The Free Market

Author(s):  
Jason Brennan

Market-based economies outperform the alternative forms of economic organization on almost every measure. Nevertheless, this leaves open what the optimal degree of government regulation, government-provided social insurance, and macroeconomic adjustment is. Most economists seem to favor mostly, but not completely, free markets. Although regulation can in principle correct certain market failures, whether it will do so in practice depends in part on how pervasive and damaging corresponding government failures will be. Philosophers, unlike economists, tend to think that questions about the value of the free market are not settled entirely by examining how well free markets function. Some philosophers even claim that markets are intrinsically unjust. In their view, markets encourage wrongful exploitation, lead to excessive economic inequality, and tend to induce people to treat each other in inhumane ways. Among those philosophers who are more sanguine about markets, one major question concerns the moral status of economic liberty. Some philosophers, such as John Rawls, hold that economic liberty is purely of instrumental value. Citizens should be granted a significant degree of economic freedom only because this turns out, empirically, to produce good consequences. However, other philosophers, such as Robert Nozick and John Tomasi, argue that economic freedom is valuable in part for the same reasons that civil and political liberties are valuable—as a necessary means to respect citizens’ autonomy.

Author(s):  
John Tomasi

This chapter considers John Rawls' conception of ideal theory, with particular emphasis on the implications of problems of feasibility for normative political philosophy and market democracy's institutional guarantees. It defends Rawls' general view of ideal theory, first by explaining why the objection to market democracy—that even if market democratic institutional forms appear attractive in theory, they are unlikely to deliver the goods in practice and so are defective for that reason—has little force when applied against the idealism of left liberalism. It then examines why such arguments are equally ineffective when trained against the idealism of free market fairness. It also analyzes Rawls' idea of “realistic utopianism” before concluding by asking whether market democratic regimes that treat economic liberty as constitutionally basic can realize all the requirements of justice as fairness.


Author(s):  
John Tomasi

This chapter considers two concepts of fairness, starting the discussion by focusing on market democracy's thick conception of economic freedom in relation to social justice. Market democracy breaks with traditional classical liberal and libertarian traditions in founding politics on a deliberative ideal of democratic citizenship, even as it makes room for a variety of rival conceptions of the nature of public reason. The chapter offers a market democratic interpretation of John Rawls' notion of justice as fairness. It also examines what free market fairness says about a society in which citizens are experiencing the blessings of liberal justice, along with its alternative perspective to social democracy's emphasis on instilling in the citizenry a sense of democratic solidarity. Finally, it compares the interpretations of social democracy and free market fairness regarding justice as fairness and the difference principle, respectively.


Author(s):  
John Tomasi

Can libertarians care about social justice? This book argues that they can and should. Drawing simultaneously on moral insights from defenders of economic liberty such as F. A. Hayek and advocates of social justice such as John Rawls, the book presents a new theory of liberal justice. This theory, free market fairness, is committed to both limited government and the material betterment of the poor. Unlike traditional libertarians, the book argues that property rights are best defended not in terms of self-ownership or economic efficiency but as requirements of democratic legitimacy. At the same time, it encourages egalitarians concerned about social justice to listen more sympathetically to the claims ordinary citizens make about the importance of private economic liberty in their daily lives. In place of the familiar social democratic interpretations of social justice, the book offers a “market democratic” conception of social justice: free market fairness. It argues that free market fairness, with its twin commitment to economic liberties and a fair distribution of goods and opportunities, is a morally superior account of liberal justice. Free market fairness is also a distinctively American ideal. It extends the notion, prominent in America's founding period, that protection of property and promotion of real opportunity are indivisible goals. Indeed, according to this book, free market fairness is social justice, American style. The book offers a bold new way of thinking about politics, economics, and justice—one that will challenge readers on both the left and right.


