The Best Solution Of The Modern Economy

6049 words - 24 pages

Capitalism - the best solution of the modern economy or the best way to
get rich
The Bucharest Academy of Economic Studies
18 pages

- 2 -
Foreword
Since the fall of the communist regimes in Europe, capitalism has been the
succeeding ideology and still remains the main form of politics in today's world. Also,
the revolutionaries who militated for the fall of the communist regime were impelled
by the capitalist dream. The current essay aims to express a new vision upon
capitalism, a vision which appeared fairly recently, and which was brought into view
after the appearance of the economic crisis in 2007, which in my opinion, represents
the future of economic thinking. The following words will try to picture the reality in
which we live in, from the complex perspective of economical psychology. Hundreds
and maybe thousands of economists have tried in the period previous to the crisis to
explain mathematically, statistically and economically the reason why so many
people were left without jobs, why wealthy people's fortunes decreased, why the
wages have gone down and how it was possible for a global recession to occur.
Although the veracity of these calculi is not to be contested, there is still a question
whether our life can be governed by numbers. Is it really that our thoughts can be the
result of a mathematical algorithm? Quite often it is, because there are surveys,
economical studies and analyses that illustrate the rational behaviour of economic
agents, based on their preferences. However, what happens when this behaviour
becomes irrational? This is the point at which mathematics fails to provide an
explanation. We are not prepared to accept and analyse the consequences of
economically irrational behaviour. Therefore, the conclusion of the essay will refer
strictly to these consequences. Economic psychology is a field that hasn't been
researched as much as others, although in my opinion, its study would lead to more
accurate answers about the causes of world crises.
George Akerlof, winner of the Nobal Prize in Economics, together with Robert
Shiller explained in their book 'Animal Spirits' the way in which human psychology
influences global economy, and therefore, capitalism. It is one of the few books
which study this field of economical psychology, and its year of release, 2009,
proves its recent character.
Although it might only be an illusion, I will proceed to demonstrate that this
freedom that capitalism offers has released the haunter behaviour specific to the

- 3 -
modern capitalist. This behaviour is in fact the key to the biggest issue of the actual
system: exaggerated trust in the rationality of economical behaviour of the modern
capitalist.
I. Why Capitalism?
The general fall of communism happened gradually, however the year of
reference which is used for the extinction of European communism is 1989. It was
then when the last European states obtained freedom from the communist
oppression, and Romania was among these states....

Find Another Essay On The Best Solution of the Modern Economy

Shuttle Bus-The Best Solution For Parking Problems

1137 words - 5 pages circles. There are many ways to solve parking problems, but the best way of all is to utilize shuttle buses.Compare to cars, shuttle buses can transport more students to school and bring them back home, and they only need a little space to park or to unload the students. Many students in California State Fullerton have struggles finding parking spots on campus. They always get very frustrated when they are trying to find parking spaces. In order

The Discovery Of Economy Essay

3532 words - 14 pages just the need of the hour and not a solution to humanity’s unrestrained and unending problems nor is it a human development. If the people of this modern world are of the opinion and belief that only by educating and civilizing people can we achieve development, then it is wrong as development and economic boom of a nation has nothing to do with civilized or uncivilized citizens. The live example for that is the social life in the World

The Economy of China.

764 words - 3 pages Salient Features:Economic system in transition, cautiously moving away from Soviet-style central planning and gradually adopting market economy mechanisms and reduced government role. Industry, largely based on state and collective ownership, marked by increasing technological advancements and productivity. China's people's communes (see Glossary) eliminated by 1984--after more than twenty-five years--and responsibility system (see Glossary) of

Solution of the Cubic Equation

989 words - 4 pages Solution of the Cubic Equation The history of any discipline is full of interesting stories and sidelines; however, the development of the formulas to solve cubic equations must be one of the most exciting within the math world. Whereas the method for quadratic equations has existed since the time of the Babylonians, a general solution for all cubic equations eluded mathematicians until the 1500s. Several individuals contributed different

