Question

in 1000 words why is the free market impossible?

Answer 1

The Free market is an economic system based on supply and demand with little to no government control. It is an arrangement of spontaneous and decentralized order of arrangements through which economic decisions are made individually. According to a country's political and legal rules, the black market may become prevalent in large or entirely in the market of the country.

At present, no country is having completely uninhibited free markets.  

Free market mainly advocates its doctrines of liberating the economy from the interferences of the government. But there simply can't exist a market without any government inference in terms of rules and regulations.

The main resources like land, labor, and money are distributed, sustained and created by the government continuous actions. All of the exercises like arrangements of real states buying and selling, supplies of money and credit, are maintained through the regulations imposed by the government on the free market.

If a person can't or do not want to self-finance, the financial market develops to facilitate financial needs for them in a free market. For example, savers purchase bonds and trade their savings to entrepreneurs for future gains or interest.

All if the regulations on taxes, prohibition of specific exchanges, the mandate on specific term with an exchange, licensing requirement, etc parts a market from a free market. These are the prohibitions which a utopian free-market wouldn't have it.

• In a free market, anyone has the freedom and liberty to take part in the market i.e. to enter or leave or take part anytime they want.
• The free market offers low barriers for entry. It allows other players to join in without having the need of the market to be competitive.
• A lack of barriers with little to no entry costs make the competition equal for every individual in a free market economy.

So, a free market tends to make it free from any institution's ruling and imposing the laws, and governance, it makes a perfectionist idea of the world without any constraints on the economy and its activities.

It also fiercely represses the fact that power and regulations unacknowledged features of all the markets participation.

A free market is a dream of a perfect world. it is a world without coercive constraints on economic activities, without any intrusion of government. They conceived of an economy governed by the same laws that operate in nature.

The left believes in this fantasy as much as the right. For the right it is a call to arms against the domination of the ‘villainous’ state; for the left, it is the rot at the heart of our ‘inequitable’ economic system. While they reject the desirability, both positions assume that a ‘non-regulated’ market can even be possible.

The economic sphere concept is completely unrelated and apart from government and civil society institutions, Polanyi argues about the free market and calls it as it is a “stark utopia”—stark, because the attempt to bring it into being is destined to fail and will inevitably bring about dystopian consequences for human beings and nature alike.

As we are living and surrounded by market failures and instability, we have to vigilant to the threats to democracy that are often not immediately visible in the political mobilizations of the double movement but exists as much.