900 Words
Hemza Salem
History 313
Doctor Adams
February 18th 2015
Industrialization of America
The U.S. economy is essentially a free market economy which is an economic market that is run by supply and demand with certain government regulation. In an actual free market economy, buyers and sellers operate their own business without any government policies however there is an argument among politicians and economists on the actual policies. For example, based on a mutual agreement on price without state intervention in the form of regulation, subsidies, and taxes. In financial markets, free markets stocks are securities that are traded and prices are not affected by availability. Also, in foreign-exchange markets, it is a market where exchange rates are not controlled by the government and thus rise and drop freely though supply and demand for currently. Historically, no nation actually had an authentic form of a free-market economy. With that being said, it is purely a theoretical concept. However, given contemporary usage by economists such as Canada, Hong Kong, Singapore, Australia, New Zealand and Switzerland are considered to be among the “Free economies” as of 2014. Lastly, when a free money economy spins out of control, the disadvantages can be extremely severe. For example, the Great Depression of the 1930’s to the real estate market crash of 2008, market failures has negatively affected the lives of millions of Americans in homelessness, unemployment, and lost income.
Laissez-faire represents the following axioms such as, the individual is the basic unit in society, the individual has a natural right to freedom, the physical order of nature is harmonious and self-regulating system, and corporations are creatures of the State and therefore must be watched closely by the citizenry due to their propensity to disrupt the order. It is interesting that Adam Smith does not us this term in his work. Smith introduced a similar term however more radical and detailed than
History 313
Doctor Adams
February 18th 2015
Industrialization of America
The U.S. economy is essentially a free market economy which is an economic market that is run by supply and demand with certain government regulation. In an actual free market economy, buyers and sellers operate their own business without any government policies however there is an argument among politicians and economists on the actual policies. For example, based on a mutual agreement on price without state intervention in the form of regulation, subsidies, and taxes. In financial markets, free markets stocks are securities that are traded and prices are not affected by availability. Also, in foreign-exchange markets, it is a market where exchange rates are not controlled by the government and thus rise and drop freely though supply and demand for currently. Historically, no nation actually had an authentic form of a free-market economy. With that being said, it is purely a theoretical concept. However, given contemporary usage by economists such as Canada, Hong Kong, Singapore, Australia, New Zealand and Switzerland are considered to be among the “Free economies” as of 2014. Lastly, when a free money economy spins out of control, the disadvantages can be extremely severe. For example, the Great Depression of the 1930’s to the real estate market crash of 2008, market failures has negatively affected the lives of millions of Americans in homelessness, unemployment, and lost income.
Laissez-faire represents the following axioms such as, the individual is the basic unit in society, the individual has a natural right to freedom, the physical order of nature is harmonious and self-regulating system, and corporations are creatures of the State and therefore must be watched closely by the citizenry due to their propensity to disrupt the order. It is interesting that Adam Smith does not us this term in his work. Smith introduced a similar term however more radical and detailed than