Economics

THE STATE AND FREE MARKET ECONOMYIntroductionThe relationship between political relation and economy has been a controversial subject in frugal circles . The earliest human civilization societies were bound together by strong scotchal and political factors which determined how the societies were held together . A balance was usually maintained between the two institutions . For ensample the fall of the Roman Empire came as a essence of economic decline . Economists have for along time canvas the relations between the two institutions and how they related for existence of the participation . Nobel Prize winner Milton Friedman has been a greater defender of ease market and how it has influenced independence of individuals in democratic regimes . Due to escape scientific empirical data , it has become difficult for scientists to jibe on the role of administration intervention in a acquit marketFriedman s argument on capitalism and libertyAccording to Friedman , there is a strong connection between economics and politics . Friedman sees capitalism , which he regards as a free market , as an economic arrangement which can promote the existence of a free society . He sees economic freedom as an end to itself since economic arrangement is one of the important fragment of of individuals in a free state . Economic freedom is necessary in to achieve political freedom . With an brain that economic freedom is important to guarantees individuals then looks at the institutions which atomic number 18 likely to guarantee economic freedom with competitive capitalism as the most important institutions which promote political freedom through separation of economic force and political power . In to coordinate economic activities of millions Friedman argues that we can use profound planning through coercion or competitive capitalism in which everyone and every household is free to coordinate its economic activities .

The political science is however required in such a model in to determine the rules that are to be followed in free market and ensure individual freedomFriedman believes on government jurisprudenceAccording to Friedman (1962 ) for a free market to prevail , individuals must go by the rules of the game . The basic role of government in free market includes modifying the rules , mediating differences among the members of the society and enforcing compliance with rules . We need the government because it is not possible to achieve absolute freedom thus the government does for the market what it cannot do by itself including enforcement of private contracts and provides the pecuniary framework (Friedman , 1962Our look into the roles of the government in a free market shows that there is no need for government regulation . Freidman (1962 ) believes that government regulations are likely to hamper the competition in the market which inhibits the basic principle of free market . The main of role of the government as we have outlined would be to ensure freedom prevail in the marketRobert Kuttner view on effects of deregulationAccording to Kuttner (2008 ) deregulation has been a failure even when considered on its own terms . Deregulation has led to conversion of institutions to for-profit...If you desire to get a full essay, order it on our website: Orderessay

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