market economy

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Market Economy

A social and economic system in which prices are fixed by the law of supply and demand rather than by a government or other body. In its pure form, a market economy is an economy absent of government subsidies, incentives, or regulations. A market economy contrasts with both a planned economy and a mixed economy. No economy is a complete market economy: most countries claiming to have market economies in fact have a market economy combined with greater or lesser government regulation, sometimes called a social market. Proponents of a market economy argue that it is more efficient than any alternatives, promotes fair competition between its participants, and rewards skill and hard work. Critics allege that a market economy perpetuates class differences and rewards ruthlessness over actual labor. Milton Friedman, Friedrich Hayek, and Ludwig von Mises were three major 20th-century proponents of the market economy. See also: Capitalism, socialism, John Maynard Keynes.

market economy

see PRIVATE-ENTERPRISE ECONOMY.
References in periodicals archive ?
But Rawls does not require work to be a basic right, nor does he require the government to have a full employment policy or set a minimum wage standard because these would interfere with the functioning of a more or less free market economy.
"Such proposition cannot be proven given that this country's free market economy relies heavily on the ability to manufacture and sell non-original or imitation items, such as generic drugs," the court held.
While business fluctuations are normal in a free market economy, a general downturn reflects a "cluster of errors" in which all, or most, businesses make bad investment decisions and suffer corresponding losses.
The Cardinal said that Christianity as a backdrop to people's moral decisions has virtually disappeared: "The only good is what I want, the only rights are my own, and the only life with any meaning or value is the life I want for myself." The excesses of the free market economy and consumerism are part of the problem (See also Paula Adamick in this issue, p.
It lies in the philosophy that in the free market economy anything can be bought and sold at the best profit, and as her erstwhile leader Mrs Thatcher once said: 'You cannot buck the market.'
It seems the golden age for Estonia's own achievements in architecture has finally arrived, fostered by ideological freedom and a free market economy, and complemented by an open market for building materials and new, previously unobtainable technologies.
He was well versed in the writings of the major classical economists and accepted the principle of a free market economy. His proposal to tax land rent was a means-- the only means--to finance government and secure a more equal division of the economic benefits resulting from gifts of nature or the growth of the community.
The State of Alaska will receive nearly $750,000 from the federal government to continue initiatives in the Russian Far East that assist Sakhalin to make the transition to a free market economy and create jobs for Alaskans, Gov.
Any future government, whatever its form, will be under pressure to continue them, which is bound to work against the imperatives of a free market economy, and raise the costs of economic restructuring to politically prohibitive levels.
Could it be that his service of the Royal Mail is too much of a tribute to the Free Market Economy? Could it be that his faithful companion Jess the Cat is some kind of a double agent?
Competition Commissioner Mario Monti said: "I very much welcome this development; it means that we have finally reached the solution which the Commission and my predecessor Mr Karel Van Miert in particular had always tried to achieve: to make sure that cross-border trade in the EU is not impeded by practices contrary to a free market economy. It is a solution which is also fully supported by my colleague, the Commissioner for Culture and Education Ms.
He argues that the agreement will slow economic growth in developed countries, kill jobs, and set up a huge, global system of government intervention in the free market economy.