Revise essay

Even though it is difficult to find the definitive references to trace the very first appearance of market, the development of market is evolved from barter. Barter refers to the exchange of only goods, and without a specifically determined value of all those goods, sometimes the trust among people is a primary factor for people to trade goods with goods in the very old times. It often happened among the closest people like neighbors and seeks to achieve the communism of prosperous. Yet, people were unwilling to exchange goods with strangers because of the absence of trust. Other times, motives for exchanges are seemed to be more complex. In hierarchic system, a man with higher position might give out gifts to its subordinates, for the sake of both ensuring their loyalty and showing off his magnificence above them. Same thing happened among people in the equal states, their exchanges “are usually fraught with many layers of love, envy, pride, spite, communal solidarity, or any of a dozen other things”. The purpose of all those behaviors is without exceptions to human being’s nature of implicitly seeking advantages for ourselves. In those two conditions, people are still dueling business with people they know; and of course, when trading in the communism and hierarchy society, there is always the ignorance of equivalence in exchanges and the lack of strangers in the trade.

After people discovering what they were truly pursuing, the trade became more wide-ranging. Without having trust for strangers, certain ways needed to be invented to note the debt between people and to equalize the exchanges. Gradually the appearance of money served as the solution of such exchanges and the money-based market is introduced to fulfill people’s desires of obtaining commodities they want. Despite that markets is driven by people trying to seek advantages and profits among exchanges, it in fact ensures equivalence and contribute to the well-being of human.

Imagining the lack of market and trade that an individual can only live with what he or she can produce or discover. In another word, markets contribute to the redistribution and more efficient allocation of the limited resources.

When two parities are engaging in exchanges, both of them are seeking to gain in the trade with their point of view about the values of goods or services involving in the trade. Without any other outside interventions, two parties will only proceed the trade when they think they both gain from the trade. Although it may sounds quite impossible but because of different parties having different points of view about the value of the commodities, it is very likely that both parties find themselves gained in the trade. When the scenario extends to a larger frame, not just two parties dueling business with each other but a great amount of buyers and sellers in a large market, it could become much more complicated. Although Adam Smith has stated the idea of invisible hands that the demand and supply within a market would find its balance in a market and therefore determines the price, considering such a vast amount of people buying and selling goods, it is too imaginary to think they will all behave properly every time the transactions happened. I think the government intervention is necessary to ensure the equivalence in a market.

However, in this case it is not the market that the government is regulating but more like people’s behavior that they are regulating, though most of such polices are exerted on factors within a market, like price, subsidy goods or complementary goods. Certain policies and rules are needed to supervise fair trades and prevent individuals gaining unequal profits from the market. Regarding the fact that we all believe that government or those regulators understand what should be like for a market to run properly, it is a good thing for the society that those individuals who act wholly on their own self-interests gets regulated for the better sake of other buyers and sellers in the market. For other cases, for example, when there is other outside interventions happened to markets, for example, bad weathers, natural disasters or war, the government is responsible for helping business that suffered from those external factors to perform at the level they should be.

Briefly, I believe no market in the real life can be functioned without any other outside regulation, considering there are so many complicated factors to causing unfairness; it is necessary and also optimum for markets being regulated by the government.