by Lewis English Foxcroft

Created on: July 02, 2007

To truly discuss the role of bureaucracy and the market one must surely look at the liberal ideal of free market, the basis of which is that the market can work without legislation or interference from the government. The antithesis to this idea is that of bureaucracy, which formalises and regulates the economy for the sake of efficiency. The idea that the government should have no interference with the marker is commonly known as laissez-faire.

Laissez-faire, a shortened version of the French maxim "laissez faire, laissez aller, laissez passer," meaning "let do, let go, let pass." Is the tome of the free market and was heavily used in nineteenth and early twentieth century British politics to describe the Conservative Party and their opposition to interference through social reform. The idea means that the state should not regulate the economy as it is part of the private sphere which is out of the jurisdiction of the state. Instead of regulation Liberals believe that the market is naturally self-acclimating. Adam Smith described this self regulation as an "Invisible hand to promote an end which was no part of his intention. " The idea that a market can be self regulating manifests itself throughout demand and saturation. For example a shortage of a certain good creates demand; the price therefore increases with demand and creates a higher profit margin. This makes it more profitable to make a wanted good. If there is saturation of goods then demand falls forcing the manufacturer to trade at a lower price. This forces the vender to cut profit they will sell it cheaper and thus cut profit forcing those who sell at a loss out of the market. The balance of supply and demand, Smith refers to as "natural price" However, Smith appears to be saying that greed and selfishness drive the economy but he said (that) these are justified as the lower price it achieves is a benefit to society. Smith proposed that this invisible hand' was in fact a natural inclination but can a society's economy really be completely separate and distinct from the state? Does the theory and the actuality come to the same conclusion (I don't understand this?) or is it bureaucracy that is "the natural inclination? " For this argument I will be focusing on Karl Marx's "Notes for a Critique on Hegel's Philosophy of Right " and Max Weber's "The Protestant Ethic & the Spirit of Capitalism " and "Economy and Society. " Marx wrote that bureaucracy was present in the economy but this was a detriment

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