Neoliberalism In Mexico And Its Characteristics

Neoliberalism in Mexico and its characteristics

Neoliberalism in Mexico is part of an economic political process that has its origins in the seventies with President Miguel de la Madrid, based on the allocation of productive resources. In Mexico this measure was used in response to the tax crisis of the welfare state. The research question that seeks to answer this essay is: how has economic development in Mexico been under neoliberal system? The hypothesis to the question is that by imposing the neoliberal system in Mexico the results have been both positive but above all negative within the country, since although it encourages free trade and foreign investment, unemployment, poverty and poverty also increasesInequality. That is why we can point out that at some point this system was the best strategy to resolve the crisis that was lived in the seventies, however the development of the neoliberal system over the years has lost its purpose and has deteriorated.

The objective of this research is to analyze the positive and negative aspects with respect to neoliberalism in Mexico. As well as the economic and social structure in which the country was when this economic system began. In the same way it is intended to analyze the evolution and development of the economy and politics under the neoliberal system.

The research technique that will be used will be qualitative, based on content analysis, that is, information from a series of documents and articles for the elaboration of the test will be taken.

And the information will be analyzed and discussed to buy the hypothesis and obtain a specific answer to the research question.

Developing

The term "neoliberalism" has it very familiar when listening daily in different conversations, since in recent years it has been related to so many factors of our daily life that is called a word of regular use, but still its definition is uncertain formany people;Neoliberalism is a movement that advances with a vertiginous success on classical liberalism, the movement focuses the economy as a axis of development for better results.

The problem that this essay is going to deal with is the poor implementation of the neoliberal system and as it has stopped working for the country’s economy, for society and for the national market. Since the 1982 crisis, the Mexican economy was proposed to a change towards neoliberal models

Despite a great advance with respect to world trade, Mexico accumulates a deficit of 95 billion dollars, this result of trade liberalization, one of the goals of Mexican neoliberlaism.

In the 94-95 years, Mexico suffers one of the worst crises in its history where GDP decreased by 6%, and GDP per capita in an 8.6%. Two thirds of Mexicans were unemployed and very few had some permanent session. Salaries were drastically reduced, reaching 27%. The causes of this crisis was a financial speculation, plus the rapid falling of the currency reserves, the worsening of the commercial defifcit and the great debt that did not stop extending

The justification of the essay is based on the fact that the economic instability that is lived in Mexico is a subject of great relevance and concern in society. The researchers of the subject present that the stability of the country is on a tightrope and the analyzes presented with respect to the economy indicate the existence of a low level in economic growth. And this in turn, generates a decrease in revenue concentration, large poverty rates in the Mexican population, job informality and especially exorbitant migration problems.

To enter into context, it is important to overcome the investigation, towards the departure of capitalism and to the replacement of the previous economic model, which was the "import industrialization of imports". This change made globalization out afloat. But in the same way, a problem arose in the structure of Mexico and this led to the welfare state crisis. The import substitute model effectively fulfilled its role as promoter of economic growth, by promoting the expectations of a better standard of living and well -being among the population. However, the crisis and international instability of the seventies, negatively had an impact on the economic, inflation and fiscal deficit of Mexico.

In 1982, neoliberalism was applied in Mexico, basically “its purpose was to correct the public deficit by decreasing state expenditure, the privatization of public companies, the reduction of the bureaucratic apparatus and the dismantling of the partner State” (Salazar, F, 2004). Its implementation is an economic philosophy and this tried. In the six -year period of Miguel de la Madrid and in the next 4 sexenios, development and benefits presented an "regular" economic development. "The application of the neoliberal model allowed the day -to -day development of the economy, in socio -economic aspects it was translated into optimal living conditions for Mexicans" (Hernán, G, 2019). Since it allowed to maintain stability in various sectors of the economy. Although it is pertinent to mention, that in the last decade neoliberalism is considered a destabilizing economic model for Mexico. Since the economy has suffered great conjunctures, which have caused great crises in the country.

There is high importance on this subject today. The issue of neoliberalism is in an boom, for the criticism made by López Obrador’s sexennium towards the system. And in the same way, it is of relevant importance, by the transition in which the country is found to try to adapt another new system and stop being under neoliberalism. The essay aims to inform about the process structure in which the country is located, in the same way to present a remembrance of the economic structure that was developed since this system was implemented. Research seeks to provide information that will be useful for the knowledge of society in general. And raise awareness about the importance of knowing the economic system and topics of collective interest. The new contributions generated by this research is to present a sequence and analysis of the neoliberal system, from its beginning to the present. In the same way, a scheme of Mexico’s economic development is provided being under this economic philosophy.

