What are the advantages and disadvantages of a market economy?

A true
market economy exists when supply and demand control the amount of goods and services in the
market. There is no government interference in a true market economy. This has never happened
before, as governments have always at least used tariffs and internal taxes in order to regulate
commerce; however, there have been times that government has been less active in managing the
economy than it is today.

This economy has several advantages. People are
free to produce and buy as many goods as their income will allow. A person is free to decide
what to do with his/her money.

This economy also has many disadvantages.
There are no protections for consumers. They are not protected against business fraud or faulty
products. There are no protections for workers either, as they are only paid what the market
dictates. While they are free to take other jobs, they may be limited in their options due to
ability or location. The market can also produce periods of economic success followed by extreme
market downturns.

The unregulated market has never existed in the United
States, but it closely resembles the period of the Gilded Age in which a minority of Americans
controlled most of the nation's wealth. While there were tariffs to control the prices of
imports, businesses could pay workers anything, and businesses could also create products
regardless of safety. It was a great time for large business but a horrible time to be in the
working class or a consumer.