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Encyclopedia > Free market
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Liberalism is an ideology, philosophical view, and political tradition which holds that liberty is the primary political value. ... For other uses, see Politics (disambiguation). ... Liberalism is an ideology, philosophical view, and political tradition which holds that liberty is the primary political value. ... Contributions to liberal theory is a partial list of individual contributions on a worldwide scale. ... Classical liberalism (also known as traditional liberalism[1] and laissez-faire liberalism[2]) is a doctrine stressing the importance of human rationality, individual property rights, natural rights, the protection of civil liberties, constitutional limitations of government, free markets, and individual freedom from restraint as exemplified in the writings of Adam... This article or section does not cite any references or sources. ... Cultural liberalism is a form of liberalism which stresses the freedom of the individual from what Lord Acton called the tyrany of the majority, the right of the non-conformist to march to a different drummer. ... This article or section does not cite any references or sources. ... This article is about the political philosophy based on private property rights. ... For the school of international relations, see Neoliberalism in international relations. ... This article is about political philosophy of Ordoliberalism. ... This article is being considered for deletion in accordance with Wikipedias deletion policy. ... Social liberalism is either a synonym for new liberalism or a label used by progressive liberal parties in order to differentiate themselves from the more conservative liberal parties, especially when there are two or more liberal parties in a country. ... Contributions to liberal theory is a partial list of individual contributions on a worldwide scale. ... This article does not cite any references or sources. ... Individual rights represent the moral rights of individuals in society prior to government. ... Individualism is a term used to describe a moral, political, or social outlook that stresses human independence and the importance of individual self-reliance and liberty. ... Laissez-faire is short for laissez faire, laissez passer, a French phrase meaning to let things alone, let them pass. First used by the eighteenth century Physiocrats as an injunction against government interference with trade, it is now used as a synonym for strict free market economics. ... Liberal democracy is a form of government. ... Liberal neutrality is the idea that the liberal state should not promote any particular conception of the good. This idea formed a cornerstone of John Rawls work and has been developed by many other liberal thinkers e. ... The philosophical concept of negative liberty refers to an individuals liberty from being subjected to the authority of others. ... Positive liberty is an idea that was first expressed and analyzed as a separate conception of liberty by John Stuart Mill but most notably described by Isaiah Berlin. ... For other uses, see Liberty (disambiguation). ... For other uses, see Capitalism (disambiguation). ... A mixed economy is an economy that has a mix of economic systems. ... An open society is a concept originally developed by philosopher Henri Bergson. ... For the direction right, see left and right or starboard. ... In the entry Liberalism one can find a comprehensive discussion on liberalism. ... This article discusses the history and development of various notions of liberalism in the United States. ... This article discusses liberalism as a major political current in specific regions and countries. ... Liberal International is a political international for international liberal parties. ... The International Federation of Liberal & Radical Youth (IFLRY) is an international grouping of Liberal parties - it is the youth wing of the Liberal International. ... The European Liberal Democrat and Reform Party (founded in 1993) is a liberal party, mainly active in the European Union, composed of 49 national liberal and centrist parties from across Europe. ... ALDE logo The Alliance of Liberals and Democrats for Europe (French: Alliance des Démocrates et des Libéraux pour lEurope) is a Group in the European Parliament. ... European Liberal Youth (LYMEC - Liberal Youth Movement of the European Community) is an international organisation of Liberal youth movements - mostly the youth wings of members of the European Liberal, Democrat and Reform Party. ... The Council of Asian Liberals and Democrats is a regional organization of liberal and democratic political parties in Asia. ... The Africa Liberal Network is composed of 16 parties in Africa, from 14 different countries, and is an associated organisation of Liberal International, the political family to which Liberal Democratic parties belong. ... The Liberal Network for Latin America (Red Liberal de América Latina, RELIAL) is an international network founded in 2003 with the official launch taking place in Costa Rica November 2004. ... This article is about the political philosophy based on private property rights. ...

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Image File history File links No higher resolution available. ... Theory and practice Issues History Culture By region Lists Related Anarchism Portal Politics Portal ·        Agorism is an anarchist political philosophy founded by Samuel Edward Konkin III and characterized by proponents as left-libertarian. ... Anarcho-capitalism refers to an anti-statist philosophy that embraces capitalism as one of its foundational principles. ... The term autarchy has two different meanings. ... Geolibertarianism (also geoanarchism) is a liberal political philosophy that holds along with other forms of libertarian individualism that each individual has an exclusive right to the fruits of his or her labor, as opposed to this product being owned collectively by society or the community. ... Green-Libertarian describes a political philosophy that was established in the United States. ... Libertarianism is a political philosophy that holds that individuals should be allowed complete freedom of action as long as they do not infringe on the freedom of others. ... Left-libertarianism is a term that has been adopted by several different movements and theorists. ... In civics, minarchism, sometimes called minimal statism or small government, is the view that the size, role and influence of government in a free society should be minimal — only large enough to protect the liberty and property of each individual. ... Neolibertarianism is a political philosophy combining elements of libertarian and conservative thought that embraces incrementalism and pragmatism domestically, and a generally interventionist foreign policy based on self-interest, national defense and the expansion of freedom. ... Paleolibertarianism is a school of thought within American libertarianism founded by Lew Rockwell and Murray Rothbard, and closely associated with the Ludwig von Mises Institute. ... Progressive Libertarianism is a political or philosophy whose adherents promote social change through voluntarism rather than government laws and regulation. ...

Origins

Austrian School
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Classical liberalism
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The Austrian School, also known as the “Vienna School” or the “Psychological School”, is a heterodox school of economic thought that advocates adherence to strict methodological individualism. ... The Chicago school of economics is a school of thought favoring free-market economics practiced at and disseminated from the University of Chicago in the middle of the 20th century. ... Classical liberalism (also known as traditional liberalism[1] and laissez-faire liberalism[2]) is a doctrine stressing the importance of human rationality, individual property rights, natural rights, the protection of civil liberties, constitutional limitations of government, free markets, and individual freedom from restraint as exemplified in the writings of Adam... Theory and practice Issues History Culture By region Lists Related Anarchism Portal Politics Portal ·        Individualist anarchism (also anarchist individualism, anarcho-individualism, individualistic anarchism) refers to any of several traditions that hold that individual conscience and the pursuit of self-interest should not be constrained by any collective body or public...

Ideas

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Civil liberties is the name given to freedoms that protect the individual from government. ... A tax cut is a reduction in the rate of tax charged by a government, for example on personal or corporate income. ... Free trade is an economic concept referring to the selling of products between countries without tariffs or other trade barriers. ... See also the specific life stance known as Humanism For the Renaissance liberal arts movement, see Renaissance humanism Humanism is a broad category of ethical philosophies that affirm the dignity and worth of all people, based on the ability to determine right and wrong by appeal to universal human qualities... Laissez-faire is short for laissez faire, laissez passer, a French phrase meaning to let things alone, let them pass. First used by the eighteenth century Physiocrats as an injunction against government interference with trade, it is now used as a synonym for strict free market economics. ... For other uses, see Liberty (disambiguation). ... Methodological individualism is a philosophical orientation toward explaining broad society-wide developments as the accumulation of decisions by individuals. ... The non-aggression principle (also called the non-aggression axiom, anticoercion principle, or zero aggression principle) is a deontological ethical stance associated with the libertarian movement. ... This page deals with property as ownership rights. ... Self-ownership or sovereignty of the individual or individual sovereignty is the condition where an individual has the exclusive moral right to control his or her own body and life. ...

