Question

The "common wisdom" seems to be that free-market economy and democracy are a better choice. What...

The "common wisdom" seems to be that free-market economy and democracy are a better choice. What are the arguments of the supporters of this approach? Please use numbered or bullet list for your answer.

Maximum: 300 words (fewer is better).

Bullet-list format for key points preferred, if applicable.

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Answer #1

Free market economy means there is productive and allocative efficiency. More goods are produced at lower prices. Market reaches equilibrium through demand and supply intersection without any public intervention and monopoly. Production is at minimum average cost. Price and output are determined where demand equals supply.

The public is the King of democracy. Democracy is for the people, by the people, and to the people. People decide everything through voting rights and they are taken care of by the representative government. There are social welfare schemes like unemployment compensation, health benefits, transfer payment, minimum wages, subsidies etc to assist poor and unemployed.

Producers are happy with free market economy and consumers with democracy. So, it is better or wise to have both to satisfy both sectors of the economy.

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