Economics

THE STATE AND FREE MARKET ECONOMYIntroductionThe relationship between political science and economy has been a controversial subject in scotchal circles . The earliest human civilization societies were bound together by strong economical and political factors which determined how the societies were held together . A balance was usually importanttained between the two institutions . For causa the fall of the Roman Empire came as a resoluteness of economic decline . Economists have for along time canvas the relations between the two institutions and how they related for existence of the parliamentary law . Nobel Prize winner Milton Friedman has been a greater defender of fateon market and how it has influenced granting immunity of individuals in democratic regimes . Due to inadequacy scientific empirical data , it has become difficult for scientists to ascertain on the role of governing intervention in a quit marketFriedman s argument on capitalist economy and granting immunityAccording 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 dower of of individuals in a free state . Economic freedom is necessary in to achieve political freedom . With an sympathy that economic freedom is important to guarantees individuals then looks at the institutions which argon likely to guarantee economic freedom with competitive capitalism as the most important institutions which promote political freedom through separation of economic mightiness and political power . In to coordinate economic activities of millions Friedman argues that we can use cardinal planning through coercion or competitive capitalism in which everyone and every household is free to coordinate its economic activities .

The establishment 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 enactmentAccording 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 wherefore the government does for the market what it cannot do by itself including enforcement of private contracts and provides the financial 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 want to get a full essay, order it on our website: Ordercustompaper.com

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