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Classical liberal economic system

The economic system is a classical liberal economics and political philosophy. At first discovered in a tradition of lighting or waivers that are limiting the boundaries of power and political power, which describes the sustaining freedom individu.Teori also be freeing the individual to act as they pleased according to their self-interest and allow all individuals to do the job without restrictions that will be required to produce the best results, which cateris paribus, or in other words, presents an object with a minimum limit can be attractive and liked by the public (consumers).

Sensible line of liberal economics has never been practiced by the schools in Austria with the form of an open democratic society. Understand liberali mostly used by countries in continental Europe and America. Just as in the United States, recognized liberal leftism as mild estabilished

Liberal economic characteristics

* All sources of production are owned by individual communities.
* Society has given freedom in production resources.
* The government does not intervene directly in economic activities.
* Community is divided into two groups, namely group owner of productive resources and community workers (laborers).
* Incurred competition in society, especially in making profit.
* Activities are always considering the market situation.
* The market economy is the basis for any action.
* Usually the goods produced high-quality production.


There are several advantages of a liberal economic system, namely:

* Grow initiative and the creation of society in regulating economic activity, because people no longer need to wait for a command / command from the government.
* Each individual has free resources for production, which will encourage community participation in the economy.
* Incurred competition to get ahead of community spirit.
* Produce high-quality goods, because of the spirit of competition between communities.
* Efficiency and effectiveness is high, because every action is based economy motive for profit.


In addition there are advantages, there are also some weaknesses rather than a liberal economic system, are:

* The occurrence of free competition is not healthy when birokratnya corrupt.
* Community-rich getting richer, the poor poorer
* Many of the public monopoly.
* A lot of upheaval in the economy due to misallocation
resources by individuals. [citation needed
* Equity income dilakuka difficult because the competition is free.

Classical liberal economic system Reviewed by frank ucup on 3:12:00 PM Rating: 5

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