The Mixed Economy Model Still Disrupts Private Markets
2023-12-09
Market processes rely on prices, which are not established by a government decree or by the randomness of the human mind but are instead determined by supply and demand. The consumer’s wants and needs are signaled through prices, which are in turn satisfied by the producers, who want to make a profit. Despite the success of this process, many still believe that government intervention is necessary to help the poor and to provide services that may not be available in the market.
So, throughout the world, many nations adopted a mixed economy model. While private property and private ownership exist, government intervention in the economy is still necessary in order to achieve social aims such as providing services to the poor and unemployed and intervening in industry, all of which is funded
A Rising Stock Market Does Not Drive Economic Growth
2023-12-07
Many people believe that a general increase in stock prices is an important factor in economic growth. However, this is a questionable observation.
The view that the stock market drives economic growth originates from the observation that changes in stock prices precede changes in economic data. We suggest that various economic indicators are heavily influenced by money supply, which also drives stock prices.
The price of something is the amount of money asked for per unit. When an increased money supply enters a market, more money is being paid for those goods, which means the prices of those goods have increased. Furthermore, when money is increasing in supply, it does not move instantly to all markets. Instead, it moves from one market to another with time lags. Furthermore, the time