WHAT IS FREE MARKET?

A free market relies on the voluntary exchange of goods and services.

About Free Markets

A free market economy is an economic system based on supply and demand for goods and services, with little to no government control involved in its operation.

It represents the sum total of all voluntary exchanges taking place, with no forced or coerced transactions. Individuals are allowed to make consensual and mutually beneficial exchanges in a free market economy. No completely free market economy exists in any country, as all have government constraints to varying degrees.

Various indexes exist to measure and rate the degree of freedom in any given economy, with economists having shown that the higher the degree of freedom, the higher the level of economic well-being.

Why Rich Like High Taxes?

We always hear that the rich should pay taxes more, that our tax rates aren’t high enough.

If only we raise taxes we can solve a lot of our problems —inequality would go down and maybe we’d even have more economic growth. However, the funny thing about this view is it really doesn’t comport with our historical experience at all. Whenever we have raised taxes on the rich, we have seen horrible offenses against inequality and economic growth.

We always hear that the rich should pay taxes more, that our tax rates aren’t high enough.

If only we raise taxes we can solve a lot of our problems —inequality would go down and maybe we’d even have more economic growth. However, the funny thing about this view is it really doesn’t comport with our historical experience at all. Whenever we have raised taxes on the rich, we have seen horrible offenses against inequality and economic growth.

FREE MARKETS

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