The economy the liberalism or capitalism (or Laissez-Faire Capitalism).The economy the liberalism or capitalism as an economic system that allows the private sector freedom to choose private economic activities with property owner can own any good inputs that they have raised. There is freedom in business as well as consumer goods and services selected, but such liberties will have to be under the scope of the law. That is, any action must not violate the fundamental rights and freedoms of others. Using a system of competition and the market price is by the mechanism in the allocation of resources. By the Government is not to involved in economic activity, there is a duty to preserve the peace of the country and successfully protected the country. The advantages of a capitalist economic system.1. the private sector freedom to bite during the economic activity according to the decided that they prefer.2. profit and proprietary systems in the property as a motivation to make it work effectively. That is, the private sector would fully operate due to the lower production would be affected. Compensation, or income. Under this system, the economic system will have to invent new techniques, or artifacts. Cause of development. The disadvantages of a capitalist economic system.1. causing inequality problem. Due to the different abilities of each individual primary Enables the ability to earn. People who have a higher ability to compare those who have onaekwa in the economic.2. in many cases. Price or market forces is not yet powerful enough for the tools. For the allocation of the resources of the economy For example, the goods and services that have the characteristics of natural monopoly, or public goods and services, which include the utilities (electricity, water, telephone, etc.). Infrastructure (road, bridge, dam, etc.) you will see that most of these products and services will require a lot of investment money. Modern technology risk their losses because the payback is long doesn't rewarding economic terms. Make the private sector rarely dare to invest that will be produced. As a result, the Government must come into action instead. Due to these products and services is essential to the basic. If it can be seen that prices could not come to serve in the allocation of resources.3. using the system or mechanism, price competition could cause an economic use of resources, waste, for example, in certain ranges to create a competing shopping centre because they think that it is the parties, compensation or a good profit. The Trade Center created too much, there might not be enough buyers. Make the experience of loss. Waste must be aborted joint venture capital was spent on the economic loss of resources and to the empty apartment, etc.
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