One both terms and also find a correlation

One of the many social issues discussed and examined throughout this
essay is the main question of whether a democracy and the ‘free market’ could
be true allies or rivals? In order for someone to truly understand and answer
this question, you would need to be able to thoroughly analyze both terms and
also find a correlation between how both terms can greatly impact a society in
a negative or positive way. To begin with, Democracy can be considered by some
as a system or type of government in which certain rules or leadership has full
control, being elected by it’s residents, with wishes to serve their chosen
leader. In comparison, Free Market is said to be a type of economic system
where the cost or prices for certain goods and services are heavily determined
by an ‘open’ market where there is no government regulation. As Phillips
agreed, both Democracy and the free market can be seen as rivals in the fact
that the free market strongly suggests that markets should be able to manage
themselves and democracy should stay away, letting labour markets adjust
depending on what the goods market offers; “Unfortunately, however, the human
and social costs of reliance on self-regulating markets have proved so
devastating that governments have been forced by society to limit certain
market excesses, to regulate markets, or in some cases, to replace markets
altogether” (Philips, p. 18).

            When Phillips discussed
political economy, he was explaining the Canadian economy based upon history.
He thoroughly explained Canada as a capitalist society, that throughout the
decades of time of financial trouble around the world, Canada has managed to
learn and adapt to the other countries mistakes. The thought of Canada as a
capitalist country is not highly credited since heavy regulations were
introduced, especially during The Great Crash of 1929 otherwise known as “Black
Tuesday”. With this in mind, what if the free market were true, people would
then receive minimal pay with no benefits and all the corporations would be
maximizing in profits. We as workers are better off because of a current
socialism concept of labour laws. In our day to day lives, the products and
services around us are more expensive, but that expense is being made less
severe or serious because the workers would have the benefits and policies in
order to help them afford such a lifestyle. Just like a perfect competition, since
certain companies won’t be able to maximize their profits and bring down the prices,
there ends up being more huge companies which then form a Monopoly-like
structure to fit in with the current labour regulations. Therefore, according
to Phillips, these such issues can be negative and the issues rises due to a
complete self regulated market.

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            In his article,
Phillips describes the political economy as “a fusion of
economic and political theory into one single social theory” (p. 1). By this statement, Phillips combines both
relationships between the economy, the politics, and aswell states the impact
caused upon a society. In my opinion, Phillips is trying to say that any
political system in anyone’s life can be affected by that system, whether that
system being capitalism, communism, or market socialism. The political economy
can help people truly understand our everyday lives and how it can be impacted
upon, one way for example, can be the discussion of immigration in Canada. For
a Canadian citizen, the current immigration policy can affect them in a very
negative way, due to the mass amounts of immigrations or refugees from around
the world being able to be brought in. To relate this example to the political economy,
if two parents in a household are financially struggling to cope with
themselves along with their children, they wouldn’t want to make the decision
to adopt more kids to take care of since they are already struggling to financially
support their current children. The same can be said for Canada, they could bring
in more immigrants/refugees, but then have less goods and therefore be worse.
The increasing amounts of immigrants/refugees into the country would cause even
more stress on the economy as it is already reduced due to the low prices of
oil. This could then lead to an increase in difficulty for Canadians to get
jobs, and get more affordable housing due to an increase in the cost of living.
Immigration follows along with Phillips idea of political economy as
immigration has both a political aspect and as well as an economic aspect. The
political aspect of immigration being with Justin Trudeau’s agreement to allow
more refugees into the country to get more votes for the election. The economic
aspect, as stated before, would be the increase in the housing market, and
difficulty finding opportunities to get job.

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