Critical Writing Assigment 4

1883 Words Feb 27th, 2015 8 Pages
Critical Writing Assignment 4: Free Markets: Classical Economic Definitions & Perspectives
Professor Marlo Chavarria
201420 Spring 2014 ECON 350-D02 LUO
Cameron L. Atkinson
Student-Liberty University Online

This essay examines the concept of a free market and the various interpretations of classical economists. The author begins by defining a free market from a classical perspective. He then proceeds to examine the interpretation of David Ricardo, which leaned somewhat to laissez-faire economics, the interpretation of John Stuart Mill, which was complex and indecisive, and the interpretation of Karl Marx, which argued against the concept of a free market. The essay concludes by discussing the complexity of the debate
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In order to obtain an accurate definition of a free market, one must examine the works of the classical period, which gave birth to the term free market. Most classical economists lived in a period where their nations’ economic policies were hindering growth (Sowell, 2006). Consequently, they devoted their lives to develop theories to remove impediments to growth. Artificial stimulus was one of the first factors they identified that hinder growth (Sowell, 2006). The entity that was primarily responsible for the artificial stimulus of an economy was government. To remedy this problem, classical economists proposed the concept of a free market. Their basic perception of a free market was “a system where the prices and quantities of the things we buy and sell are unencumbered by artificial barriers or constraints” (Genetski, 2011, p.10). In the classical economic framework, this definition of a free market was satisfactory, but future generations protested that this statement creates a laissez-faire economy by totally removing government from the economy. Consequently, a better definition of a free market is required. A free market system requires some government intervention in the marketplace in order to ensure the safety of society (Zupan, 2011). This intervention is necessary to prevent anarchy, but it must be limited to the protection of life and private property. In addition, government also has the responsibility to establish a fair set of rules by…