StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Economic freedom - Essay Example

Comments (0) Cite this document
Summary
The essay explores economic freedom. It is a concept widely used in the present day economical world. It refers to a situation whereby there are free markets and free trade that is conducted by everyone all over the place. Anyone has a right to own property since it is under free enterprise…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.6% of users find it useful
Economic freedom
Read TextPreview

Extract of sample "Economic freedom"

Download file to see previous pages The essay "Economic freedom" concerns the concept that called economic freedom. Studies have shown that human beings operate more efficiently when not under pressure. Freedom allows individuals to practice and fully exploit their creativity. Sociologists have linked human freedom to human creativity and have found it to be working hand in hand. The Sociologists argue that it allows for greater risks taking that would generate better ways of doing business. Economic freedom has three classical viewpoints, institutions, political and indices of economic freedom. This paper presents a discussion on economic freedom. For there to be a smooth flow of trade between parties, there are institutions of economic freedom set to achieve it. The first is the observance of the rule of law. In the application of the law, all parties are equal, and none is superior. The rule of law has obligations that ensure equality of individual in spite of any form of difference between them. Observance of the law protects traders from unfair completion. In law, two kinds of parties exist, the one with power and the other one who is governed. Both parties should act in a manner that is required of them and feel protected by the law. In as much as there is the observance of equality, it is not logical for every party to earn the same income. Equality comes in the sense of treatment of one another and not in the distribution of private resources. It is illogical for the government to redistribute earned resources. from citizens in the name of equality (Asafu-Adjaye 78). The next institution is a clear outline for the rights to own private property. A free market allows for the right for people to control their property and benefit from them. In addition to this, the individuals have a right to transfer their property at their own will. Therefore, an individual cannot be prevented from doing whatever he or she likes with the property. With this kind of system, traders are motivated to pursue their goals and continue adding value to their property. The traders are confident that they are capable of transferring their income anytime without the fear of having to leave anything behind when they opt to leave. Studies show that areas with well-defined property rules have a faster economic growth as compared to the areas without. Most research argues that this property rule is the main reason for poverty in third world countries since they do not have well spelt out systems. The third is the freedom of contract, which refers to the right of choosing whom to trade with, or not. The individual parties choose the form of contracts to get into and establish an agreement. However, once establishing the contract they both have to fulfill the terms and conditions and see it through whether one realizes that he will incur losses. In as much as most of the contracts are fair, some are not especially when the parties are unequal. An example is in the case of workers and employers when negotiating a number of working hours. The employer would be looking at maximizing the hours while the worker will be looking at minimizing it. However, since the employer has an upper hand, he tends to win the negotiation (Noyes 43). Economical freedom has come hand in hand with political freedom. Since the market is free, it has prevented politics to dominate trade. This has reduced the threat of suffering because of a political affiliation. It is a point worth noting that economical freedom has grown with the coming of political freedom. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Economic freedom Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1471366-economic-freedom
(Economic Freedom Essay Example | Topics and Well Written Essays - 1000 Words)
https://studentshare.org/macro-microeconomics/1471366-economic-freedom.
“Economic Freedom Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/macro-microeconomics/1471366-economic-freedom.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Economic freedom

Freedom Summer of 1964 and Its Relationship with the Civil Rights Movement

The other organizations which participated in this Registration campaign were the Council of Federated Organization (COFO) in league with the National Association for Advancement of Colored People (NAACP), the Congress of Racial Equality (CORE), the Southern Christian Leadership Confederation (SCLC) and the Students Non-Violent Coordination Committee (SNCC). During this campaign, large groups of African American people, supported by around 1000 white volunteers, braved the rains in order to enter the Forrest Country Courthouse to register their Voting Rights. Around 30 Summer schools were also established during this Freedom Summer Campaign in various parts of Mississippi town in order to educate the black minorities, since, due t...
11 Pages(2750 words)Case Study

Marx' Understanding of Freedom

Marx’s conception is that if society transitioned from capitalist to socialist thought, this would result in a higher form of civilization. The citizenry should be able to control their own destiny and the morality of others should not be legislated or otherwise controlled by an entity other than the citizenry themselves. Regulations, the lack of personal freedoms, in the name of morality restrict individual and societal sovereignty.