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Economic libertarianism is the doctrine that government should not engage in economic interventionism, but only prohibit force and fraud. ... The history of libertarianism is closely related to the history of classical liberalism. ... The libertarian movement consists of the various individuals and institutions who have historically advanced the ideas and causes of libertarianism. ... Many countries and subnational political entities have libertarian political parties. ... Libertarian theories of law build on libertarianism or classical liberalism. ... Libertarians and Objectivists limit what they define as rights to variations on the right to be left alone, and argue that other rights such as the right to a good education or the right to have free access to water are not legitimate rights and do not deserve the same... It has been suggested that this article or section be merged with Libertarianism. ... A libertarian Republican is a person who subscribes to libertarian philosophy while typically voting for and being involved with the United States Republican Party. ... A libertarian Democrat is a person who subscribes to libertarian philosophy while typically voting for and being involved with the United States Democratic Party. ...

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A free market is a market where prices of goods and services are arranged completely by the mutual non-coerced consent of sellers and buyers, determined generally by the supply and demand law with no government interference in the regulation of costs, supply and demand. The opposite of a free market is a controlled market, where government sets or regulates prices directly or through regulating supply and/or demand.[1] Although a free market necessitates that government does not regulate supply, demand, and prices, it also requires the traders themselves do not coerce or mislead each other, so that all trades are morally voluntary.[2] This is not to be confused with a perfect market where individuals have perfect information and there is perfect competition. Image File history File links Portal. ... Look up Market in Wiktionary, the free dictionary. ... The supply and demand model describes how prices vary as a result of a balance between product availability at each price (supply) and the desires of those with purchasing power at each price (demand). ... This box:  • • A planned economy is an economic system in which a single agency makes all decisions about the production and allocation of goods and services. ... This article does not cite any references or sources. ... Perfect information is a term used in economics and game theory to describe a state of complete knowledge about the actions of other players that is instantaneously updated as new information arises. ... Perfect competition is an economic model that describes a hypothetical market form in which no producer or consumer has the market power to influence prices. ...


The notion of a free market is closely associated with laissez-faire economic philosophy, which advocates approximating this condition in the real world by mostly confining government intervention in economic matters to regulating against force and fraud among market participants. Hence, with government force limited to a defensive role, government itself does not initiate force in the marketplace beyond levying taxes in order to fund the maintenance of the free marketplace. Some free market advocates oppose taxation as well, claiming that the market is better at providing all valuable services including defense and law, or that such services can be provided without direct taxation. Anarcho-capitalists, for example, would substitute arbitration agencies and private defense agencies. Laissez-faire is short for laissez faire, laissez passer, a French phrase meaning to let things alone, let them pass. First used by the eighteenth century Physiocrats as an injunction against government interference with trade, it is now used as a synonym for strict free market economics. ... Security measures taken to protect the Houses of Parliament in London, England. ... For other uses, see Law (disambiguation). ... Anarcho-capitalism is a view that regards all forms of the state as unnecessary and harmful, particularly in matters of justice and self-defense, while being highly supportive of private property. ... Arbitration is a legal technique for the resolution of disputes outside the courts, wherein the parties to a dispute refer it to one or more persons (the arbitrators or arbitral tribunal), by whose decision (the award) they agree to be bound. ... A private defense agency (PDA) is a hypothetical agency that provides defense voluntarily through the free market. ...


While most economists regard the free market as a useful if simplistic model in developing economic policies to attain social goals, some regard the free market as a normative rather than descriptive concept, and claim that policies which deviate from the ideal free market solution are 'wrong' even if they are believed to have some immediate social benefit. Samuelson treated market failure as the exception to the general rule of efficient markets. But more recently the Greenwald-Stiglitz (1986) theorem [3] posits market failure as the norm, establishing "that government could potentially almost always improve upon the market's resource allocation." And the Sappington-Stiglitz theorem "establishes that an ideal government could do better running an enterprise itself than it could through privatization"[4] (Stiglitz 1994, 179).[5] In philosophy, normative is usually contrasted with positive, descriptive or explanatory when describing types of theories, beliefs, or statements. ... A description consists of an enumeration of the quantitative and qualitative parameters which seek to provide a definition of some thing, such as what that thing looks like, sounds like, or feels like, distinguishing one state from another and general characteristics commonly noticed which in popular culture define or distinguish... Samuelson or Samuelsson is a surname, and may refer to: Cecil O. Samuelson (1941 – ), president of Brigham Young University Don Samuelson (1913 – 2000), Republican politician from Idaho Fred Samuelson (1925 – ), American abstract painter G. B. Samuelson (1888 – 1947), British filmmaker Gar Samuelson (1958 – 1999), drummer for the band, Megadeath Marcus... Joseph Stiglitz (born February 9, 1943) is an American economist, author and winner of The Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel (2001). ...


In political economics, one opposite extreme to the free market economy is the command economy, where decisions regarding production, distribution, and pricing are a matter of governmental control. Other opposites are the gift economy and the subsistence economy. The mixed economy is intermediate between these positions and is the preferred basis of socioeconomic policy for most countries and political parties. The Politics series Politics Portal This box:      Political economy was the original term for the study of production, the acts of buying and selling, and their relationships to laws, customs and government. ... A market economy (also called a free market economy or a free enterprise economy) is an economic system in which the production and distribution of goods and services take place through the mechanism of free markets (though completley useless to some dumbasses) guided by a free price system. ... A planned economy is an economic system in which economic decisions are made by centralized planners, who determine what sorts of goods and services to produce, and how they are to be priced and allocated. ... A gift economy is an economic system in which goods and services are given without any explicit agreement for immediate or future quid pro quo. ... Media:Example. ... A mixed economy is an economy that has a mix of economic systems. ...


In other words, a free market economy is "an economic system in which individuals, rather than government, make the majority of decisions regarding economic activities and transactions."[6] In social philosophy, a free market economy is a system for allocating goods within a society: purchasing power mediated by supply and demand within the market determines who gets what and what is produced, rather than the state. Early proponents of a free-market economy in 18th century Europe contrasted it with the medieval, early modern, and mercantilist economies which preceded it. Social philosophy is the philosophical study of interesting questions about social behavior (typically, of humans). ... A free market is an idealized market, where all economic decisions and actions by individuals regarding transfer of money, goods, and services are voluntary, and are therefore devoid of coercion and theft (some definitions of coercion are inclusive of theft). Colloquially and loosely, a free market economy is an economy... Look up Allocation in Wiktionary, the free dictionary. ... Purchasing Power- the amount of value of a good/services compared to the amount paid. ... The supply and demand model describes how prices vary as a result of a balance between product availability at each price (supply) and the desires of those with purchasing power at each price (demand). ... The Middle Ages formed the middle period in a traditional schematic division of European history into three ages: the classical civilization of Antiquity, the Middle Ages, and modern times. ... The early modern period is a term used by historians to refer to the period in Western Europe and its first colonies, between the Middle Ages and modern society. ... Mercantile redirects here. ...

Contents

Theory

Voluntary exchange

The key idea of a free market is voluntary exchange. If an exchange takes place under coercion or fraud, then that exchange is not considered a free market exchange. For example, if someone threatens someone with a gun to purchase what he is selling or exaggerates the item's quality, then that is a not a free market. If the government legally prevents a merchant from selling his goods at any prices he wishes and that buyers agree upon, that is not a free market. Or, if the government decrees what quantity of a commodity one must manufacture, it is not a free market. Thus, the operation of supply and demand is not sufficient for a free market if decisions on supply and demand are made under the threat of coercion. If an individual is lied to in order to persuade him to purchase something, such as when a product or service is misrepresented, this is not considered morally voluntary either. Thus, a free market is one without "force or fraud."


