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Vikentia [17]
3 years ago
10

Why is government protection of consumers important in a capitalist economic system​

History
1 answer:
Alex777 [14]3 years ago
7 0

Answer:

The protection of governments to consumers is very important in the capitalist system. This is so because capitalism as an economic system is based on the mass production of goods and services for the consumption of society as a whole. In this way, producers flood the market with their products, and through competition they regulate their prices, their quantity supplied, and their capturing power. However, indiscriminate competition often leads to prejudice to the rights of consumers, who are ultimately the ones who uphold the system through their interaction with the market. Therefore, the government must protect the rights of consumers, both to avoid abuse by companies and also to protect the consumption chain and thus avoid conflicts that may represent less economic production.

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