Why does society need an economic system?

Answer 1

Society doesn't need an economic system, people do. In order to exist within a given civilization or society the ability to freely engage in commerce is vital to ones survival. Whatever the system, if people are to live together peacefully and in relative harmony they must be able to freely exchange ideas, and goods and benefit from the fruits of their labor. Outside of primitive hunter gathering agrarian systems, the more civilized the society the more necessary for a market place.

It is the market place that demands a system. Some would say, the less involvement the better and others argue that strict regulation and controls are required to reach the markets optimal output. Regulation of the market place requires government and the more regulation required the bigger the government gets. The freer the market place the freer the people. Of course, with freedom comes personal responsibility and in a truly free market the ancient axiom holds just as true today; "Let the buyer beware." This axiom is the fundamental cause of progressive regulation and it is argued that that regulation protects the consumer from harm or fraud. Yet it is clear that individuals, business' and corporations still harm consumers and still engage in fraud, so more regulation is created and now more laws exist and the people become more restricted. Regulated marketplaces are prone to complexity, free marketplaces are prone to simplicity. There are many educated people who believe that complexity is better than simplicity and will create elaborate and even eloquent arguments in defense of complex systems. Simplicity however, is not a system for the simple minded who seem to prefer complex systems. Simple systems require complex people who are capable of accepting responsibility for their actions and when necessary accepting responsibility for others.

When an individual chooses to be free that person is more inclined to advocate free market systems. Those individuals who believe themselves to be slaves, or victims and just the effect of others are less prone to accept responsibility for their actions and more prone to advocate strict regulation in the market place. Karl Marx, who devised the communist system of "economics", once referred to the dogmatist who adhered to his doctrine as 'useful idiots', many Marxists and other left wing idealists believe that the vast majority of people who believe in capitalism are just plain idiots, and the idea of a simple agrarian society has been bought and paid for by corporate farming. Which is better, the free and unregulated market place or the strictly regulated market place? Find out for yourself, try to open a book store with less than $100 dollars. The $100 would probably not even cover the licensing fees 'required' by most cities in order to do business. Take that same $100 buy some books and sell them over the internet. Which was easier and which more profitable? Which served the greatest good?