Economic Freedom

"Economic freedom is simply a requisite for political freedom. By enabling people to cooperate with one another without coercion or central direction it reduces the area over which political power is exercised." (Milton Friedman in the book, Free to Choose: A Personal Statement by Harcort Brace Janovich, 1980, p. 2-3). The aforementioned testimony was stated in support to the aims and goals of the Free-Market Economy advocates. It literally persuades society to do away with government intervention to have a more stable and profitable national economy. It influence nations to be more inclined to Market Economy (Capitalism) than a Planned Economy (whether Mixed or purely Socialism). But why are there so many debates and arguments regarding which is a better form of Economy? What gives? What takes?

A Market Economy, according to the experts in the field of Economy and Investment is usually associated with Capitalism, wherein the private sector, the individuals and market forces such as supply and demand are given free reign to decide on the country's economic activity. This may entail a zero (free-market) or lesser government intervention. A Mixed Economy however is a proper blend of Capitalism and Socialism. It is a country's economic condition wherein private sectors are allowed to own and manage their own business as well as the government does. In some countries, the government may also be a major stockholder of private enterprises. In this kind of economy, the Government is given the authority to affect (in any which way that it may deem necessary) the country's economic movement.

The core reason of many disputes regarding this matter lays on the magnitude of government involvement that a country must have and whether the influence is used to compellingly preclude private assessments. There are so many reasons why Capitalists believe that the lesser the government interferes with the economy, the more successful the country will become. One of which is the fact that in this form of economy, businesses and consumers can decide what to produce and purchase accordingly, unlike with Socialism wherein the government is given the right to determine what to produce as well as the quantity of production. Also, they believe that this form enables self-organization amidst the complications brought about by supply and demand. In this way, individuals who pursue their own interests through trade will normally lead to spontaneous order, which will be efficient in providing the abundance of products and services to the society, in the most effective manner. Socialists on the other hand believe that sufficient government intervention must be applied for the betterment of the country's economy. They uphold a planned or command economy wherein the government has the "say" to what must be done for the economy to flourish.

A Mixed Economy however values both Capitalism and Socialism doctrines. Its elements typically includes a diversity of liberties (e.g. freedom to possess means of production, freedom to travel, freedom to buy and sell, freedom to hire and fire, and freedom to organize, communicate and protest) with subsidized, tax-funded or state-owned factors of infrastructure, services and production (e.g. information services, transportation and communication services, education and health services and government-granted monopolies), provision of autonomy over personal finances and benefits (e.g. welfare for the underprivileged, social welfare for the infirm and aged, and government funding/subsidies to business), with restriction by various regulations and laws being upheld by the government (e.g. environmental regulations, labor laws, consumer policies, intellectual property laws, and incorporation laws), and tariffs and fees enforced which aims to regulate the economy.

I do believe that a Mixed Economy is an ideal form of financial system since it values both the private and the public ownership. There are matters I believe, that must be entrusted to the government, not to the private business. These includes a court system in settling disputes, maintenance of a stable currency, protection of the market competition and of the consumers' privileges, protection against monopolies, administration of justice, education, road system and national defense.