asked 118k views
2 votes
What are the advantages and disadvantages of a capitalist economy ?

asked
User Guiorgy
by
7.9k points

1 Answer

2 votes
Pros: Incentives to be rich encourages innovation. Firms have incentives to be efficient. Consumers are free to choose the products they desire. Prevents large bureaucratic government. Arguably better than other economic systems.
Cons: Firms can gain monopoly power and exploit costumers. Firms with monopoly power can pay low wages. Externalization can damage environment. Can lead to large inequality.
answered
User Philipp Otto
by
8.4k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.