Introduction
The free market is arguably one of the most significant economic concepts that have been discussed for many years. The idea has drawn the attention of philosophers and scholars in equal measure. The free market is generally described as an economic system that focuses on supply and demand with little to no government interference. In such a dispensation, quality control, taxes, tariffs, and quotas, among others are minimized (Sowell, 2006). Therefore, a free market is an ideal economic condition with minimal government regulation. Three classical economists played a crucial role in painting a picture of the essence of free markets in society. The economists include Karl Marx, David Ricardo, and John Stuart Mill. Each of these economists had their unique conceptualization of the free market.
Karl Marx
Karl Marx is widely appreciated for his theory of Marxism. Many regard him not only as a philosopher but also as a revolutionary. Most of his conceptions assisted in the creation of communist regimes in the 20 th century. According to the theory of Marxism, markets are regarded as aspects of political control. Marx drew a close relationship between economics and politics, citing that the outcomes of the two were highly correlated. In a free market, the bourgeoisie plays a critical role in controlling the means of production. On the other hand, proletariats engage in actual labor. The common citizen, therefore, suffers because of their overdependence on a wage which turns them into slaves (McGowan, 2016). In his conceptualization, Marx believed that a truly free market would come into place when public ownership of property replaced the private ownership. In this regards, he suggests communism as an antidote to the problems of private ownership of goods and services. Communism would, therefore, allow individuals in society to pursue more rewarding pursuits other than simply chasing money.
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Through the lenses of Karl Marx, human beings are free and creative beings with an unquestionable potential to change the world. However, he showed some reservations towards the modern technological conscious world that was beyond the control of humans. He, therefore, criticized the free markets for being anarchic and ungovernable. He further asserted that the spontaneous buying and selling of private property as controlled by the forces of supply and demand was inefficient (McGowan, 2016). In Marx’s mind, it blocked the ability of the common citizens to take control of their destinies both individually and collectively.
David Ricardo
Ricardo is considered as one of the most influential theorists to grace the first half of the 19 th century. Ricardo published his concepts on the free market in his book known as “Principles of Political Economy” (1817). An essential aspect of his theory was the significant amount of influence he received from Adam Smith after reading “The Wealth of Nations.” He was a strong opponent of the laws that restricted trade such as the Corn Laws developed by the protectionists. The laws played a critical role in restricting the importation of wheat. Ricardo used free trade as a tool to emphasize the freedom that countries should exhibit while engaging in the exchange of goods and products at an international level (Sowell, 2006). He, therefore, came up with a concept known as the comparative advantage. Here, he noted that countries should endeavor to specialize in goods and services they enjoy absolute advantage compared to other countries. When different countries concentrate on the production of products and services which they have a comparative advantage, a flow of trade would be established globally. Comparative advantage, therefore, creates free markets. Most importantly, the elimination of the draconian protectionist policies is crucial in enhancing trade both at the local and international levels.
John Stuart Mills
Mill was known as a champion of economic freedom. According to his conceptualization, the atmosphere of freedom is vital for the development of autonomous people. It is only when individuals are allowed to make conscious decisions that they become free. Mills goes ahead to propose the freedoms of speech, thought, lifestyle, and press as suitable for everyone. As such, individuals will be better placed to come up with new ideas and find activities that enable them to flourish. The concept of the free market is about the elimination of laws and regulations that negatively affect business. Mills thought that laws were necessary for society to function properly. However, he came up with the “harm principle” to assess the regulations that were justified. According to Mills, only the actions that caused harm to others should be regulated. The same applies to business (Gray, 2013). Overly controlling business operations deny people the mental stimulation to solve the problems. It turns them into dull machines without the necessary skill to innovate and come up with new ideas. Mills believed that the free markets guaranteed the best financial outcomes. Therefore, it is only imperative to allow businesses to make decisions without undue influence from the government. He goes ahead to note that giving the government unnecessary power over the business sets a dangerous precedent.
Conclusion
The economists Karl Marx, David Ricardo, and John Stuart Mill all have different ideas on the concept of the free market. Free markets define an economic situation where businesses are free to perform their roles with minimal government influence. Marx views the free market as a form of anarchy so long as goods and services are controlled by the private owners. Ricardo suggests comparative advantage as a tool to promote free trade across the globe. Mill, on his part, focuses on liberty and minimal government interference as the basis for free markets.
References
Gray, J. (2013). Mill on liberty: a defense. Routledge.
McGowan, T. (2016). Capitalism and desire: The psychic cost of free markets. Columbia University Press.
Sowell, T. (2006). On classical economics. Yale University Press.
