The paper "The Market Theory of Capitalism and Free Market Economic Theory" is a good example of an essay on macro and microeconomics. The market theory of capitalism, suggested by Milton Friedman majorly presents an opportunity for private ownership of resources. It refers to a state where new owners and firms are at liberty to inject additional funds in the economy with the intended purpose of actualizing new ideas. This theory has often been celebrated as it provides freedom and dynamism for investors because they have the independence to make their own decisions regarding the projects they are to support.
Similarly, the theory has been credited because it supports innovation within the economy (Hill et. al 158). The market theory of capitalism, on the other hand, has been criticized on the basis that it comes with a lot of instability. The instability is in regard to the event that capitalism, if not properly handled can bring about a financial crisis, resulting in job insecurity and slump in the economy. In like manner, the theory has received disapproval for its tendency to favor the wealthy, while bringing continuous suffering to the financially disadvantaged within the society. The stakeholder’ s framework of business takes into consideration the fact that stakeholders play a very critical role in the success of any project and the administration of any organization.
In this regard, it is of great significance for a business to first identify its stakeholders as well as their key interests or issues that they want to be sorted. Similarly, a business should assess its prevailing status and the roles that are to be played by each of the stakeholders.
Adam Smith’ s free-market economic theory brings in a new perspective, arguing that a market with several buyers and sellers will ensure that resources are not wastefully allocated. Similarly, it recognizes that for the earnings of one party to increase, then the other party must have a reduction in earnings.