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Drawbacks of unregulated capitalism


Q. Drawbacks of unregulated capitalism?
Ans.    Meaning
        Capitalism is an economic system dominated by free markets, privatisation and business.with in  branch of capitalism, there is turbo capitalism which is form of unregulated capitalism.
      Unregulated capitalism refers with financial deregulation, Privatisation and lower tax on High earners.

   Discussion
 Monopoly power :
Private ownership of capital enables firms to gain monopoly power in product and labour market.
 Poor Quality :
Since profit maximization is the biggest motivation for firms, then may try to reduce their costs unethically by exploiting workers.
 Merit Goods :
Goods and services that are not 
profitable will not be produced .
Firm Power :
Large firms can still dominate certain markets, even where there is competition they exploit their suppliers and customers to maximize profit.

  Conclusion
To conclude all this, we can say there is need a degree of government intervention is necessary in every capitalism so they can not misuse their monopoly power and they are not exploit their employees and suppliers for their own profits.

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