What are the disadvantages of a free market economic system?

Although
many people talk about free markets as though they are a universal good, there are several
problems with free market economies. The first, of course, is that they do not really exist in
such absolute terms; they are a largely intellectual construct. In a pure free market, there
would be no constraints at all on what one could buy and sell. In reality though, governments
establish constraints on free markets for several reasons, many of which have to do with
remedying the more obvious faults of purely free markets.

First, there are
many things that are harmful such as addictive drugs, weapons of mass destruction, adulterated
food, ineffective medications, and other dangerous objects (such as flammable baby clothing)
that governments restrict or regulate for the good of citizens.

Next, all
markets rely on certain types of government subsidies and infrastructure. Governments provide
roads, regulated utilities, defense, police, and fire protections, for example, which create
inherent subsidies for all companies. In a purely free market, there would be less emphasis on
the common good.

Next, especially in industries with network effects or high
costs of entry, there are issues with monopolies. A powerful corporation could sell at a loss in
order to put competitors out of business and then indulge in price gouging. Governments
intervene to prevent this sort of behavior because it can harm consumers.

In
a free market, there is nothing to prevent sweat shops, slave labor, price gouging, and so on.
There are no constraints on the harm companies can do; for example, they could poison drinking
water with effluents while making huge profits or sell houses that collapse after a few years,
walking away with massive profits, while buyers or other people harmed have no
recourse.