Capitalism also has defects, economic inequalities are caused by the gap between the rich and the poor. Which resulted in poverty, unemployment, equality to usurp the resources, inequality due to different abilities for each person. Those with higher capacity are advantages as well as price or market forces is not yet powerful enough tool for resource allocation of the economy because of some goods and services are public goods that will have a monopoly, or requires more investment may be vulnerable to complications, or not worth the loss in economy makes private investment does not dare. As a result, the Government must come into action instead.
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