INTRO TO FREE MARKET
Let’s, for a while, imagine a market that is run freely in today’s context in 2021. Elimination of any benchmark, people operating businesses without any government interventions, goods, and services brought to the market as per the necessities, and businesses addressing the needs of the market freely and unapologetically. The question is whether when the market is free, people continue to be genuine and authentic when it comes to serving society and the residing individuals.
When thought of, in an ideal market like a free market, people are unrestricted to make anything, sell anything, as long as there is a demand. The price and quality of such goods or services would be determined by the market or the consumers themselves as they chose whether they find value both in terms of being economical and suitable. If the power remains with anyone about what drives the demand, it is the consumers at the base.
In 2021, if the market would have been so ideally free, then we would be living in a radically different world. One can say that the production and the consumption pattern we have at the moment, dominated by the big sharks of varied industries, may or may not have existed. As the market would be free to produce and provide for any needs raised without any interventions, almost everyone would be employed and/or pursuing entrepreneurship.
REALITY OF FREE MARKET
When thought of, this sounds perfectly idealistic now that we have reachable information for all, at least intellectual resources are abundant and freely available on the internet. Exploiting such resources people could choose to enter any field and deliver an outcome that the market would demand. The picture looks quixotic. However, it is a difficult road to endeavor. Giving power to the market is one thing but assuring market discipline is another.
Therefore, there are many arguments raised by the critics of a free market. First of all, the operation and transaction cost is high and therefore the control of resources and delivery of goods can be best seen when a small group works to deliver it to the mass. Or to say, it is more practical and there are economies of scale when supply is one too many and not one to one.
Secondly, the concern about moral discipline and balanced competition still remains a question when a market without any interventions and regulations is imagined. In the existing regulated scenario, we already see many dishonest practices. When this goes on a large individual scale, the lack of control will gulp the market harmony. We might see some dreadful consequences.
Likewise, the physical resources (for example, something that comes from nature) are limited and the lack of equal division of resources may raise chaos as well as serious exploitation. The resources that are being managed at the moment may quickly vanish if there is no regulation. Some resources are exclusive and therefore, the pricing is drafted in such a way that not everyone chooses to buy it. Under a free market, the unhealthy competition of suppliers who have those resources at hand might lead to immoral parameters of operations. As a result, the market will fail badly.
A WISE THOUGHT
This is the reason why we need interventions from regulatory bodies or otherwise known as the governments. The limited resources that the earth provides, the uncertainty in the progressive moral practices by everyone, and the time and cost of operation under such free markets possess more harm than good when thought wisely. The policies and regulations requirements in any sector that is in existence or newly being developed is, therefore, a sweet intervention for living in a desirable society.
With the evolution of technology and experimentation with cause and effect on the market economy, the Free market can be a possibility of the future. It can coexist on some segments with current economic practices that are governed by rules.
Disclaimer on the article
The above article is based on personal experience and thoughts without any dedicated research. It’s intended to be served free so that there is an awakening on the mentioned topic. Most content is based on observation and self-knowledge. If any segment is copyrighted feel free to reach out to us, so it can be attributed if applicable.