Why is Adams Smiths Laissez-Faire economic system better than others?

Question

For Example why is profit motive, which is part of laissez-faire, work better than a socialist, market socialist or other mixed economy

Answer 1

If the government sits back, the economy will still function effectively. Adam Smith's invisible hand would always determine the equilibrium price and quantity. So if the government set a price ceiling on a good below the equilibrium, lets say gasoline, then there would be a greater quantity demanded for gas than the quantity supplied. There would be a shortage. The same goes with price floors, where there would be a surplus.

However...

Laissez Faire only works good in a perfectly competitive market. But our economy (American) is far from that. There are monopolies such as with Bill Gates and microsoft, which jacks up prices. This calls for government intervention.

Please keep in mind that there is a difference between capitalism and democracy, and communism and dictatorship.

Answer 2

Because it is based on the one thing that we have less and less of on this planet - liberty. The absence of coercion by your fellow man.
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Answer 3

It only works for people who have lots of money and are greedy.