Free Market vs Command Economy
! In every government and organization, there has to be some sort of plan to organize transactions between people and companies in order to prosper. The Free Market and the Command Economy are two ways the world plans and organizes their economic system. Each have their own benefits and disadvantages and everyone’s opinion differs when it comes to which one is better. It will be hard to compare these two without being biased because this topic is so important. The Free Market is a market that is controlled by the people and the Command is one that is controlled by some central authority. This concept of who or what controls the economic system defines their outcome. ! As I said before, the Free Market is controlled by the people. This does not mean that we literally control the system. It means we greatly affect it. This market is solely based on the transactions between the buyers and sellers and each buyer and seller can choose freely what they can transact. This volunteer exchange is a great benefit because it allows choice, allowing you to govern your own decisions. For example, you, as a buyer, wouldn’t want to invest in CDs because of their slow decrease in popularity. However, someone else has that power to do so because he may think or know something about the future of CDs. This freedom is also tied in with less government control or laissez-faire. Laissez-faire is a belief that the government stays out of the economic system. This includes regulations and tariffs that the government might want to control. The Free Market heavily relies on the concept of supply and demand. This is a concept that the quantity supplied (how much the company makes) and the quantity demanded (how much the buyers want) should be at equilibrium. This is the core function of every market but it is more prominent in the Free Market system. ! The Free Market system tries to promote competition. Ironically, the business inside try to remove that...
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