including competetion, consumer sovereignty, profit motive, and private property rights
2006-10-23 05:01:49 · 7 answers · asked by runningbackkk 2 in Politics & Government ➔ Civic Participation
That is a difficult question to answer. Unlike government controlled economies, the business owners and consumers decide how the economy works. Business owners can run their businesses pretty much how they like. Consumers for their part decide who to give business to.
When demand for a business' goods and/or services rises above that business ability to supply what consumers want prices for those goods or services goes up. When the prices go up than consumer demand for those goods or services falls.
A fall in demand causes the business to have a larger supply of goods or services than the consumers are demanding and the business is forced to lower their prices in order to get rid of the excess goods and/or services.
The truth is that a free market economy works by maintaining a balancing act between supply and demand. It is not perfect and there are naturally transition periods when the economy doesn't do very well, but in the long run a free market economy provides for the most stable and profitable form of economy.
2006-10-23 07:57:39 · answer #1 · answered by Anonymous · 0⤊ 0⤋
No it is not perfect but compare our economy to Europe's. The Americans would have a riot if the conditions in Europe were here. In France they take a 10% unemployment rate as course of business. Yet in the USA people are griping about a 4.6% rate.
The private property laws in this country are nonexistent thanks to the Kelo decision. We have to work to correct that.
Overall, while improvements need to be made, it beats the alternatives.
2006-10-23 05:07:21 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Instead of the government centrally planning the economy and inevitably guessing wrong about how much quantity to produce, in a capitalistic economy the consumers dictate (through their purchases) the quantity of each item produced.
2006-10-23 05:05:57 · answer #3 · answered by Brand X 6 · 0⤊ 0⤋
Not very well. In this country capitalism is only for the very rich, and the rich get richer, based on a corrupted tax system.
2006-10-23 10:17:31 · answer #4 · answered by Big Bear 7 · 0⤊ 0⤋
europes economies are far different and each one is individual in its ow right
dont forget one of our monarchs fled to france so they have a high sense of original british values, chivalry, honour and fair play
in france unemployment may well be as high as 10% but individuals are protected far greater as you are guaranteed a percentage of your salary for up to 10 years after you leave, if you company wants to make you redundant then they have to set you up in business and even then only after its been a success can they be released from their obligations
2006-10-23 05:14:17 · answer #5 · answered by tony h 4 · 0⤊ 0⤋
Take a walk around your town and see for yourself.
2006-10-23 05:03:08 · answer #6 · answered by Anonymous · 0⤊ 1⤋
We have capitalism yet we have the government making sure their our no monopolies.
2016-03-28 05:00:24 · answer #7 · answered by ? 4 · 0⤊ 0⤋