Are Free Market Economies More Likely to Create and Sustain Democratic Political Systems - Coursework Example

Are free market economies more likely to create and sustain democratic political systems? al affiliations Introduction Free market economy is depicted by the capacity of citizen to dictate economic patterns as well as moves. This is an expression employed in economic along with guiding principle debates and a political economic viewpoint. One advance to economic liberty comes from traditional laissez-faire with libertarian customs highlighting free marketplaces; free trade as well as private possessions under liberal innovativeness. Moreover, some of the decisions made by different persons are evaluated not only from a personal perspective but a group dimension. In a free market, individuals are free to make decision on the purchases based on their preferences and can indulge in price negotiation to fit their budget needs This makes them meet their expectations and satisfactions as there is no external interference and personal blame is a common occurrence once the anticipated satisfaction is not realized (Bronfenbrenner, 2005). Free marketplace point of view defines economic freedom as the free will to engage in trade as well as use any products and services obtained devoid of using force. This aspect is outlined in legal framework as well as the daily interactions of individuals in carrying out their economic activities taking into accounts the rights of all parties involved. In this case, numerous factors are used in the identification of the independence level of the market. From previous studies on the ranking, it is evident that high state raking was characterized by higher financial development and fairness in carrying economic activities (Johnson, 2005). Moreover, economic liberty indices usually place unconnected policies as well as strategy outcomes to hide negative relationships involving economic development as well as Economic Freedom in a number of subcomponents together. Institutions of free market economy Rule of law Free marketplace claims that laws governing the interactions be interrelated with liberty, whereby each aspects directly relates with the other. In this regard, it is evident that the rule of law is the pillar on which successful economies have been founded on and due to fairness; different investors from diverse backgrounds find the clearly outlined guidelines and economic stableness appealing to conduct business (in this case, there is no discrimination as the expected relations and interactions among the different parties are outlined and the parties are well informed of them). (Altvater, 2007). These values, from a different dimension, are viewed as protection against ruthless freedom limitations, as the guidelines apply to those in power as well as coercive authority along with those who are ruled. Ideologies of the generalization as well as equality of the rule eliminate special human rights and subjective application of decree. Based on Friedrich argument, equal opportunity enforced through legistrations does not provide ample environment for individuals who would like to gain individually at the expense of the majority who are not in power as fairness is greatly emphasized. He states that any countrys effort to place citizens in uniform state results in disproportionate treatment of people and to an obligatory reallocation of income (Pei, 2001). Private property rights Free marketplace advocates for properly enshrined rules on safety of any private property. In this case, individuals are at liberty to use their property and realize returns from them as long as they do not interfere with the freedom of others as well as use them as they deem appropriate. This provides an environment in which individuals’ free independent in the implementation of their specific economic activities. Friedman perceives possessions rights being a good step in the emphasis of human rights as well as other civil rights. In such situations numerous citizens may accomplish much bigger personal democracy as well as development than below a command of government compulsion (Easton, 2010). A secure structure of possessions rights as well reduces ambiguity and supports ventures, making constructive conditions for a financial system to be victorious. Experiential evidence claims that nations with well-built property rights arrangements usually double those with poor structures in regard to development. These challenges in secure structures of possession are common in less developed countries and are a common basis for conflict, an issue that is well addressed in developed nations (Ayal, 2006). In this case, the absence of the rules deprives the citizen the opportunity to optimally use their properties for personal as well as national gain (McNally, 2005). Freedom of contract In carrying business activities, contracts are common and they provide individuals with the capability of setting their own rules as they may deem appropriate based on the issue under consideration. Prior the contracted is sealed, involved parties are at liberty negotiate for the set terms, but once the deal is sealed, they are bound by the terms even if the end results might not be appealing to them. Through creating binding assurances individuals are at liberty to pursue personal concerns (Hernando, 2003). Contracts are vital in transfer of poccessions as outlined in law. Based on the nature of the treaty, not all treaties are implementable and some interference from the government is common, especially where national interests are confronted, even though not all contracts require government intervention. In many developed nations, there are clearly outlined avenues of resolving disputes, which play a great deal in case of breach of contract and they draw their guidelines from the law (Scully, 2002). Similar to other laws in which previous rulings play a significant role in future ruling of the same nature, contract freedom is based on the United States High Court case of Locher vs New York. Despite the positive realms of this approach in solving business conflicts and conducting business, there have been criticism which argues that liberty is deceptive especially when the involved parties are not alike based on master-servant relations. This usually leaves the servant at the mercy of the servant as the negotiation is mostly biased. For example, West beach lodge Co. versus Parrish judgment in 1938, knocking over Locher, the High Court cited prior decisions (Bock, 2011). Based on previous experiences on different nations across the globe, proprietors and employees are usually not at the same level in regard to arguments and conflicts are usually common, though the degree of variation between the parties is based on the legal framework on which they operate as well as their personal traits and decision. In this regard, there have been numerous legislation to ensure fairness is improved if not realized in such interactions. In many cases, employers dictate rules and the employees are bound to follow them with the sole aim of maximizing returns. This does not go well with employees who usually strain and are exhausted and thus such laws are necessary to ensure that they perform optimally but under fair conditions (Berggren, 2005). Economic and political freedom Regarding Capitalism as well as liberty, Friedman created Friedrich claim that economic sovereignty, whilst itself a very significant element of total liberty, is as well an essential condition for political democracy (Weiss, 2005). He remarked that centralized regulation of economic operations was at all times characterized with administrative subjugation. In his analysis, the presence of free market with guiding principles enshrined in law hinders exploitation of individuals by different persons in power who may strive to oppress for personal gain. Through decentralization, the power is distributed to different organs of the government/organization and as such fairness is emphasized (Weimer, 2009). In this case, marginalized groups have a say in the carrying out of business activities which empowers them to compete fairly with other individuals with better foundation, an aspect that enables them to grow financially and socially. Ludwig Mise claimed economic as well as political democracies are jointly reliant: For there to be political democracy, there should be fairness in the execution of various economic activities by the citizens (Tucker, 2010). This implies that none can stand without the existence of the other and the binding doctrines ought to be enshrined legally to ensure that there are appropriate avenues of resolving conflicts in case they arise. Moreover, Different scholars argue that economic power also covers personal interaction as well as the platform on which they operate. This ensures that they are able to be corrected if one slips out of the laid foundation to ensure that the best anticipated results are realized in an manner that do not interfere with the operation of other activities (Weimer, 2009). According to Gordon Tulock, some scholars argument pinpoint to the existence of totalitarian regimes in western countries, an aspect that was not experienced. In his explanation, Sweden stand out as a good nation to argue with since the state has control of only slightly less than two thirds of its gross domestic product. This pinpoints a case in which there is decentralization and different stakeholders have the chance to carry out different economic activities which eventually translate to great political and economic development. In this case, it is evident that political and economic liberties are important in enhancing personal interactions as well as the realization of continuous economic development. This is also evident in other developed nation across the world and should be encouraged in developing nations. . References Altvater, E. (2007). The Future of the Market: An Essay on the Regulation of Money and Nature after the Collapse of "Actually Existing Socialism: Verso. pp. 237–238. Ayal, E. (2006). "Components of economic freedom and growth: an empirical study". 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