Advantages And Disadvantages Of Free Market Economy

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Free market economy is based on supply and demand, there is either no government involved or little government if any. Free market economy is also known as the market economy. In a market economy people have an advantage because they have more money. Not everyone agrees with the aspects of a free market economy. Everyone has their own opinion about it, some people think it shows inequality in the economy. Despite the negative opinions, free market economy has helped billions of people all over the world get out of poverty. It has a strong impact on economies. Free markets do a lot, it controls what goods and services are made,who it’s made for, and how the products are constructed. Free markets also bring about prosperity. The countries that have the most money tend to have a free market economy. Free market economy has been around for a long time, it has been through many different stages ever since people first started trading with each other. Free markets started as a social arrangement. Private property rights and voluntary exchange wasn’t created by one intellectual person. The …show more content…
Some advantages is that the most demanded goods and services get produced. Secondly, goods and services are made in the most effective way. Third, it helps reward innovation. New products that are created will end up meeting the needs of the customers. It’ll be better than the goods and services that already exist. Now for the disadvantages, the key to a market economy is competition. Therefore they don’t care for people who are at a competitive disadvantage. That would include kids, people with disabilities and the elderly people. Second, society only cares about the rich people in a market economy. They could produce expensive things for the rich while the rest suffer and starve. Pure market economies must figure out if its in its self interest to help out the

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