In a theoretical and historical context, neoliberal current was born as a political-economic movement in 1947. The implementation of neoliberalism originated in the United States of America as the modernization of "liberalism". In this theoretical framework it is important to mention that neoliberalism is an economic current that has its origin in liberalism, whose initiator was the philosopher Adam Smith. In his book "The wealth of nations" he mentioned that the capitalist when seeking his own benefit sought that of others, so that state intervention was not required in the economy in the economy. With the effects of Keynes capitalism, criticism of Adam Smith in order to promote and promote investment and consequently production, employment and demand in order to delay the arrival of the economic crisis. It is of great importance to point out that the main theoretical characteristics of the neoliberal model come from Milton Friedman and Friedrich Hayek. These two authors took the bases of Keynes but based on neoliberalism and opposed the intervention of the State in the economy because it had, and continues to have many negative effects.

In the case of Mexico, neoliberalism began in 1982 in the six -year period of Miguel de la Madrid. This particular government took office in a severe economic crisis and also sought to solve short -term problems such as the nationalization of banking. In the same way he created several plans for economic reorganization and carried out the National Development Plan with the aim of strengthening independence and recovering growth. In the Sixenio of Salinas of 1988-1994, he faced a national recession and this reflected a drastic fall in the economic stability of the population. One of the best known aspects at the Salinas Headquarters, was that the economy was privatized through the sale of companies. In the same way, the Treaty with the United States and Canada was made. And later in this same six -year period, the pact for stability and employment was signed.

On the other hand, in the mandate of Zedillo a unit agreement was coined to overcome the economic emergency. This agreement basically presented an approach to the reduction in debt deficit and decrease the inflation effect. Similarly, he promoted the investment and presented the privatization of national railroads and ports. In the six -year term of Vicente Fox, various programs were created and there was a reduction in public spending. In the same way they installed several programs such as the Popular Insurance, the Panama Plan was launched and opened the microcredit support program.

Characteristics of neoliberalism and measures in the economic policy of Mexico.

• Public spending decreases, which causes difficulties to disadvantaged sectors, for example, in education, health, infrastructure, etc.
• Production taxes decrease if products consumption increases.
• The free market competition, that is, the circulation of goods, capitals and people from various countries to stimulate trade and foreign investments.
• The world market has a higher priority over the national market.
• The State cannot participate in the country’s economy, all it can do is guarantee and stimulate free market competition.
• The State has no consent to conserve its companies, therefore, they must sell them to national or foreign businessmen.
• The country has a great dependence on the exterior, that is, a large commercial percentage depends on the relations, treaties or agreements with different country, in the case of Mexico, its dependence is with the United States since it is the main country where they are directedthe exports.
• Due to the great agency with the United States, Mexico loses capacity for decision making about its economic policy.
• According to F theories. Hayek and m. Friedman neoliberalism is based on the principle of Laissez Faire (letting), in other words, is freedom of choice and action.
• Most public companies go to the private sector.
• The main objective of economic policy is economic growth with the help of a commercial, financial and government balance.
• Social inequality and lower quality of life.

Measures in the economic policy of Mexico

Privatization of public and parastatal companies: one of the main change with the neoliberal model is the privatization of companies with public participation, in 1982 there were 1155 parastatal companies in different economic activities, after approximately six years, there were only 196 companies. These companies were within 18.5% of GDP, also, employed around 10% of the population, but by privatizing the favored actor was the government.

GATT: In 1947 the General Agreement on Customs and Commerce Tariffs (GATT) was signed in order to eliminate tariffs and import permits.

NAFTA: In 1994 the North American Free Trade Agreement (NAFTA) entered into force, with which exports increased, however, the country’s GDP did not grow as expected and there were losses of diverse industrialists.

Public spending cuts: This was done to have an economic fund for all activities that favor the free market, however, they caused limited coverage for various sectors, but mainly to social security, education and little investment in infrastructure.

The main objective of the economy was macroeconomic stability.