In the realm of advertising and product regulation, fraud may also be considered the attempt to manipulate the inherent attributional errors stemming from human design.


Supply and demand

Supply and demand are always equal as they are the two sides of the same set of transactions, and discussions of "imbalances" are a muddled and indirect way of referring to price. However, in an unmeasurable qualitative sense, demand for an item (such as goods or services) refers to the market pressure from people trying to buy it. They will "bid" money for the item, while sellers offer the item for money. When the bid matches the offer, a transaction can easily occur (even automatically, as in a typical stock market). In reality, most shops and markets do not resemble the stock market (eg the job market), and there are significant costs and barriers to "shopping around" (comparison shopping). A stock market is a market for the trading of company stock, and derivatives of same; both of these are securities listed on a stock exchange as well as those only traded privately. ...


When demand exceeds supply, suppliers can raise the price. Consumers who can afford the higher prices may still buy, but others may forgo the purchase altogether, buy a similar item, or shop elsewhere. (i.e., the consumer might say: "A two-dollar hot dog? I'd rather buy a hamburger at McDonald's!"). As the price rises, suppliers may also choose to increase production. Or more suppliers may enter the business. For example, the gourmet coffee business, pioneered by Starbucks, revealed a demand for three-dollar cups of coffee. Other stores began offering such coffee to satisfy the demand. McDonalds Corporation (NYSE: MCD) is the worlds largest chain of fast-food restaurants, primarily selling hamburgers, chicken, french fries, milkshakes and soft drinks. ... A cup of coffee. ... For other meanings of the name Starbuck, see Starbuck. ...


Increased demand (meaning volume) can indirectly result in lower prices, particularly with computers and other electronic devices. Mass production techniques have been steadily reducing prices 20 to 30% per year since the 1960s. The functions of a multi-million dollar mainframe computer in the 1960s could be performed by a $500 dollar computer in the 2000s. The camcorder has been said to place "a television studio in your hand". This article is about the machine. ... Mass production is the production of large amounts of standardised products on production lines. ... Sony DV Handycam A camcorder is a portable electronic device for recording video images and audio onto an internal storage device. ...


Economic equilibrium

The law of supply and demand predominates in the ideal free market, influencing prices toward an equilibrium that balances the demands for the products against the supplies. At these equilibrium prices, the market distributes the products to the purchasers according to each purchaser's preference (or utility) for each product and within the relative limits of each buyer's purchasing power. The supply and demand model describes how prices vary as a result of a balance between product availability at each price (supply) and the desires of those with purchasing power at each price (demand). ... Price of market balance In economics, economic equilibrium is simply a state of the world where economic forces are balanced and in the abscence of external shocks the (equilibrium) values of economic variables will not change. ... Purchasing Power- the amount of value of a good/services compared to the amount paid. ...


This equilibrating behavior of free markets makes certain assumptions about their agents, for instance that they act independently. Some models in econophysics have shown that when agents are allowed to interact locally in a free market (ie. their decisions depend not only on utility and purchasing power, but also on their peers' decisions), prices can become unstable and diverge from the equilibrium, often in an abrupt manner.The behavior of the free market is thus said to be non-linear (a pair of agents bargaining for a purchase will agree on a different price than 100 identical pairs of agents doing the identical purchase). Speculation bubbles and the type of herd behavior often observed in stock markets are quoted as real life examples of non-equilibrium price trends. Free-market advocates, especially Austrian school followers, often dismiss this endogenous theory, and blame external influences, such as weather, commodity prices, technological developments, and government meddling on non-equilibrium prices. bubbles are things that you make out of soap. ... A herd of Wildebeest A gaggle of Canada geese For other uses, see Herd (disambiguation). ... The Austrian School, also known as the “Vienna School” or the “Psychological School”, is a heterodox school of economic thought that advocates adherence to strict methodological individualism. ...


Distribution of wealth

On the purely theoretical level proponents of a free market do not care about the distribution of wealth resulting from the system, however, on a practical political level the issue is important. The distribution of purchasing power in an economy depends to a large extent on the nature of government intervention, social class, labor and financial markets, but also on other, lesser factors such as family relationships, inheritance, gifts and so on. Many theories describing the operation of a free market focus primarily on the markets for consumer products, and their description of the labor market or financial markets tends to be more complicated and controversial. The free market can be seen as facilitating a form of decision-making through what is known as dollar voting, where a purchase of a product is tantamount to casting a vote for a producer to continue producing that product. Social class refers to the hierarchical distinctions between individuals or groups in societies or cultures. ... In finance, financial markets facilitate: The raising of capital (in the capital markets); The transfer of risk (in the derivatives markets); and International trade (in the currency markets). ... This article or section does not adequately cite its references or sources. ... Love gift Man presents a cut of meat to a youth with a hoop. ... In economics, dollar voting is an analogy used to explain how the purchasing choices of consumers affect which products will continue to be produced and supplied to the market. ...


The effect of economic freedom on society's and individuals' wealth remains a subject of controversy. Kenneth Arrow and Gerard Debreu have shown that under certain idealized conditions, a system of free trade leads to Pareto efficiency, but the traditional Arrow-Debreu paradigm within economics is now being challenged by the new Greenwald-Stiglitz paradigm (1986) [3]. Many advocates of free markets, most notably Milton Friedman, have also argued that there is a direct relationship between economic growth and economic freedom, though this assertion is much harder to prove both theoretically and empirically, as the continuous debates among scholars on methodological issues in empirical studies of the connection between economic freedom (EF) and economic growth clearly indicate: [7] [8] [9]. "there were a few attempts to study relationship between growth and economic freedom prior to the very recent availability of the Fraser data. These were useful but had to use incomplete and subjective variables" [10].An Empirical Study Joshua Epstein and Robert Axtell have attempted to predict the properties of free markets in an agent-based computer simulation called sugarscape. They came to the conclusion that, again under idealized conditions, free markets lead to a Pareto distribution of wealth. For the business meaning, see Wealth (economics). ... Kenneth Joseph Arrow (born August 23, 1921) is an American economist, joint winner of the Nobel Prize in Economics with John Hicks in 1972, and the youngest person ever to receive this award, at 51. ... Gerard Debreu was a naturalized US citizen from France Gerard Debreu (July 4, 1921 – December 31, 2004) was a French economist and mathematician (In July 1975, he became a naturalized citizen of the United States). ... Pareto efficiency, or Pareto optimality, is an important notion in neoclassical economics with broad applications in game theory, engineering and the social sciences. ... The Arrow-Debreu model, also referred to as the Arrow-Debreu-McKenzie model (ADM model) is the central model in the General (Economic) Equilibrium Theory and often used as a general reference for other microeconomic models. ... Joseph Stiglitz (born February 9, 1943) is an American economist, author and winner of The Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel (2001). ... Milton Friedman (July 31, 1912 – November 16, 2006) was an American Nobel Laureate economist and public intellectual. ... The Pareto distribution, named after the Italian economist Vilfredo Pareto, is a power law probability distribution found in a large number of real-world situations. ...


On the other hand more recent research, specially the one led by Joseph Stiglitz seems to contradict Friedman's conclusions. According to Boettke: Joseph Stiglitz (born February 9, 1943) is an American economist, author and winner of Nobel Prize for economics ( 2001). ... // Friedman, Friedmann, and Freedman are common surnames. ...

