market liberalism
TRANSCRIPT
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Discussion Task
You have 5 minutes
In pairs
List as many words that you can thinkthat are associated with liberal orliberalism
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Critical Theories
Market Liberalism
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What is it?
Market liberalism tends to assert not only theeconomic benefits of capitalism but also its social,
cultural and political benefits.
It sees freedom as being best provided for and
preserved by markets.
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Capitalism is an economic system based on the
private ownership of the means of production and
distribution of goods, characterized by a freecompetitive market and motivation by profit
The three requisites of capitalism areland, capital (money), labour (peoplewho work for wages)
It requires the first two land andmoney be concentrated into the hands
of a minority This group then purchasethe labour power of others
Labour power Human labour that canbe exchanged for money in the form ofwages
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What does this mean?
How free economic markets in conjunction withdemocracy and personal freedom provide the best
political model for well-being and prosperity
Generally supportive of the capitalist status quo
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Why think about it?
We live in capitalist society so is big part of
our culture
We study Marxism and other critical theory
Spread to all other political ideologies
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Elements of
Free market
Supply and Demand
C
ompetition Profitability
Market Efficiency
Personal Liberty
Capitalism
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Free Market
No intervention or regulation by government
Price based on supply and demand Items are sold at mutually beneficial value
Market liberalism requires the creation of a freemarket with as little as possible government
intervention laissez faire leave alone
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Supply and Demand
Supply and demand
The relationship between what people wantand need and what is provided by the
market. (AQA)
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Example
The gourmet coffee business,pioneered in the US byStarbucks, revealed a demandfor high quality fresh coffee.
Starbucks sales growthshowed that consumers wouldpay lots more for this type ofcoffee.
McDonald's and Burger King,began offering such coffee tohelp satisfy the demand.
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Discussion Task
You have 5 minutes
In pairs
Are there items on the market that you
think people do not actually need?
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Profitability Creation of high demand for products on the
market.
Keep the wages paid to workers as low as
possible in order to maintain a high rate of profit
It is important thing to sustain organisationsability to make profits therefore hindrance
should be opposed
This would include protection of wages, rights atwork, initiatives that address poverty or
unemployment or taxation in order to fund a
public sector
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How many public sector bodies are there inthe UK
Make list of anything you can think of that is
funded by public money How many rights do you think you have at
work?
Make a list of all the rights and benefits you
think you are entitled to at work
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Overview
Market liberals believe in individual freedom as acentral concept
Freedom is found by not being chained to state,
landlord, employer etc
Does the free market that exists today allow
freedom?How is wealth distributed? How does this effect the
idea of freedom through finance?
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Case Study
The Film Industry
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The creation of demand
Prior to film, no demandexisted
First cinemas in tents
Picture Palaces
Silent cinema made moreinclusive
Post WW2 30 million visits
Social experience = Totalexperience
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Changing Patterns ofConsumption
Today 3 million
people
Home consumption /
video DVD-Online
Television
Pirating
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Producer/ studio etc create film to make
Audience must be prepared to part with
their for product Product has to be worth price asked
When audience decides its not film flops
Demand can dictate supply (adaptations) Supply can dictate demand (synergy/ AOL
Time-Warner)
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Activity
In groups, research either a film genre or a film
star. Use the internet if you like. Present back to
the class
How does the creation of this genre/star create amarketable commercial product?
Where does supply and demand come into this?
How are the audience/consumer positioned? Do you consider this system to allow for
individual freedom as market liberals would
hope?
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TheMarket, Capitalism and
Culture The culture of free marketcapitalism is inherently
contradictory
Business culture is said to be
very go-getting, dynamic,
inventive It claims that the
need to survive in capitalist
society makes people creative
and self reliant Yet it opposes any radical
change that would involve
limiting the freedom to make
money
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Summary
Anything produced in this process is owned by
the minority (capitalists)who then sell it in
order to make a profit