Disadvantages of Market Economy
Disadvantages of Market Economy
No government support
The government has no role to play in the Market Economy and it does not provide assistance to the producer or the consumer. If the producer makes a huge loss the government is never going to bail out the produce likewise the government does not assist the consumer on what to buy and what not to buy. It is true that the government may form some laws for the protection of the consumer, but these laws are hardly present or practical in the Market Economy.
Some people suffer
As mentioned before that the government’s role in the Market Economy is very little, so any injustice done by the producer goes unaccounted.
Consumer may be exploited
Market Economy increases efficiency because there is a lot of competition between the producer, but what happens when there is no competition. Low or no competition will give birth to monopoly. Monopoly is the situation when the producer is the king and he decides and what to be produced and at what price should it be sold.
Worsening social condition
The social condition of the people worsens in the Market Economy. The main reason is that as things are being produced at the demand of the people of the money and the people who do not have the money end up getting nothing. The gap between the poor and rich increase and there is a big imbalance of wealth.
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