What is Market Economy?

Posted by Amy :)

Market economy primarily depends on the supply and the demand of a product. The decision regarding the pricing, investment, production and distribution of a product is made according to the demand of the product in the market and the supply being provided. Market economy refers to an economy in which all the above mentioned decision are taken as per two factor –  demand and supply. Market economy is in contrast with the planned economy. In case of planned economy, the production decisions does not depend on factors like production and decisions but are already decided as per the plan of the production.

Market economy can range from a free market to a regulated market conditions. Market economies however do not exist in pure form as the society and the government regulates them to a great extent. Most of the market economies are better referred as mixed economies as they include some degree of economic planning and state directed activities associated with them. Free market is often used synonymously as market economy but it might also refer to free market anarchism.  Market economy ignores the presence of private property in the means of production. It can consist of various cooperatives, collectives or autonomous state agencies use the free system to acquire and exchange capital goods among them. Market socialism has many variations and involve employee owned enterprises that are based on self management and operates in markets and modules that involve public ownership.

Sometimes, the term market economy might be misleading like in America where mixed economy is prevalent but is rooted in market economy. Different economists and businesspersons have different perspectives to how strong a role the government should have in guiding the market economy and to the inequalities, the market produces. Market economies consider that the market forces like the demand and supply of a product are the primary determinants to analyze the market condition and define what is good or bad for the nation. These economies are not commonly intervened by the government through price fixing, industry subsidization and license quotas.

Many of the countries that have mixed economies are also known as market economies for the reason that they consider market forces to define most of their business states and allow the government intervention only to a small extent that is required for proper stability of the country economy. This system if a system of choice for the market place all around the globe but the extent of government intervention is still a matter of debate. No exact level of government intervention is defined that would allow an efficient economic operation of a nation.

Market economy is connected with large political ideals too. There are many theories on market economy proposed by many economists. However, Milton Friedman is one of those economists who talk on this. He advocates that free-market economy is an essential requirement for a free political system. The extent to which the government brings effect in the free market is directly related to the extent of political and civil freedom enjoyed by the citizens.

Author Bio: I am William a finance blogger, freelancer and copyright editor from NY. Check out my site at economicrisis.com

The above article has posted by Amy Lewis, owner of the finance corner. For more details about Amy you can visit her social media profiles in below mentioned urls:

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The Pros and Cons of Using a Credit Card

Posted by Amy :)

Even if the current economy is inconsistent and unpredictable the numbers of credit card users have increased considerably over the years. Credit cards come with high interest fees but yet there are several benefits and advantages that make owning a credit card worthy. However it completely rests on the user whether he should use his credit card for the good or for the bad. If utilized cleverly, credit card can indeed help you more in saving money than spending it.

There are several benefits and drawbacks of using a credit card and in a time where an economic crisis or a phase of inflation can land upon u

s at any moment, you must make sure that your credit card doesn't create unnecessary troubles for you. Here in this article we will talk about the numerous advantages and disadvantages of credit cards so that you can you can make the most from your card and avoid misuse of the same.

Credit Card Benefits

Improved Buying Power: An chief benefit of credit card is its ability to improve your shopping experience. You can avoid carrying large amount of cash which is considered unsafe and use your credit card while shopping instead.

Safe Transaction: Transactions with credit card is considered to safe in comparison to cash transaction. Credit card companies offer several advantages on stolen and lost things that were bought using a credit card and some credit card firms even offer insurance on purchases.

Best during Emergencies: Credit card can be extremely handy during emergencies. No one knows about the future and accidents and mishaps can happen at any given time and what could be worse is the shortage of money during such moments. But with credit cards you can reduce the risk of monetary shortages during such crucial times. 

Other advantages: Credit cards can offer additional benefits such as discounts on purchases, benefits in online shopping, free miles on road and airlines, EMI facilities, etc. These benefits can indeed be helpful if you use your credit card wisely.

Credit Card Disadvantages:

Increased Expenses: And important thing that a credit card user must realize is that whenever he shops he is paying money that he literally doesn't possess. A credit card can make its owner feel richer and therefore he shops more than normal and buys things unnecessarily. This often leads to increased expenses which finally cause more debt to the card owner.

High Interest Rates: Now after you buy an expensive item using a credit card you will have to pay it back to the card issuer and he will charge you with interest that are often much higher than you could imagine. Further if you fail to pay or delay your payments the interest rate will increase further. This is a major drawback of using a credit card since you will have to pay more for the things you buy.

Fraud and Scams: Credit card frauds and scams often occur to their owners and if you do not handle it properly it can be stolen and misused. This can cause a major headache for the card owner but if reported on time much of the troubles associated with credit card theft can be evaded.

