Thursday, January 15, 2009

The Power of the Free Market System (not my argument essay Kim, look one below this)

One of the greatest rights given to citizens of the United States is the right to prosperity. I am greatly affected by the free market system in my own life, and I use these freedoms of the free market copiously. I own a business called Twin Silos Rabbitry, where I market pedigreed show rabbits. I raise Lionheads, Tans, Holland Lops, and Netherland Dwarfs on my farm and sell them to people ranging from 4-H children to serious ARBA (American Rabbit Breeders Association) showers. I have learned that the power of the free market not only broadens the freedoms for the marketer, but also for the consumer. The free market system benefits our society in three ways. This system encourages growth of individually owned companies while giving them avenues toward prosperity. These companies have rights to protection from unlawful harm from competing companies. The free market also strengthens international relationships with other countries, which keeps trade strong through the exchanging of much needed goods not grown or produced in other countries. Finally, it promotes a need for advanced education of people while creating a need for strong leaders.
In the United States, we are extremely fortunate to live under a free market economic system that doesn’t use fear to control its people. In a command economy, free trade is forbidden, and the government has too much power upon its people and the goods produced by the people. The government controls imports and exports; a license is needed to ship and receive goods. People live in fear and have few freedoms that we enjoy today in the United States. In the free market system, it is all about the choice of the people, where as in a command economy, those choices are made by the government. The free market system is diffused, which means that the people make decisions about what is produced.
Businesses can set their prices and allow them to fluctuate depending on the economy. This is not so in a command economy because the prices are fixed or controlled by the government body. In a command economy, the production numbers are not determined by supply and demand, but by the state and committee. The quality and quantity of products in a command economy diminish, which put the well being of the consumers at low importance. For example: A Russian woman got severely ill by drinking from a cup in a vending machine. This was a common cup used by all consumers of that vending machine, and it wasn’t properly sterilized. This woman almost died because of the poor quality and lack of quantity of goods being produced in the communist government-controlled industry. The problem with the command system is that it enforces a misallocation of resources. This means that this type of economy is slow to respond to the needs and demands of the people. In the free market economy, the health and well being of the people are very important because if a consumer is dissatisfied, the business owner loses profits to competing producers of those products. Profitability directly corresponds to having the products and value desired by consumers. Competition between businesses drives the market toward better products and the necessity for more efficient production methods. The marketer also has the ability to make decisions about what he or she wants to make and also how much he or she wants to sell and where.
I openly incorporate the free market system in my business by keeping the well being and satisfaction of consumers as a top priority. As a business owner, I want my customer’s patronage, and I want them to be satisfied so they can recommend me to future buyers. I make sure I give them an unforgettable buying experience. I invite them inside of my rabbitry so they can see for themselves my entire operation. I show them the overall cleanliness of my facilities and the health of the individual animals. I let them see all forty rabbits hopping in their individual cages swinging from wire supporters. The faces of my customers light up as I give them a tour that most breeders would not offer them, which allows my business to be distinctive and different from other competing rabbitries. I give customers my individual time to show them the quality animals I have to offer them for sale, and I also make sure that I’m friendly and patient with my customers because I want to earn their business and satisfaction. I have learned that it is crucial to gain the respect of your customer because a satisfied buyer will always tell a few friends about the service provided. That always means more business to come!
When the numbers of competing companies increase, the competition rates rise as well. Fortunately, there are certain protection rights a company can put on their products. These are called trademarks, trade secrets, and patents. These help protect companies from infringement and unlawful stealing or copying of a product. Patents are the strongest protection afforded on a brand new invented product. A patent means that for twenty years the rights of a product’s author or inventor will be protected. No other company can steal a design or produce the patented type of product.
A trademark is a protected phrase or symbol that can be deemed as personal property. No other company can use it, as they would be unlawfully submitting their product as someone else’s. A trade secret is a protected recipe or design of a product that only family or producers of a company know so that they can consistently make a product without the fear of a competitor ever matching or stealing their exact product design. I can greatly understand the importance of having a trademark because when my family purchased our farm, we had our farm name registered and protected so that no other farm could have our exact name, which allows for easier product recognition and higher security for the protection of our goods.
This protection prevented other businesses from marketing goods under our farm name. Like a person, a business has to work hard to establish a good name and reputation, and in many cases, success and good reputation may take many years to establish.
