Free Market

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Free Market

A system of economics that minimizes government intervention and maximizes the role of the market. According to the theory of the free market, rational economic actors acting in their own self interest deal with information and price goods and services the most efficiently. Government regulations, trade barriers, and labor laws are generally thought to distort the market. Proponents of the free market argue that it provides the most opportunities for both consumers and producers by creating more jobs and allowing competition to decide what businesses are successful. Critics maintain that an unfettered free market concentrates wealth in the hands of a few, which is unsustainable in the long term. In practice, no country or jurisdiction has a completely free market. See also: Deregulation, Classical economics, Keynesian economics, Marxism, Monetarism, Chicago School, Austrian School.
References in periodicals archive ?
"If free-market capitalism is capable of sending a rich person to space then it can surely do a little bit more to help those at the bottom of the economic ladder"- London mayor Boris Johnson (pictured), saying he passionately supports the Living Wage.
Now it's just free-market capitalism and big money is coming in because they have an advantage.
has a $15 trillion economy, free-market capitalism and democracy, China has state capitalism, a GDP of $8.2 trillion, and an autocratic political system.
It is also an argument that can be given added credence by the failure of the larger political parties to acknowledge the fault-lines in a global, free-market capitalism.
Mason, an economics editor for the BBC, considers how the near collapse of free-market capitalism in last few years has sparked revolutions around the world.
Sarkozy, who espoused an American-style free-market capitalism, has long advocated rules to make it easier to fire employees.
The near collapse of free-market capitalism and, in particular, the opportunities it presents to the young, has created a generational sense of disillusionment.
Wynn said Perry's attacks on Romney's time at the helm of the private equity firm Bain Capital had crossed the line in a political party that values free-market capitalism." - Perry loses key SC backer after attack on Romney, The Associated Press
Free-market capitalism was most significantly responsible for the growing economic inequality that split earners into the few haves and the many have-nots, which today has born bitter fruit in the "Occupy" demonstrations cropping up throughout the country.
Egypt shows what happens when a country adopts free-market capitalism without developing real rule of law and institutions.
He writes, with his typical penchant for free-market capitalism: "The fall of the Berlin Wall exposed a state of economic ruin so devastating that central planning, earlier applauded as a "scientific" substitute for the "chaos" of the marketplace, fell into terminal disrepute....Communist China which had discovered the practical virtues of markets a decade earlier, accelerated its march toward free-market capitalism without, of course, ever acknowledging that that was what it was doing.
Indeed, he argues, certain safety-net programs are essential if free-market capitalism is to flourish.