The economic system of liberal capitalism (Laissez-Faire or Capitalism)
.The economic system of liberal capitalism is an economic system to give freedom to the private sector. Selection of global economic activity. Private owner of the property. Can own inputs. MTM services at their earned.As well as select consumer goods and services. But such freedom must be under the scope of the law, that is, the operation does not violate the basic rights which are of another person.The government will not get involved in economic activities. Be in charge of only keeping the peace of the country and national defence
.The advantages of a capitalist economic system, 1
. Private freedom in choosing their economic activities Ltd decided as specialty
2.The system property ownership is the motivation to work is effectively the private work fully. Because the production was much less how it is affected. In return, or income.Always caused the development of all the time!The disadvantages of a capitalist economic system
1.Cause the problem of inequality. Due to different abilities in the individual basis. The ability to earn income are not equal. Those with higher abilities will have a advantage who is weak in economic
2.In any event, the price or market mechanism not yet powerful tool enough. For the resource allocation of the economic system. For example, products and services that are characteristic of the natural monopoly of goods and service.The utilities (water, electric, phone, etc.), infrastructure (roads, dams, bridges, etc.), it can be seen that such products and services mainly to investment. Modern technology, risk of loss.Not worth the economical The private investment to produce, not dare The resulting government instead. Due to these products and services is the basic requirement that people want.3.Using the system of competition or price mechanism may cause the use of economic resources wastefully, such as in a certain range with competitive to build shopping because I think a business that gives ตอบแทนหรือ profit.Bring to the loss of business to give up was used in venture capital. A loss of economic resources to the vain and not worth, etc.!
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