Once incomplete and imperfect information are introduced, Chicago-school defenders of the market system cannot sustain descriptive claims of the Pareto efficiency of the real world. Thus, Stiglitz's use of rational-expectations equilibrium assumptions to achieve a more realistic understanding of capitalism than is usual among rational-expectations theorists leads, paradoxically, to the conclusion that capitalism deviates from the model in a way that justifies state action--socialism--as a remedy.[5]

The Chicago school of economics is a school of thought favoring free-market economics practiced at and disseminated from the University of Chicago in the middle of the 20th century. ... Pareto efficiency, or Pareto optimality, is an important notion in neoclassical economics with broad applications in game theory, engineering and the social sciences. ... Joseph Stiglitz (born February 9, 1943) is an American economist, author and winner of The Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel (2001). ... Socialism refers to a broad array of doctrines or political movements that envisage a socio-economic system in which property and the distribution of wealth are subject to control by the community[1] for the purposes of increasing social and economic equality and cooperation. ...

Laissez-faire economics

The necessary components for the functioning of an idealized free market include the complete absence of artificial price pressures from taxes, subsidies, tariffs, or government regulation (other than protection from coercion and theft), and no government-granted monopolies (usually classified as coercive monopoly by free market advocates) like the United States Post Office, Amtrak, arguably patents, etc. Laissez-faire (lÉ›ze fÉ›r) is short for laissez faire, laissez aller, laissez passer, a French phrase meaning let do, let go, let pass. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        For other uses of this word, see tariff (disambiguation). ... In economics, a government-granted monopoly (also called a de jure monopoly) is a form of coercive monopoly in a government grants exclusive privilege to a private individual or firm to be the sole provider of a good or service; potential competitors are excluded from the market by law, regulation... In economics and business ethics, a coercive monopoly is any monopoly maintained by coercion. ... A USPS Truck at Night A U.S. Post Office sign The United States Postal Service (USPS) is the United States government organization responsible for providing postal service in the United States and is generally referred to as the post office. ... The high-speed Acela Express in West Windsor, New Jersey. ... For other uses, see Patent (disambiguation). ...


Deregulation

In an absolutely free-market economy, all capital, goods, services, and money flow transfers are unregulated by the government except to stop collusion that may take place among market participants. As this protection must be funded, such a government taxes only to the extent necessary to perform this function, if at all. This state of affairs is also known as laissez-faire. Internationally, free markets are advocated by proponents of economic liberalism; in Europe this is usually simply called liberalism. In the United States, support for free market is associated most with libertarianism. Since the 1970s, promotion of a global free-market economy, deregulation and privatization, is often described as neoliberalism. The term free market economy is sometimes used to describe some economies that exist today (such as Hong Kong), but pro-market groups would only accept that description if the government practices laissez-faire policies, rather than state intervention in the economy.[specify] An economy that contains significant economic interventionism by government, while still retaining some characteristics found in a free market is often called a mixed economy. Laissez-faire is short for laissez faire, laissez passer, a French phrase meaning to let things alone, let them pass. First used by the eighteenth century Physiocrats as an injunction against government interference with trade, it is now used as a synonym for strict free market economics. ... This article or section does not cite any references or sources. ... This article is about the political philosophy based on private property rights. ... Deregulation is the process by which governments remove, reduce, or simplify restrictions on business and individuals in order to (in theory) encourage the efficient operation of markets. ... This article does not adequately cite its references or sources. ... For the school of international relations, see Neoliberalism in international relations. ... A mixed economy is an economy that has a mix of economic systems. ...


Low barriers to entry

A free market does not require the existence of competition, however it does require that there are no barriers to new market entrants. Hence, in the lack of coercive barriers it is generally understood that competition flourishes in a free market environment. It often suggests the presence of the profit motive, although neither a profit motive or profit itself are necessary for a free market. All modern free markets are understood to include entrepreneurs, both individuals and businesses. Typically, a modern free market economy would include other features, such as a stock exchange and a financial services sector, but they do not define it. This article or section does not cite any references or sources. ... An entrepreneur (a loanword from French introduced and first defined by the Irish economist Richard Cantillon) is a person who operates a new enterprise or venture and assumes some accountability for the inherent risks. ... In economics, a business is a legally-recognized organizational entity existing within an economically free country designed to sell goods and/or services to consumers, usually in an effort to generate profit. ... Financial services is a term used to refer to the services provided by the finance industry. ...


Legal tender and taxes

In a truly free market economy, money would not be monopolized by legal tender laws or by a central money maker authority which coerces society to use its own money as the unique medium of exchange in trades, in order to receive taxes from the transactions or to be able to issue loans. [citation needed] Minarchists (advocates of minimal government) contend that the so called "coercion" of taxes is essential for the market's survival, and a market free from taxes may lead to no market at all. By definition, there is no market without private property, and private property can only exist while there is an entity that defines and defends it. Traditionally, the State defends private property and defines it by issuing ownership titles, and also nominates the central authority to print or mint currency. "Free market anarchists" disagree with the above assessment -- they maintain that private property and free markets can be protected by voluntarily-funded services under the concept of individualist anarchism and anarcho-capitalism [citation needed]. A free market could be defined alternatively as a tax-free market, independent of any central authority, which uses as medium of exchange such as money, even in the absence of the State. It is disputed, however, whether this hypothetical stateless market could function freely, without coercion and violence[citation needed]. Legal tender or forced tender is payment that cannot be refused in settlement of a debt denominated in the same currency by virtue of law. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        Value added tax (VAT), or goods and services tax (GST), is... For other uses, see Loan (disambiguation). ... In civics, Minarchism, sometimes called minimal statism, is the view that government should be as small as possible. ... Theory and practice Issues History Culture By region Lists Related Anarchism Portal Politics Portal ·        Individualist anarchism (also anarchist individualism, anarcho-individualism, individualistic anarchism) refers to any of several traditions that hold that individual conscience and the pursuit of self-interest should not be constrained by any collective body or public... Anarcho-capitalism refers to an anti-statist philosophy that embraces capitalism as one of its foundational principles. ...


Ethical justification

The ethical justification of free markets takes two forms. One appeals to the intrinsic moral superiority of autonomy and freedom (in the market), see deontology. The other is a form of consequentialism—a belief that decentralised planning by a multitude of individuals making free economic decisions produces better results in regard to a more organized, efficient, and productive economy, than does a centrally-planned economy where a central agency decides what is produced, and allocates goods by non-price mechanisms. An older version of this argument is the metaphor of the Invisible Hand, familiar from the work of Adam Smith. Justification can mean: justification (jurisprudence) justification (typesetting) justification (theology) In epistemology, justification of a belief is what renders it worth believing in terms of its probable truth. ... In moral philosophy, deontology is the view that morality either forbids or permits actions, which is done through moral norms. ... Consequentialism refers to those moral theories which hold that the consequences of a particular action form the basis for any valid moral judgment about that action. ... This article is about metaphor in literature and rhetoric. ... For other uses, see Invisible hand (disambiguation). ... For other persons named Adam Smith, see Adam Smith (disambiguation). ...


Modern theories of self-organization say the internal organization of a system can increase automatically without being guided or managed by an outside source. When applied to the market, as an ethical justification, these theories appeal to its intrinsic value as a self-organising entity. Other philosophies such as some forms of Individualist anarchism and Mutualism (economic theory) anarchism believe that a truly "free market" would result in prices paid for goods and services to align with the labor embodied in those things. Self-organization refers to a process in which the internal organization of a system, normally an open system, increases automatically without being guided or managed by an outside source. ... Intrinsic value can refer to: Intrinsic value (finance), of an option or stock. ... Theory and practice Issues History Culture By region Lists Related Anarchism Portal Politics Portal ·        Individualist anarchism (also anarchist individualism, anarcho-individualism, individualistic anarchism) refers to any of several traditions that hold that individual conscience and the pursuit of self-interest should not be constrained by any collective body or public... Mutualism is an economic theory or system, largely associated with Pierre-Joseph Proudhon, based on a labor theory of value which holds that in extreme laissez-faire, market competition will cause the market values (prices) of commodities and services to align with the amount of labor embodied in those things. ...


