Advantages and disadvantages of American free economic model

1. Disadvantages of liberalism: aggravate the polarization between the rich and the poor, lead to insufficient demand, encourage greed and plunder, and accumulate systemic risks.

Advantages of liberalism: Liberalism has an open and fair electoral system, which enables all citizens to enjoy equal rights in government affairs. Liberalism opposed many early mainstream political structures, such as monarchy, hereditary system and state religion. The basic human rights of liberalism are the right to life, freedom and property. Liberalism pursues a society that protects individual freedom of thought, restricts the use of government power according to law, protects the concept of free trade, supports the market economy of private enterprises, and protects minority rights through a transparent political system.

1. A free market is a market where goods can be freely produced and exchanged, which is completely regulated by the law of value. The two sides freely negotiate prices, exchange goods according to the law of voluntary transfer, and the market price floats freely, thus regulating the supply and demand and production of goods. China's free market is an important part of the socialist market economic system. Generally speaking, free-market commodities refer to commodities with a wide variety, dispersion and changeable demand, or commodities that have been completed outside the state's planned tasks, and the state has not issued plans and unified pricing. Enterprises can flexibly adjust and arrange production according to market demand. Free communication and bargaining within the scope permitted by the policy, and enjoy greater autonomy in purchase and sale.

2. The free market is a market free from government intervention and supervision. In this respect, the government only performs minimal functions, such as maintaining the legal system and protecting property rights. In a free market, property rights are freely exchanged at a price satisfactory to both buyers and sellers. As the name implies, the buyer and the seller did not force each other, that is, they did not use violence, threats of violence or fraud, nor were they forced to execute the transaction by a third party (such as government transfer payment). In addition, in a free market, there is no external force to interfere with the competition between buyers or between buyers, which is called free competition. So the price is determined by the buying and selling behavior based on supply and demand, not forced. In sharp contrast to the free market, it is a controlled or regulated market, and the government directly or indirectly controls prices and supply, thus distorting market signals.