Discussion Task

You have 5 minutes In pairs

List as many words that you can think that are associated with liberal or liberalism

Critical Theories
Market Liberalism

What is it?
Market liberalism tends to assert not only the economic benefits of capitalism but also its social, cultural and political benefits. It sees freedom as being best provided for and preserved by markets.

Capitalism is an economic system based on the private ownership of the means of production and distribution of goods, characterized by a free competitive market and motivation by profit
The three requisites of capitalism are land, capital (money), labour (people who work for wages) It requires the first two land and money be concentrated into the hands of a minority This group then purchase the labour power of others Labour power Human labour that can be exchanged for money in the form of wages

What does this mean?

How free economic markets in conjunction with democracy and personal freedom provide the best political model for well-being and prosperity Generally supportive of the capitalist status quo

Why think about it?

We live in capitalist society so is big part of our culture We study Marxism and other critical theory Spread to all other political ideologies

Elements of
Free market Supply and Demand Competition Profitability Market Efficiency Personal Liberty Capitalism

Free Market
Market liberalism requires the creation of a free market with as little as possible government intervention laissez faire leave alone

No intervention or regulation by government Price based on supply and demand Items are sold at mutually beneficial value

Supply and Demand

Supply and demand The relationship between what people want and need and what is provided by the market. (AQA)

Example
The gourmet coffee business, pioneered in the US by Starbucks, revealed a demand for high quality fresh coffee. Starbucks sales growth showed that consumers would pay lots more for this type of coffee. McDonald's and Burger King, began offering such coffee to help satisfy the demand.

Discussion Task
You have 5 minutes In pairs

Are there items on the market that you think people do not actually need?

Profitability
Creation of high demand for products on the market. Keep the wages paid to workers as low as possible in order to maintain a high rate of profit It is important thing to sustain organisations ability to make profits therefore hindrance should be opposed This would include protection of wages, rights at work, initiatives that address poverty or unemployment or taxation in order to fund a public sector

How many public sector bodies are there in the UK Make list of anything you can think of that is funded by public money How many rights do you think you have at work? Make a list of all the rights and benefits you think you are entitled to at work

Overview
Market liberals believe in individual freedom as a central concept Freedom is found by not being chained to state, landlord, employer etc

Does the free market that exists today allow freedom? How is wealth distributed? How does this effect the idea of freedom through finance?

Case Study
The Film Industry

The creation of demand

Prior to film, no demand existed First cinemas in tents Picture Palaces Silent cinema made more inclusive Post WW2 30 million visits Social experience = Total experience

Changing Patterns of Consumption

Today 3 million people Home consumption / video DVD-Online Television Pirating

 Producer/ studio etc create film to make Audience must be prepared to part with their for product Product has to be worth price asked When audience decides its not film flops Demand can dictate supply (adaptations) Supply can dictate demand (synergy/ AOL Time-Warner)

Activity
In groups, research either a film genre or a film star. Use the internet if you like. Present back to the class How does the creation of this genre/star create a marketable commercial product? Where does supply and demand come into this? How are the audience/consumer positioned? Do you consider this system to allow for individual freedom as market liberals would hope?

The Market, Capitalism and Culture

The culture of free market capitalism is inherently contradictory Business culture is said to be very go-getting, dynamic, inventive It claims that the need to survive in capitalist society makes people creative and self reliant Yet it opposes any radical change that would involve limiting the freedom to make money

Summary
Anything produced in this process is owned by the minority (capitalists)who then sell it in order to make a profit