In practice

While the free-market is an idealized abstraction, it is useful in understanding real markets whether artificially created and regulated by governments or non-governmental agencies, or phenomena such as the black market and the underground economy, which can be remarkably robust in persisting despite attempts to suppress these markets; in fact, many proponents of the free market point to sectors such as the drug trade to prove the phenomenon is both spontaneous and can function without government intervention though some would still prefer the contracts be brought under court protection. It has been suggested that this article or section be merged into underground economy. ... This box:      The underground economy or shadow economy consists of all commerce that is not taxed. ...


Index of economic freedom

The Heritage Foundation, a conservative think tank, tried to identify the key factors which allow to measure the degree of freedom of economy of a particular country. In 1986 they introduced Index of Economic Freedom, which is based on some fifty variables. This and other similar indices do not define a free market, but measure the degree to which a modern economy is free, meaning in most cases free of state intervention. The variables are divided into the following major groups: The Heritage Foundation is one of the most prominent conservative think tanks in the United States. ... Ths article deals with conservatism as a political philosophy. ... This article is about the institution. ... Map of Economic Freedom released by the Heritage Foundation. ...

  • Trade policy,
  • Fiscal burden of government,
  • Government intervention in the economy,
  • Monetary policy,
  • Capital flows and foreign investment,
  • Banking and finance,
  • Wages and prices,
  • Property rights,
  • Regulation, and
  • Informal market activity.

Each group is assigned a numerical value between 1 and 5; IEF is the arithmetical mean of the values, rounded to the hundredth. Initially, countries which were traditionally considered capitalistic received high ratings, but the method improved over time. Some economists, like Milton Friedman and other free market fundamentalists have argued that there is a direct relationship between economic growth and economic freedom, but this assertion has not been proven yet, both theoretically and empirically. Continuous debates among scholars on methodological issues in empirical studies of the connection between economic freedom (EF) and economic growth still try to find out what is the relationship, if any. [7] [8] [9]. [10]. Milton Friedman (July 31, 1912 – November 16, 2006) was an American Nobel Laureate economist and public intellectual. ... Market fundamentalism (or free-market fundamentalism) is a conviction that free markets are generally beneficial. ...

"In recent years a significant amount of work has been devoted to the investigation of a possible connection between the political system and economic growth. For a variety of reasons there is no consensus about that relationship, especially not about the direction of causality, if any." (AYAL & KARRAS, 1998, p.2) [10]

History and ideology

Some theorists argue that a free market is a natural form of social organization, and that a free market will arise in any society where it is not obstructed (ie Ludwig von Mises, Hayek). The consensus among economic historians is that the free market economy is a specific historic phenomenon, and that it emerged in late medieval and early-modern Europe. Other economic historians see elements of the free market in the economic systems of Classical Antiquity, and in some non-western societies.By the 19th century the market certainly had organized political support, in the form of laissez-faire liberalism. However, it is not clear if the support preceded the emergence of the market or followed it. Some historians see it as the result of the success of early liberal ideology, combined with the specific interests of the entrepreneur. Ludwig Heinrich Edler von Mises (September 29, 1881 – October 10, 1973) (pronounced was a notable economist and a major influence on the modern libertarian movement. ... Friedrich August von Hayek, CH (May 8, 1899 in Vienna – March 23, 1992 in Freiburg) was an Austrian-born British economist and political philosopher known for his defense of liberal democracy and free-market capitalism against socialist and collectivist thought in the mid-20th century. ... Economic history is the study of economic change, and of economic phenomena in the past. ... Classical antiquity is a broad term for a long period of cultural history centered on the Mediterranean Sea, which begins roughly with the earliest-recorded Greek poetry of Homer (7th century BC), and continues through the rise of Christianity and the fall of the Western Roman Empire (5th century AD... Classical liberalism (also known as traditional liberalism[1] and laissez-faire liberalism[2]) is a doctrine stressing the importance of human rationality, individual property rights, natural rights, constitutional limitations of government, the protection of civil liberties, an economic policy with heavy emphasis on free markets, and individual freedom from restraint... Political Ideologies Part of the Politics series Politics Portal This box:      An ideology is an organized collection of ideas. ... An entrepreneur (a loanword from French introduced and first defined by the Irish economist Richard Cantillon) is a person who operates a new enterprise or venture and assumes some accountability for the inherent risks. ...


Marxism

In Marxist theory, the idea of the free market simply expresses the underlying long-term transition from feudalism to capitalism. Note that the views on this issue - emergence or implementation - do not necessarily correspond to pro-market and anti-market positions. Libertarians would dispute that the market was enforced through government policy, since they believe it is a spontaneous order and Marxists agree with them because they as well believe it is evolutionary, although with a different end. Marxism is both the theory and the political practice (that is, the praxis) derived from the work of Karl Marx and Friedrich Engels. ... Roland pledges his fealty to Charlemagne; from a manuscript of a chanson de geste. ... For other uses, see Capitalism (disambiguation). ... See also Libertarianism and Libertarian Party Libertarian,is a term for person who has made a conscious and principled commitment, evidenced by a statement or Pledge, to forswear violating others rights and usually living in voluntary communities: thus in law no longer subject to government supervision. ... Spontaneous order is a term that describes the spontaneous emergence of order out of seeming chaos. ... Marxism is the political practice and social theory based on the works of Karl Marx, a 19th century philosopher, economist, journalist, and revolutionary, along with Friedrich Engels. ...


Liberalism

Support for the free market as an ordering principle of society is above all associated with liberalism, especially during the 19th century. (In Europe, the term 'liberalism' retains its connotation as the ideology of the free market, but in American usage it came to be associated with government intervention, and acquired a pejorative meaning for supporters of the free market.) Later ideological developments, such as minarchism, libertarianism and objectivism also support the free market, and insist on its pure form. Although the Western world shares a generally similar form of economy, usage in the United States is to refer to this as capitalism, while in Europe 'free market' is the preferred neutral term. Modern liberalism (American usage), and in Europe social democracy, seek only to mitigate what they see as the problems of an unrestrained free market, and accept its existence as such. Liberalism is an ideology, philosophical view, and political tradition which holds that liberty is the primary political value. ... Connotation is a subjective cultural and/or emotional coloration in addition to the explicit or denotative meaning of any specific word or phrase in a language, i. ... It has been suggested that this article or section be merged with pejoration. ... In civics, minarchism, sometimes called minimal statism or small government, is the view that the size, role and influence of government in a free society should be minimal — only large enough to protect the liberty and property of each individual. ... This article is about the political philosophy based on private property rights. ... Objectivism is the philosophy developed by Russian-born American philosopher and author Ayn Rand. ... Occident redirects here. ... For other uses, see Capitalism (disambiguation). ... New liberalism (also called modern liberalism or American liberalism) is a political philosophy that argues for the idea that society has the responsibility of guaranteeing equal opportunities for each of its citizens. ... Social democracy is a political ideology emerging in the late 19th and early 20th centuries from supporters of Marxism who believed that the transition to a socialist society could be achieved through democratic evolutionary rather than revolutionary means. ...


