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Free Markets Essay

1208 words - 5 pages

The United States is a blessed nation to have freer markets than most. According to the 2013 Index of Economic Freedom, the United States ranks as No. 10 in the most free market countries, while Zimbabwe ranks No. 175 out of the 177 countries listed. (1) How are countries like Hong Kong, New Zealand, and the U.S. ranked so high? With social cooperation, income inequality, comparative advantages, freedom of trade, sound money, reductions in taxes and regulations, and protection of property rights, more markets in other countries will too progress into free market economies.
Walmart is the largest chain of supermarkets in the United States today with over 3,000 stores located across the ...view middle of the document...

In order to care for others, we must first care for ourselves. Adam Smith stated, “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own self-interest. We address ourselves not to their humanity but to their self-love, and never talk to them of our own necessities, but of their advantages.” Smith was trying to tell us that we could not improve without self-interest. When one takes it upon himself or herself to proceed in their God-given talent, or comparative advantage, we as a society will be better off. However, pursuing our own interests would get us nowhere if we felt bogged down by the government with high taxes, no protected private property, restricted international trade, and unsound money. With a protection of low tax rates, sound money, and property rights, individuals will be well at ease, encouraging good stewardship. However, high tax rates will discourage workers, thereby reducing the production of labor. When people spend their time pursuing their self-interest, only to be heavily taxed, the level and efficiency of capital formation will be reduced. High taxes encourage workers to consume more tax-deductible goods rather than nondeductible goods. Though for the cheated worker, consuming more tax-deductible goods may seem like a reduction in personal cost taken away in the form of taxes, it actually harms society, causing inflation. If prices are unstable, the people will rise up. When people can own property without the fear of it being heavily taxed and at the same receive protection, it leads to productivity, improving skills and innovation to create helpful new means of producing. Tom Bethell said, “[A] private property regime makes people responsible for their own actions in the realm of material goods. Such a system therefor ensures that people experience the consequences of their own acts. Property sets up fences, but it also surrounds us with mirrors, reflecting back upon us the consequences of our own behavior.” Protected people have strong motivation to care for what is theirs without the fear of it being taken away. When people aren’t fearful of their property getting taken away, they work to provide beneficiary goods and services in the best interest of others through time and conjecture of capital markets. Consumers can expect numerous substitutes and variations when producers invest their time and energy in producing the demanded goods and services with long-lasting resources that saves shoppers both money and time. Producers revolutionize consumption and profit while using improved technology to discover lower-cost methods of manufacturing...

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