Question

"Is having a free political system (democracy) a neccessary condition to operating a free economy (market economy)?"

Please reference events/items from the video to support/refute your points...that shows me that you actually watched it.

Answer 1

ANS)-- In the free market economy the state is having only small role.Anyway at the same time it need a certain stage of democratisation of its organisation which to a definite extent -smooth economic movement.This matter is partly right in some of the countries in Africa and Middle east are troubled.So we can say that the democratic condition support a free market economy.And one another thing is that the free market economy is depending on the democracy for its active functioning.   

-- Democracy has worked from the early time itself for the existence of free market economy.In the case of ancient Greek they started democracy and that had worked with economy which is based on bondage.Any way it was almost true in the early United States.In spite by the late 18th century the free market economy was made.

-- In the free market system the cost of the various goods are decided by the open market and also by the customers.And in the free market economy the laws of supply are always independent from government and other organisations.The free market is very different from the regulated market which is under control of the government in its supply and demand through different ways like tariffs which helps to block the trade and to save the normal economy.And in the free market the cost of goods are allowed to bring down how much the customers need without any involvement of the government.

-- Many of the scholars says that the free market is also called as coordinated market which is having a great roll in the political economy,sociology and also in the political science and all the above topics highlights the value in present market systems.

-- The free market is mainly connected with capitalism inside a market economy in modern utilization and famous culture and the free market is also recommended by socialists and supporters of cooperatives and also the supporters of profit sharing.This one also helps in avoiding the inequality of bargaining power and also to avoid the information asymmetry about a product and by that the market can work more correctly and efficiently and also which helps to make good social outcome.

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