The work flexibility and the disappearance of the unions and salary stops: this is exercised in order that workers could recover the quality of life they had lost with the privatization of some companies.

Advantages and disadvantages of the neoliberal system over time.

Neoliberalism is the main system most implemented by weak countries that seek the help of entrepreneurs to save the country’s economy. In Mexico, the implementation of this system was to get out of the crisis of stagnation and inflation that was being lived in the seventies. The advantages of the neoliberal system in Mexico can be observed in the markets, since it has served to encourage market globalization. The advantages of this system are:

• Reduction of state companies
• Free market.
• Competition.
• NAF

The reduction of state companies in Mexico, served to reduce public spending in the country and improve the conditions of these companies, since many of them were in a deficit state and did not generate profits so they were a budget weight for the State. It also helped to increase private investment in the country which achieved greater productivity and at first it could observe great economic growth in the country. Mexico went from having 1113 state companies to 203 state companies. A clear example and that is current is the company that belonged to El State, Telephones of Mexico, which is now a private company, it can be seen that the privatization of this has given good results since it can be seen that it has had a greatdevelopment and there is a greater concentration of the economy.

We can understand the free market where there are no borders, that is, that the Government opens the country doors so that companies can take their products and services to more consumers. In this case, the State loses power over companies and these have the advantage of paying less taxes to export or import their product. In Mexico, the free market has been important to have a presence and win a place in the international economy and increase trade in the country. All this allowed products and services accessible to each economic level.

The competition allows you to freely choose between several products or services within the market. What achieved the entry of foreign products and caused national producers to focus on the improvement and result of their products and services offered and offer them at competitive prices against those abroad.

Finally, NAFTA, although currently called T-MEC, is one of Mexico’s most important commercial treaties. This agreement allowed the export of goods to the US and Canada with few commercial barriers and a better border circulation, to achieve fair competition. Allowed the industrialization of the country with the entry of foreign companies, the investment also increased and trilateral cooperation was achieved.

It can be seen that the advantages were only important during the first years of neoliberalism and were only advantages for commerce and economy. Remember that this system only benefits elites at the expense of the population that is in a more vulnerable situation. Therefore, it can be seen is that over the years there have been many more disadvantages by having this system implemented. The disadvantages of this system are:

• Tax increase
• Unemployment increase
• Growth of poverty
• Concentration of wealth and power
• Foreign capital dependence
• Monopolies
• Lack of national market protection

The tax increase arrives with the privatization of state companies, since the participation of the State in the economy is reduced and all taxes to companies are not charged, this to continue providing their services or products at a good price, private or foreign companies are privileged. The way in which the government can recover this income is to increase taxes to the population, which obviously affects the whole society.

Another of the disadvantages that have been observed that accompanies neoliberalism is the increase in unemployment and the miserable salaries offered by companies, citing Carlos Rozo who is cited by René Romero, mentions “on the contrary, in these years of neoliberalism,They have deepened imbalances in the ability to create more employment and social inequality has been deepened.’

Labor competence increases with this system and much of the population does not have the academic level to obtain a job and only those that had a good education can compete in the labor market. Likewise, Mexico demarcates employee salaries, which causes people’s salaries to be a mockery of their work.

Implement this system in Mexico where the majority of the population is in a vulnerable situation, it only causes the poor to become poorer and the richest rich rich. The needs and economic characteristics of the various regions are not taken into account, it is caused by an increase in the poverty index. From the implementation of the neoliberal system to the present time, governments have triedThe number of people in this situation and apart there is no necessary capital that these programs can serve all those who are poor, unemployed or both.

It can be seen that with Mexican neoliberalism, the purchasing power is in the hands of a few, who only watch over their interests, without worrying about society. The disadvantage that this system that privileges large foreign entrepreneurs, since a dependency of foreign capital is generated, and the big national entrepreneurs, is the lack of protection to small and medium -sized national entrepreneurs and producers, which makes many of these of these many of theseCompanies feel pressure for large companies and end up selling their assets to the entrepreneur of large corporations, which causes the centralization of power and the appearance of monopoly. Likewise, these large companies focus on maximizing profits, forgetting the well -being of consumers, producing products or offering poor quality services. And since the State lost its power in this companies, it cannot do anything.

Finally, it is necessary to recognize that this system only causes inequality and poverty. Despite the proper functioning that neoliberalism can have in the market, it cannot be implemented in society.

