Introduction to Free Market Capitalism (FMC)
An economic system that is based on supply and demand is known as the free market. It generally has limited or no government that allow individuals to make a financial decision.
Understanding Free Market Capitalism (FMC)
The term free market is sometimes used in place of laissez-faire capitalism. Most people are generally referring an economy with open competition and only private transactions among buyers and sellers when they talk about the free market. However, a more apt definition also includes economic activity wherein coercive central authorities have no control.
If one is to follow this definition, laissez-faire capitalism and voluntary socialism can be considered examples of a free market. Though, keep in mind that the latter involves public ownership of the means of production.
Advantages Of Free Market Capitalism (FMC)
It ensures political and civil freedom, as everybody has the right to choose what to produce or consume.
It also helps with economic growth and transparency.
It ensures competitive markets.
Consumers' voices decide what products or services are in demand.
Supply and demand form competition, which helps promise that the top goods or services are obtainable to consumers at a lower price.
