controlled economy or a free one in which the market determines its own prices. The market’s control has always been related to dictatorship models or systems; therefore, governments have always been under the fear of being labeled as antidemocratic nations for controlling the prices in the market. Even though a controlled market is a characteristic of non democratic systems, I believe that a democratic access to the basic product requires some kind of market control.

    The ones who are against controlled prices argue that private investors can not compete in a market controlled or regulated by the government, since the prices can be changed from one day to another with a simple decision of the economy authority. However, after years of studies, economists agreed in the fact that in a regulated economy the subsidies to basic goods, encourages private business to look for new and creative market strategies; as a result, the consumer gets better products at competitive prices and business are more stimulated to optimize their productive process, reducing costs and increasing the production. I think that private business can compete if they adapt their processes with new technology, providing competitive products in quality and price.

    Defenders of uncontrolled markets say that controlled prices creates a fake feeling of comfort among people, so the unemployed segment of the population is less encouraged or motivated to work. In despite of the fact that their point is proven, statistics provided by UNESCO (United Nations Educational, Scientific and Cultural Organization) shows that countries that subsidy basic goods (food) have minor rates of malnutrition in most of the segments of population. My belief is that even though some people would take improper advantage of these subsidies, this kind of price control gives access to alimentation to people that otherwise couldn’t get a proper alimentation.

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