Neoliberalism in Mexico is part of an economic political process that has its origins in the seventies with President Miguel de la Madrid, based on the allocation of productive resources. In Mexico this measure was used in response to the tax crisis of the welfare state. The research question that seeks to answer this essay is: how has economic development in Mexico been under neoliberal system? The hypothesis to the question is that by imposing the neoliberal system in Mexico the results have been both positive but above all negative within the country, since although it encourages free trade and foreign investment, unemployment, poverty and poverty also increasesInequality. That is why we can point out that at some point this system was the best strategy to resolve the crisis that was lived in the seventies, however the development of the neoliberal system over the years has lost its purpose and has deteriorated.

The objective of this research is to analyze the positive and negative aspects with respect to neoliberalism in Mexico. As well as the economic and social structure in which the country was when this economic system began. In the same way it is intended to analyze the evolution and development of the economy and politics under the neoliberal system.

The research technique that will be used will be qualitative, based on content analysis, that is, information from a series of documents and articles for the elaboration of the test will be taken. And the information will be analyzed and discussed to buy the hypothesis and obtain a specific answer to the research question.

The complete structure of the problem is missing

The term "neoliberalism" has it very familiar when listening daily in different conversations, since in recent years it has been related to so many factors of our daily life that is called a word of regular use, but still its definition is uncertain formany people;Neoliberalism is a movement that advances with a vertiginous success on classical liberalism, the movement focuses the economy as a axis of development for better results.

The problem that this essay is going to deal with is the poor implementation of the neoliberal system and as it has stopped working for the country’s economy, for society and for the national market. Since the 1982 crisis, the Mexican economy was proposed to a change towards neoliberal models

Despite a great advance with respect to world trade, Mexico accumulates a deficit of 95 billion dollars, this result of trade liberalization, one of the goals of Mexican neoliberlaism.

In the 94-95 years, Mexico suffers one of the worst crises in its history where GDP decreased by 6%, and GDP per capita in an 8.6%. Two thirds of Mexicans were unemployed and very few had some permanent session. Salaries were drastically reduced, reaching 27%. The causes of this crisis was a financial speculation, plus the rapid falling of the currency reserves, the worsening of the commercial defifcit and the great debt that did not stop extending

The justification of the essay is based on the fact that the economic instability that is lived in Mexico is a subject of great relevance and concern in society. The researchers of the subject present that the stability of the country is on a tightrope and the analyzes presented with respect to the economy indicate the existence of a low level in economic growth. And this in turn, generates a decrease in revenue concentration, large poverty rates in the Mexican population, job informality and especially exorbitant migration problems.

To enter into context, it is important to overcome the investigation, towards the departure of capitalism and to the replacement of the previous economic model, which was the "import industrialization of imports". This change made globalization out afloat. But in the same way, a problem arose in the structure of Mexico and this led to the welfare state crisis. The import substitute model effectively fulfilled its role as promoter of economic growth, by promoting the expectations of a better standard of living and well -being among the population. However, the crisis and international instability of the seventies, negatively had an impact on the economic, inflation and fiscal deficit of Mexico.

In 1982, neoliberalism was applied in Mexico, basically “its purpose was to correct the public deficit by decreasing state expenditure, the privatization of public companies, the reduction of the bureaucratic apparatus and the dismantling of the partner State” (Salazar, F, 2004). Its implementation is an economic philosophy and this tried. In the six -year period of Miguel de la Madrid and in the next 4 sexenios, development and benefits presented an "regular" economic development. "The application of the neoliberal model allowed the day -to -day development of the economy, in socio -economic aspects it was translated into optimal living conditions for Mexicans" (Hernán, G, 2019). Since it allowed to maintain stability in various sectors of the economy. Although it is pertinent to mention, that in the last decade neoliberalism is considered a destabilizing economic model for Mexico. Since the economy has suffered great conjunctures, which have caused great crises in the country.

There is high importance on this subject today. The issue of neoliberalism is in an boom, for the criticism made by López Obrador’s sexennium towards the system. And in the same way, it is of relevant importance, by the transition in which the country is found to try to adapt another new system and stop being under neoliberalism. The essay aims to inform about the process structure in which the country is located, in the same way to present a remembrance of the economic structure that was developed since this system was implemented. Research seeks to provide information that will be useful for the knowledge of society in general. And raise awareness about the importance of knowing the economic system and topics of collective interest. The new contributions generated by this research is to present a sequence and analysis of the neoliberal system, from its beginning to the present. In the same way, a scheme of Mexico’s economic development is provided being under this economic philosophy.

