Free Market Economic System#
Many proponents and critics of our current economic system frequently refer to the current economic system by some variant of the phrase “free market system” or “free enterprise system”. In effect, both critics and proponents agree that the current economic system is a type of “free system”.
This paper disagrees with almost everyone, both proponents and critics of the current economic system. The US does not currently have a free market economic system.
The word “free” should not be a political slogan that gets mindlessly chanted. When analyzing economic systems there should be clear definitions of economic freedom and economic power. These definitions should be applied rigorously to all people and corporations, not just the to wealthy and large corporations. Particle physics, a real science, studies with equal intensity the relatively massive hadron particles and the tiny, almost non existent neutrinos. To be a real science, economics must study the economic freedom and power of the common people as well as the wealthy and large corporations.
Economic Freedom and Power#
Economic freedom means having economic choices. When a person purchases from a corporation or goes to work for a corporation, they have made a choice and exercised their economic freedom.
Economic power is the ability to affect other people and corporations. Any particular corporation is under the economic power of people and other corporations who can provide or withhold purchases, make or not make contracts, and (in the case of people) accept, , if the opportunity arises,to be employed or not by this particular corporation.
When two corporations combine,through either a merger or acquisition the economic freedom and power of all people and all other corporations is reduced. The size of any corporation should be determined only by the marketplace where goods and services are sold and purchased. Corporations should not grow in size due to clever deals that bypass the power and freedom of people and other corporations.
Economic freedom and power should not be just for the extreme wealthy.
Pseudo Free Market Economic System#
This document defines the current economic system as a pseudo free market economic system. The creators and defenders of the current American economic system were very concerned about the economic freedom and power of people and corporations. But they were far more concerned with the freedom and power of the wealthy who own and run of corporations than the freedom and power of the common people.
Free Market Economic System#
A Free Market Economic System is the ideal economic system for achieving the goals. The United States at this time, does not have a free market economic system. A free market economic system has the following features:
Freedom - The economic freedom of the common people is maximized.
Power - The economic power of the common people is maximized. The common
people control the size and wealth of corporations.
Concentrations - Large concentrations of economic power by corporations
that significantly reduces or removes competition
is kept in check by antitrust activities.
Parasitic - Parasitic activity by Large corporations and the extreme
wealthy is monitored and studied. If possible, practical steps are taken
are taken to reduce parasitic activities.