Pros and cons of a market economy - this is the eternal theme of disputes between economists of opposite directions. Let's consider this issue in more detail.
The signs of a market economy are as follows:
- private initiative of the manufacturer in matters"What, for whom and how much to produce", production volumes, price and quality are regulated to a greater degree by market demand and the conditions of competitors, state intervention is minimal;
- market organization of distribution of limited economic benefits;
- The right of private property is the key, it is not contested by the state.
The ability of any person to own capital anduse it at own discretion for profit is an inalienable right of a citizen (that is why the system received the names of capitalism);
- Economic activity of economic entities is regulated directly by the market mechanism of supply and demand.
Market economy in its pure form practically does notoccurs in the modern world. It should be understood, rather, a mixed economy with a minimal state presence and maximum market influence - it is in this system that the pros and cons of the market economy are taken into account as much as possible.
Let's now take a closer look at the pros and cons of a market economy.
Pros of market economy.
Disadvantages of a market economy.
Comparing the pros and cons of a market economy, you canit is easy to arrive at a logical conclusion that the market economy in its pure form without elements of planning and proper state regulation is good only at the stage of economic development and the accumulation of primary capital. In the future, this type of economy can damage and completely destroy the economic benefits received, as well as cause unrest in the state.
The most advanced economically developed countries in the worldhave long appreciated the advantages and disadvantages of a market economy, and have chosen the most appropriate system for themselves, where state intervention, traditions and all the advantages and disadvantages of a market economy are harmoniously combined.