November 1, Slides 7-9 Flashcards
Why are markets never truly free from politics?
Markets are always shaped by state actions such as regulations, subsidies, and trade policies. These interventions reflect political priorities and influence who benefits within the system.
How do markets serve as sites of negotiation?
Markets are not just spaces for competition but also arenas where rules and outcomes are negotiated. This negotiation determines access, pricing, and who holds power in the market.
What role does state regulation play in markets?
State regulation determines the structure of markets, giving certain actors more advantages. This includes policies like tax breaks or trade agreements that favor specific industries or companies.
How do markets tend to reproduce inequality?
Markets often reinforce existing inequalities by concentrating wealth and opportunities among those with more resources and power. This perpetuates cycles where the rich get richer and the poor struggle to compete.
What factors are said to contribute to economic success?
Economic success is often attributed to factors like hard work, self-discipline, and talent. However, external factors like access to resources, networks, and systemic advantages also play a crucial role.
Why is it difficult to judge individual economic success objectively?
Success often depends on factors beyond individual control, like inherited wealth or systemic biases. These complexities make it hard to separate personal merit from external influences.
What is the relationship between negotiating power and economic outcomes?
Those with greater negotiating power can influence rules and outcomes in their favor. This often determines access to opportunities, pricing, and overall market success.
How does state action affect economic inequality?
Through policies like taxation, welfare, or trade regulations, states can either reduce or worsen inequality. These actions shape access to resources and opportunities for different groups.
Why is “luck” considered a factor in economic success?
Success often hinges on factors like being born into privilege, accessing rare opportunities, or benefiting from favorable circumstances. These elements highlight the unpredictable nature of economic outcomes.
How do markets and states interact as “two sides of the same coin”?
States establish the rules and structures that allow markets to function, like enforcing contracts and property rights. In turn, markets generate wealth and resources that states regulate and redistribute.
How does economic wealth relate to access to political power?
Economic wealth often translates into political influence, as individuals or groups with more resources can fund campaigns, lobby policymakers, and shape regulations. This access creates a cycle where wealth reinforces political power.
How do state regulations affect market outcomes?
State regulations shape the rules of market participation, determining who can compete and under what conditions. These regulations influence the distribution of economic wealth and further consolidate power for those with existing advantages.
