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Why is the economic system must follow market demand

market demandThe requirement of the economy must be autonomous, not subject to interference moral character, has led man to abuse of economic instruments, resulting in economic systems, social and political that trample the freedom of the individual and agency social. Distributive justice and social justice are important to the market economy. If the market is governed solely by the principle of equivalence of the value of goods exchanged, can not produce social cohesion needed for proper operation. It is noted that without solidarity and without mutual trust, the market can not fulfill their economic function.

The encyclical argues that profound changes are needed to understand how the business. Managing it can not consider only the interests of its owners, but also that of all other subjects that contribute to your life: employees, customers, suppliers of the various elements of production, the reference community. It is to prevent the financial resources are regulated by speculation and the pursuit of immediate profit, rather than long-term sustainability. When talking about the relocation of international production is noted that it is wrong to take only the particular conditions favorable, or worse, explode without contributing to the local society a real contribution to the birth of a strong productive and social system.

The contents of the encyclical are abundant and deep in the objective of ensuring overall human development. We do not have enough space here, but they highlight the relative contributions to the defense of human rights of workers, strengthening associations of workers, the need for more open trade unions to turn their attention to workers in countries development, the right to food and water, the improvement of relations with the environment, international aid for development should be tailored more toward integrated programs and from the base, creating a different type of tourism, reform of UN and the new international economic and financial architecture, global redistribution of energy resources, excessive forms of knowledge protection by rich countries, among other things.

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One Comments to “Why is the economic system must follow market demand”

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