Final answer:
Competition usually improves a nation's economy and living conditions by fostering innovation, reducing prices, and improving quality, although it can negatively impact less competitive businesses and their workers. The overall gains tend to outweigh these losses.
Step-by-step explanation:
Competition is generally considered to improve the economic situation and living conditions of a nation. When there is competition, firms that offer better or cheaper products can gain market share, leading to profits and potentially higher wages for their employees. Consumers benefit from improved quality and lower prices of products. Moreover, competition can drive innovation and efficiency as businesses strive to outdo each other.
However, it is also true that competition can have negative effects on certain businesses and workers. Firms with less competitive products may lose profits or go out of business, which can result in job losses. But on balance, as indicated by economic theory and historical evidence like the market revolution in the United States, the gains from competition often outweigh the losses.
Finally, competition isn't limited to the private sector. Public institutions such as schools and hospitals can provide goods and services in competition with private entities, further contributing to societal benefits by offering more choices and fostering quality improvements through competitive pressure.