Advantages and disadvantages of market economy

Advantages and disadvantages of trade economy and a mean to make it better.

World largely knows two economical systems: trade economy and communism. Certainly there are many systems in-between.

Most economists agree that trade economy sustains higher standard of living than communism.

Here is a (probably incomplete) list of advantages and disadvantages of trade economy:


  • concentration of money and other resources on some effective projects;
  • elimination of ineffective projects;
  • higher degree of personal freedom, sometimes more possibilities;
  • less discrimination by the government;
  • good incentive to work;
  • everybody participates in economical planning, not a small group of people.


  • blatant inequality, a little difference in effectiveness may bring someone to poverty;
  • trade economy is often like a lottery;
  • rich people may choose not to work at all;
  • people and corporations with low estate may fall from the life even if they could be able to do a useful work;
  • good works are often not rewarded;
  • software, technologies, and other creatives are financed unjustly, often less than they are worth, the same applies to journalistic;
  • it often forces software and other creatives creators to limit its distribution by requesting money for it, despite it would be better to distribute it to the entire humankind;
  • competition of similar creatives which are not worth to be developed in parallel with duplicate efforts;
  • discrimination of people and groups by the social “reputation” of them, often with hatred;
  • people don’t know the future well enough, as trade interaction are too complex;
  • crises of the entire system for no central coordination of resources;
  • often large advantages to thiefs.

Now as we have learned from real life experience that communism does not work and we need trade economy, how to make trade economy better?

We propose an important change which could make trade economy much more effective and eliminate in some degree some of its problems.

The change is very simple: Set to zero registration and liquidation of business and NGOs and tax reporting costs. Additionally strive to set to zero court costs and even provide free lawyers not only to the defendants, but the plaintiffs too.

What does it change? It changes much. The most obvious change is that this helps someone who is in poverty but could be able to start his business to start it, getting a credit, a grant, a contract or whatever.

For example, one may need to register an LLC to safely get a credit. For someone it may be the only escape from poverty. If he does not have enough money to pay for registration, he is in a vicious circle: He can’t pay for registration, he can’t get a credit, he can’t have money, he can’t pay for registration. The same applies to NGOs and grants.

Poor people are now in fact right-less. They have duties and no rights. For a person disadvantaged in rights it is very hard to earn money, so it is a vicious circle. Setting court costs to zero would radically change the situation.

More details on this and more arguments to set fees to zero.

Leave a Reply