Question

Debate the extent to which the economy can be relied upon to monitor itself and react...

Debate the extent to which the economy can be relied upon to monitor itself and react to disequilibrium through market forces as compared to government central planning. Do not make it an "either or" question but one in which you identify the appropriate roles for the free market and the government. Please make an opinionated explanation in paragraph form and not a math problem.

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Answer #1

The economy can be relied upon upto a certain extent as market forces of demand and supply creates competition and everything starts to work in the favour of that, to produce best and outstand. But, there is also one another aspect to it as free market economy generally becomes "profit oriented" rather than welfare oriented. Hence, government intervention is needed to ensure and maintain the check and balance for example, producer or suppliers may price for things of necessity extremely high, but in those cases govt jumps in and either subsidies it or price floor it, depending of the type of the commodity .

Hence, free market trends could be considered really quick, in better quality, ensuring luxury but couldn't be relied on completely when it comes to 'welfare of all'.

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