Free Market Economy: Capitalism and Freedom by Milton Friedman

948 Words 4 Pages
What is a free market really? By definition a “Free market” is a summary term for an array of exchanges that take place in society” (Econlib). However there is more to it than that, in fact there is much to be learned and understood from a free market. A free market is a place (physical or not) where a person(s) in a community are able to go and exchange goods based on supply and demand. A truly free market has no barriers to entrance or to exit, and many goods and services. In any case people within the market are able to distribute goods freely based on free choice in trade for whatever they have agreed upon whether that is government notary(s) or other goods or services. In this type of market there is a huge emphasis on property …show more content…
9). What he means is that we (in America) have become so accustom to having freedom that it seems to be more of a natural gift (as it should be) and less of an earned right. Although this in itself does not seem important, if the only way to have a (free) market, and so have economic freedom is to have this “newfound” freedom, then the best way to organize economic activity is to use markets. Without markets there cannot be a “fair” dispersal of our scarce resources.
Scarcity is something that often people do not think of but it is relevant to each person. There are a limited number of resources on the earth and once those are gone, there is nothing left to trade with and nothing left to be gained. Although we are a very long time from something that extreme happening it needs to be understood that there is a very real possibility that we will run out of key resources in the future. Because there is scarcity a community must decide how to allocate its resources effectively. Despite the fact that people are inherently “good” we are also selfish and often bad at making rules and laws without discriminating against others and for ourselves. Friedman outlines this well throughout the book saying things like“...a free…