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A '''free market''' is a term in [[economics]] that refers to an economy operating with little to no interference on the part of a government. This type of economic philosophy is the backbone to the system of [[capitalism]], and is sometimes referred to by the [[French]] phrase "laissez-faire," meaning to "let be." Free markets are largely dependent on the process of [[supply and demand]], where prices are determined by the amount of the product in the market, as well as the number of consumers who wish to purchase that product. The market will punish business whose practices are not beneficial, as consumers will take their business elsewhere. [[Communism]] and [[socialism]] are the antithesis of the '''free market'''.

A '''free market''' is a term in [[economics]] that refers to an economy operating with little to no interference on the part of a government. This type of economic philosophy is the backbone to the system of [[capitalism]], and is sometimes referred to by the [[French]] phrase "laissez-faire," meaning to "let be." Free markets are largely dependent on the process of [[supply and demand]], where prices are determined by the amount of the product in the market, as well as the number of consumers who wish to purchase that product. The market will punish business whose practices are not beneficial, as consumers will take their business elsewhere. [[Communism]] and [[socialism]] are the antithesis of the '''free market'''.

The opposite of a free market is a command economy (called a "planned economy" by [[socialists]]), in which the government manipulates all economic activity for the theoretical central planning of the economy, either through regulation or seizure of private property, though this is known to cause disaterous effects, both triggering and prolonging recessions, such as the [[Financial Crisis of 2008]] (triggered by state manipulations of the financial sector) or the [[Great Depression]] (exacerbated into a decade long slump by FDR's "[[New Deal]]").

The opposite of a free market is a [[command system]], in which the government regulates all businesses for the theoretical central planning of the economy, although this has been shown to have negative effects. Economist [[Friedrich Hayek]] warned however of mixing a [[planned economy]] with a competitive economy, "a mixture of the two means that neither will work." <ref>Friedrich A. Hayek, [http://www.iea.org.uk/files/upld-publication43pdf?.pdf ''Road to Serfdom'',] Reader's Digest Condensed Version, April 1945, pg. 38.</ref>

 

A ''[[mixed economy]]'' contains both private-owned and state-owned enterprises or that combines elements of capitalism and socialism, or a mix of market economy and command economy. For example, the UK is said to have a free market economy in almost all goods and services but retains a bureaucratic socialised healthcare regime. This is justified on the grounds that it will ensure that British subjects have access to health care which is supported out of state coffers. A similar system is provided by Canada, whose citizens sometimes cross the border to the U.S. to get decent medical treatment; in some cases these patients will be reimbursed by the government. Economist [[Friedrich Hayek]] warned however of mixing a [[planned economy]] with a competitive economy, "a mixture of the two means that neither will work." <ref>Friedrich A. Hayek, [http://www.iea.org.uk/files/upld-publication43pdf?.pdf ''Road to Serfdom'',] Reader's Digest Condensed Version, April 1945, pg. 38.</ref>

[[Milton Friedman]] said,

[[Milton Friedman]] said,