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Market Economy Vs Planned Economy

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As mentioned above, market economy has its advantages over planned economy. However, this does not mean that the transition towards the market economy is flawless as there are several disadvantages to this movement as well. The first reason to why this transition is not encouraged is because unequal distribution of wealth is bound to occur with low or no government intervention (Barbanel, 2014). Although it is believed that everyone has an equal chance to flourish in a market economy, Intelligent Economist (2017) has specified that misallocation of resources would cause market failures to be inevitable. In other words, those who own the resources for businesses such as land would prosper while those who do not own any resources would suffer. …show more content…

As market economy’s resources are fully allocated towards goods and services (Wadhhwa, 2015), this indicates that there are no resources allocated for the country. Unlike in the market economy which is driven by self-interest, government in a planned economy uses its authority for the well-being of the society by allocating resources fairly to all aspects including production of goods and services. This allows people to have a broad range of welfare benefits such as healthcare, education and improvement in infrastructure. According to Amadeo (2018), the reason for success in the United States is because the Constitution has included a goal to encourage general welfare. Hence, for a country to be successful, the welfare of the society is as significant as earning revenue. These reasons have clearly proven that the transition towards market economy is not as perfect as it …show more content…

We owe a small factory to produce them and warehouse to keep the stocks. We have cars or lorries to move products around the warehouse, and we have machines to mix the chemicals and make the body of pens. Our office uses desks, phones and computers to keep track of everything. We are making a classy waterproof pen for the purpose of students. This is because pen is a commonly tool found in anywhere but those words written by normal pen will become vague after they contact with liquid. On the contrary, our waterproof pen contains the ink that will not diffuse through water and we still can see the words clearly after cleaning. This feature is easy for students in examination and save their time from redo the paper again. We need to provide the students with the best writing tool and give them the best way to their writing

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