This is only a partial list:
1. Market economy can result to having inferior products.We contend what supporters say about high quality products being sold in the market with this economic system. Since capitalists are focusing on making profit, they are attracted to mass produce. Often times, mass produced merchandise is of low quality since these capitalists will be more interested to supply what consumers are looking for at a given period and pay less attention on the quality of the products they sell.
2. It is not beneficial to workers and the environment.
We are concerned about the plight of workers, especially those who work in factories and manufacturing plants. With the goal of enterprises to earn profit, the welfare of workers is often taken for granted. There are poor working conditions, low salaries and lesser benefits. Moreover, some capitalists prefer to outsource manufacturing and investing in other countries since they are able to haggle for lower salaries.
This also takes away jobs from local as well as taxes which should be paid to the government. With the motive to earn profit, workers and the environment can suffer. There are plenty of reports of environmental hazards such as oil spills and dumping of toxic waste materials.
3. It can cause prices of commodities to skyrocket. In a command economy, the government has the last word not only on what products are to be sold in the market but also how much the prices are. This is not what happens in a market economy. Critics are not in favor of this since it will give capitalists the power to control the market and product prices. They can monopolize the dispensing of goods and demand these products cost.
4. It can create an imbalance in the economy.Without regulation in the market, situations that can result to government expenses will arise. With free market, fraud and abuse is possible as in the case of the controversy in the savings and loan industry in 1982 wherein the Federal government spent $500 billion. Another instance was the series of lawsuits filed by women against silicone breast implant manufacturers for leaks on the implants. Critics say that these were rooted from lack of regulation.
5. More to come …..