Author Bio: I am William a finance blogger, freelancer and copyright editor from NY. Check out my site at economicrisis.com

Secret to Saving Money

Posted by Amy :)

In the present state of economic crisis where the income has fallen down and the prices of commodities have rose exponentially, ways to save money is something looked after by every individual. Whatever be your earnings, if you are not one of those business magnets who show their appearance on the business magazines or are in news, you are possibly a common man with a limited income. In the stressful state of financial distress saving a part of what you have earned is a big deal for you. Saving money can have just a simple formula and that is to save. Clearly speaking you need to cut down your expenses so that you can save more from your earning and expend less. Avoid any luxurious expenses. Now, all you do is not to save money but to assist yourself in preventing any extra expense. Planning your personal finance is essential even during economic crisis as it may make you expend long years of savings all at once.

Before making any change in your expenses, you must know what you are doing. Make sure that the step that you are taking really benefits you in any way. Only then you will be able to maintain a proper balanced monthly budget. After retirement is the time that may be converted to the most painful days as far as your personal finance is considered if you have not planned it yet. There are plans such as 401k and IRA and if you are not under any of these plans, you must talk to your financial advisors regarding the same.

To keep your post retirement future safe, you need to start saving money for the same as early as possible. It is recommended that you must save at least 10% of your total income for post retirement. Try questioning yourself whenever you are to invest in some luxury item – do I really need it? You have to treat you personal finance and your home as a business firm. Check how much you expend and how much you earn. Adjust your expenses as per the income you receive. There are certain expenses that are sure to be done. These include rents, school fees of your children, electricity, taxes and many more. If you cannot stop investing in them, you can however try to reducing the expense. Check if you are having a flat that is bigger than you need? Sometimes people have guest rooms that are seldom utilized. So, it would be better if you opt for a smaller flat that is enough in size for you.

Author Bio: I am William a finance blogger, freelancer and copyright editor from NY. Check out my site at economicrisis.com

Becoming a Millionaire at an Early Age

Posted by Amy :) 

Experts and financial gurus have given their own views and thoughts about becoming rich and wealthy for ages and while some became rich by using those theories a majority couldn't make it to the top. It is because becoming rich greatly depends on several factors which includes your expertise in a particular field, your decision making skills, your understanding of money and how it grows, your patience, and finally your fate. It is seen that a majority of wealthy people (accept the inheritance) became rich through a single or through all of the above mentioned factors collectively.

In the modern times where were we are surrounded with economic crisis and inflation, becoming rich isn't easy and therefore only a few among us becomes vastly wealthy. But even though becoming a billionaire is a dream that appears distant for the time being, crossing the million dollar margin isn't much tough and by following some easy techniques and procedures you can become a millionaire by the time you hit 30. Here in this article we are trying cover the easy and effective ways which you can implement and become a millionaire at an early age.

Understand the Value of Time: Time is a nonrenewable resource and if used inappropriately it gets lost forever. Therefore you must understand the worth of time if you wish to become rich at an early age. Start designing your career from high school and adopt a particular field in which you have the potential of becoming successful. Earn good grades in school and college exams and invest your time in learning new things rather than wasting it.

Become an expert: It will be easy for you to amplify your net worth if you become an expert in a particular field. You can gain expertise in software or marketing and start your professional career with a decent salary. However it is important to know that if you don’t earn high grades in school you cannot apply for engineering or medical studies when you enter in college. And again you shouldn't just learn and gain experience but try to become an expert in the field you wish to make a career in. If you are an expert in let’s say marketing than you will be at the top of the working class and companies will hire you as a boss rather than just an employee and the salary they will offer you will be much higher than normal.

Invest assets lying idly: If you own assets that are lying idly you can invest them and earn returns. Money lying idly can be used for buying stocks, real estate, gold, bonds, etc. That way you can stimulate the growth of your wealth and a majority of rich people did the same for increasing their net worth.

Be an inventor: Start working on new ideas that has the potential to sell. Study the lives of inventors of the current times like Mark Zuckerberg and Steve Jobs and understand how they became wealthy by developing new ideas that became popular because of their applicability and usefulness in the daily lives of common man.

Test your luck: Last but not the least, you can obviously test your luck and become a millionaire overnight like Justin Bieber. If you have talents like singing, dancing, anchoring, acting, painting, etc. you can use them for your benefit. You can start learning acting, go for music classes, start writing stories or screenplays, etc. Basically you can try your luck in the entertainment industry and who knows after a year or two you will finally become rich as well as popular.

Author Bio: I am William a finance blogger, freelancer and copyright editor from NY. Check out my site at economicrisis.com