Failure of market economy system

The market economy system is not perfect. It fails for many reasons. Among these reasons, the main reason of failure of the market economy system is that almost all company seeks to make profit as much as possible. Therefore, companies want to invest their money only where they are able to get much money in a short time. There is an explanation to show that many companies only want their profit and therefore the market economy system have a serious problem. According to Roemer(1982, p.419), there are many market failures in places such as “sweatshops, child labor, massive unemployment, urban and rural slums, bankruptcies, suicides, crime, and other miseries”. It means the employers treat the employees not as a human, but as a kind of mean of making their own profit, and it reads the market failures. Many employers work in poor environment. Especially, among the flow of globalization, many labor forces from the 3rd countries work in bad condition. They have to work all day long, in poor work places, without enough free time, and also they are paid very low wage. That is because many companies just seek to make high profit. They do not care about the work force’s quality of life. They only care about producing a lot of money, and getting profit as much as possible. Therefore, the employees’ lives are not normal, but much worse than the other people, because the quality of their lives is not good, but very low.