In In fact, it stifles the economic growth. For

In a free
market economy, the economy is run by individuals on their own using the forces
of demand and supply. How much is produced is driven by the demand and supply.

For instance, if someone is demanding more than what has been supplied, then
prices go up whereas if the supplier priced more than what customers are buying
for that specific product or service, then prices fall. Individuals are allowed
to own property and other assets. The opportunity for individuals to have this ownership
serves as a powerful incentive for people to work hard, to develop new product
ideas and to do business that would help the economy to increase. Most human
beings have goals they dream to accomplish. In fact, we as students, have been
studying most of our lives because we want to make a living out of it. We all have
dreams that we acknowledge can be accomplish through studying and getting a
degree. All of these hope of accumulating personal wealth enriches the economy as
a whole and allows the economic growth. State-directed economies, on the other
hand, are directed and controlled by the government. The main goal for the
state-directed economies is to create social welfare rather than profit
maximization. Although it sounds like a very selfless act, where everyone
should be happy and share the same economy welfare, it does not provide a great
incentive for individuals to work as hard and to create new product ideas that
boost the economy up. In fact, it stifles the economic growth. For example, Cuba,
which is a state-directed economy, had a 0.9% GDP in 2016, whereas the United
States, a free market economy, had a 1.6% increased GDP in 2016. Therefore, I
agree with the statement “Free market economies stimulate greater economic
growth, whereas state-directed economies stifle growth.”

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