Market Relations: Fundamental Principles and Covert Mechanisms
Market relations based on the centuries-old historical experience of mankind, today are the most perfect, progressive and productive form of the socio-economic structure of society. At whatever stage of historical and technological development there is a human society, for survival people must be provided with food, clothing, housing and other material goods. The means necessary for human existence must necessarily be produced in sufficient quantities. And market relations, which are based on the personal material interest of each participant in the results of their work, are precisely characterized by high productivity and quality of output. Since in the conditions of free enterprise, Her Majesty Competition is the main engine of progress.
Market relations have one more important characteristic - the distribution of material benefits is purely on the economic principle, which leads to the full involvement of all members of society in the production process and economic relations. And this is a direct path to progress and well-being for the entire community of people. In other words, market relations are an economic system in which the interaction between producers of products, its sellers and buyers is carried out through the free purchase and sale of goods and services. At the same time, which is important, the formation of prices, supply and demand occurs in a competitive environment between the subjects of economic relations. This implies a certain degree of risk and personal responsibility of all parties, and also leads to the progress and prosperity of the whole society.
The essence of a market economy
Perhaps the main advantage of market relations is that the main incentive, motivational reason for the economic activities of all participants in the free market is the personal interest in their own well-being and the increase of capital.Market relations imply the existence and successful functioning of the full range of goods and services, all production factors and cash flows. These are the components of success that are necessary for the development of a free economic system in society. The dynamic development of market relations is possible only if there are different owners of different means of production and types of products.
Secret market trails
A society with a highly developed macroeconomic system and market relations cannot arise from scratch. The formation of such a perfect structure is preceded by a long historical path, full of trial and error. All countries where a market economy and a high-tech society thrive today have undergone a period of primitive accumulation of capital, characterized by social chaos, economic depression, terrible inflation, wild crime, which is the fastest way to make big money, corruption and other "charms" becoming a democracy. Even today, the development of market relations in civilized countries is accompanied by a certain number of victims, both economic and completely physical.Thus, a free economy can rightfully be considered not only the achievement of humanity, but to some extent its conquest.
You can't understand Russia with your mind ...
Market relations in Russia deserve a separate and very deep study. Having arisen on the ruins of socialism and on the ruins of a command-planned economy, they also knew the troubled times of “wild capitalism” with a truly Russian bloody sweep. And although these times are long gone, and market relations in Russia acquired a completely civilized form of free enterprise, based on a variety of forms of ownership, economically justified pricing and healthy competition, it is still very far from being fully balanced. This is evidenced by the numerous strategic values of state monopoly, which the oligarchs have turned into private shops. These include Gazprom, Russian Railways, Tatneft, Sibneft, and much more. If in a civilized Europe, the largest states are accumulated by many generations and centuries of hard work, then in modern Russia this process takes several years to do. But little by little the situation begins to change for the better.