Top Ten Arguments for a Free Market
Currently, large corporations receive subsidies from the government. In return, these same corporations "lobby" (bribe) politicians to pursue legislation that helps maximize their profit, no matter the cost. For instance, America has one of the worst Healthcare insurance systems in the world, yet every single time we decide to take action, we are shut down. This is because pharmaceutical companies give politicians billions in bribes every year in order to protect their economic interests. In a free market, companies wouldn't be aided by the government, so there would be far less corruption than in today's society.
Right now, the government is heavily involved in the economy. For instance, we have a minimum wage, corporate subsidies, bailouts, regulations, etc. We are constantly told that all these actions were put into place to protect us. While that may be partially true, in reality, these acts are more political than ethical. Politicians pursue these acts because they help them get elected. Also, these acts are distortionary. For instance,
A minimum wage causes unemployment. If my labor is worth $5, yet the minimum wage is $10, then I am prohibited from working.
Subsidies help keep bad businesses afloat. Walmart, for instance, pays its employees dirt, yet receives billions a year of government subsidies. If they were left alone, they might be forced to raise wages.
Bailouts also keep bad businesses afloat, and reward risky and immoral economic behavior, such as the 2008 bank bailouts, which rewarded banks for making risky investments that they knew had a good chance of ...more
Currently, the reason that we gave so much wealth inequality is because of government subsidies. If a business pays horrible wages or offers ridiculously high prices, they should go out of business. But, with subsidies, they are able to stay afloat. For instance, it only costs a couple of dollars to make an EpiPen, yet they cost hundreds. It's no coincidence that the Pharmaceutical industry receives billions of financial aid a year. In a truly free market, businesses would charge fairer prices.
Or it might end up like the Gilded Age, when wealth inequality was much worse because unregulated businesses could monopolize industries and charge and pay as much as they wanted.
Right now, only a handful of people really control the economy. The Federal Reserve and the Federal Government have far more control of the economy than you or me. For instance, the Fed could send us into a Great Depression next week if they wanted to. All they would have to do is hike interest rates by an astronomical amount, without our consent, of course. The government could do the same thing. All they would have to do is hike the minimum wage by a large amount, implement price controls, or hike taxes to an unprecedented amount. We can all admit that this is a horrible system. Under a free market, the people control the economy, and not politicians.
A free market would lead to less unemployment, lower prices, and higher paying jobs. This would enhance everyone's wealth.
A free market would make it drastically easier for us to gather information about our economy. For instance, if the price of a certain shirt is $100, then we, as a society, can tell that that shirt is in high demand. If it is in high demand, it must be durable, comfortable, and fashionable. However, if the government pumps that shirt company with subsidies, allowing them to artificially lower their prices, it would be more difficult for us to determine if the shirt is valued by society or not.
If the government wouldn't bail out businesses or subsidize them, we could do one of three things. One, use the extra money to pay off the national debt. Two, cut taxes, giving more power to the consumer or investor. Three, invest the money in areas that actually help society, such as education, environmental protection, healthcare, etc.
The main reason that groups such as blacks, latinos, etc are discriminated against is because their communities are, historically, poor. Poor communities are more likely to commit crimes or abuse welfare, which leads to racism from other more prosperous groups. Under a free market, it would be easier for people from poor communities to access low-skill jobs, which will lead to less crime and less unemployed people. This will greatly improve race relations in the country.
I'm not saying that all regulations or standards should be scrapped, but they are excessive. Look at Denmark. Bernie Sanders, a Social Democrat, constantly praises them. They have low wealth inequality and low amounts of poverty. It's also much easier for a business to get started in Denmark than in the U.S. If it was easier to start a business, unemployment would drop, and there would be more competition, which would lead to lower prices for consumers.
Under a free market, no one can prevent you from buying or selling item unless it will harm someone else. This will lead to more personal freedom and more privacy than we currently have today.