Disadvantages Of Economic Freedom

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Fredrich Hayek, an economist, once said: “To be controlled in our economic pursuits means to be controlled in everything.”[1] This quote does have a very reasonable meaning to it; as if the government tries to limit economic freedom, it puts heavy restrictions on the civil liberties provided to the people.[2] One of the common questions asked about economic freedom is regarding its definition and its principles.[3] Furthermore, there is a concern about why economic freedom should be a worry for the people in the society, such as understanding the advantages and disadvantages[4]. People that live in different locations are inevitably subjected to different economic conditions as a result of their country’s economic policies, which give rise …show more content…

[3] The World Heritage Foundation quantifies the economic freedom of various countries into numerical values by employing four categories: rule of law, government size, regulatory efficiency, and market openness.[4] The rule of law in itself has many meanings, one of which in terms of economic freedom means the rights of the individual and their ownership of property, as well as the appropriate steps a government takes to ensure a balanced economy to prevent compromizations of the integrity of the economic system. [5] Government size is described as the liberties a government gives to individuals in making economic choices which in turn impact the level of tax for the country, as well as the government’s role in the economy when spending money. [6] Regulatory efficiency, as the name suggests, describes the regulations and restrictions the government puts on an economy, whether it be restrictions on starting a business, where to work, or how to manage monetary stability. [7] Finally, market openness refers to the freedom one has in how they spend their

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