Question

Here is the discussion Question. The reply is below the discussion question. I need a reply to the reply below.(I need an elaborate and comprehensive answer)

Do you think markets, in general, are “self-regulating” at least in the US today ? if so why and if not why not?

[2] As the prices of good and services begin to increase, shifting to its alternatives is possibly to occur in consumption. However, potential issues may arise from waiting for current prices feedback to dictate the development and implementation of alternatives. Since this event is relatively dependent to prices at a certain period of time, it may result inaccurate pricing of alternatives in the future. In response to the cheaper price of alternatives, businesses are force to lower their current prices, which can result to market instability. In some cases, the quality of goods and services is also below satisfactory level. Moreover, there may have multiple variables to consider that can also affect the pricing due changing market conditions and organizational competitions.

Answer 1

The U.S. economy is basically a free economy – associate economic market that's pass by offer and demand – with some government regulation. during a actually free market, consumers and sellers conduct their business with none government regulation, however there's a seamless discussion among politicians and economists regarding what proportion government regulation is critical for the U.S. economy.

Those who wish less regulation argue that if you take away government restrictions, the free market can force businesses to guard shoppers, offer superior merchandise or services, and make cheap costs for everybody. They believe that the govt. is inefficient and creates nothing however a giant paperwork that will increase the price of doing business for everybody.

Those who argue that government rules are necessary to guard shoppers, the setting and therefore the general public claim that firms aren't looking for the public's interest which it's exactly for this reason that rules are needed.

In its purest type, a free economy is once the allocation of resources is decided by offer and demand, with none government intervention.

Supporters of a free economy claim that the system has the subsequent advantages:

It contributes to political and civil freedom, in theory, since everyone has the correct to decide on what to supply or shopper.
It contributes to economic process and transparency.
It ensures competitive markets.
Consumers' voices are detected therein their choices verify what merchandise or services are in demand.
Supply and demand produce competition, that helps make sure that the simplest product or services are provided to shoppers at a lower cost.

Critics of a free economy claim the subsequent disadvantages to the present system:

A competitive setting creates an environment of survival of the fittest. This causes several businesses to disregard the protection of the overall public to extend all-time low line.
Wealth isn't distributed equally – alittle proportion of society has the wealth whereas the bulk lives in economic condition.
There is no economic stability as a result of greed and overrun cause the economy to own wild swings starting from times of strong growth to destructive recessions.
Assumptions needed free markets to work well are inconsistent with reality cherish the parable of good and bilaterally symmetrical data, rational actors, and gratis transactions.

Hence, yes markets, in general, are “self-regulating” at least in the US today.