What is a free market?

Economics Economics Questions
1

Suppose a new country was formed called: Freedonia. And it was your task to determine to what extent it had a free market. What would you be looking for?

2

Lack of government invervention in private exchange.

3

All goods and services are exchanged voluntarily.

4

Selling what you want to who you want for the price you agree to.

5

A free market is a place where people widely believe that aggression is immoral and economically destructive. Such a place is too hostile for governments and mobs to sustain themselves.

Also there is sweet candy.

6

I demand there also be handsome north european men there :stuck_out_tongue:

‘Freedonia’ (nice dorky name, by the way - I prefer Ancapistan or Neo-Singapore) would basically be a society of customary law and contract.

7

I don’t know about anything ending in -stan.

How about Libertania? Non-Aggressionismville? HeyleavemealoneIhaventdoneyouanyharm-ia?

8

What is a Free Market? - MNR

9

I’ve recently become more interested in the legal side of things - I would say that a free society must first be characterized by the omnipresent application of ethical universalizability in its legal system. Ethical universalizability must be applied even to the legal system itself. This automatically implies free trade (and a free market in the production of law) and property rights (since universalizability means that the identity of an individual is irrelevant to the rightness/wrongness of an action, except insofar as the action is with respect to property, which is owned by an individual who has the rightful claim to do with that property what no one else may do).

Clayton -

10

Voluntaryville or Galtland.

11

You have obviously never seen Duck Soup:

I’ll take Freedonia

bearing01 12

13

Molyneux = Instant Fail.

14

A free market consist of the following: Free exchange, Free Entry, Free Exit, and Property Rights.

  1. Free exchange. Individuals are allowed to exchange goods and services freely. There is no restriction on trade.

  2. Free entry means that any individual can enter a market place to exchange goods. There are no legal restrictions on monopolies or regulations restricting competition.

  3. Free exit means that any individual can leave a market place. There would be no bailouts or subsidies.

  4. Property Rights. This is the most important. Property rights means that people’s property is protected. Stealing a persons property is not legal. Invading a persons property is not legal. Or any other act of coercion is not legal. There are also repercussions for violation. Property rights are needed for a free market to work, and inherent in the structure in a free market.