How does a free market system affect individual citizens?

A free market system affects individual citizens in several ways. Firstly, it allows for competition, which can lead to better products and services. It also allows individuals to have the freedom to start their own businesses and to make their own economic decisions. However, it can also lead to economic disparities, as some individuals may have more resources and opportunities than others. Additionally, a free market system can be susceptible to economic downturns, which can negatively impact individuals.

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Naked Economics

Economics can be intimidating to the person who is not well-versed in business and mathematics. This book caters to the “layman” by breaking down the...

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When any government is too involved in the free market, it becomes not so free. The government is already the taxer of the income of corporations and its individual citizens. Additionally, if they become allowed to control how businesses make their money, as well, then that would be called communism. This type of system does not work because it is not progressive enough for a growing economy. The market must be competitive for it to thrive and meet the supply of demand. But some argue that it is an unfair system, rigged only for the few to survive.

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A free market system ensures fairness by promoting competition. In a free market, businesses compete with each other to provide the best products or services at the most competitive prices. This competition benefits consumers as they have a wider range of choices and can choose the product or service that best meets their needs and budget. Additionally, in a free market, success is determined by the market, not by government intervention or favoritism. Therefore, anyone with a good idea and the willingness to work hard has the opportunity to succeed.

The potential risks of a free market system include the possibility of economic inequality, exploitation of workers, and market failures due to lack of competition. There's also a risk of businesses prioritizing profit over social welfare, leading to negative externalities such as environmental damage. Furthermore, in a completely free market, there's no guarantee of basic services for all citizens, as businesses may not find it profitable to provide these services in certain areas or to certain populations.

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