Economy Letter

Topics: Free market, Capitalism, Market economy Pages: 3 (564 words) Published: May 12, 2015
Sydney K Van Steenberge
1234 First Ave.
Salem, OR 97301

February 10, 2015

Shane Brown
9999 Planet St.
Amity, OR 97301

Dear Mr. Brown

My name is Sydney Van Steenberge and I am currently enrolled as a student at Perrydale High School. I am writing this letter to propose a change in our current economy. My belief is that by adopting a market economy our country will thrive and grow stronger.

By having a free market economy, buyers are free to purchase anything in which they like and however much of that product they want. The seller of the product can also produce whatever they want and also increase the production depending on the forces of market. The producers of products are free to undertake both the risk and rewards with increasing the production of goods. Some advantages to having a free market are the following:

1. Competition between different manufactures leads to increased efficiency; companies want to keep cost of production down and the production high. 2. Encourages producers and consumers to conserve the resources. 3. Provides an incentive to have useful skills and hard work because of the threat of losing jobs. 4. Forces production so people with money who live worldwide can purchase goods, which causes rapid production. 5. More variety of consumer goods becomes available for the people who have money to purchase them.

Whether the society is developed or underdeveloped, a market economy has both many advantages and disadvantages. Disadvantages of a free market economy include:

1. Has the possibility of being very unstable, such as, unemployment, inflation and growth. 2. Businesses could satisfy the wants they have made through advertising. 3. There may be severe consequences from mass production, like pollution. 4. Could produce large gaps of income between the rich and poor people.

Some people may think that having a free market economy could cause the economy to crash at a faster rate with no government...
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