How would a pure market economy respond to the devastation and loss? please help

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02-02-2022
Social Studies

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How would a pure market economy respond to the devastation and loss? please help

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leslieee13uruehee leslieee13uruehee · Answer 1 · 2022-02-02T00:18:55-05:00

A pure market economy would not be very good at responding to the devastation and loss because it has no mechanism for providing public good and services. In a pure market economy, people only act on their own self interest, so if they cannot profit from helping repair the cities and support the families who lost their homes, then they are not likely to get involved. Since the government has a minimal role in the economy, there is no disaster relief fund, so the government cannot jump in and save the day either.

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