Write a 5–page research paper about social problems where the free markets are not allowed to function, which includes the market for a particular illegal good and service, a regulated market, etc.
You can write your research about social problems where the free markets are not allowed to
function, which includes the market for a particular illegal good and service, a regulated market, etc.
● Select a social problem where free markets are not allowed to function, and conduct research
on the social problem.
● Describe how free market features could be introduced to help alleviate the social problem
through free market operations of supply and demand.
● Discuss the risks of introducing market mechanisms of supply and demand in situations where
ethical issues are present
Social Problem Where Free Markets Are Not Allowed to Function
Free markets allude to the market ecosystems that have limited regulations on the role played by the government. The role of the government bodies is limited to the collection of taxes and enforcement of private ownership and contractual rights. Subsequently, there is unobstructed competition, and the market is effective according to the laws of supply and demand. Contrary to free markets, controlled markets are highly regulated, with the government having the full potential to regulate the goods and services. Additionally, the regulations determine how the products or services are distributed and how the consumers use them. In this light, there are social situations where the free markets cannot function effectively. In such cases, the supply and demand laws are not allowed to function freely such as the trade of prohibited drugs. Notably, the effect of drug abuse on the society raises ethical issues, which raises limitations of relying on markets to function effectively according to the laws of supply and demand. For a long time, governments across the world have been fighting unending wars on drugs. Additionally, the international community has put strict restrictions on the trade and trafficking of unlawful drugs. Despite the strict control of these substances, the market has thrived and continued to cause havoc due to its impact on the consumers. The illegal drug market operates in three categories. The first is drugs that are produced from natural plants such as marijuana, heroin, and morphine. The second group is drugs that are synthetically developed such as amphetamine, and the third group includes pharmaceutical drugs that are meant for prescribed treatment, but can be abused if used inappropriately. The rights protected under the free market ecosystem are restricted in the first and second categories compared to the third because of its different economic and social impact. Fundamentally, the prescribed drugs are essential for medical use despite the risk they present if abused. Nevertheless, the sale of illicit drugs is driven by two key characteristics. The first is that the substances are addictive…