Question

Free market capitalism is an economic system that is characterized by private property, competitive markets and limited government intervention. This system is in essence a form of trade that is governed by supply and demand and maintained through healthy competition.  

There are both pros and cons when it comes to a free market. When demand is high and is adequately supplied, the market is considered to be strong. Wealth is generated in this case because people have money to spend so more items are produced and sold. This wealth can generate great benefits such as job creation and more taxes to fund government assistance programs.

On the other hand, if the market takes a hit, the averse affect will take place. A dip in the real estate market or the stock market plummeting can cause demand to decrease. When demand decreases there are less workers that are needed and the lower class is the group that is hit the hardest. When asked if I think this system is good? I do think the free market is a good thing, until one class is being hit the hardest when there is a speed bump in the road. With that said, I do believe that the pros out-weigh any of the cons or alternatives.

Please respond to post in at least 100 words

Answer 1

Every where when there is a hard work they will be rewarded with success. The same implements in free market even though it is risky. Free market system works on the principal of demand and supply in the market. If there is more demand there will be more supply of any good of service and vice versa. So free market helps the economy to grow and business to expand.

There are some cons like any hit in the market there will be downturn in the economy but it will be only upto a certain condition again after that the economy will be again stabilize.

Any business enter the market to make profit. So in free market business have more scope to make profit when they are able to create demand for their products. When new company enter the market the unemployment will fall and consumption increase which leads to growth in economy.

One major advantage his that consumers can buy the product with quality at a less price due to competition in the market. Poor quality product will be rejected.