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.
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References in periodicals archive ?
He asked for a dialogue between Christian personalism and the three schools of free-market economics. So, what is the problem?
Despite the practical failures of free-market economics, too many mainstream economists have continued to embrace simplistic ideas about how the economy works.
Promising to replace dwindling private contributions to conservation, for-profit companies are creating a new paradigm for conservation and sustainability work based on neoliberal free-market economics. The editors refer to this market-driven conservation idea as Nature, Inc..
Researchers for the World Values Survey set out to determine whether racial tolerance was linked to free-market economics.
The editorial in the New York Times said Sharif is a fiscal conservative who favours free-market economics. His tasks are to reduce a bloated public sector, end energy shortages and persuade Pakistanis to pay taxes, without which the government cannot hope to stabilize the economy.
Sharif is a fiscal conservative, who favours free-market economics. His tasks are to reduce a bloated public sector, end energy shortages and persuade Pakistanis to pay taxes, without which the government cannot hope to stabilize the economy."
Capriles, 40, a state governor, says Venezuela needs a fresh start after 14 years of Chavez's hardline socialism, and is vowing to install a Brazilian-style administration of free-market economics with strong social policies.
The collection is published through the CATO Institute and reflects their libertarian ideological commitment to free-market economics. Most of the essays criticize how Carson differently values the environment, economic motivations, and her ecological criticisms of the economically profitable green revolution.
Dr, Chang is not the first to reveal that the wealthier countries did not achieve success by sticking to free trade or free-market economics. On the contrary, he points out, prosperous nations like England, France, Germany, and (more recently) Japan and Korea used a combination of protectionism, subsidies, and often state control of industry in the early stages of their development.
As Adam Smith (often seen simplistically as the first guru of free-market economics) wrote in "The Wealth of Nations," there are "two distinct objects" of an economy: "first, to provide a plentiful revenue or subsistence for the people, or, more properly, to enable them to provide such a revenue or subsistence for themselves; and secondly, to supply the state or commonwealth with a revenue sufficient for the public services." Perhaps the most troubling aspect of Europe's current malaise is the replacement of democratic commitments by financial dictates - from leaders of the European Union and the European Central Bank, and indirectly from credit- rating agencies, whose judgments have been notoriously unsound.
Frustrated with sluggish growth, the ability of trade unions to resist change, the poor performance of nationalised industries and the inflationary effects of rising energy costs, the politicians of the 1970s and those who have followed them had accepted the solutions of free-market economics. Their solutions were intellectually elegant.
Free-market economics failed and the state had to pick up the pieces, but voters believe that only a small-state party can be trusted to clear up the mess left behind.