are controlled economies more stable than free market economies?

are controlled economies more stable than free market economies?

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  • 9 years ago
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    the free market is the most stable because it allows the fluctuation of production.

    it does not matter who owns the markets private or government the markets are controlled by supply and demand. if no one wants or can afford the product it is a waste of time and man power to produce it.

    socialism is a theory that when put in practice always fails. there will never be a time when a manager will accept the same pay as a janitor. and higher wages will ALWAYS be offset by higher prices for the consumer. when a government owns a business they have given up tax revenue, this must be replaced by profit on the product. china which was/is the largest experiment with socialism is now embracing capitalism as a means of survival for their government and their people. no matter who owns a company public or private there is always the cost of doing business. raw materials, wages, and profit sharing.

    most big corporations in the usa are private owned but most also have what is called profit sharing, this is done with stocks, bonus checks, healthcare, payments to retirement funds, and other areas.

    though most of this is not considered profit sharing IT IS. this is considered a good will gesture and is a reward for a job well done and to retain good employees. these along with the wages paid workers comes from profits earned by selling the product produced.

    we hear a lot of big numbers spouted by people that want socialism but they seldom tell the real story, the place to look is at the percent of profit gained by the volume produced by a company. big corporations work on volume and very low percentage of profit. so when they give bonuses or other gifts to employees they had better have a VERY large volume. if the government owned that business they would need to provide not just for the workers and their needs but for the non worker as well.

    this is a very basic explanation of our economy. but the other thing to look at is there is nothing that our government is involved in that is being done right. we had one of the greatest education systems in the world and they got involved and now we are in the pits. we had one of the greatest healthcare systems and they got involved and now we are in the pits. you find the others that i know you will enjoy the looking. we had a great banking industry and they got involved and it is in the pits. we had a great manufacturing fueled by innovation and they got greedy and stopped the smaller innovators with outlandish laws and now it is in the pits.

    our government has become too over extended of its own importance and now wants MORE, MORE, MORE. this is why socialism is a failure. this is why dictators that controll whole countries fail.

  • 6 years ago

    Stability in the markets, unfortunately, are not a good indicator of the stability in the society, for the markets can be artificially "stabilized". There are a number of mechanisms for this to happen, and I have no idea which will become dominant this time around. But the Federal Reserve Has been used in this manner in the past. Come to Camden Stables Market and lose yourself wandering the curious cobbled pathways. Each one rich with history, lined with an assortment of over 700 stalls guaranteed to whet your palette. But if you’re feeling lazy feel free to peruse our online market place and shop online.

  • Anonymous
    5 years ago

    No. Eventually the lack of consumerism does harm to the economy, and after a totalitarian leader dies, his successor usually does not handle the situation as well as his predecessor. Short term, they are effective, long-term, they are not. They also fall prey to democracy and independent movements.

  • Anonymous
    9 years ago

    ... stable as far as predictability of collapse.

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  • 9 years ago

    YES ALMOST EVERYONE SUFFERS ALL THE TIME

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