Evaluation of the Free Market Economy
Evaluate the Free Market Economy It is essential for every society to have some type of economic system in order to utilize their scarce resources to satisfy people’s unlimited wants. One specific type of economic system is the free market economy; an economy that is based off the citizens choice and not directed by the government. In this economy people can buy and sell goods and services, and this is completely controlled by consumers and producers. Every economy has advantages and disadvantages but in this case the free market’s disadvantages outweigh its advantages. A free market has fewer disadvantages to list but the value of what is lost is much greater than the benefits. Limited government involvement, also described as laissez faire, means that the young and poor will not have any means of support or benefits. Sick people will be too ill to be able to take care of themselves leaving them alone and without public health care. The society will also be in harm due to no national defense or security. Citizens will also be deprived from benefiting from programs such as Social Security and financial aid. Another disadvantage also comes from little government involvement. With limited government involvement an unequal distribution of wealth will then be created. Some people will have much more money than they need and others will be in need of more economic support. Some workers might be paid too little and then they will not be able to consume as much as production calls for, therefore leaving the economy in a state of disarray. Another impact of little government involvement that affects everybody in all classes is the lack of national defense. No matter how much money someone has they would not pay for protection that could easily be provided for free. Without the benefits that government involvement can aid us with many people would be left struggling, that is why the disadvantages outweigh the rest. A free market economy has many advantages such as