Free Market

Re: Free Market

Free market implies no government interference. The theory is that this will lead to economic activity occuring in the places that are relatively best suited to those activities.

The reality is that no country wants a completely free market, as the political consequences are severe. For example, if US and European subsidies to local farmers were to end, countryside unemployment would spike. These countries will also become dependent on other states for the basics such as food.

Similarly, tariffs on imports such as steel interfere with the free market concept, but protect politically valuable voter jobs and maintain strategic industries within countries.