To most libertarians, there is simply no free market yet, given the degree of state intervention in even the most 'capitalist' of countries. From their perspective, those who say they favor a "free market" are speaking in a relative, rather than an absolute, sense—meaning (in libertarian terms) they wish that coercion be kept to the minimum that is necessary to maximize economic freedom (such necessary coercion would be taxation, for example) and to maximize market efficiency by lowering trade barriers, making the tax system neutral in its influence on important decisions such as how to raise capital, e.g., eliminating the double tax on dividends so that equity financing is not at a disadvantage vis-a-vis debt financing. However, there are some such as anarcho-capitalists who would not even allow for taxation and governments, instead preferring protectors of economic freedom in the form of private contractors. See also Libertarianism and Libertarian Party Libertarian,is a term for person who has made a conscious and principled commitment, evidenced by a statement or Pledge, to forswear violating others rights and usually living in voluntary communities: thus in law no longer subject to government supervision. ... For other uses, see Coercion (disambiguation). ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        A dividend tax is an income tax on dividend payments to... Anarcho-capitalism is a view that regards all forms of the state as unnecessary and harmful, particularly in matters of justice and self-defense, while being highly supportive of private property. ...


Criticism

Whether the marketplace should be or is free is disputed; many assert that government intervention is necessary to remedy market failure that is held to be an inevitable result of absolute adherence to free market principles. These failures range from military services to roads, and some would argue, to health care. This is the central argument of those who argue for a mixed market, free at the base, but with government oversight to control social problems. Market failure is a term used by economists to describe the condition where the allocation of goods and services by a market is not efficient. ...


Critics of laissez-faire variously see the "free market" as an impractical ideal or as a rhetorical device that puts the concepts of freedom and anti-protectionism at the service of vested wealthy interests, allowing them to attack labor laws and other protections of the working classes. In rhetoric, a rhetorical device or resource of language is a technique that an author or speaker uses to evoke an emotional response in his audience (his reader(s) or listener(s)). These emotional responses are central to the meaning of the work or speech, and should also get the... Protectionism is the economic policy of restraining trade between nations, through methods such as high tariffs on imported goods, restrictive quotas, a variety of restrictive government regulations designed to discourage imports, and anti-dumping laws in an attempt to protect domestic industries in a particular nation from foreign take-over... This article is in need of attention. ... The term working class is used to denote a social class. ...


Because no national economy in existence fully manifests the ideal of a free market as theorized by economists, some critics of the concept consider it to be a fantasy - outside of the bounds of reality in a complex system with opposing interests and different distributions of wealth.


Martin J. Whitman

Not all advocates of capitalism consider free markets to be practical. For example, Martin J. Whitman has written, in a discussion of Keynes, Friedman and Hayek, that these "…great economists…missed a lot of details that are part and parcel of every value investor's daily life." While calling Hayek "100% right" in his critique of the pure command economy, he writes "However, in no way does it follow, as many Hayek disciples seem to believe, that government is per se bad and unproductive while the private sector is, per se good and productive. In well-run industrial economies, there is a marriage between government and the private sector, each benefiting from the other." As illustrations of this, he points at "Japan after World War II, Singapore and the other Asian Tigers, Sweden and China. The notable exception is Hong Kong which found prosperity on an extremely austere free market concept. For other uses, see Capitalism (disambiguation). ... Martin J. Whitman is an American investment advisor and a strong critic of the direction of recent changes in Generally Accepted Accounting Principles (GAAP) in the U.S. He is founder, Co-Chief Investment Officer, and Portfolio Manager of the Third Avenue Value Fund. ... Keynes redirects here. ... Milton Friedman (July 31, 1912 – November 16, 2006) was an American Nobel Laureate economist and public intellectual. ... Friedrich August von Hayek, CH (May 8, 1899 in Vienna – March 23, 1992 in Freiburg) was an Austrian-born British economist and political philosopher known for his defense of liberal democracy and free-market capitalism against socialist and collectivist thought in the mid-20th century. ... Value investors buy beaten-down companies whose shares appear cheap when compared to current earnings or corporate assets. ... Combatants Allied powers: China France Great Britain Soviet Union United States and others Axis powers: Germany Italy Japan and others Commanders Chiang Kai-shek Charles de Gaulle Winston Churchill Joseph Stalin Franklin Roosevelt Adolf Hitler Benito Mussolini Hideki Tōjō Casualties Military dead: 17,000,000 Civilian dead: 33,000... The East Asian Tigers, sometimes also referred to as Asias Four Little Dragons, referred to the economies of Taiwan, Hong Kong, South Korea, and industrialization between the early 1960s and 1990s. ...


He argues, in particular, for the value of government-provided credit and of carefully crafted tax laws.[11] Further, Whitman argues (explicitly against Hayek) that "a free market situation is probably also doomed to failure if there exist control persons who are not subject to external disciplines imposed by various forces over and above competition." The lack of these disciplines, says Whitman, lead to "1. Very exorbitant levels of executive compensation… 2. Poorly financed businesses with strong prospects for money defaults on credit instruments… 3. Speculative bubbles… 4. Tendency for industry competition to evolve into monopolies and oligopolies… 5. Corruption." For all of these he provides recent examples from the U.S. economy, which he considers to be in some respects under-regulated,[12] although in other respects over-regulated (he is generally opposed to Sarbanes-Oxley).[13] Executive compensation is how top executives of business corporations are paid. ... An economic bubble occurs when speculation in a commodity causes the price to increase, thus producing more speculation. ... This article is about the economic term. ... This article does not cite any references or sources. ... Before the signing ceremony of the Sarbanes-Oxley Act, President George Bush meets with Senator Paul Sarbanes, Secretary of Labor Elaine Chao and other dignitaries in the Blue Room at the White House on July 30, 2002. ...


He believes that an apparently "free" relationship—that between a corporation and its investors and creditors—is actually a blend of "voluntary exchanges" and "coercion". For example, there are "voluntary activities, where each individual makes his or her own decision whether to buy, sell, or hold" but there are also what he defines as "[c]oercive activities, where each individual security holder is forced to go along…provided that a requisite majority of other security holders so vote…" His examples of the latter include proxy voting, most merger and acquisition transactions, certain cash tender offers, and reorganization or liquidation in bankruptcy.[14] Whitman also states that "Corporate America would not work at all unless many activities continued to be coercive."[15] Proxy voting is the delegation to another member of a voting body of that members power to vote in his absence. ... Notice of closure stuck on the door of a computer store the day after its parent company, Granville Technology Group Ltd, declared bankruptcy (strictly, put into administration—see text) in the United Kingdom. ... Corporate America is an informal phrase describing both the independent for-profit and independent non-profit world of corporations within the United States not under government ownership. ...


"I am one with Professor Friedman that, other things being equal, it is far preferable to conduct economic activities through voluntary exchange relying on free markets rather than through coercion. But Corporate America would not work at all unless many activities continued to be coercive."[16]


Noam Chomsky

Noam Chomsky has argued that the asymmetric application of free market principles creates a "privatized tyranny": "The talk about labor mobility doesn't mean the right of people to move anywhere they want, as has been required by free market theory ever since Adam Smith, but rather the right to fire employees at will. And, under the current investor-based version of globalization, capital and corporations must be free to move, but not people, because their rights are secondary, incidental." Further, he emphasizes that it can matter what entities have rights in the market—"Do they inhere in persons of flesh and blood, or only in small sectors of wealth and privilege? Or even in abstract constructions like corporations, or capital, or states?"—and remarks that of what he sees as the three tyrannical systems of the 20th century, Bolshevism, and fascism have "collapsed", but "private corporatism… is alive and flourishing… [a] system of state corporate mercantilism disguised with various mantras like globalization and free trade."[17] Avram Noam Chomsky (Hebrew: אברם נועם חומסקי Yiddish: אברם נועם כאמסקי) (born December 7, 1928) is an American linguist, philosopher, political activist, author, and lecturer. ... For other persons named Adam Smith, see Adam Smith (disambiguation). ... Bolshevik Party Meeting. ... Fascism is an authoritarian political ideology (generally tied to a mass movement) that considers individual and other societal interests subordinate to the interests of the state. ... For other uses, see Corporation (disambiguation). ... Mercantile redirects here. ...


