Applying Basic Free Market Concepts

A free market is a type of market that the government is not involved in. Since the government does not care about what happens, the free market is also called “hands-off” or “let it be economics”. The government is limited to protect the citizens from the danger and that is the major goal for the government. In the free market economy, there are three components of the free market economy: competition, active but limited government, and the self-interest. Competition is one of the main components of the free market economy. Competition means that the companies compete with one another to make more benefits to themselves. According to the concept of the free market economy, the competition means a good thing because it is a basic

Since its humble beginnings, America has had a majority free market economy, based on the private ownership of markets. Despite the principles of capitalism being at the forefront of the United States, the country’s economy is not totally free, and is more mixed than anything, as the government does act as a sort of referee to this free market. To extend that metaphor, imagine the economy as a soccer match. Households and businesses are the players, and they are the ones who compete, but the referee has the ability to pull a yellow or red card, to set guidelines for the game. Just like in the game, the U.S. government has the ability to control the market, which reveals some Socialist aspects of the America economy. For example, people can’t

Free markets have often been idealized in the US, and have become a dominant tool for trade and distribution of goods and services. There have been multiple waves of government regulation and deregulation of the market in US history. Each of these trends have been grappling with the central question of how sufficient markets are at satisfying our goals. In theory, free markets are fair and efficient at distributing goods and services. In reality, however, government must intervene in the marketplace for two overarching reasons. First, because in practice free markets left to themselves are not always fair and efficient. And second, because fairness and efficiency are not our only goals and

The US has been leading the world economy with its model of free-market capitalism for last three decades. We have been told that, if left alone, markets will produce the most efficient and effective outcome. Because individuals know what the best way is and they are the ones who will be rewarded according to their productivity. Therefore, maximized freedom and minimized state intervention have been regarded as the most beautiful contribution to economic development.

The author provides a 2008 survey that states Cambodian garment workers are getting paid thirty-three cents an hour

Capitalism is an economic system that dominates the world, some claim it is the key to a better world, taking the poor out of poverty and building an closer world, while other believe it is an exploitative system that oppresses billionS of people. Capitalism and the free market began to take from around the industrial revolution and came as a result of philosopher and economist Adam Smith and David Ricardo. Adam Smith’s book the wealth of nations was the template for many modern western nations. The free market is Adam Smith’s brainchild; the revolutionary theory was based on the antithesis of the mercantile system that was in place in its prominence during the 16 - 18th centuries. The convention was for nations building their wealth overseas through a complicated system of protectionism. Mercantilism adhered to a zero sum game ideology and was centred around the belief the nation’s wealth was based on its holding of precious metals or resources and its duty to protect their interests, which meant the government needed to implement restrictions and regulations on trade with other states. In order to protect their economy and in what they feel would increase their wealth, policies like tariffs on foreign goods, duties, bounties, etc. Smith argued against the mercantilist framework from a number of positions; trade restrictions and regulations interfered with natural prices, reduced the specialisation within industries, reduced the country consumption and had an ineffective

Individual self-interest is good for a free market economy because individuals own most of the market. Also one person could possibly predict what most people want and need. Self interest simply means that you seek your own personal gain. People go to school to get better education to help get better jobs and earn criteria for that work force.

The United States is a blessed nation to have freer markets than most. According to the 2013 Index of Economic Freedom, the United States ranks as No. 10 in the most free market countries, while Zimbabwe ranks No. 175 out of the 177 countries listed. (1) How are countries like Hong Kong, New Zealand, and the U.S. ranked so high? With social cooperation, income inequality, comparative advantages, freedom of trade, sound money, reductions in taxes and regulations, and protection of property rights, more markets in other countries will too progress into free market economies.

In the United States, the minimum wage is $7.25 an hour. In Argentina, the minimum wage is the equivalent to $3.84 an hour. In China, the minimum wage clocks in at $2.12 an hour. But, in Bangladesh, the minimum wage is a measly $0.50 an hour. People in many countries are being paid too little for the dangerous and harsh work that they do in the factories. One woman stood up to this. This woman is Kalpona Akter, who was only 14 years old at the time. Kalpona had grown up in a rich family, but this all changed when her father became paralyzed so he couldn’t do the work that he was doing to support the family. Then, Kalpona had to go work in the factories where she discovered the horrors that were happening.

Under the democratic system lies a form of government known as an autocracy. An autocracy is different than a democracy in who runs the government. As in, who is making the decisions. In a democracy, the people get to cast a vote and be a part of making the decision or elect those who will be making the decisions. In an autocracy one person is making the decision. That be a king or a dictator, it is their way or the highway. Cuba among other nations in the world still operate with an autocracy form of government. Under the Free-Market system of government lies another form that we are all familiar with. For most of us our familiarity comes from the news and text books. This is the communist form of government, like North Korea uses. This differs

In today’s world, people live in a democratic country. Government has the right to regulate the rules of the business and the society. People have the rights to choose their own representatives to rule them and the society. There is a theory called free market theory, government will need to give the powers to the business, government should not have a say on business or regulate the business. Once the business gets all the power from the government, it can make any decisions, government or people should not say anything about the decisions. Therefore, free market will dampen the democracy in the society. The country is rule by people, but people cannot say anything about the business, free market restricts the growth of democracy in the society.

The United States’ economy is defined as a mixed capitalist economy. This means that the economy has both private and public sectors. A public sector is any government program or influence like welfare, taxes, zoning laws, etc. The private sector is basically any business or company that competes in a market, this includes but is not limited to: Target, In n Out, Microsoft, family owned businesses, etc.

The fact that free markets are based on a contractual agreement between the buyer and seller with very little government control makes it feasible to consider it to be compatible with individual freedom. (Free Market: 2014) Classical liberals may agree with the objectives of free markets, as they emphasise the importance of individual freedom with limited control of the state. (Hagopian)The counter argument is that when the free market economy is fuelled by profit motives, it sacrifices some ethical and economic issues which can cause severe consequences. (Gerald Hanks: 2014) Modern Liberals argue that although individual freedom is important, coercion can be used as a positive outlook of bettering individuals to the best of their ability.

It’s common to think that hard work is the key that will help people move up in the world, and that is true for the most part. However what is one supposed to do when there’s a roadblock that is difficult to overcome? There are factors that may all together or by one at a time cause someone to not achieve that pay that wish. Due to education and wealth, discrimination, worker abilities and monopoly power, the opportunities of equal pay isn’t always obtainable to workers.

It is not only unnecessary for the government to intervene to maintain a free market, it is extremely wrong. Intervention by any outside party in corporate matters is inappropriate and basically contradicts the meaning of a free market.