The Necessity of a Free Market Economy

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Since the dawn of agrarian societies many different types of economic systems have came and left, forever leaving their impact on society. All of these systems try to answer the questions: what goods and services should be produced, how should these goods and services be produced, how can these goods and services be traded, and who should hold the means and processes of production. Some economists say all of these decisions should be made by individuals independently in a free market. Others think that a ruling body should make all of these decisions in a heavily regulated economy, and many others believe that a healthy economy has a combination of the two, in a lightly regulated economy. The most important proponents of these varied systems are Adam Smith, Karl Marx and John Maynard Keynes. From analyzing the logic, history, and processes behind each of the three major economic systems, it is evident that a free market economy, theorized by Adam Smith, is the best economic system for humanity as a whole.
The argument for which economic system works best cannot be made until a person fully understands the vast impact the economy plays in every aspect of life. The type of economic system a country uses has a direct impact on the prices of goods and services, who can produce the goods and services, and under what circumstances the goods and services can be produced, used, and traded for other goods and services. Every economic system gives a portion of these decision making powers to the people and the rest to the government. This proportion directly decides what economic system a country uses. Also, this proportion determines how much of a role each individual in a society must play. For example, a person in a free market econo...

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...l worldwide free market economy that gives every human the equal opportunity to thrive.

Works Cited

“John Maynard Keynes,” “Adam Smith,” “Karl Marx.” Library of Economics and Liberty. Liberty Fund, Inc. 2008. Web. 17, Nov. 2013. www.econlib.org
Keynes, John Maynard. The General Theory of Employment, Interest and Money. Lulu
Enterprises, Inc. Sept. 7, 2012.
Mankiw, N. Gregory. “What Would Keynes Have Done?” New York Times 28 November 2008. www.newyorktimes.com
Marx, Karl. A Contribution to the Critique of Political Economy. Moscow: Progress Publishers, 1999. Marxists.org 1999. 27 Nov. 2013.
Marx, Karl and Engels, Friedrich. The Communist Manifesto. London: Penguin Classics, 1985.
Print.
Skidelsky, Robert. “The Remedist.” New York Times 12 Dec 2008. www.newyorktimes.com.
Smith, Adam. The Wealth of Nations. New York: Barnes and Noble, Inc. 2004. Print

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