Chomsky argues that the wealthy use free-market rhetoric to justify imposing greater economic risk upon the lower classes, while being insulated from the rigours of the market by the political and economic advantages that such wealth affords.[18] He remarked, "the free market is socialism for the rich—[free] markets for the poor and state protection for the rich."[19] Lets talk about risk control strategies, anyone with more information and willing to share, please do so. ... Socialism refers to a broad array of doctrines or political movements that envisage a socio-economic system in which property and the distribution of wealth are subject to control by the community[1] for the purposes of increasing social and economic equality and cooperation. ... Wealth usually refers to money and property. ... Protectionism is the economic policy of restraining trade between nations, through methods such as high tariffs on imported goods, restrictive quotas, a variety of restrictive government regulations designed to discourage imports, and anti-dumping laws in an attempt to protect domestic industries in a particular nation from foreign take-over...


Catholic Church

As explained in Rerum Novarum[20] and The Catechism of the Catholic Church,[21] the Catholic Church upholds the right to private property, requires the employer to pay a decent wage to support the worker, requires the worker to work faithfully and respect the property of his employer, and does not permit "the market" to be used as an excuse to violate moral principles. Rerum Novarum (Translation: Of New Things) is an encyclical issued by Pope Leo XIII on May 15, 1891. ... The Catechism of the Catholic Church, or CCC, is an official exposition of the teachings of the Catholic Church, first published in French in 1992 by the authority of Pope John Paul II.[1] Subsequently, in 1997, a Latin text was issued which is now the official text of reference...


Notes and References

  1. ^ Dictionary of Finance and Investment Terms. Barrons, 1995 --- "market in which price is determined by the free, unregulated interchange of supply and demand. As well demand and supply are like jenny n forest gump- two of a kind; peas n carrots if u will. The opposite is a controlled market, where supply, demand, and price are artificially set, resulting in an inefficient market."
  2. ^ Foldvary, Fred E.. Has Deregulation Failed?, The Progress Report, 2002. "Free Market." Rothbard, Murray. The Concise Encyclopedia of Economics
  3. ^ a b GREENWALD, Bruce and STIGLITZ, Joseph E. 1986 Externalities in Economies with Imperfect Information and Incomplete Markets, Quarterly Journal of Economics, no. 90.
  4. ^ SAPPINGTON, David E. M. e STIGLITZ, Joseph E. Privatization, Information and Incentives. Columbia University; National Bureau of Economic Research (NBER) June 1988; NBER Working Paper No. W2196
  5. ^ a b BOETTKE, Peter J. What Went Wrong with Economics?, Critical Review Vol. 11, No. 1, P. 35. p. 58
  6. ^ Free-Market Economy, Microsoft® Encarta® Online Encyclopedia 2006
  7. ^ a b COLE, Julio H. and LAWSON, Robert A. Handling Economic Freedom in Growth Regressions: Suggestions for Clarification. Econ Journal Watch, Volume 4, Number 1, January 2007, pp 71-78.
  8. ^ a b DE HAAN, Jacob and STURM, Jan-Egbert. How to Handle Economic Freedom: Reply to Lawson. Econ Journal Watch, Volume 3, Number 3, September 2006, pp 407-411.
  9. ^ a b DE HAAN, Jacob and STURM, Jan-Egbert. Handling Economic Freedom in Growth Regressions: A Reply to Cole and Lawson. Econ Journal Watch, Volume 4, Number 1, January 2007, pp 79-82.
  10. ^ a b c AYAL, Eliezer B. and KARRAS, Georgios. Components of Economic Freedom and Growth. Journal of Developing Areas, Vol.32, No.3, Spring 1998, 327-338. Publisher: Western Illinois University.
  11. ^ Ibid., p.4.
  12. ^ Ibid., p.4.
  13. ^ Martin J. Whitman, Third Avenue Value Fund Letters to our Shareholders July 31, 2004 (PDF), page 2.
  14. ^ Ibid., p.5.
  15. ^ Martin J. Whitman, Third Avenue Value Fund letter to shareholders October 31, 2005. p.6.
  16. ^ Ibid., p.5-6.
  17. ^ Noam Chomsky, unnamed lecture given February 26, 2000 in Albuquerque, New Mexico on the occasion of the 20th anniversary of the International Relations Center. Accessed 3 September 2006.
  18. ^ Takis Michas, "The Other Chomsky", Wall Street Journal, November 4, 2005. Reproduced on Chomsky's official site.
  19. ^ Noam Chomsky, "The Passion for Free Markets", Z Magazine, May 1997. Reproduced on Chomsky's official site.
  20. ^ Rerum Novarum. Accessed 9 August 2006.
  21. ^ The Catechism of the Catholic Church: The Social Doctrine of the Church. Accessed 9 August 2006.

Fred Foldvary is a Lecturer in Economics at Santa Clara University, California, and a Research Fellow at The Independent Institute. ... PDF is an abbreviation with several meanings: Portable Document Format Post-doctoral fellowship Probability density function There also is an electronic design automation company named PDF Solutions. ... is the 304th day of the year (305th in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... Year 2000 (MM) was a leap year starting on Saturday (link will display full 2000 Gregorian calendar). ... “Albuquerque” redirects here. ... is the 246th day of the year (247th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... The Wall Street Journal is an influential international daily newspaper published in New York City, New York with an average daily circulation of 1,800,607 (2002). ... is the 308th day of the year (309th in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... Z Magazine is an independent monthly magazine focusing on political, cultural, social, and economic life in the United States and considered to be very left-wing. ... is the 221st day of the year (222nd in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 221st day of the year (222nd in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ...

