History and cycles
Pre World War II Britain was primarily a socialist regime with choice heuristics that mimicked Soviet Russia to an extent. At around the same time, globally, the United States was transforming the global economy by introducing products and ideas that gave rise to the concept of free marketeering and through it, perfect markets. Soviet Russia itself was on the other end of the spectrum, with consumption patterns that were strictly controlled by the government.
Today, the market state is different due to two factors :
- Entry of new governments into the system — understood as the introduction of competition between markets
- Breakdown of socialist markets like USSR and erstwhile Nordics and move towards the left of the graph — understood as the failure of execution of socialism as a concept
This is the highest level of abstraction available of competition and execution. There are two trends to notice here
- Each market moves towards the right or left dynamically, based on the socio-economic situation prevailing at the time. We can call this the market cycle
- Within each market, different industries are in different states of bundling and unbundling depending on the market’s situation prevailing at the time. We can call this the bundling cycle