Strenths and Weaknesses of a Capitalist Economy essays

Strenths and Weaknesses of a Capitalist Economy essays A market economy is one governed by the forces of supply and demand based on price in which businesses produce goods and services that people want. Like any other economy, there are advantages and disadvantages. A market economy theorizes that everyone can and should take care of themselves. It is a belief on self reliance. One disadvantage of this is the unfair distribution of wealth, although there are some people that are rich and successful, there are many others that struggle day to day to try to make ends meet. It is an economy where not much action is being taken to support the homeless and others that are in poverty. Also, another disadvantage is lack of competition. Without more than one business owner competing in the same market place, prices of goods and services can go sky high. Only those with enough money are able to purchase the product. Without some regulation, it would only create more inequality. On the other hand, there are many benefits to this economy. In the market economy there are much more freedoms and people getting to choose what they desire to pay for? Individuals have the freedom to choose what to buy, where to buy it, and how much they are willing to pay. In addition, producers or entrepreneurs, can freely enter the market place with any product or service they think will sell and that meets government standards. Furthermore, people are individually free to choose where they want to work. Businesses are also free from having to put up with interferences by others, including the government. In addition, citizens of a capitalist nation are free to exchange money and property. Competition is also strength. Competition is the struggle between two or more businesses trying to reach the same goal, in this case it is making money. Making profits is the incentive that drives businesses to sell the product or service at the highest quality and at the lowest possible price. ...