The free-market system allows the individual to interact freely for the satisfaction of his conception of the good life within the rule of law. The individual as an agent is the main actor within the market; however, private, or public businesses and the State itself also figure as actors in the free market. In this article, we present the three ways in which the State acts in the free market.
rule of law
The word freedom is used constantly, but little understood; to understand it, it is important to see the State as a civil association of individuals, where different ways of living and purposes coexist. This coexistence depends on a rule of law, which allows individuals to pursue their conception of the good life consistent with the rules of the association. The freedom requires a rule of law, which allows free action and cooperation of individuals in the market and thus benefits the economy.
Nobel laureate Milton Friedman once compared our nation’s education system to “an island of socialism in a free-market sea.” Similarly, nearly 30 years ago, the then-president of the American Federation for Teachers Albert Shanker wrote, “It’s time to admit that public education operates like a planned economy, a bureaucratic system in which everybody’s role is spelled out in advance, and there are few incentives for innovation and productivity. It’s no surprise that our school system doesn’t improve: It more resembles the communist economy than our own market economy.”