The Advantages And Disadvantages Of A Market Economy.

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 poor, and, social class usually effects the way people may choose

their government.

     In a market economy, the advantages are normally aimed towards the

middle/upper class in a community. This is why we normally find them in richer

communities (i.e. England, USA). The concept of a market economy is to allow

people to get through life by themselves. Government usually does little to

change the economy, and, the control is given to the people with the money, or,

rather, the people with the businesses. The main people in such an economy are

usually the consumers, the producers, the owners of private property, and, the

government. These are the people with the power. The whole system revolves

around private gain rather than the interests of everyone in a community. Since

the rich are in control of the economy, their decisions result in the rich

getting richer and the poor getting poorer. 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 affe
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