Farms have their own identity in the same way that we have our own social security number. If another business were to market their products under the same name that would be an infringement of that trademark. Their products might be confused with ours. The consequences are lost earnings and damaged reputation. Fortunately, the free market is about having a business protected and about having equal opportunity and prosperity. Therefore, for the protection of all companies, it is crucial to have trademarks, trade secrets, and patents.
The free market strengthens international bonds by promoting peaceful trade with other nations. This increases communication between countries, and trading allows goods that are grown or produced only in one country to be traded for goods that another country needs. In some countries production costs are lower. This results in lower prices for consumers and increased profits for the producer. Trading with other countries creates interdependence, and promotes diffusion of different cultures. People then assimilate new styles of clothing, architecture, products, and also different foods when trading internationally. Parts of products can be produced for lower costs, so that creating a product costs less than if completely produced in a single country, also called global sourcing. Global sourcing has many advantages like increasing amounts of vendors and marketers to stimulate competition, acquiring new skills that aren’t domestically available, and increasing the amount of goods. This is an advantage for entrepreneurs because they will spend less to produce the product and therefore the prices will be low and competitive for consumers.
In my rabbit business, I raise breeds that at one time originated from different countries. My Mini Lops or Klein Wider, were once from the country Germany, and my dwarf rabbits originated all the way from the Netherlands. If it weren’t for trade, my rabbits would have never made it to the United States. Although many rabbit breeds did not come from the United States, the American Fuzzy Lop did. American Fuzzy Lops became popular all around the world because they make great pets and have great wool quality which other countries used to make clothing articles. In turn, Americans also traded for new breeds of rabbits from other countries that provided my Tans, Mini Lops, and dwarfs. In fact, right now the Thrianta, a brand new rabbit breed, is being imported to the United States today from parts of Europe. This breed of rabbit never existed in the United States, but because of the free market and peaceful trade, the Thrianta rabbit is being raised by United States breeders for A.R.B.A. recognition.
I also learned about supply and demand in the rabbit business, and raised breeds that were not commonly raised, and was able to create a stronger market with increased opportunities for profit. Since other competing rabbitries did not raise the same breeds I did, the exotic breeds I raised were in high demand by the public. I learned how to create a very successful business.
Free trade works because countries can sell goods to each other with minimal governmental interference or restrictive tariffs. This encourages people to trade with each other and they can do it without heavy taxes that would otherwise discourage them from doing so. Free trade also benefits both countries because much needed goods are received by both sides. The prices do not have to be inflated because of the increased supply of goods and competitive prices, if goods are affordable and in high supply, it prevents the occurrence of a black market.
International trade also allows for technology and ideas to spread rapidly. When two countries trade their products, they are also spreading their ideas, knowledge, and their technologies. The world becomes much more communicative in the presence of the free enterprise system. If a country becomes interdependent on another and they are needy for a particular resource, then they will keep the relationship very strong with that country. An example would be our relationship with the foreign providers of our oil and gasoline sources. Since the oil providers need US dollars for their economy, they keep their relationship strong with the US, and since we need their oil, we keep our relationship strong with them. It is very important for the nations of the world to stay in contact with each other, especially in the business world. People must keep strong ties with each other because some companies are international, or are owned by other businesses in completely different countries.
Finally, the free market system demands higher education for people, as it increases opportunities for them to prosper and flourish. Individuals learn to become communicators, leaders, promoters, professionals, and inventors. The business and marketing profession is a challenging business that requires mature-thinking, sound decision-making, and a competitive, persuasive nature. Not everyone is suited to take on this profession, those who enter it will need to shape their business as close as they can as a paragon, or a model of perfection for their consumers. The very gifted men and women who enter this profession need to be adroit leaders to balance the challenges of production and the needs of the consumer.
The free market system places power in the people’s hands. The voluntary system allows people to make their own decisions, fix their own prices, produce their desired quantities, and also have the freedom to make changes to any of the above. This system allows for a competitive market while also allowing for new businesses to grow at the same time. Everyone has the freedom to make his or her own decisions under the free market.
People become strong leaders representing their countries interests and further serve their country by producing opportunities under the free market system. This is a very important role for entrepreneurs to have because they are providing employment and fulfilling needs. The importance of these entrepreneurs is immense. It is because of them that we have large varieties of goods at competitive prices. The quality of products that are produced under the free market are much higher than in other countries. We have a lesser probability of getting ill or hurt by our products, unlike the Russian woman with the common cup in the vending machine. This is too risky in the free market because if a product is deemed harmful, the consequences are loss of market share, product recalls, and legal action.
