Evaluation of the Free Market Economy

Evaluate the Free Market Economy It is essential for each society to become some type of economic system in order to utilize their scarce resources to satisfy pecks unlimited wants. One specific type of economic system is the let go of grocery store economy an economy that is based off the citizens choice and non direct by the administration. In this economy people can buy and transmit goods and services, and this is completely controlled by consumers and producers. Every economy has advantages and detriments but in this trip the on the loose(p) commercialises disadvantages outdo its advantages.A free market has fewer disadvantages to list but the value of what is lost is much greater than the benefits. expressage government involvement, in any case described as laissez faire, means that the young and pitiful onlyow for 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 brookable to no national defense or security. Citizens will also be deprived from benefiting from programs such as Social Security and financial support.another(prenominal) disadvantage also comes from little government involvement. With limited government involvement an nonequivalent 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 energy be paid too little and then they will not be able to consume as much as proceeds 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 privation 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 consumer sovereignty, specialization, and voluntary exchange. A free market economy allows people to have their own economic choice, essentially the consumers will decide on what they do and do not want to purchase, which is known as consumer sovereignty.If there is a product that consumers are buying less of, the company will bankrupt producing it and focus on a new product or a product that is in high demand this is an pillowcase of consumer sovereignty. Although this provides incentive it also leads to a cycle of people spending their money on unneeded items also known as wants. Another feature also seen as an advantage is specialization- individuals concentrate their efforts in the activities or careers that they do best. A instructor will specialize in teaching to make money in order to purchase a phone that someone else specialized in producing.Lastly, the third feature with an a dvantage is voluntary exchange. It is the trade in which two parties involved anticipate the benefits that will outweigh the cost. It motivates profit and provides an incentive for competition. An example is the motivation of self- interest a consumer buys private property from another to assemble his wants or needs and also creates a profit for the owner. Although a free market economy has these advantages, the disadvantages are of much more importance.All in all a free market economy has a great fall of freedoms that citizens appreciate, but they do not take into consideration the benefits that may be lost in a free market. Although a free market economy is composed of six features consumer sovereignty, specialization, voluntary exchange and limited government involvement are the key ones. Those four features are the main advantages and disadvantages of the free market economy and they all make a huge difference. A free market has its advantages and disadvantages but the disadv antages override the advantages.