Marx was born a German Jew but lived most of his life in England and France. In these countries, the prevailing liberal political philosophy viewed the concept of freedom as the right for people to make their own choices regarding their lives and property. In today’s terms, this...
10 Pages(2500 words)Essay

The Economic Impact of the Emergence of China and India

The main macroeconomic variable that toys in the global economy’s shift are the emergence of India and China as new superpowers. This emergence certainly has a number of implications, but among the most relevant are: disruption of the equilibrium of the global economy which results in rising demand of goods, giving way to worldwide inflation; the attractiveness of outsourcing to these countries due to low cost but high talent workforce of these countries for cheaper operations.
The growing middle class of China and India results in booming demand for the automobile industry. This increase in demand, with the increasing purchasing power of these countries’ people, is not limited to automobiles but more apparent in...
10 Pages(2500 words)Assignment

Economic Value Added as Tool for Improving Performances

To discover whether pure profits exist, take the revenue of the firm and deduct the costs of all factors of production other than capital. Then deduct the pure return on capital and any risk premium necessary to compensate the owners of capital for risks associated with its use. Anything that remains is pure profits.” Simply in economic terminology economic value added (EVA) is commercial profits reduced by opportunity costs (that is the pure return on riskless investment and the risk premium). Lipsey calls the EVA defined in this fashion as “pure profits, economic profits or, where there is no room for ambiguity, just profits”.

Investors in any company are interested in real profits that are profits r...
7 Pages(1750 words)Report

Gross Domestic Product and the Nations Competency in Terms of Economic Welfare

It is often used to compare the economic performance to aid as a prediction tool and to analyze the business cycles and the recessive and expansive economic performances within them. This further aid economic and fiscal policy formulation of the government and is also used to analyze the consumer behavior and the economic phenomena involved. (Heakal, R. 2008).These figures can be a benchmark to compare economies of different nations and the economic prediction process is also made possible.

A usual pattern of assessing the Gross Domestic Product is to have an initial GDP report on every quarter which is an advance report. Two corrective reports follow this before the final figures on GDP are arrived at. It usually takes...
7 Pages(1750 words)Report

A democratic political system is an essential condition for sustained economic progress. Discuss

What is now clear is that democracy is superior when it comes to countries that have a heterogeneous mix of people and cultures since it is imperative that all sections of society be carried along if the process of economic development has to succeed. In case this does not happen, the concerned country faces the risk of social unrest and the inability of the government to carry all the citizens along with the process of economic development.

If we look at some of the competing ideologies of the 20th century. Communism was the dominant ideology of many countries of the eastern bloc. The basic tenet of communism is the absence of private profit and state ownership of the factors of production. This means that all workers...
11 Pages(2750 words)Term Paper

Emergency Economic Stabilization Act of 2008 and How It Has Impacted the Financial Markets

Though there were objections from various quarters about the huge amounts of tax payer’s money being used in the bailout of huge corporates, the Act has been successful in moving the downturn towards a flat point and now has started slowly moving towards a recovery stage. The various programs under the EESA 2008 have played a significant role in the financial sector, housing mortgage, and banking institutions to save the institutions from complete disaster.

The Emergency Economic Stabilization Act is a huge taxpayer bailout designed to rescue the financial sector. The amount of money to be used is around $700 billion or $2000 per American citizen (Public mark up). Emergency Economic Stabilization Act of 2008 is al...
10 Pages(2500 words)Research Paper

Economic Analysis of India

The country’s economy is fast growing with a stable political system that encourages foreign investment although with certain restrictions. The country generally has good energy, transport and communication systems which make the cost of doing business affordably.

The Republic of India found South of Asia is by far the world’s most populous democracy and ranks seventh largest in terms of geographical area (Brown, 1994). India is also the second most highly populated country in the world. The country has a rich culture with four major religions having originally emerged from it; Sikhism, Buddhism, Hinduism, and Jainism. The Indian Republic consists of seven union territories and 28 states and ranks twelfth la...
8 Pages(2000 words)Case Study

International Business: World Economic Forum and Davos 2010

...Introduction Globalization, one of the most hotly debated issues means global capitalism to some while others consider it to be the continuation of modernism with the forces of wealth, progress, democracy and happiness at play (Kellner, 2002). Globalization is considered to be beneficial which promotes economic prosperity, cultural diversity and technological advancement. According to the critical social theory, technology and capital work together to create a new globalized and interconnected world. While each force of globalization is important, technological revolution has impacted the business models, value creation and differentiation (Spelman, 2010). The cloud computing technologies that have made the popular social networking...
7 Pages(1750 words)Coursework

Globalization and World Economic Forum at Davos 2010

...Globalization and World Economic Forum at Davos Forces Driving Globalization Globalization has resulted in enhanced interdependencies among thenations of unprecedented scale. This augmented interdependence has caused the dismantling of trade barriers and liberalization of markets. The forces of globalization have impacted the nations, the firms and the individuals alike with the prerequisite of liberalization of trade (Awuah, 2009). The seven forces of globalization are; Markets, Production, Culture, Labor, Technology, Environment and Liberalization. Of these factors, the globalization of markets has engaged substantial attention of the firms and the academia. Some markets are highly globalized, while some are not. The scale of market...
7 Pages(1750 words)Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Economic freedom for FREE!

Contact Us