Since starting and maintaining Twin Silos Rabbitry eight years ago, I have learned how to make mature decisions on my own. I recognized the importance of keeping records, writing and storing receipts, keeping stock inventory lists, and recording all yearly expenses verses my profits. I learned how to confidently handle and exchange money and give customers a receipt. I also recorded all my sales so my parents could document their farmland tax assessment. I learned how to be confident and friendly when working with customers. Consumers want someone who is outspoken and knowledgeable about what they are selling so that they also feel confident in what they are buying. I answer the customer’s questions and always show them patience when they are with me. This pays off at the end because customers often comment how friendly and helpful I was to them. I have taken a leadership role in my business because I own it! I manage, maintain, and make financial decisions for my business. Through my experience of running a business, I have learned through trial and error what decisions were beneficial, and those that were poor.
Purchasing stock costs me money from my profit, but my mind is always calculating the pros and cons of each action. In order to be successful, having the right stock at the right time is essential to meeting the needs of my customers. My responsibility has increased since I run something of importance solely on my own. I feel that right now I am giving myself an early taste of the world by running a small business at my age. I take chances and risks all the time in hope that my rabbitry will grow in prosperity. I feel that I have been able to become a strong leader and find maturity at a much younger age than many other teenagers.
The rights that people have under the free market are numerous as said by a Ramapo professor during my LAB seminar; he said everyone has an equal chance for prosperity. “For a free enterprise system that works gives rights to own and acquire property, and do so free of infringement and trespass so everyone has a fair shot” (Dr. Murray Sabrin, marketing professor of Ramapo College). Through his words, I will always remember the freedom and opportunity the free market gives to its people.
The free enterprise system is in the hands of the people. It grants rights to own, maintain, and prosper in a business. Through interdependence, relationships are created and improved by the free enterprise system. Additionally, the free market allows flexibility to react to market change in the absence of price controls. The free market promotes greater economic opportunities for citizens and the need for educated workers. These people become the strong leaders of our world. Since taking the Learn About Business course, I now understand how my rabbitry business thrives because of the freedoms and right to prosperity I gained from the free market. It doesn’t matter if one markets rabbits or medical equipment because each individual business has equal freedom in finding success and prosperity. The free market system is a powerful economic system that allows the power to be in the hands of the consumer.

A Word About Communism

In the book “Animal Farm”, George Orwell voices his strong opinion against the Communistic totalitarian government in his novel through the use of animal characters which represent key players and events that occurred in the Soviet Union during Stalin’s reign. Through the use of animals symbolizing Soviet players, Orwell puts forth a solid generalization about the severity of totalitarian government (Animalism) in “Animal Farm”. Orwell achieves this goal by mirroring Stalin's reign over the Soviet Union through the events and characters in "Animal Farm."
It may seem to some readers that it seems to be a stretch to relate the entire story of "Animal Farm" to the reign of Stalin. Some opinions may differ from mine in that " Animal Farm" has nothing to do with Stalin's reign at all, and would appear to be just a clever book. However, through the works of Orwell's writing, he consistently puts down the rule of totalitarian rulers and colonialism. In Orwell's "1984" he writes about how harmful it is to have a society that has too much government control. In Orwell's Shooting An Elephant, he shows how freedom is killed under a society in Burma because the town's occupants look up to a leader instead of themselves. Throughout Orwell's works he puts down societies that happen now like in Burma from Shooting An Elephant to societies in the past like the Soviet union in "Animal Farm". Through the clear symbolism in his novel, a reader can easily understand the parallels that Orwell makes.
Napoleon is the dominant tyrant pig of Animal Farm who represents the leader of the Soviet Union, Joseph Stalin. Napoleon becomes the leader of a created society called Animal Farm, an organization created by Napoleon himself to end the ruling of Jones the farmer, and keep his followers safe from Jones’s so called abusive and inhumane treatment. Napoleon does this through an animal rebellion that resulted in the exile and defeat of Jones’s rule. Napoleon is however, not truly a ruler who holds dearly the importance and well being of his animal followers in mind. Instead, Napoleon manipulates and brainwashes his followers for his own gluttonous gain through the use of secret police, mass executions of the innocent, and through propaganda and brainwashing of his followers just as Stalin performed in the Soviet Union.
