Discusses the crucial role a free market system plays in maintaining a democratic system.
This paper explains how a free market system helps promote and sustain a democracy. The paper describes how the market system of supply and demand functions as an engine for innovation and social progress and how the right to private property helps economic prosperity. The paper also looks at government involvement within a free market and democratic system and the important role that entrepreneurs play in that system.
“In a democratic system, such as that currently found in the United States and many European countries, a free market economy is crucial to overall growth and productivity, for within a free market, economic interests “tend to band together to form labor unions, associations, and consumer organizations which enhance their own bargaining power while taking into consideration the profits and power of the giant corporations” (Schatter, 45), not to mention the ruling democratic government which often helps to foster and maintain the economies of any industrialized society. In such a free market system, citizens are allowed to keep and hold private property, bear the responsibility of ownership such as in a small business, strive for profit, and promote fair and equal competition. In addition, a free market economy within a democratic system promotes societal progress through national and international cooperation that advances the common interests by economic and political means.”