Check out Advantages and disadvantages of market economy (capitalism) given below. So let us find out some points on advantages and disadvantages to know more about market economy. This type of economy is nearly free fro governement interference, Economy is based on private ownership where individual control the production, distribution and sales of goods and services.
Some points on Advantages of market economy are:
- Allocation of resources without the government intervention.
- Producers can produce those products which can give more profit.
- In market economy manufacturer are able to make as much profit as possible.
- High degree of individual freedom is possible in market economy.
- Adjust to change based on consumers needs and wants.
- In market economy wide variety of goods and services is available.
- Many choices is possible hence high degree of consumer satisfaction in market economy.
- In market economy consumers can buy whatever they like in whatever amount they want.
Some points on Disadvantages of market economy are:
- Competition between producers is seen.
- Market economy is based on "ability to pay" and not on need.
- The manufacturers may only invest where more profit is expected.
- No military or any types of social sevices spending.
- In market economy there are occasionaly market failure
- In market economy it becomes difficult for government to provide adequate social services.
- High degree of uncertainty is seen, people may lose their jobs due to business failure.
- Market economy is a type of greed based system which puts profit before people
- Only those with money can participate in market economy