Let Free Market Economy Work

The Absence of a True Free Market Economy: A Roadblock to Economic Progress

It's a bold assertion, but one I firmly believe to be true - no true free market economy exists anywhere in the world. I posit that this lack of a free market is a significant obstacle to human economic advancement.

When governments and central banks seek to orchestrate an economy to align with their respective agendas, they inadvertently sow seeds of uncertainty. The outcome is an artificial pattern of booms and subsequent painful busts roughly every 8-12 years. These fluctuations lead to economic instability and necessitate government bailouts, effectively resulting in a systematic extraction of taxpayers' money.

Financial institutions, including banks, are increasingly intent on exploiting these artificially generated 8 to 12-year cycles for profit. This practice has earned them a reputation more akin to gambling houses than legitimate contributors to the economy or society.

So, what alternatives do we have?

Many disillusioned individuals, often lacking a comprehensive understanding of the situation, gravitate towards socialism or communism. The younger generation, in particular, is beginning to idealise the concept of mass nationalisation. They yearn for governments to assume control over resources and production means. However, this approach could precipitate a far greater catastrophe, resulting in authoritarian regimes and economic devastation, as repeatedly demonstrated in numerous countries over the past century.

The solution, in my view, is refreshingly simple.

Governments need to relinquish their need for control and allow the market itself to determine the value of money (interest rates) based on supply and demand. The more governments try to wrestle economic cycles under their control, the more unpredictable these cycles become. Paradoxically, the most effective control might just be relinquishing control altogether.

I advocate for an economic model based on the principles of the Austrian School of Economics.

Learn more about Austrian Economics by exploring the following resources:

'5 Reasons Why Austrian Economics Is Better than the Mainstream'

'The Austrian School of Economics - Investopedia'

'Austrian School - Wikipedia