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Having a free market economy is one of the things that makes growth possible, although there is also inherent risk in it. More than one company can offer services, and the competition of more than one or two companies will help to keep services competitive and prices low. Competition, however, can also have its problems. Because of the way that some products are packaged and structured, and the multiple steps that are needed between the beginning product and the consumer, there are several areas where competition can become a problem and individual companies can get too much of the market share, thereby causing a problem for others who may want to get involved in the same type of service (Preston, 2001).
Despite these issues for the economy and the free market, having the government operate something has not always gone well, either. Social security is an example of this. It is operated by the government, but privatization is something that has been discussed for its future, because the belief is that it will go bankrupt...
There has been talk about this in the past, when it was suggested that it would be a good idea to change the social security system and allow people to put some of their social security money into the stock market. By doing this, it is possible that there would be more money available for people in their later years, but the stock market has its problems, too, and people can also lose the money that they invest, which could leave them with serious financial problems in their retirement years. However, if the social security system goes bankrupt, many people will have these kinds of financial problems anyway (Ferrara & Tanner, 1998). In short, there is no perfect system. While it seems that the free market economy is better, there are always reasons to argue for either side.
Bibliography
Ferrara, Peter J. & Tanner, Michael D. (1998). A New Deal for Social Security. Washington, D.C.: Cato Institute.
Preston, P. (2001). Reshaping Communications. Sage Publications.
Bibliography
Ferrara, Peter J. & Tanner, Michael D. (1998). A New Deal for Social Security. Washington, D.C.: Cato Institute.
Preston, P. (2001). Reshaping Communications. Sage Publications.
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