What does a ‘free market’ look like?
What does the ‘free-market’ look as you know it?
The idea is that the market will respond to supply and demand, and will respond as such.
A free market has its upsides and downsides, but at its core it has no rules or standards.
“I think the key thing to keep in mind is that when you think about the nature of a market, the free market is not a market that is completely unregulated,” says economist and author Richard Wolff.
Wolff says market efficiency is what matters most to a free market.
He explains, “When the government gives a subsidy to the producers, it is not because they are better than anybody else.
They have to do it to make sure they have enough food and shelter and water.
If they do it, it makes a lot of money for them, but it is the result of the competition between them, not the government’s doing.”
Wolsff says the key difference between a market and a market economy is the degree of government interference.
While there are no laws, the market is an inherently democratic system.
“[It is] a system that is based on the principle that the producers should be able to do whatever they want, to make whatever they like,” Wolff says.
It’s also a system in which market actors, such as consumers, can make informed choices.
What do you think?
Is it a free or a free-market economy?
If the market were to collapse, what would you do?
Share your thoughts below.