Examine the ways in which business contributes to economic, political, Essay

Examine the ways in which business contributes to economic, political, and social stability and instability - Essay Example Under this section, the global financial recession of 2008 will serve as a classic example of the potential of businesses to contribute to economic instability. Under the second section, a critical analysis of the contribution of businesses to political stability and instability will be discussed. The third section will consider the contribution of businesses to ether social stability or instability. Contribution of Businesses to Economic Stability or Instability Many economists have focused on describing the factors that affect the stability of the economy in different parts of the globe. The adoption of capitalism as an ideology in the business world brings out a clear picture of the dynamics that defined the business world. Capitalism is a system that favoured the rich countries that had the capital to invest, and served as a disadvantage to the lower class in any society that had to work as labourers with minimal wages. The bigger picture of the capitalism indicates that the esta blishment of free markets only serves to promote the interests of the rich. The rich countries have enjoyed the benefits of capitalism. On one side, capitalism has caused the economic stability of the wealthiest developed countries. This is evident from the analysis of the roots of capitalism in Europe and the trends that followed with capitalists occupying different territories. As Chang highlights in his critic of the capitalist system, it is evident that the opening up of markets promoted by capitalism has little benefit to the poor countries and has been the cause of the surging economic crises in these countries in the recent years (Chang & Lane2010, p. 34). Moreover, the capitalist system has only served to build several distinct capital systems that exhibit a level of competition. This competition only results in adversity that compromises the economies of some countries, while promoting the interests of the capitalist hegemony. After the recession experienced in the United S tates during the 1930s, it became evident that there was need for control of the business world. This led to the formation of different organizations that have been at the forefront of controlling the global markets and monetary systems. Evidently, these organizations have exerted a form of regulation of the international markets determining the ensuing business trends. Moreover, regional regulatory bodies that control the business trends in each region. Chang argues that the elimination of opaque financial products may foster a level of certainty concerning the future stability of the economy (Chang & Lane2010, p. 64). Evidently, it has proved impossible to ensure that each country and region maintain the openness and freeness of markets. Many countries have focused on the production of the opaque business products that have affected the stability of some economies. The 2008 financial recession reveals evidence that businesses have the potential of causing instability. The failure of banks was the primary cause of the recession. Prior to the recession, a few of the great banks controlled the financial system and had the security that they were not subject to failure. Moreover, many of the Americans had