Traditional Culture Encyclopedia - Traditional culture - What are the advantages and disadvantages of American "free market"?
What are the advantages and disadvantages of American "free market"?
The American free market has two advantages. First of all, it can reflect the change of supply and demand in time, accurately and flexibly. Because we know that the market economy is actually an economic form that allocates social resources through the market, and the market is actually a place where goods and services are exchanged, so the market can be tangible or intangible, while the free market actually gives activists engaged in various transactions more free space, so that they can trade freely, which allows the market to feel the price fluctuations in time, and then know the current changes in supply and demand in the market, so that it is faster to transmit information in the free market.
In a free market, both producers and operators can actively adjust their production activities. Why do you say that? Because the economic activities in the free market are self-regulated by producers and operators, under the action of interest levers, both sides certainly hope that the market will develop in a good direction, so that through their active regulation, the market will develop in a good place more and more scientifically, both technically and in management, thus improving labor productivity and ensuring the effectiveness of resources.
However, the disadvantage of the free market is its limitations, because we know that market regulation can only play a part without the government's regulation under macro conditions, because the regulation of some industries cannot be handed over to the market, because the market does not have the ability to mediate this, and at this time it often needs outside help. At this time, the limitations of the free market are reflected. Market regulation is spontaneous because it is carried out spontaneously by both producers and operators, but it is blind and lagging behind.
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