Market economy is efficient from "summary" of Capitalism and Freedom by Milton Friedman
The efficiency of a market economy stems from the decentralized nature of decision-making. In a market economy, individuals are free to choose what to buy, where to work, and how to invest their resources. This freedom allows for the coordination of countless individual decisions through the price mechanism, which signals to producers what goods and services are in demand and at what price they should be offered. This decentralized decision-making process ensures that resources are allocated to their most productive uses. When individuals are free to pursue their own self-interest, they are motivated to seek out opportunities that will maximize their own well-being. As a result, resources flow to areas where they are most valued by society, leading to greater efficiency in production and allocation. Furthermore, the competitive nature of a market economy drives firms to constantl...
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