Thanks for your input @dksart. I didn't mention regulation. I see regulation as a mechanism for Governments to perform their roles rather than a role itself. Regulation can be applied to many areas. I have updated the post and included minimum wages as an example of preventing worker exploitation and price ceiling as an example of preventing businesses exploiting consumers. Price ceilings could be used to prevent businesses jacking up the price of goods that are in short supply.
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Thanks, great post. The problem is depending on who is in control of a government structure, they can create laws/regulations which will force the economic system to either benefit the majority or minority of the population, or somewhere in between.
Ideally you want a government structure that always creates laws/regulations that force the majority of the currency in circulation within an economic system to always be distributed to the majority of the population because the spending by the majority is what keeps the economic system functioning.
As we can see from the Covid-19 pandemic, the moment the majority of the population stops spending currency, parts of the economic system begin to collapse.