A free market is a market where the price of an item is arranged by the mutual consent of sellers and buyers, with the supply and demand of that item not being regulated by a government (see supply and demand); the opposite is a controlled market, where supply and price are set by a government.
Is the US a Free Market Economy????
2007-05-29 12:42:07 · 4 answers · asked by Anonymous in Politics & Government ➔ Government
So are we a controlled ecoonomy?? (planned economy)
2007-05-29 13:24:44 · update #1
Unless you fight socialism, that's what you get.
2007-05-29 12:45:21 · answer #1 · answered by mckenziecalhoun 7 · 0⤊ 1⤋
Technically, we do not have a free market system because the government (state and federal) can add a tax to a product or service which alters the price, which may alter demand, potentially. Example: $0.18 of every dollar of gas goes to the federal government. This does not include state taxes added on. A quick amendment to a spending bill and it could double with the stroke of pen.
Also, governments have created pricing rules or laws in certain sectors in which oligopolies or little or no competition exists.
This is the closest we will see to a free market system until we implement the FairTax Plan.
2007-05-29 20:17:34 · answer #2 · answered by ROIHUNTER 3 · 1⤊ 0⤋
Free market economy deals with "hands off" policy of the government. There is little to no regulation of the economy.
The US is not a free market economy considering all the corporate welfare and intervention into the economic sector.
2007-05-29 19:50:09 · answer #3 · answered by Anonymous · 2⤊ 0⤋
NAH its more of a controlled economy
2007-05-29 20:40:29 · answer #4 · answered by datrealma06 2 · 0⤊ 1⤋