Classical Liberal Economic System

Classical liberal economic system is an economic and political philosophy. Were originally found in a tradition that is limiting the boundaries of power and political power, which describes the sustaining freedom individu.Teori was also liberating the individual to act as they pleased according to the interests of himself and allowing all individuals to do the job without restrictions that would required to produce an outcome that is best, which cateris paribus, or in other words, presents an object with a minimum limit can be popular and liked by the public (consumers).
Characteristic of liberal economic
• All sources of production are owned by individual communities.
• People are given the freedom in having production resources.
• The government does not intervene directly in economic activities.
• Communities are divided into groups of production resource owners and workers (workers).
• Incurred competition in society, especially in the search for profit.
• Activities are always considering the market situation.
• The market economy is the basis of every action.
Profit
• Develop initiatives and the creation of communities to regulate economic activity, because people no longer need to wait for a command / command from the government.
• Each individual has free resources for production, which will encourage community participation in the economy.
• Incurred a spirit of competition to get ahead of the public.
• Produce high-quality goods, because of the spirit of competition between communities.
• Efficiency and effectiveness is high, because every action is based economy motive for profit.
Weakness
• The occurrence of free competition is not healthy.
• Communities that rich got richer, the poor poorer.
• Many of the public monopoly.
• A lot of upheaval due to misallocation of resources by individuals.
• Equality of income is difficult, because the competition is free.