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  • Posted By: twinkle007
  • Date Posted: 10/26/2010
  • Category: Business
  • Words: 606
  • Pages: 3
  • Views: 1303
  • Rank: 234

Disadvantages of a Free Market Economy

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Disadvantages of a Free Market Economy


Having a free market economy means that certain essential goods and services that we have come to expect from our governments are not provided or left up to the good will of private enterprise to provide them on some level, if they choose. As we have seen in very the recent economic picture of the world, these days, corporations always choose profits making and company benefits over aiding the people.


In a free market economy, no one provides education, health care, or housing. To sum it up, the rich get richer and the poor become more deprived. There are no public goods such as street lighting, police, and fire services, or public transportation, because there is no profit in providing these goods. Products like cigarettes and alcohol will proliferate because there is profit to be taken by making them available to the public. The environment, road conditions, air, water supply will be ignored, again, because it doesn’t put money in a rich man’s pocket. To sum it up there will be wasted resources in a free market economy, social injustice will prevail and economic instability will result.


Monopolies will be another common occurrence, due to lack of regulation within the industries. Small business will cease to exist. Competition will prevent new players or start ups in the marketplace. The monopolies will result in the artificially inflated pricing for all goods, which can be restricted to simply drive up the price and availability. Consumers will be forced to pay those higher prices for bad quality goods and lousy levels of service and supply. Since the market is free there is no one to stop the corrupt corporate exercise of power. Government take over by business is inevitable.


Free market economies make luxury goods readily available to the wealthy ...

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