MARKET ECONOMY vs. SOCIAL ECONOMY

Kristijan Ristić, Žarko Ristić

Abstract


In the modern world, and especially in Central and Eastern Europe, "dangerous" market economy is equated with well-being, which is the market order created in the West and Southern Europe. Even when the market economy reigns everywhere in Europe, the differences in welfare may remain the same or possibly become deeper. No illusions should be taught that in the near future, everyone in Europe will have long expected welfare. It can remain poor despite the introduction of a market economy. Social leveling just all can not succeed. Social differences are, therefore, inevitable for democracy and the market can not bear being. Like everywhere else so far, the market economy is not a native plant, "which can grow just about anywhere, and one should only be careful not to pull out it with the roots." But the market as a cultivated plant, requires careful care and climatic conditions. The market economic system much "nags" up to its full momentum and growth. Outstanding efforts, time and investment are imperatives for individuals, businesses, government and society. At the same time, it is not for sure that the flower beds of the market economy automatically will ensure social welfare. The market is therefore only necessary (and useful), but not sufficient condition for the flourishing of prosperity. Materially good standing companies are regulated by market principles, but and many poor societies are market oriented as well. The market here does not explain the differences in well-being, as well as the regional differences in the life standards are not explained by the climate, geographical location, historical development, traditions, religions, races, or traditions. Market even in identical economic system does not produce the same results. A good example of this is the EU. However, the economic power of the country and the social well-being of the individual do not depend exclusively on the economic system of market-oriented society. So far, they have always been economically successful in the long run, only those who submitted all resources to economic interests in the market economic system (Japan, USA, Germany). This is the "endowment of the merkantilistic European spirit", in which the religion, science, art, philosophy, market, and the state are at the service of economic success. To act profitably, efficient, flexible and according the marketing method, that is the way of the development of economic power and material existence.

Keywords


market economy, economic system, economics, competition, social welfare, directing the economy

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References


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