See also

For other persons named Adam Smith, see Adam Smith (disambiguation). ... Anarcho-capitalism refers to an anti-statist philosophy that embraces capitalism as one of its foundational principles. ... An Austrian Perspective on the History of Economic Thought is a book written by Murray N. Rothbard, with a sub-title “Economic Thought Before Adam Smith”. Volume I). ... The Austrian School, also known as the “Vienna School” or the “Psychological School”, is a heterodox school of economic thought that advocates adherence to strict methodological individualism. ... Ayn Rand (IPA: , February 2 [O.S. January 20] 1905 – March 6, 1982), born Alisa Zinovyevna Rosenbaum (Russian: ), was a Russian-born American novelist and philosopher,[1] known for creating a philosophy she named Objectivism and for writing the novels We the Living, The Fountainhead, Atlas Shrugged and the... For other uses, see Capitalism (disambiguation). ... This article or section does not cite any references or sources. ... Face-to-face trading interactions on the New York Stock Exchange trading floor. ... Free-market anarchism (also:Market anarchism) is a term which can be used to refer to: Mutualism, the economic system of the classical individualist anarchists that supports private property and a market economy with an espousal of a labor theory of value. ... A free price system or free price mechanism (informally called the price system or the price mechanism) is an economic system where prices are not set by government or a central planning board but by the interchange of supply and demand, with the resulting prices being understood as signals that... Free trade is an economic concept referring to the selling of products between countries without tariffs or other trade barriers. ... Friedrich August von Hayek, CH (May 8, 1899 in Vienna – March 23, 1992 in Freiburg) was an Austrian-born British economist and political philosopher known for his defense of liberal democracy and free-market capitalism against socialist and collectivist thought in the mid-20th century. ... Game theory is a branch of applied mathematics that is often used in the context of economics. ... The Heritage Foundation is one of the most prominent conservative think tanks in the United States. ... The theory of capitalism describes the essential features of capitalism and how it functions. ... LIEO is an acronym for liberal international economic order, a term used by international relations scholars to describe the global free trade establishment. ... This article is about the political philosophy based on private property rights. ... Ludwig Heinrich Edler von Mises (September 29, 1881 – October 10, 1973) (pronounced was a notable economist and a major influence on the modern libertarian movement. ... A market economy (also called a free market economy or a free enterprise economy) is an economic system in which the production and distribution of goods and services take place through the mechanism of free markets (though completley useless to some dumbasses) guided by a free price system. ... Milton Friedman (July 31, 1912 – November 16, 2006) was an American Nobel Laureate economist and public intellectual. ... In civics, minarchism, sometimes called minimal statism or small government, is the view that the size, role and influence of government in a free society should be minimal — only large enough to protect the liberty and property of each individual. ... For the school of international relations, see Neoliberalism in international relations. ... Murray Newton Rothbard (March 2, 1926 – January 7, 1995) was an influential American economist, historian and natural law theorist belonging to the Austrian School of Economics who helped define modern libertarianism. ... Neoconservatism refers to the political movement, ideology, and public policy goals of new conservatives in the United States, who are mainly characterized by their relatively interventionist and hawkish views on foreign policy, and their lack of support for the small government principles and restrictions on social spending, when compared with... The philosophical concept of negative liberty refers to an individuals liberty from being subjected to the authority of others. ... A night watchman state, or a minimal state, is a form of government in political philosophy where the governments responsibilities are so minimal they cannot be reduced much further without becoming a form of anarchy. ... A non-profit organization (abbreviated NPO, or non-profit or not-for-profit) is an organization whose primary objective is to support an issue or matter of private interest or public concern for non-commercial purposes, without concern for monetary profit. ... In game theory, the Nash equilibrium (named after John Forbes Nash, who proposed it) is a kind of solution concept of a game involving two or more players, where no player has anything to gain by changing only his or her own strategy unilaterally. ... Objectivism is the philosophical system developed by Russian-American philosopher and writer Ayn Rand. ... The Open Source Initiative is an organization dedicated to promoting open source software. ... The Politics series Politics Portal This box:      Political economy was the original term for the study of production, the acts of buying and selling, and their relationships to laws, customs and government. ... The School of Salamanca is the renaissance of thought in diverse intellectual areas by Spanish theologians, rooted in the intellectual and pedagogical work of Francisco de Vitoria. ... Self-organization refers to a process in which the internal organization of a system, normally an open system, increases automatically without being guided or managed by an outside source. ... In economics, a market is transparent if much is known by many about: what products and/or services are available at what price and where. ... This box:      The underground economy or shadow economy consists of all commerce that is not taxed. ... Voluntarism (lat. ... Free Market Roads is the libertarian concept of privately owned roads as opposed to the most normal government owned ones in existence today. ...

Contrast

Communism is an ideology that seeks to establish a classless, stateless social organization based on common ownership of the means of production. ... A gift economy is an economic system in which goods and services are given without any explicit agreement for immediate or future quid pro quo. ... The theoretical project of Inclusive Democracy (ID; as distinguished from the political project which is part of the democratic and autonomy traditions) emerged from the work of political philosopher, former academic and activist Takis Fotopoulos in Towards An Inclusive Democracy, Cassell/Continuum, London/New York, 1997, 401 pp. ... Karl Heinrich Marx (May 5, 1818 – March 14, 1883) was a 19th century philosopher, political economist, and revolutionary. ... Libertarian socialism is a group of political philosophies that aim to create a society without political, economic or social hierarchies - a society in which all violent or coercive institutions would be dissolved, and in their place every person would have free, equal access to tools of information and production, or... Limited liability (LL) is liability that is limited to a partner or investors investment. ... Market abolitionism is a belief that the market, in the economic sense, should be completely eliminated from society. ... Market socialism is a term used to define a number of economic system(s) in which the means of production are owned either by the state or by the workers collectively, however unlike traditional socialism there is market that is directed and guided by socialist planners. ... A mixed economy is an economy that has a mix of economic systems. ... Participatory economics, or parecon, a participatory economics system proposed as an alternative to other systems such as capitalism and coordinatorism, emerged from the work of the radical theorist Michael Albert and of the radical economist Robin Hahnel, beginning in the 1980s and 1990s. ... This article refers to an economy controlled by the state. ... A quasi-market is a public sector institutional structure that is designed to reap the efficiency gains of free markets without losing the equity benefits of traditional systems of public administration and financing. ... Socialism refers to a broad array of doctrines or political movements that envisage a socio-economic system in which property and the distribution of wealth are subject to control by the community[1] for the purposes of increasing social and economic equality and cooperation. ... Statism (or Etatism) is a term that is used to describe: Specific instances of state intervention in personal, social or economic matters. ... Media:Example. ... The Humanist Movement is an international volunteer organisation that promotes non-violence and non-discrimination. ... Marxism is both the theory and the political practice (that is, the praxis) derived from the work of Karl Marx and Friedrich Engels. ...

External links

Another name for capitalism;

Murray Newton Rothbard Murray Newton Rothbard (March 2, 1926 - January 7, 1995) was an American economist and political theorist belonging to the Austrian School of Economics who helped define modern libertarianism and anarcho-capitalism. ... Ludwig von Mises Institute for Austrian Economics, Auburn, Alabama The Ludwig von Mises Institute (LvMI), based in Auburn, Alabama, is a libertarian academic organisation engaged in research and scholarship in the fields of economics, philosophy and political economy. ... The Austrian School, also known as the “Vienna School” or the “Psychological School”, is a heterodox school of economic thought that advocates adherence to strict methodological individualism. ... Classical liberalism (also known as traditional liberalism[1] and laissez-faire liberalism[2]) is a doctrine stressing the importance of human rationality, individual property rights, natural rights, the protection of civil liberties, constitutional limitations of government, free markets, and individual freedom from restraint as exemplified in the writings of Adam... The Heritage Foundation is one of the most prominent conservative think tanks in the United States. ... Milton Friedman (July 31, 1912 – November 16, 2006) was an American Nobel Laureate economist and public intellectual. ... Harry Browne Harry Browne (17 June 1933 – 1 March 2006) was an American libertarian writer, politician, and free-market investment analyst. ...

Bibliography


  Results from FactBites:
 
Free Market Center (80 words)
FREE MARKET CENTER (FMC) is a non-profit, tax exempt center (NGO) dedicated to researching and broadening ideas related to free market economy.
Its program is consistent with classical principles of individual liberty, free market economy, limited government and peaceful cooperation.
To that end, the FMC strives to achieve greater involvement not only of leading liberal authors but also of the intelligent, concerned lay public, entrepreneurs, policy makers and students in questions of market policy and the proper role of government.
What Is the Free Market? - Mises Institute (1816 words)
The free market also gives the largest possible scope to entrepreneurs, who risk capital to allocate resources so as to satisfy the future desires of the mass of consumers as efficiently as possible.
It is robbery, not free markets, that actually follows the mercantilist model: the robber benefits at the expense of the coerced.
This means that the key to the existence and flourishing of the free market is a society in which the rights and titles of private property are respected, defended, and kept secure.
  More results at FactBites »

 
 

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