market economy?

Question

does it favor the rich or the poor.

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Answer 1

Not all economies favor the rich - these guys are wrong! In theory the socialist system is built upon social equality. The market system however is based on efficiency. Firms which are efficient will keep producing while those who cant lower costs will have to go out of the market. In the labor market, laborers have to accept lower wages if supply increases/demand decreases. Efficient workers will be employed first while those not efficient (also includes handicapped,etc) will eitehr gain employment later or not at all.

Im just giving a basic overview. Basically, the efficient will become richer (in reality, these are teh rich who have more profitability and more money to invest) and teh inefficient cant do anything until they get efficient or if the economy is growing fast and is need of resources. The extereme market systems dont advocate minimum wage, or unemployment benefits. Basically, the poor are ignored and in a way are told to get efficient or to remian this way.

However market systems are still the most effiecient system we have. If we can have a market system along with a welfare system (which keeps social inequality into check), there is nothing better. This is the point of view of keynsian economists and mine as well. Do a search on google for more info. You'll find alot of stuff on social inequality. This debate between market and socialist systems was the fundemental part of the fight between USSR and US in the coldwar.

Answer 2

The people the economy favors become rich, that is what being favored means. A market economy favors people who know how to turn an Ideal into a profitable business, but not necessarily the people who have the ideas or the people who do the work. A market economy gives an advantage to those born in a rich and/or powerful family, but that has always been true in human societies.

Answer 3

Alll kinds of economies favor the rich.

Answer 4

Almost all economies favor the rich. You simply have more choices and have more power when you have wealth.