Please help me answer these students opinions about " if there are shortcomings with the notion of letting the market decide outcomes" please help response each of these student opinions.
October 30, zuzz at was PM 1. In my opinion, i do believe there are shortcomings with the notion of "letting the market decide outcomes". I believe this because when you just let the market decide you may miss out on better opportunities. You should invest yourself in the market and make your own decisions. Markets are based on consumers, producers,- and entrepreneurs and how they interact. So if you just let the market decide outcomes, they may not be the outcomes you were expecting or hoping for. if I am understanding this topic correctly, the American economy profits from cheaper production. Which runs the more expensive products out of business, or just up to the businesses that can afford it and still profit off the rich. If i could change the American economy, I would change the fluctuating prices of goods. If coffee is $3 at Dunkin' then it should be $3 at Starbucks. If you are buying the same product but at two different stores, or two different locations then the prices should be the same. . in my opinion, there is a moral depravity in letting the markets dictate the economic outcomes, 0 profitbased economy is often one that is solely based on monetary income and not much consideration is given to how profit is achieved. In our economy, this can be seen with how some companies treat their employees, especially in the case of amazon where workers are expected to work long strenuous shifts without much time for breaks or even the Bathroom. If i could fix the American economy, i would ideally like the economy to work for the American people rather than corporations or other nations. I would ideally like to see the benchmark of how our economy is measured with the happiness of the nation's citizens and the purchasing power of the middle to lower class. I am not an economist (yet) but i would love to hear about the positives and negatives of changing the measurement of economic strength from a system like GDP to something like a happiness index or measurement of household purchasing power. i feel as though the average American is much too complex to simply measure using GDP. Although America is founded on a free market economy and principle, if you let the free market decide all outcomes, it could lead to extremes. One of the shortcomings of letting the market decide is that it could lead to predatory pricing and cause some suppliers to have to leave the market. Companies could create monopoly pricing driving competitors out of business without the antitrust laws in place. Predatory pricing can also occur as it does with Amazon offerings cut, and rate shipping fees which also could drive competitors out of business. Some government regulation is necessary to prevent market excesses such as monopoly pricing and predatory pricing. One thing that could be changed about the American economy would reduce government deficit spending. This would affect the entire economy including interests, inflation, etc. Government deficit spending consumes resources that could be used for other private ventures. This would keep money in everyone's pockets to spend more in the market. increasing deficit spending would continue to increase the national debt and hurt future generations. The national debt is a drag on future younger generations and is a cause for concern. Reducing deficit spending could help reduce debt and free up capital for other productive uses within the market
