Economics Does Not Lie

701 Words2 Pages

There are several accounts throughout history which states that the fundamental economic problem of deciding what to produce, and for whom, in every society with limited resources is a major challenge. A well known economist Guy Sorman in his book Economics Does Not Lie, states that the free market economic system has provided substantial improvement in the living standards of millions. His book is widely seeing as a book which presents a broad overview of economic growth institutions and describes how formerly idle economies have experienced substantial economic growth after adoption of free market ideas and suggests that the free market is the best hope for the lifting of millions of people from poverty. The author recognized that economic growth is occasionally interrupted by repeated down …show more content…

In other words, a free market economy is “an economic system in which individuals, rather than government, make the majority of decisions regarding economic activities and transactions.” Every business exists to maximal profit. One factor that is believed to be a driving force in a free market is the fact that the economy is driven by individual innovation and that hard work and ingenuity is normally rewarded by success. Another contributing factor in a free market system is the controlling mechanism which deals with the competition among buyers and sellers. According to John Tomasi in his book title: Free Market Fairness ( 2010) a free market system, is a market system where in the state only intervene to collect taxes, contracts enforcement and private ownership. In his view like many other economists, it is stated that government in countries with a free market economy does not set the price for goods and

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