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What are the advantages and disadvantages of a capitalist economy ?

User Guiorgy
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Pros: Incentives to be rich encourages innovation. Firms have incentives to be efficient. Consumers are free to choose the products they desire. Prevents large bureaucratic government. Arguably better than other economic systems.
Cons: Firms can gain monopoly power and exploit costumers. Firms with monopoly power can pay low wages. Externalization can damage environment. Can lead to large inequality.
User Philipp Otto
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