In a theoretical and historical context, neoliberal current was born as a political-economic movement in 1947. The implementation of neoliberalism originated in the United States of America as the modernization of "liberalism". In this theoretical framework it is important to mention that neoliberalism is an economic current that has its origin in liberalism, whose initiator was the philosopher Adam Smith. In his book "The wealth of nations" he mentioned that the capitalist when seeking his own benefit sought that of others, so that state intervention was not required in the economy in the economy. With the effects of Keynes capitalism, criticism of Adam Smith in order to promote and promote investment and consequently production, employment and demand in order to delay the arrival of the economic crisis. It is of great importance to point out that the main theoretical characteristics of the neoliberal model come from Milton Friedman and Friedrich Hayek. These two authors took the bases of Keynes but based on neoliberalism and opposed the intervention of the State in the economy because it had, and continues to have many negative effects.

In the case of Mexico, neoliberalism began in 1982 in the six -year period of Miguel de la Madrid. This particular government took office in a severe economic crisis and also sought to solve short -term problems such as the nationalization of banking. In the same way he created several plans for economic reorganization and carried out the National Development Plan with the aim of strengthening independence and recovering growth. In the Sixenio of Salinas of 1988-1994, he faced a national recession and this reflected a drastic fall in the economic stability of the population. One of the best known aspects at the Salinas Headquarters, was that the economy was privatized through the sale of companies. In the same way, the Treaty with the United States and Canada was made. And later in this same six -year period, the pact for stability and employment was signed.

On the other hand, in the mandate of Zedillo a unit agreement was coined to overcome the economic emergency. This agreement basically presented an approach to the reduction in debt deficit and decrease the inflation effect. Similarly, he promoted the investment and presented the privatization of national railroads and ports. In the six -year term of Vicente Fox, various programs were created and there was a reduction in public spending. In the same way they installed several programs such as the Popular Insurance, the Panama Plan was launched and opened the microcredit support program.

Characteristics of neoliberalism and measures in the economic policy of Mexico.

• Public spending decreases, which causes difficulties to disadvantaged sectors, for example, in education, health, infrastructure, etc.
• Production taxes decrease if products consumption increases.
• The free market competition, that is, the circulation of goods, capitals and people from various countries to stimulate trade and foreign investments.
• The world market has a higher priority over the national market.
• The State cannot participate in the country’s economy, all it can do is guarantee and stimulate free market competition.
• The State has no consent to conserve its companies, therefore, they must sell them to national or foreign businessmen.
• The country has a great dependence on the exterior, that is, a large commercial percentage depends on the relations, treaties or agreements with different country, in the case of Mexico, its dependence is with the United States since it is the main country where they are directedthe exports.
• Due to the great agency with the United States, Mexico loses capacity for decision making about its economic policy.
• According to F theories. Hayek and m. Friedman neoliberalism is based on the principle of Laissez Faire (letting), in other words, is freedom of choice and action.
• Most public companies go to the private sector.
• The main objective of economic policy is economic growth with the help of a commercial, financial and government balance.
• Social inequality and lower quality of life.

Measures in the economic policy of Mexico

Privatization of public and parastatal companies: one of the main change with the neoliberal model is the privatization of companies with public participation, in 1982 there were 1155 parastatal companies in different economic activities, after approximately six years, there were only 196 companies. These companies were within 18.5% of GDP, also, employed around 10% of the population, but by privatizing the favored actor was the government.

GATT: In 1947 the General Agreement on Customs and Commerce Tariffs (GATT) was signed in order to eliminate tariffs and import permits.

NAFTA: In 1994 the North American Free Trade Agreement (NAFTA) entered into force, with which exports increased, however, the country’s GDP did not grow as expected and there were losses of diverse industrialists.

Public spending cuts: This was done to have an economic fund for all activities that favor the free market, however, they caused limited coverage for various sectors, but mainly to social security, education and little investment in infrastructure.

The main objective of the economy was macroeconomic stability.

The work flexibility and the disappearance of the unions and salary stops: this is exercised in order that workers could recover the quality of life they had lost with the privatization of some companies.

