Poverty can exist in a free market economy, as it is a complex issue influenced by a variety of factors such as income inequality, lack of access to education and job opportunities, and government policies. Supporters of free market economies argue that they create wealth and increase economic growth, while critics argue that they can lead to increased poverty and inequality if not properly regulated. It is important to note that different countries have different level of poverty and different approach to tackle it.
In a free market economy, individuals and businesses compete for resources and customers, and those who are most efficient and effective at meeting consumer demands will generally be more successful. This can lead to some individuals and businesses becoming “winners” in the market, while others may become “losers.”
The winners in a free market economy are typically those who are able to create valuable goods and services at a lower cost than their competitors, or who are able to innovate and create new products that consumers want. These individuals and businesses will tend to earn higher profits and grow their market share.
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The losers in a free market economy are typically those who are less efficient or less innovative than their competitors. These individuals and businesses may struggle to remain profitable, and may eventually go out of business. Some argue that the losers in a free market economy may include workers who lose their jobs due to automation or outsourcing, or small businesses that are unable to compete with larger, more established companies.
Why does the latter description of how one becomes a “loser” in a free market sound so familiar? For now, let’s just say that’s a good note to mull over.
People who speak out about poverty often advocate policies and programs that aim to reduce poverty and improve the lives of those who are affected by it. This can include calling for higher minimum wages, affordable housing, accessible healthcare, and educational opportunities. There is cause to take government to task to ensuring essential social services like healthcare, education, public housing, and public education are universally accessible. However, intervening in how the market (i.e. supply and demand) sets the value of things like the prices of goods and services often ends up a costly and, ultimately, unsustainable exercise.
One can whine about how expensive onions and eggs are but ultimately in this “free market” most of us signed up to, one can only buy what one can afford. We can blame government ’til the cows come home, but the free market ultimately wins and those who play well win. Those who don’t play well lose.
Filipinos need to come to terms with a simple rule. You can’t buy what you can’t afford. This is a financial rule of thumb, which advises individuals to only purchase items or make financial commitments that they can reasonably afford to pay for with their current income and savings. This can help prevent financial difficulties such as debt or defaulting on payments. It is important to create and stick to a budget in order to ensure that you are living within your means. It’s simple, really.
benign0 is the Webmaster of GetRealPhilippines.com.