Essay On Free Market Economy

America is a capitalist country because it is, for the most part, a free market economy. A free market economy is a system where the prices for goods and services are set freely by consent between vendors and consumers. Laws and forces of supply and demand are free from intervention by the government or other authority. American business owners have a fairly big handle on their business without the government intervening. They can set prices for their goods and services, the salary, and what they wish to sell. Corporations can write the regulations for their industries. The government’s role in these businesses is to set taxes and restrictions to prevent new competitors from entering a market. Governments allow for some private and other businesses to handle themselves as they want with minimal government intervention other than some small regulations. To deal with competitors, many businesses will often try and one-up the competition by lowering prices, improving products, and promoting their business without the government’s intervention. …show more content…
Even though this market fails from time to time, a free market has a natural way to correct itself by ridding itself of the poorly performing businesses and investments that drag it down. In times of need, the government and economy can take some of the measures that a free market has to improve itself again. Every year the economy uses more and more free market standards. There is speculation about whether America is a free or mixed market economy. Overall, America and a free market are a lot alike. Over the years, many people are leaning towards having a say in what they want for their businesses without the government having a major role in it. A free market is starting to become more and more popular and soon enough everyone will want to have the business freedoms that it