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On the other hand, if you don't ''know'' this to be true, but are only repeating the opinion of an economist (or maybe some political critic of [[Capitalism]]), be sure to credit the person whose views you are summarizing. A direct quote is even better. --[[User:Ed Poor|Ed Poor]] <sup>[[User talk:Ed Poor|Talk]]</sup> 09:29, 10 July 2007 (EDT)
On the other hand, if you don't ''know'' this to be true, but are only repeating the opinion of an economist (or maybe some political critic of [[Capitalism]]), be sure to credit the person whose views you are summarizing. A direct quote is even better. --[[User:Ed Poor|Ed Poor]] <sup>[[User talk:Ed Poor|Talk]]</sup> 09:29, 10 July 2007 (EDT)
Not wishing to impede upon this, however, strictly speaking, the free market is merely an idealized construct. If we are to take the definition of a free maket as being an economy in which there is "no interference on the part of government", and in which the interaction of supply and demand leads to the market clearing (i.e. is at equilibrium and is allocatively efficient) - this is, in practice, virtually impossible. If we are to assume that all firms are profit maximizers, then the only market structure in which it is possible to maximize profits (producing where Marginal Revenue = Marginal Cost), while at the same time achieving an allocatively efficient outcome (where S=D), is within a perfectly competitive market. However, in reality, a number of the conditions required for perfect competition are impossible to achieve - for instance, perfect and complete information. Similarly, rarely, if ever, do firms sell homogenous products (another criterion required for perfect competition). Indeed, in reality, the only markets that can be said to bear any resemblance to perfect competition, and even in these conditions, perfect information is not achieved. Even if you are to take a lesser definition, and merely require there to be a state of competition between firms, and no government interference, then this too is fraught with problems, most notably that outside of perfect competition there exists a tendency for markets to drift toward monopoly, if government fails to intervene.
If, however, you are simply going to define a free market economy as being a one in which there exists no form of government interference, then, this is theoretically possible, however, whenever countries have attempted to bring about these conditions, the outcome has often been to the detriment of the country involved, many would cite Somalia as an example.
If you'd like some criticisms of the free market system, from a socialist perspective, Noam Chomsky's writings on the issue are quite interesting, drawing largely on the work of Adam Smith. However, if you'd prefer the capitalist critique, then I'd recommend you check out Joseph Stiglitz and Martin J. Whitman.
--[[User:Adorno|Adorno]] 10:22, 10 July 2007 (EDT)