2010 ◽  
Author(s):  
İlyas Sözen ◽  
Ahmet Alkan Çelik ◽  
Selahattin Sarı

The aim of this study is to examine, in the period between two global economic crises, the progress of economic freedom along with corruptions in Central Asian Republics, integrated into the free market economy according to “the Washington Consensus” since late 1990s. According to exportation of natural sources, Azerbaijan, Kazakhstan and Turkmenistan together with Kyrgyzstan, Uzbekistan and Tajikistan all seemed to have entirely different economic structures. Basic macro economic variables, economic liberty indicators and corruption data covering the period of 2001-2008 are to be discussed. In the light of the outcomes of this study, it is observed that, while the social structure in the countries exporting natural sources is stronger, due to the authoritarian structures of the countries in both groups of countries, bureaucratic corruption increases consistently. As Central Asian Republics are in a state of unsuccessful transition into the market economy, the betterment in legislation does not debug the system called “limbo” (neither planned economy nor free market).


2021 ◽  
pp. 019251212110399
Author(s):  
Indra de Soysa ◽  
Krishna Chaitanya Vadlamannati

Some blame free-market capitalism for increasing income inequality, arguing that richer classes could block access to others for maintaining their privileges. By manipulating the degree of political rights and resources available to others, the rich could reduce opportunities for others. Others argue that growth-promoting free markets raise all incomes, increasing aggregate welfare. We argue that governments more dependent on free markets are likely to focus on increasing access to human capital, thereby narrowing the gap between the rich and poor by increasing opportunities, even if income inequality rises with high growth. We assess the issue by examining the effects of an Index of Economic Freedom on income inequality measured by the standardized GINI and measures of the equity of access to quality schooling, health, and justice covering 128 developing countries during the 1990–2017 period. Our results show that, even if economic freedom is associated with higher income inequality, it also associates robustly with access to opportunity. Our results are robust to alternative models, sample size, and testing methods, including instrumental variables analyzes addressing potential endogeneity bias. Our results, taken together, do not suggest that growth-promoting economic freedoms hamper future progress by raising inequalities—on the contrary, economic freedoms promote equity of access to opportunities—findings inconsistent with the view that governments under free-market conditions are easily captured by the wealthy, who then block equitable access to public goods.


WARTA ARDHIA ◽  
2010 ◽  
Vol 36 (4) ◽  
pp. 317-328
Author(s):  
Hartati Yusminah

Seeing of free trade in several continental markets such as of the establishment of the European Economic Community (EEC). The Asian Pacific Economy (Pasific Economy Community) NORTH America Free Trade Are (NAFTA), ASEAN Free Trade Area (AFTA), ASEAN free market with China is indirectly effect on determination of Indonesian strategy in exploting oppurtunities commodities what can penetrate the international market.With the opening of free markets Asean plus China which commenced in the year 2010 was the air transport sector has an important role in supporting efforts to increase exports, especially in the provision of adequate transport service.Soekarno Hatta airport is one of the airport that serves as the gates way of trade via air transport network, that plays an important role in supporting and smoth export and import of commodities.


2008 ◽  
Vol 15 (2) ◽  
pp. 263-273 ◽  
Author(s):  
Murat Civaner ◽  
Berna Arda

The current debate that surrounds the issue of patient rights and the transformation of health care, social insurance, and reimbursement systems has put the topic of patient responsibility on both the public and health care sectors' agenda. This climate of debate and transition provides an ideal time to rethink patient responsibilities, together with their underlying rationale, and to determine if they are properly represented when being called `patient' responsibilities. In this article we analyze the various types of patient responsibilities, identify the underlying motivations behind their creation, and conclude upon their sensibleness and merit. The range of patient responsibilities that have been proposed and implemented can be reclassified and placed into one of four groups, which are more accurate descriptors of the nature of these responsibilities. We suggest that, within the framework of a free-market system, where health care services are provided based on the ability to pay for them, none of these can properly be justified as a patient responsibility.


