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+--- Thread: Does america have a free market economy why or why not? (/thread-102500.html)
Does america have a free market economy why or why not? - Alexis - 02-21-2014 04:44 PM
Hi, so im doing a social studies paper on if america has a free market economy. We have to choose if we think it doesnt or doesnt.i personally think we dont have one but i need facts to back it up. For why i think this way. so what are some reasons why america doesnt have a free market economy?
- Liberal - 02-21-2014 04:58 PM
If you wanted to argue America didn't have a free-market economy, you could argue that the establishment of a central bank (in her case, the Federal Reserve) is one essential thing that refutes any idea America is a free-market economy. This is because the Federal Reserve "artificially" sets the interest rate, according to free-market economists, and therefore distorts how the market should really operate.
Furthermore, free-market economists cite the role of government in causing the crisis. They point to how by 2007, 81% of mortgage loans were government sponsored. Bear in mind, the sub prime market (mortgages, etc) is often seen as playing a role in the recession.
In a few words, the free-market economists would argue that a central bank and government's role in backing businesses causing the problems we see today.
I don't actually subscribe to any of this, but it's interesting to hear from right-wing economists anyhow.
(Link below for further information: good luck on your assignment!)