If you missed it, here is Part 1 of this post from last week.
To follow on from last weeks post on Free Markets this week I wish to cover two things briefly: The myths about a Free Market, and how economically less free countries fare compared to freer countries.
The most overused myth about the Free Market is that it caused the financial collapse, but as I covered last week the financial markets are the most heavily regulated in the world, thus they ain't free. There was other reasons for the collapse, far from too much freedom, but networks of corruption and cronyism. A free market is when there is absolutely no regulation where two people, or companies can trade freely without government interference.
Venezuela where 36 Trojan condoms cost $755
For the past few years we have been told repeatedly by politicians and the media that the Free Market has caused the economic recession. Giving the markets, or banks to be more precise, too much freedom to do business resulting in them mismanaging money and going broke, so we're told. That they were bailed out by governments is another days discussion, the question today is: were the banks operating in a Free Market in the first place? Do We live in a Free Market?
A completely free market is a form of a market economy where buyers and sellers are allowed to transact freely (i.e. buy/sell/trade) based on a mutual agreement on price without state intervention in the form of taxes, subsidies or regulation.