2018 ◽  
Vol 1 (38) ◽  
Author(s):  
Luiz Carlos Buchain

 Intervenção do estado na economia e direito da concorrência Intervention of the state in the economy and competition law Luiz Carlos Buchain *  REFERÊNCIA BUCHAIN, Luiz Carlos. Intervenção do estado na economia e direito da concorrência. Revista da Faculdade de Direito da UFRGS, Porto Alegre, n. 38, p. 178-198, ago. 2018. RESUMOABSTRACTO texto trata da intervenção do Estado na ordem econômica. Considerando-se que o mercado perfeito é uma hipótese teórica e que o mercado apresenta “falhas no mercado”, o legislador constitucional autoriza a intervenção do Estado na economia. De um lado o Estado poderá ser agente econômico e explorar diretamente a economia, sempre que essa atividade seja necessária aos “imperativos de segurança nacional” e, de outro, o Estado intervém indiretamente na economia como agente normativo e regulador da atividade econômica. Analisa-se a possibilidade de intervenção do Estado na econômica em face dos princípios de livre iniciativa e livre concorrência. Enquanto a livre iniciativa representa a liberdade de produção e distribuição de bens e serviços, a livre concorrência representa um “princípio econômico”, segundo o qual a produção e os preços das mercadorias e serviços não devem resultar de atos cogentes da autoridade, mas sim do livre mercado. Entretanto, seja como agente regulador, seja como empresário, ao Estado compete garantir a eficácia da livre iniciativa e defesa da ordem concorrencial. A intervenção regulamentar do Estado na economia não o autoriza a agir contra o livre exercício da atividade econômica ou com desrespeito aos princípios da livre iniciativa e legalidade. Mesmo nas hipóteses em que a lei concede ao Estado liberdade aos seus atos, este está submetido ao fundamento da livre iniciativa e ao princípio da livre concorrência, sob pena de responsabilidade civil objetiva. The paper deals with the intervention of the State in the economic order. Considering that the perfect market is a theoretical hypothesis and that the market presents "market failures", the constitutional legislator authorizes the intervention of the State in the economy. On the one hand, the State can be an economic agent and act on the economy directly whenever this activity is necessary to the "imperatives of national security" and, on the other hand, the State intervenes indirectly in the economy as a normative agent and regulator of economic activity. It analyzes the possibility of state intervention in the economy in the face of the principles of free initiative and free competition. While free enterprise represents the freedom to produce and distribute goods and services, free competition represents an "economic principle" according to which the production and prices of goods and services should not be the result of acts of binding authority but of the free market. However, whether as a regulatory agent or as an entrepreneur, the State is responsible for guaranteeing the effectiveness of free initiative and the defense of the competitive order. The State's regulatory intervention in the economy does not authorize it to act against the free exercise of economic activity or with disrespect to the principles of free initiative and rule of law. Even in cases where the law grants the State freedom to act, it is subject to the principle of free initiative and to the principle of free competition, under penalty of objective civil liability.PALAVRAS-CHAVEKEYWORDSLivre iniciativa. Livre concorrência. Intervenção do Estado na economia. Responsabilidade civil objetiva.Free initiative. Free competition. State intervention in the economy. Objective civil liability.* Professora adjunto da Faculdade de Direito da Universidade Federal do Rio Grande do Sul. Doutorado em Direito Econômico na Universidade Federal do Rio Grande do Sul. Advogado.


2012 ◽  
Vol 30 (1) ◽  
pp. 103-122
Author(s):  
Richard J. Cebula ◽  
Maggie Foley

Abstract This study empirically investigates three hypotheses. The first is that higher levels of economic freedom in an economy promote a higher growth rate of economic activity and hence yield a higher growth rate of per capita real GDP in that economy. The second hypothesis is that higher quality government regulation leads to a more efficient economic system, in large part by interfering less with market functioning and in part by not adding unnecessarily to the cost of conducting business in the marketplace, and thereby leads to a higher per capita real GDP growth rate. The third hypothesis is that the higher the taxation level/burden relative to GDP in an economy, the lower the growth rate of private sector spending and hence the lower the growth rate of per capita real GDP in that economy. Using a panel dataset for OECD nations over the 2003 through 2006 period, fixed effects PLS estimations find compelling evidence in support of all three of these hypotheses.


Author(s):  
John Tomasi

This chapter offers an intellectual history of liberalism, focusing on the classical view that was eventually displaced by modern, “high” liberalism. It first considers classical liberalism's notion of equality and property rights as well as economic liberty before discussing the ideas of thinkers like John Locke, Adam Smith, David Hume, and F. A. Hayek. It then explores the emergence of market society, with particular emphasis on what Smith called “the system of natural liberty.” It also examines classical liberal ideas in action during under revolutionary America and concludes with an analysis of the essential features of classical liberalism: a thick conception of economic liberty grounded mainly in consequentialist considerations; a formal conception of equality that sees the outcome of free market exchanges as largely definitive of justice; and a limited but important state role in tax-funded education and social service programs.


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