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Arguably, the world has not seen as much disdain for capitalism and free market policies as in the last several decades. Surprisingly, citizens of the world’s most developed countries are expressing the most contempt while willingly dismissing the fact that capitalism has been the main impetus to their state economies’ progress. To illustrate the efficiency of the said type of economy, this paper will provide a comparison to traditional and command economy with real-life examples.
Free Market Economy vs Traditional Economy
There is not much debate as to which type of economy benefits a state better – free market or traditional. For developed countries in the Northern hemisphere, the traditional economy is a thing of the past whereas, for developing countries, it is something to enhance and overcome on the way towards a free market. Yet, it is essential to make a clear distinction between free market and traditional economies to highlight the progress that the former facilitated.
The traditional economy relies upon primitive equipment, crude economic methods, and subsistence living. The end goal of economic activities is sheer survival, which is attained through upholding customs and traditions. The free market economy goes above and beyond making a living and changes a life into a vast variety of choice. It is only logical that traditional products and equipment undergo modernization in the free market economy as the needs of customers increase and their taste becomes more refined.
Free Market Economy vs Command Economy
The youth and the middle-aged of the United States seem to overwhelmingly take the side of self-proclaimed socialist leaders such as Bernie Sanders. For instance, one of the recent surveys revealed that 45% of respondents in the 18-42 age group prefer socialism whereas capitalism takes the lead by a small margin (49%) (Chapman, 2018). An even more interesting tendency exposed by the research is the majority supporting the government’s command of the US economy (62%) (Chapman, 2018). There is a dire need to compare and contrast the free market economy and planned economy for those who group surrounded by the bounty of opportunities – goods, services, and events.
The command economy might have a certain appeal for the masses due to its promising prospects of the future where everyone’s needs are met, and no one is left behind. In reality, the complexity of the modern world processes does not allow for the most meticulous planning or strict top-down decisions on supply and production. Whereas a free market balances demand and supply by taking into consideration customers’ needs which they express by making choices, command economy makes far-fetched speculations (Marcellus, 2017). While the command economy might make equality attainable, it will mean that everyone is equally miserable and unsatisfied.
Nowadays, the Millennial generation – those born between the late eighties and mid-nineties – seem to favor socialism and even communism. To them, the free market economy is synonymous with the negligence of the disadvantaged and the abuse of opportunities. While each economic system has its own vices and virtues, despite the societal pushback, free-market policies are the most viable and beneficial of all.
There is no doubt that the humankind needed a leap from the traditional toward market economy to leave obsolete methods behind. The command economy, however, retains its appeal by promising a safe future. Nevertheless, not a single government is capable of taking into consideration its citizens’ every need and want and should let the free market decide what products and services are on demand.
Chapman, Steve. (2018). Why millennials are drawn to socialism. Chicago Tribune. Web.
Marcellus, Andrew. (2017). The vision of a real free market society: Re-imagining American freedom. Abington, UK: Routledge.