I Want to Know - What are the Advantages of a Free Market Economy?
The other day, I was on a website, and someone ask the very naive question about why free-market economies were better than the purported Utopian or communist societies that are often seen in other parts of the world.
It seems to me rather unfortunate we have standardized testing in the United States of America for math, English, and writing - but that we do not explain to people why free-market capitalism and a free-market economy is so important to the vitality of our nation.
Okay so, maybe I should explain why free-market capitalism is so great, and I will try to do so from a philosophical perspective, but also explain how it ties in with natural human motivation.
You see, people inherently desire to live a better life.
Maslow's hierarchy of needs dictates that once people have their food, shelter, and clothing taken care of, they then aspire to other things such as entertainment, relationships, and respect from their fellow man.
Eventually they become self-actualized.
Now then, if we consider all the basic innate characteristics of the species and what motivates people, we can easily understand why a free-market economy works, and why it has an inherent advantage.
You see, if you want things, then you have to work and produce to get money to buy them.
The more you produce, the more money you can make, and the more things you can have that you might desire.
The price at which you are paid for your labor will depend on the value of those items or services to other people that you work to produce to make.
If you are producing something that everyone wants, then they will be willing to pay you more for that, and therefore you will make money for more things that you want.
This means that more people will be engaged in producing the items that the most people want, so they can have the highest pay, so they can have the things that they want.
This means labor will naturally flow to those things which pay a higher amount, until everyone has all that they need and are satisfied.
As soon as people want something else, labor will flow to fill those needs.
Eventually everybody has everything they want, and things tend to equalize, until something else comes up that people want and the process continues.
This system works fine unless it is manipulated, or unless the flows of labor, or regulation impedes the process of production.
Free markets work best when left alone with the least amount of regulation.
And a free-market economy works best when there are fewer regulations, and thus, buyers and sellers are able to make free contract, and decide what they want for themselves without government intervention.
Indeed I hope you will please consider all this and think on it.
It seems to me rather unfortunate we have standardized testing in the United States of America for math, English, and writing - but that we do not explain to people why free-market capitalism and a free-market economy is so important to the vitality of our nation.
Okay so, maybe I should explain why free-market capitalism is so great, and I will try to do so from a philosophical perspective, but also explain how it ties in with natural human motivation.
You see, people inherently desire to live a better life.
Maslow's hierarchy of needs dictates that once people have their food, shelter, and clothing taken care of, they then aspire to other things such as entertainment, relationships, and respect from their fellow man.
Eventually they become self-actualized.
Now then, if we consider all the basic innate characteristics of the species and what motivates people, we can easily understand why a free-market economy works, and why it has an inherent advantage.
You see, if you want things, then you have to work and produce to get money to buy them.
The more you produce, the more money you can make, and the more things you can have that you might desire.
The price at which you are paid for your labor will depend on the value of those items or services to other people that you work to produce to make.
If you are producing something that everyone wants, then they will be willing to pay you more for that, and therefore you will make money for more things that you want.
This means that more people will be engaged in producing the items that the most people want, so they can have the highest pay, so they can have the things that they want.
This means labor will naturally flow to those things which pay a higher amount, until everyone has all that they need and are satisfied.
As soon as people want something else, labor will flow to fill those needs.
Eventually everybody has everything they want, and things tend to equalize, until something else comes up that people want and the process continues.
This system works fine unless it is manipulated, or unless the flows of labor, or regulation impedes the process of production.
Free markets work best when left alone with the least amount of regulation.
And a free-market economy works best when there are fewer regulations, and thus, buyers and sellers are able to make free contract, and decide what they want for themselves without government intervention.
Indeed I hope you will please consider all this and think on it.