By Martin Needler
In politics, person political habit is usually ascribed to category and ethnic identification. How does this ensue? during this textual content, Needler indicates how the person constructs his or her political identification, and develops ideologies that advisor their political habit. meant as a substitute to standard introductory texts in politics and political technological know-how, this publication is, while, a survey and creation to political concept, a survey and advent to comparative and American politics, and a evaluation of latest diplomacy. those subject matters are mixed in a unique and artistic approach with the intention to offer a readable and informative textual content for undergraduate scholars or laypersons. The author's clean procedure may be welcomed by way of academics in politics and political technology.
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Additional resources for Identity, Interest, and Ideology: An Introduction to Politics
Since efficient producers earn more profit than their competitors, they will be able to pay higher rates of interest on money they borrow, or larger dividends on the capital of those who invest in their businesses. Thus the free market not only ensures that consumers get the best goods at the lowest price, it also determines that scarce raw materials and scarce capital are directed toward the most efficient producers. Optimum production and optimum allocation of materials and capital are thus achieved Ideology 39 through these movements in supply and demand, which are registered, regulated, and publicized through movements in prices; in a perfectly free market, shifts in price represent the resultant of movements of supply and demand as these reflect judgments of consumers, producers, and suppliers.
However, many free marketeers forget that Smith clearly understood and argued that some government regulation of the economy was necessary in order to maintain an honestly competitive economic system. This model of the functioning of a free-market economy is a brilliant construct that reflects some real truths about economic relations and can provide help in understanding economic behavior and in guiding policy preferences. The primary problem in the use of the model, and the main reason why economists' recommendations based on it are frequently misguided, is that, like any model of rational human behavior, it is based on a series of assumptions that may or may not hold true in any particular case.
THE FREE MARKET In the model of a perfectly free, perfectly competitive, market economy as this was laid down by its great advocate, Adam Smith, individuals pursue their self-interest but "as though guided by an invisible hand," the result is the good of all. Since they work to advance their own interests, people work hard and put out their best efforts. If the economy is competitive and consumers are free to choose, they patronize suppliers whose products are best; if products are equally good, they buy those whose price is lowest.