Equilibrium Without Intervention : America And The Free Market System

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Equilibrium without Intervention Rebecca Dannay America and the Free Market Professor Shaanan April 7, 2016 Table of Contents • Introduction of American Economy ……………………………….……………..……3 o Free Market System ………………………………….……………………..….3 o Problem with American Economy ………………………………………….....4 • Government Intervention ……………………………………………………………....5 o 2008 Bailouts ……………………………………………………………………6 o Large Corporations ……………………………………………………………..7 • Analysis ……………………………………………………………………………….....8 • Conclusion ……………………………………………………………………………..10 • Bibliography ……………………………………………………………………………11 Equilibrium without Intervention America is believed to have a Free Market Economic System which other countries have aspired to follow. A market economy can be defined as where supply and demand drive and regulate the economy instead of government intervention. Also, we are seen as having a laissez-faire economy, which is “a capitalist society where the profit motive is given free rein and the pursuit of economic success is the top priority” (Shaanan). But how can America have a Free Market system if it has a laissez-faire economy? The difference between free market and capitalist market is; under a capitalist system, businesses are supporters of free market principles for themselves and government intervention for their competitors. To have a Free Market economy, it is assumed to possess three things: free flow of information, no barriers to competition, and direct responsibility.
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