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disaadvantages of free market economy
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... Critical Evaluation of the Free Market System
Our economy is supported by a free market system, based on the principals of capitalism. This system has long been heralded as the most fair and equitable model for all members of society. Some claim that the system allows for an equitable allocation of goods, particularly when resources are scarce. Furthermore, proponents of the market system contend that in order to safeguard its merits, government must refrain from interfering. The following analysis will critically assess these claims, using practical examples for support.
The free marketís most heralded virtue is that it empowers every person to make choices (morally or economically) based on his own personal frame of reference. In so doing, each person is free to live his life as he so chooses, and to subsequently reap the resulting rewards. The marketís efficiency, therefore, is necessarily based on the moral qualities of individual participants. The conflict exists when principled values are replaced by material values. This generally results in a breakdown of trust, obligations are no longer honored, immorality becomes familiar, and chaos rules.
Theoretically, if all participants in the free market, behave morally and ethically, resources will be allocated fairly. In the aggregate, and over time, the system seems to ...
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