Is the free-market the best economic model?

Question

Yes or no.

Answer 1

All of the rich countries in the world have markets that are mostly free, so it is the most successful model in creating economic growth. It is not clear that no government interference in markets would work better. We have had much less economic turmoil since the governments have had active monetary policy to damp business cycles.
Both the US and Western Europe have more or less free markets, but Europe has a more of a safety net and pay for all of the heath care instead of only half like the US.

Answer 2

In non-essential things, like consumer goods and manufacturing, free-market economy definitely works. When keeping workers' jobs becomes a POLITICAL decision, like in communist countries, the companies become unmarketable and accumulate debt and the end-result is disastorous.

On the other hand, essential sectors and natural monopolies, like energy, public utilities, health-care, police, education, research and military are of course, best left to the state where the nation as a whole can wage at least some indirect form of control (e.g. vote out a government with lousy health-care or education policies). When you mix money-making with services in which people are vulnerable (you can take or leave a flat-screen TV, but how much bargaining power do you have if you need urgent medical treatment) the result is always an unmitigated disaster like, say, the HMO situation in America.

There MIGHT be some room for private initiative just to keep the public secttor on its toes in terms of performance, but the largest portion of these sectors should be state-run. Basic health-care coverage should be universal.

I also believe that in any developed country there should be enough of a social service network to ensure for everyone AT LEAST three meals a day, something to wear, a roof over one's head and sanitary conditions, including shower and bathroom, but not much more in terms of comfort, for that I believe people should work.

The media is probably one situation in which the state and private owned outlets should both be of comparable streingth, the state to neutralize private and corporate interests, and the private to keep an eye on the state and prevent it from becoming the government's mouthpiece.

Answer 3

Looking at the US (the ultimate free-market economy), I would say NO. Not sustainable in the long run. We are heading for a major disaster. We will probably implode like the ex-USSR did.

The western european model stands a much a better chance of making it.