Commerce and market transactions are in the private sector, which is part of civil society. Its responsibility is prosperity—not wider social or political issues.
Thedepends heavily on the firm establishment of:
The social structure undergoes a major alteration in Transition #2.
The transition of empowers groups without necessarily affecting social classes or group structures significantly. Typically, class is perceived in a bipolar way:►
«haves» (land-owners and traditional political elites)
«have nots» (the masses, labourers, farm and factory workers)
The next transition of is associated with a change from that bipolar socio-economic division to a more complex stratification containing a «middle class» and a much greater diversity of occupations.►
Middle classes tend to be urban dwellers, who drive prosperity in terms of both production and consumption. According to The Economist, the number of middle class people in Asia (defined by having at least a third of their income available for discretionary use) exceeded that in the West by the end of 2008.
The composition of the classes will vary from one society to the next, but broadly speaking:
…almost as much as they hate risk.
Competition reveals who are the strong, and removes the very weakest from markets. Many markets end up as duopolies, with two major players and a whole host of smaller fry.
Strong businesses have no compunction to crush weaker firms or devastate new entrants to the market if it is in their interest to do so.
As a result, each business must find and fill a particular niche where it has an advantage and can hold sway. Niche monopoly is how economic diversity and innovation develop.
Because it is about the common good, government has a duty to actively ensure that fair competition, beyond niches, actually occurs. While every businessman agrees to such competition in principle, each is opposed to it in their special case.
Businesses like to have subsidies, monopolies, tariff protections and such like, so any pro-business government finds itself in conflict with, or more usually in the pocket of, large businesses seeking to offload risk and become more profitable. The majority of businesses are small and little influence.
Governments need agencies dedicated to prohibiting monopolies or monopsonies, and stopping easy and obvious potentials for market abuse like Ponzi investment schemes, misleading labels, fraudulent weighing machines &c. This is easier said than done.
No market is ever «free» or unfettered. A market should permit «free enterprise», which means allowing buyers and sellers to freely use the market. Sellers and buyers have to commit themselves in any transaction, and so there must be regulations that protect the market's integrity and ensure fairness on crucial matters for all participants.
Therequires Government to be responsible for:
Every politician realizes that commerce is the source of wealth in society—and therefore the source of wealth for the political classes.
At thisof , being pro-business usually means causing considerable harm or disadvantage to consumers and taxpayers.
This commonly occurs through rigging markets, directly or indirectly, in numerous ways, including:
Originally posted: July 2009; Last updated: 27 Jan 2010