scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 1,432
Should the Government Regulate the Economy The free market approach in economic decision-making is based on private ownership of properties and resources there is no government involvement whereas the command approach describes a situation in which resources are jointly or publically owned everything is government owned Be that as it may the key to a successful economy lies somewhere in between these two types of economic systems In a command economy income and wealth is more evenly distributed there is little unemployment and the economy experiences few boombust cycles The profits are used for expanding production and the production of goods and services are planned to meet societys needs which means that consumers receive the basic necessities of life But since everything is publicly owned often there are little or no incentives for the working class Technological change and innovation are discouraged by the needs to meet production quotas and because of lack of incentives low-quality goods are often produced Inefficiency and widespread waste of scarce resources occur in production and because of planning the economy is inflexible and slow to respond to economic changes Also income and wealth are controlled by the state and consumers are not offered a wide selection of goods and services Given that everyone works for the good of the state and the incentives given when you exceed your quotas is not that appealing unrest among the working class is created That is a harmful thing because if the working class is unhappy they may strike and cease production causing an enormous economic crisis If no goods are being produced then the basic necessities are no longer available and the country can go into major economic hardships In a free market approach too economic decision-making there are several advantages First there is a great deal of individual freedom in the decision making process Secondly the free market approach is efficient at allocating resources into various uses This
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA