I want to share an outstanding essay from one of my high school Economics students from their semester essay final examination:
6:19 pm on December 28, 2018The most significant and important thing that I have learned about Economics in this class this semester, is the importance of free unregulated capitalistic markets. Free unregulated markets are important because that kind of market has been proven and does create more jobs, which lowers the unemployment rate, lowers the poverty percentage, and creates a better environment for an economy to grow. Another reason why free markets and de-regulation are important, is that better products are created for the consumer out of it.
In a free unregulated market, more jobs are created. In a highly regulated market, it is hard for businesses to be able to hire more jobs because of the the large taxes and fees they would have to pay, and special requirements they would have to make. De-regulating the market, and lowering business taxes would give businesses more opportunity to hire more employees, which in return lowers the unemployment rate and poverty.
In a free unregulated market, products for the consumers are a lot more improved and just better than ones for people in more socialist and communist societies.
In a free market, competition is created. Businesses who aren’t improving their products well enough and frequently enough can easily be put out of business by other competitors who are. This competition also keeps the price of products in check. In a more regulated and controlled market, such as communist systems, there could be little and even no competition at all. The products coming out of these countries come from few sources, and are mostly obsolete or old qualities, the lack of competition gives them no drive to improve their product.
In a free unregulated market, poverty is drastically lower than those who are more socialist or communist, countries like Venezuela, and the former Soviet Union. The quality of life is also extremely higher in free market systems. In free markets that are lowly regulated, more jobs are created and more revenue is created, which lowers poverty, and improves the quality of life for people. When governments get involved with the market more and more, it makes businesses less able to make make money. During revolutionary China, where the government was in complete control of the economy, and businesses and no aspect of money existed, one hundred million people starved to death, and millions more in countries like the former Soviet Union. These deaths also show the importance of free countries, and free markets, from extremely controlling and regulating markets and oppressive tyrannical governments. The Venezuelan country went from a decently rich country from their oil fields, and good quality of life for its citizens, to a country where its currency is worthless and people are starving to death from the empty grocery stores. All of this is occurring because of an un-free highly regulated market, it is happening because of a communist like socialist government. This shows the importance of free unregulated markets, on on how they lower poverty.
All of these reasons show why a free market, and very low regulation is significantly important to an economy. A free market creates more jobs, because it is easier to operate a business with less regulation and taxes. More jobs are created in free markets, because of the less regulatory policies, than a socialist economy, and also lowers the poverty rate and unemployment rate. All of these show the importance of free markets with little regulation and small government.