Since we had in 2008. There are three


Since 2016 stock markets have been plummeting into the ground and I have fears that we may have another financial crisis like we had in 2008. There are three main ways that are known around the world to deal with scarcity and an economy: market economy, command economy and mixed economy. All of these ways I have stated have their benefits but a market economy is definitely the best way to go. A market economy helps people deal with scarcity by letting consumers have the power and letting them decide what gets produced. Having a market economy also gives the benefit of competition to allow better quality and lower prices on all products. Finally, Market economies let the trickle-down effect continuously upgrade the economy and provide a better quality of life.How do market economies let consumers have the power? Consumers get their power in a market economy from an idea called consumerism. Consumerism is the theory of increasing how much consumers purchase also increases the production of good which overall improves the economy. It is also the way consumers tell business how to produce their products to best suit the needs of consumers. Think of the U.S.A they have been thriving in an economy for a very long time and they are the closest to a pure market economy. Them thriving isn’t because of government it is because of consumerism and by using consumers and producers solving scarcity.Competition. What exactly does competition do to improve your way of living? Competition allows lower prices and higher quality by bringing in multiple resources to choose from as a consumer. This brings in a choice that the consumer and the producer has to make. Consumers have to decide whether they purchase from a company that is making cheap products at the expense of how they make it or do they want to buy products from a company who is making a little more expensive products when they make it in a harder but more friendly way; think of it this way. Company A is selling products that get produced in China and they use child labor but the products are cheap. Would you like to support company A or support company B who makes all their products using green ways of production helping the environment? Those are the kinds of decision that help economies grow and evolve to the people’s choice.Lastly, the trickle-down effect. This process is called the trickle down effect because it shows how money goes to producers which go into more jobs and then eventually goes back to the consumers again which ultimately increases the quality of life. Having better jobs and more jobs for everyone allow the quality of life to skyrocket. Take the U.S.A vs Namibia, they have drastic differences in quality of life which even though money isn’t all of it, money can affect a lot of reasons why their quality of life is only at a medium while the U.S.A is at a very high in 2013. Due to the trickle-down effect, the money you spend goes into more money people (including yourself) get. Overall the trickle-down effect has a big impact on how happy and how healthy people are.There is one problem with market economies that I haven’t talked about though. That problem is that, market economies allow there to be a division between rich and poor. This is because of the idea that all people should make a living without support from the government. This means that if you fail in the economy you are poor but if you thrive in the economy you are rich. It is all left to the individual to succeed or fail but, that problem is overthrown by all the benefits stated in this essay. That distance is miniscule because it is all onto the individual to flourish or fall that is why it is a “free” market economy.These are the reasons why market economies are by far the best way to run an economy. First of all, there is: Consumerism which brings consumers to power with what gets produced how to produce it and who gets the produced goods. Secondly, there is competition which allows companies compete with each other to produce the best quality and lowest priced goods. Lastly, the trickle-down effect allows consumers to make more jobs and improve the quality of life of all people. There is a bad side to market economies but no economic system has none. With these reasons that is why a market economy is the best economy.

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