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  • Essay / midterm exam - 709

    One of the major problems in analyzing liberalism is that markets are not a natural phenomenon. Liberalism often thinks that the market can adjust itself. However, evidence from many economic crises shows that there are cases where markets are unable to adjust. Furthermore, economic liberalism does not take into account the political and social context, which is necessary to understand the functioning of economic actors. Liberalism views individuals as rational actors operating in a system free of political boundaries and social constraints. But the actors are not always rational. The actors are not equal and therefore do not have the same chances of achieving the objectives they have set for themselves. Liberalism is also just a reflection of the values ​​and ideas associated with capitalists. Thus, the analysis is rather static and the virtues of the status quo are assumed. Furthermore, the absence of government control does not make the market stronger or individual prosperity greater than expected. The unequal distribution of income would create tensions between classes. At the international level, the asymmetry in terms of development between the North and the South shows that liberalism only serves the interests of the strongest, notably a few developed states. Thus, a liberal trade policy can create tensions between states instead of bringing peace. Additionally, free trade left many industries in different states, such as textiles and agriculture, to collapse. Many began subsidizing these products to keep the industry alive. For mercantilists, international economic relations are seen as an exercise in competition. In economic mercantilism, it is assumed that it is possible to have a global and objective national interest. In fact, most...... middle of article ......n Social thoughts at least agree with the mercantilist that the state must intervene in the market to create boundaries and guidelines. The most important thing is that the Church is the main guide of society. However, the world has become increasingly secular with the separation of Church and States. So while the Church can provide advice, it does not have the ability to influence policy or implement it. This is true even in states where Christianity is predominant, such as in South American countries. The Church could not change the economic landscape where very few elites control the wealth of entire nations and labor practices are far from desirable. When the largest actor in the economy lacks the capacity to control and implement policies, it is impossible to achieve its goals..