As Napoleon becomes more of a tyrant, he realizes that the intellectual animals will realize his intent of becoming a dictator, and he feels threatened. He especially feels this way towards a pig called Snowball, an allusion to Leon Trotsky. Snowball is a pig who wins over many barnyard followers, and has ideas of creating an egalitarian society, where all animals would live in harmony together. However, since Napoleon is a selfish and piggish leader, he finds any possible way to blacken the name of innocent Snowball through the use of false propaganda and lies created by Napoleon’s charismatic speaker, Squealer. Napoleon performs such cruel actions to Snowball because he truly doesn’t want an egalitarian society, but a dictatorship where he manipulates the organization of Animal Farm. In order to protect his reign in power, he creates his own secret police, a barbaric pack of dogs that tackle down suspects of betrayal that Napoleon suspects. The dogs were raised and trained by Napoleon himself to attack any suspect that could represent a threat to his reign. Napoleon used these dogs to spy on the barn animals and turn them in to Napoleon for execution. Snowball was exiled out of Animal Farm by the use of the dogs. “They dashed straight for Snowball, one of them closed his jaws on Snowball’s tail…nobody knew where the creatures came from” (168). The dogs inflicted pain and torture upon the victims of Napoleon only to be put to death by execution. Through his use of the secret police, Orwell shows the lack of trust that totalitarian leaders have for their followers to the point where secret spies are sent out to get many people in trouble to get sentenced to death.
In the Soviet Union, Trotsky and Stalin’s relationship mirror the relationship of Snowball and Napoleon. Trotsky had opposed Stalin’s policy of totalitarian control by creating the Left Opposition against Stalin. Trotsky was expelled from the Communist party in the 1920’s and was deported from the Soviet Union. When Stalin felt threatened by opposing rivals, he used his own secret police called the KGB or Committee For State Secretary, a Russian intelligence center. They used harsh methods to investigate suspected threats to Stalin. The KGB is a secret police system that tortured people in prisons through mind control methods so they thought like sane people about the paragon of communism. Many people tortured by the KGB were reported as missing and never found. Stalin performed these actions to manipulate his followers in becoming secret police and executing those that he thought would collapse his reign over the Soviet Union. Tens of thousands of innocent people had their lives claimed by Stalin because of his selfish intentions. Stalin did not rule for the sake of his people but for his own personal gain, which is why he had the KGB. Before Stalin rose into power, the Soviet Union was in better shape than after Stalin’s rule. The reason why Stalin gained power was because he was a great speaker and knew his politics, which gained him support and power. However, showing the mass carnage and casualty that occurred in the aftermath, the Soviet Union was a better and safer place for the people than under Stalin’s control.
In “Animal Farm,” Napoleon, the totalitarian tyrant pig has no interest in the well being of his barnyard followers when he creates the mass execution of his followers. “ And so the tale of confessions and executions went on, until there was a pile of corpses lying before Napoleon’s feet and the air was heavy with the smell of blood” (93). As Napoleon gained more power, he became much more malicious towards the trust of his followers by thinking that they were all betraying him. Napoleon uses forms of vocal propaganda to manipulate his followers to think that all the animals executed deserved it because they were treacherous and harmful to the society. Through the use of false propaganda the farm animals would be convinced that the accused animal was deserving of penalty through the charismatic speaking of Squealer. “ Do you know the enemy who has overthrown our windmill? SNOWBALL! … Comrades, I hear by pronounce the death sentence upon Snowball!” (82). Snowball was an innocent pig, but through the authoritarian speaking skills of Squealer, Napoleon could get away with his selfish endeavors without suspicion because of Squealer’s talented and persuasive speeches. Napoleon performed mass executions to preserve his own regime and eliminate political dissent for his own being. Napoleon is a murderer to his followers and creates a holocaust to his own animal followers. Napoleon does not care about anybody but himself in Animal Farm. Through the carnage and mass suffrage placed on the animals like the daunting task of slaving over the windmill Napoleon forces them to build, it was said things were far better when Jones had ruled. “ … It seemed to them it was far worse now than it was happening among themselves than with Jones “(93). Before Napoleon took reign over Animal Farm, it was once a better place with Jones. Jones fed them food and he allowed them to live the leisurely life of an animal where Napoleon cuts their life short and works them as mere slaves. Orwell communicates to his audience that followers of a totalitarian government are put at high risk of death and abuse. Through the use of executions and fake propaganda he shows how even the innocent will be found guilty and put to death.