The U.S. Dollar in a modern global economy

1156 words - 5 pages The U.S. Dollar - PAGE 1 - The U.S. Dollarin a Modern Global Economy(1)ECONYour UniversityThe 'Almighty Dollar'! Given the state of our current economy, that statement holds far less true than it did twenty, ten, or even five years ago. The dollar has slipped and slid and gradually fallen with consistency for the past five-plus years, save for a negligible stint of appreciation in 2005. The emergence of the 'global economy' in the late

The Best Long-term Parenting Solution for Bella and Dante Martin

822 words - 3 pages This letter to will assist you in determining the best long-term parenting solution for Bella and Dante Martin. It is my understanding that Eric and Elizabeth Martinez are requesting permanent custody, specifically as adoptive parents. The ideal candidates are Eric and Elizabeth. They possess requisite attributes of character, family history, community service, and provide a family home that is healthy, safe, and loving. Furthermore, they are

The best of Bob Marley

1805 words - 7 pages of Jah (God), Rastafari rejects the Babylonian hypocrisy of the modern church. The Jamaican Rastafari regard the herb ganja (marijuana) as "wisdomweed" and urge that it be smoked as a religious rite, alleging that it was found on the grave of King Solomon and citing biblical passages to attest to its sacramental properties. A Rastafarian sets a diary of hygienic laws. They shun the ingestion of alcohol, tobacco, all meat (especially pork), as

The best

895 words - 4 pages You have to do hard things to be happy in life. The things no one else is doing. The things that frighten you. The things others can't do for you. The things that make you question how much longer you can hold on and push forward. Why? Because those are the things that define you. Those are the things that make the difference between existing and living - between knowing the path and walking the path - between a life of mediocrity and a life

Mix of the UK Economy

1321 words - 5 pages upon the production potential of the state and then must decide how best to allocate resources to maximise this potential. Anything, which is produced, is done so for the state and all income is shared among the population. The advantages of a planned economy are that resources are allocated with the benefit of the state in mind rather than individual consumers. This means the population has a fair share of the country's

The Economy of Algeria, Africa

1331 words - 5 pages Second largest country in Africa, tenth largest country in the world, diverse culture extending from the Mediterranean coast to the dunes of the Sahara Desert...Algeria. Even with its massive size the current status of Algeria’s economy is quivering in the lofty winds of the Tell Atlas Mountains. The economy tends to remain dominated by the state, which is accordingly a legacy of the country’s socialist post-independence development model

Analysis of the Turkish Economy

5870 words - 23 pages Turkish universities is approximately 300.000. Some universities can compete with the best world universities whereas some are unable to provide the necessary educational standards due to financial problems and under funding.ConclusionAfter analyzing the economic factors of development of the Turkish economy, one can notice the positive outturn which this country has taken along the years. Seeing how this country has so much perspective, it will

Similar Essays

Capital Punishment: The Best Solution Essay

703 words - 3 pages It is the the duty of the government to provide security for all individuals. Therefore, it is only a necessity, but also an obligation to get rid of those who impose threat or harm to any individual. Capital punishment is not always the most appropriate solution, but given the circumstances, it may be the most effective way to deal with criminals who threaten society. First of all, capital punishment would reduce taxes and makes prisons a

Capital Punishment: The Best Solution Essay

2361 words - 9 pages Capital Punishment is defined as the legal infliction of the death penalty. The death penalty is corporal punishment in its most severe form and is used instead of life long imprisonment. Putting people to death that have committed extremely terrible crimes is an ancient practice, but it has become a very controversial issue in today's society. Capital punishment has been used for centuries, even the Bible contains over thirty stories or

The Best Solution To Youth Obesity

1268 words - 5 pages Treatment of Obesity in Rural Youth). Of course, law makers can help encourage parents to have a healthier future for our world. “We should levy a tax against those making American children obese. Instead of taxing foods, we should charge parents who have obese children, and leave the food manufacturers alone” (USA Today, To stop childhood obesity, look to parents). Certainly, the parents are the best solution to preventing youth obesity. “Beyond the

Solution To The Current Global Economy

1288 words - 6 pages cannot survive unless we acknowledge our profound dependence on one another and the earth” (128). Although her solution is tough, switching the complete dynamic from neoclassical to ecological will provide for a more feasible solution instead of focusing on Jewish law. The world has many different religious viewpoints and instead of using religious law to control & fix the economy, understanding the value of “togetherness” would make for a better