Free Market Economy - 837 Words

The United States is known to operate in a free market economy. In other words, the economy is based solely on supply and demand with little to no government control. In reality, however, the United States has various government regulations on our country’s market. The amount of regulation that is necessary is a continuing debate among politicians and economists to this day. Some would say that the key to a successful market economy is to remove government restrictions in order to force businesses to provide superior products and services at affordable prices. Yet, others assert that government regulations are essential in protecting consumers, stemming from the assumption that corporations are not always looking out for the public’s interest. Of course, there are various advantages and disadvantages associated with each level of regulation, however it is safe to assume that there must be a balance between an unregulated free market and a regulated economy in order to p rotect people and the environment and allow the economy to flourish. Advantages of a Free Market Economy A free market is driven by individual innovation and the concept that hard work and initiative will be rewarded with success. Because of the ingenuity factor, there is plenty of competition in the market place. Therefore, the rivalry between companies provides the best possible product to the customer at the best price. In addition, this gives consumers the ability to let their voices be heard, sinceShow MoreRelatedFree Market Economies2080 Words   |  8 Pagescentury. As usual the battles were for supremacy and for the right to have colonies all over the globe, because when these wars were raging the whole world was to be re-discovered in some way. Back then navies where the main driving force of the economy and even for the world. They were the only known to man method of transporting goods, slaves and people. History of France France was a pure monarchy for a vast period of its history as an established society of people. During this period peopleRead MoreThe Establishment Of A Free Market Economy964 Words   |  4 PagesThe establishment of a free market economy with the creation of joint-stock companies in the modern-day Netherlands during the 1500-1600s spelt the beginning of capitalism, an economic system which has, since this period, brought untold prosperity to billions throughout the world. Its proliferation throughout Europe is one of the primary reasons why in the centuries thereafter it became the sole hegemon on the world stage, with its greatest embracer, Great Britain, holding sway over a fourth of theRead MoreProgressing into Free Market Economies1048 Words   |  4 Pagesnation 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 countriesRead MoreFree Market Economy Essay461 Words   |  2 PagesA 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 â€Å"hands-off† or â€Å"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 componentsRead MoreConsumerism And Free Market Economy1509 Words   |  7 Pagesessential in the enhancement of capitalism and free market economy. It can also lead to innovation competition of companies in meeting the needs of consumers. However, Commercialism can lead to an increase in wasteful consumption or consumerism. It can also lead to the depletion of natural resources in trying to meet the consumption needs of the people. Although commercialism have it draw backs, it is not all bad; commercialism promotes capitalism and free trade both of which are very essential in ourRead MoreA Free Market Economy Is Better Than Command Economy Essay1247 Words   |  5 PagesA Free-market economy is better than Command economy Free-market and Command economy are the two-major economy system. It has sparked years of controversies among individuals over which system is better. However, no agreement has been reached. Meanwhile, it is obvious that free-market economy predominates all around the world as the majority of countries are following an economy which free-market process the dominating position. The significant difference between is whether government interventionRead MoreThe Differences between Command Economies and Free Market Economies478 Words   |  2 PagesThe Differences between Command Economies and Free Market Economies The prime difference between command economies and free market economies is the method used to answer the three central questions of what, for whom, and how? Each of these questions relates to production. In a free market economy, the answers to these questions are decided by the consumer and overseen by a government that practices a laissez-faire economic policy. Production is decided on a supplyRead MoreDifference Between Command Economy And Free Market Economy1617 Words   |  7 Pagesdifference between command economy and free market economy is the degree of government intervention and the reliance of market to determine prices (Cherunilam, 2009). Command market is the system in which the market is centrally controlled and regulated by the government; free market economy is the system demand and supply determine the market prices and regulations. However, mixed economy is a combination of Command and Free market economy (Bogolib, 2013); the market price is determined by demandRead MoreMain Economic Characteristics Of A Free Market Economy1506 Words   |  7 PagesThough there are three different types of economies that exist – free market economy, planned (also known as command) economy, and mixed economy, this essay will focus mainly on free market and planned economies. It will examine the main economic characteristics of each of the two economies and compare how they differ from each other, while in relation to the UK public sector. A free market economy is based on supply and demand and all major economic decisions are made by individual economic agentsRead MoreThe American Economy Is Characterized By A Free Market System2295 Words   |  10 Pages The American economy is characterized by a free-market system also known as capitalism. The basic tenet of which is that economic transactions are determined in the private sector and that assets and resources are held privately. There are many different economic models that can be used in a country but no country has a purely simplistic style but rather has a mixed model. A mixed model encompasses components of each different model. The U.S. currently dominates the world economy and by doing so