Government Class

The Free Market Leads to Flourishing Economy

The issue of who should have the authority to set prices, the free market or the state, is very important. If the government starts declaring what the prices should be, then both the customer and the businessman is at a loss. Who would better know the wants and needs of the customers? Some politician in Washington or the local businessman? When the government tells the businessman that he cannot sell an item for more than a set price, then a shortage occurs. But, on the other hand,  if they say you can not sell something for less than some price, an excess of goods will occur. Having shortages or excess (which means waste) is never something to seek for. Yet if the government is in control you can not expect less. Now, if you were in a free market the businessman could set what ever price he wanted. You may be thinking that because of this freedom, the prices will skyrocket. But this will not happen. If the customer does not like something, then he will go to someone else. Since there is no coercion in a free market, the businessman and the customer are free to buy and sell as they wish. Government intervention eventually hurts both the customer and the businessman. But in a society were there is a free market the economy will flourish.
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s