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Free Market Economy Increases Greed

A free market is also sometimes known as a perfect market or a market with perfect competition.
Perfect competition is that market where there is no restriction of both the knowledge of the
goods as well as right to enter the market.

In a free market the prices of goods and services are supposed to be arranged completely by the
mutual non coerced consent of both the sellers and the buyers and are determined generally by
the natural law of supply and demand.

The free market economics is closely associated with laissez-faire economic policy which
supports the philosophy of free market by confining or restricting government intervention in
economic matters up to the policing level.

A market economy based on supply and demand with little or no government control. A
completely free market is an idealized form of a market economy where buyers and sells are
allowed to transact freely (i.e. buy/sell/trade) based on a mutual agreement on price without state
intervention in the form of taxes, subsidies or regulation.

In financial markets, free market stocks are securities that are widely traded and whose prices are
not affected by availability.

In foreign-exchange markets, it is a market where exchange rates are not pegged (by
government) and thus rise and fall freely though supply and demand for currency.

In simple terms, a free market is a summary term for an array of exchanges that take place in
society. Each exchange is a voluntary agreement between two parties who trade in the form of
goods and services. In reality, this is the extent to which a free market exists since there will
always be government intervention in the form of taxes, price controls and regulations (say for
entry into market etc). Just like supply-side economics, free market is a term used to describe a
political or ideological viewpoint on policy and is not a field within Economics.

Free market is a very efficient and simplistic model to attain welfare and social goals. Welfare
economics is the ultimate source of happiness for both the ruler and the ruled. A welfare market
can be brought about by a harmonious balance between hardcore capitalism and rigid
communism.

In political economics one opposite extreme to free market economy is a command economy
where decision regarding production distribution and pricing are a matter of governmental
economy, however the mixed economy which is followed in India is a perfect equilibrium
intermediate between extreme position and is definitely the preferred basis for the socio
economic development and upliftment for the developing country. However the government has
to be very rational and must take the democratic confidence of the people however good the
market theory is. Otherwise there might be a backlash like Nandigram or the breaking up of the
USSR by applying too tight fisted boundaries.

A free market economy in welfare philosophy would be a system of equilibrium allocation of


goods within the society where the purchasing power should not be dominated by the artificial
inflation of currency but should be moderated by the supply and demand forces within the market
which can determine who gets what and what is produced. In this way we can definitely look
towards an overall equilibrium.
Good free market economy should have a certain amount of economic liberalism as far as
government rules are concerned. The government should be broad minded enough to release the
stranglehold on the economy.

There should not be a free market typically embodies an absence of unfair and unethical
competition thus government oligopolies and cartels should not create unfair subsidies to keep
their competition out of the market.

Free market economy should have a very efficiently lubricated financial sector and a good stock
exchange where the aspiration of the common man can be reflected in the growth of business.

Greed has been inherent in man since the time of Moses. The Ten Commandments definitely
spoke against greed. Greed is an apprehensive insecurity where people would not like to spend
themselves but would like others to spend so that they can take over power at later stages. These
people whether it be micro in the form of individuals or macro in the form of government miss out
on the wonderful law of giving which says the more you empty out the more it will be filled with.
The ethical justification of free market takes two forms: one appeals to the inherent moral
superiority of autonomy and freedom in the market and others is a form of consequentialism, a
belief that decentralized planning by a multitude of individuals making free market decisions
produce much better results in regard to a more organized, efficient and productive economy. If
after all it market decisions are taken by people then it will lead to the rise of the thinking market
where individual or oligopolistic anarchism will come to an end.

Though free market is an idealized abstraction but it is very useful in understanding the real
market of today which are regulated market, black market, underground economy. it would
always spur the right minded people to speak against such market keeping free market as an
absolute ideal from which any deviation could be arrested.