The Pros and Cons of A Market Economy. Essay

846 Words 4 Pages
The Advantages and Disadvantages Of A Market Economy.

27/9/96 Command and Market economies Neil Samtani

When considering the advantages and disadvantages of command and market economies, you may notice that they are usually straight forward, yet, both advantages and disadvantages may merge at times, resulting in an unclear issue, that could be debatable whether it is for the good of the society, or for the government. Therefore, what I am trying to say, is that no matter how hard you try, it is always impossible to debate on which economic system is better. Both have their good points and their bad, but, each is aimed towards a community that will make use of it. This community has usually got a majority of people either rich or
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This is a perfect example of what I mentioned before, which is the way that you can not categorise all statements.
This would be an advantage for the rich, but, a disadvantage for the poor.
However, governments may also affect the situation, resulting in the rich getting richer, and, the poor managing to stay alive. The entire idea of the market economy is freedom. The freedom for people to do what they want, make what they want, and, sell what they want (to a certain extent). This can also be described as being able to decide WHAT is going to be produced (what products), HOW it is going to be produced
(organisation, etc.) and FOR WHOM it is going to be produced. This is definitely an advantage, as freedom and rights are allowed. Besides this, the norm is that you're wage is affected by the amount you work. The harder a person works, the more you would expect to get paid. This is another advantage, since people are paid by the amount they work : a lot of work results in a high outcome, and a high income for the person. This is an incentive to work too, since, the point stated previously can affect a person negatively, since, not enough work can result in pay cuts or, even job losses. Since the economy is controlled by the rich, a problem that is bound to occur is the economic growth rates increasing and decreasing. This can result in people either spending a lot of money (ending up with more people being
employed)…