Advantages and disadvantages of the neoliberal system over time.

Neoliberalism is the main system most implemented by weak countries that seek the help of entrepreneurs to save the country’s economy. In Mexico, the implementation of this system was to get out of the crisis of stagnation and inflation that was being lived in the seventies. The advantages of the neoliberal system in Mexico can be observed in the markets, since it has served to encourage market globalization. The advantages of this system are:

• Reduction of state companies
• Free market.
• Competition.
• NAF

The reduction of state companies in Mexico, served to reduce public spending in the country and improve the conditions of these companies, since many of them were in a deficit state and did not generate profits so they were a budget weight for the State. It also helped to increase private investment in the country which achieved greater productivity and at first it could observe great economic growth in the country. Mexico went from having 1113 state companies to 203 state companies. A clear example and that is current is the company that belonged to El State, Telephones of Mexico, which is now a private company, it can be seen that the privatization of this has given good results since it can be seen that it has had a greatdevelopment and there is a greater concentration of the economy.

We can understand the free market where there are no borders, that is, that the Government opens the country doors so that companies can take their products and services to more consumers. In this case, the State loses power over companies and these have the advantage of paying less taxes to export or import their product. In Mexico, the free market has been important to have a presence and win a place in the international economy and increase trade in the country. All this allowed products and services accessible to each economic level.

The competition allows you to freely choose between several products or services within the market. What achieved the entry of foreign products and caused national producers to focus on the improvement and result of their products and services offered and offer them at competitive prices against those abroad.

Finally, NAFTA, although currently called T-MEC, is one of Mexico’s most important commercial treaties. This agreement allowed the export of goods to the US and Canada with few commercial barriers and a better border circulation, to achieve fair competition. Allowed the industrialization of the country with the entry of foreign companies, the investment also increased and trilateral cooperation was achieved.

It can be seen that the advantages were only important during the first years of neoliberalism and were only advantages for commerce and economy. Remember that this system only benefits elites at the expense of the population that is in a more vulnerable situation. Therefore, it can be seen is that over the years there have been many more disadvantages by having this system implemented. The disadvantages of this system are:

• Tax increase
• Unemployment increase
• Growth of poverty
• Concentration of wealth and power
• Foreign capital dependence
• Monopolies
• Lack of national market protection

The tax increase arrives with the privatization of state companies, since the participation of the State in the economy is reduced and all taxes to companies are not charged, this to continue providing their services or products at a good price, private or foreign companies are privileged. The way in which the government can recover this income is to increase taxes to the population, which obviously affects the whole society.

Another of the disadvantages that have been observed that accompanies neoliberalism is the increase in unemployment and the miserable salaries offered by companies, citing Carlos Rozo who is cited by René Romero, mentions “on the contrary, in these years of neoliberalism,They have deepened imbalances in the ability to create more employment and social inequality has been deepened.’

Labor competence increases with this system and much of the population does not have the academic level to obtain a job and only those that had a good education can compete in the labor market. Likewise, Mexico demarcates employee salaries, which causes people’s salaries to be a mockery of their work.

Implement this system in Mexico where the majority of the population is in a vulnerable situation, it only causes the poor to become poorer and the richest rich rich. The needs and economic characteristics of the various regions are not taken into account, it is caused by an increase in the poverty index. From the implementation of the neoliberal system to the present time, governments have triedThe number of people in this situation and apart there is no necessary capital that these programs can serve all those who are poor, unemployed or both.

It can be seen that with Mexican neoliberalism, the purchasing power is in the hands of a few, who only watch over their interests, without worrying about society. The disadvantage that this system that privileges large foreign entrepreneurs, since a dependency of foreign capital is generated, and the big national entrepreneurs, is the lack of protection to small and medium -sized national entrepreneurs and producers, which makes many of these of these many of theseCompanies feel pressure for large companies and end up selling their assets to the entrepreneur of large corporations, which causes the centralization of power and the appearance of monopoly. Likewise, these large companies focus on maximizing profits, forgetting the well -being of consumers, producing products or offering poor quality services. And since the State lost its power in this companies, it cannot do anything.

Finally, it is necessary to recognize that this system only causes inequality and poverty. Despite the proper functioning that neoliberalism can have in the market, it cannot be implemented in society.