In the Soviet Union, there were also mass executions performed by Stalin known as the Great “Yezhovschina” or the Great Purge. Stalin created this mass holocaust because he feared attacks of sabotage and espionage. Stalin believed that he needed to enthrall terror over his people to ensure absolute power, and by killing mass amounts of people, he induced fear over his people efficiently. “The estimated amount of lives taken by the Great purge is at most two million, but up to seven million were innocent and put into jail” (Knight, Encarta Encyclopedia). “The majority of the republican committees were killed at an astounding 90%, and many surviving victims were sent to Soviet Union Labor camps where they died soon after” (Vogel, Andy History Teacher). Stalin did not mind killing mammoth amounts of people because it ensured him a safe throne without any inhibition or competition. Stalin was a power hungry and selfish man who put himself way before his people. If Stalin had not been put into reign, two million people may have had their lives back. The Soviet Union before Stalin had so much potential and was far less harsh before the reign of Stalin.
The battles fought in “Animal Farm” also mirror the battles that took place in the Soviet Union like the Battle of The Windmill representing the Battle of Moscow. In “Animal Farm,” the animals under Napoleon created strict labor to build a windmill. Napoleon makes a deal with a farmer Mr. Frederick (Hitler) to receive five pounds for some wood. The money Napoleon receives is fake currency, and starts a war with Mr. Frederick. There is a larger army of men with six guns that charge into Animal Farm and use dynamite to destroy the fruits of their labor: the windmill. Napoleon tells his animals to charge and attack the men, and it becomes a bloody massacre. Both sides received injury and casualty. Napoleon is being selfish to his followers forcing them to face an army of men loaded with guns. Napoleon just wanted to make sure his rule was protected and that he would remain in power not matter what the cost it was to his animal soldiers. Before Napoleon took reign and Jones was the ruler, no animals had to face war and attack. The lives of animals were to eat, sleep, reproduce, and live in leisure. The life of an animal under Jones’s rule was a wonderful life, now they face a life that is full of bloodshed, betrayal, and suffrage by forced labor.
This battle parallels to the Battle of Moscow in the early 1940’s against the USSR and Germany forces. Germany attacked the Soviet Union by an air attack which weakened them early on. This battle cascaded into the Battle of Vyazma Blyansk. However, the icy cold weather and harsh terrain impeded the German forces weakening them significantly. The Germans lost about 500,000 men and the Soviet Union took a large hit as well. The Battle of Moscow dealt with two power forces Germany and the Soviet Union who were competing with one another because of their high power and authority. Orwell shows the great amounts of carnage that is displayed in a totalitarian society, and the risk that the leaders put their followers into. The leaders are all into the battles for their own advancements, not the outcomes of their people. Orwell really tries to show the severity and the moral wrongness of a totalitarian government.
Even some of the smaller characters in the novel have significant representation in Orwell's novel. The donkey Benjamen is a wise creature who knows even from the very beginning of the book that Napoleon was an up and rising tyrant. In philosophy we call these people the cynics. A cynic in philosophy means that a person always looks at anything with a poor opinion. Benjamen represented the many people under Stalin's power who were doubting his many ideas and motives. Unfortunately, in Stalin's control, he ends up killing all the people who do not support him unconditionally. The chickens in "Animal Farm" represented the rebels who did not support Napoleon's wants. Napoleon forced the chickens to lay eggs so that he could have them for himself and use them to help fulfill a treaty that required hundreds of chicken eggs. The hens were exhausted and could not keep up with Napoleon's demands so they rebelled by destroying their eggs. This is a parallel in the Soviet Union because the many workers who had to perform exhausting labor tasks rebelled by destroying the machinery so they didn't have to follow the strenuous orders from Stalin. However, just as Napoleon executed the hens for their lack of faith, Stalin also killed those he did not find as worthy slaves.

Orwell clearly communicates that events like this don’t just happen in books, but can happen in real life. Through the use of Napoleon’s dogs mirroring the KGB, Napoleon’s mass executions paralleling the Great Purge, and the Battle of The Windmill representing the Battle of Moscow,and smaller characters acting as society, Orwell shows in his book through symbolism that the characters and events in his novel are identical to the events and players in the Soviet Union under Stalin's reign.Orwell shows the brutal selfishness of the leaders, and their anesthetized feelings of innocent execution, and leader’s willingness to risk the lives of their people. Through the mirroring events and people in his life, Orwell creates a parable to his readers warning them about the evils of totalitarian control. Through the use of animals symbolizing Soviet Union leaders and events, Orwell effectively portrays his hostile feelings towards communism.


(Andy Vogel is a History teacher at Byram Township School District)