What are the disadvantages of a free market economy?

Answer by  arpitbathma01 (262)

free market economy hurdles the growth of small cottage industries, increases the competition and also affects the revenues of the government from the exim policy

Answer by  bitchstewie (489)

You must be very clear. There is no such thing as a free market economy. That is a political label placed to criticize or support regulation on business. Government and society by their very nature create controls on the interaction of commerce. A free market therefore cannot exist. Regulation is appropriate to protect the consumer.

Answer by  Christopher2600 (108)

While America has been primarily built from a free market economy the disadvantages can be clearly seen with our recent housing crisis.

Answer by  jon6 (488)

In a free market system there are no government bail outs, is no welfare, and the government does not subsidize businesses.