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Some arguments for disadvantages of the free-market economy:

1) Difficulty in over-coming underutilisation of inputs (this means it is difficult in a free-market to coordinate under-used resources).

2) Problems in regulation of safety (free-market firms can cheat and create harmful goods to make more profit).

3) Distribution of income is uneven (many believe the free-market rewards the rich and punishes the poor).

4) The free-market has fluctuations and is considered unstable (the free-market has a sort of business-cycle associated with it).

5) The free-market allows things like unemployment to occur (many people consider unemployment bad and preventable).

6) The free-market puts profit over humanity (some critics believe that the profit motive is more important than human well-being in the free-market).

7) Inability to produce and distribute public goods (i.e.) military protection, courts, etc.).

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Q: What are the disadvantages of free-market economy?
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