Pros And Cons Of Economic Freedom

In todays society, people are given various freedoms with which they can live their lives under their own personal terms. However, in the world of economics, these freedoms are not necessarily the same. Economic freedom is defined as, “the freedom to prosper within a country without intervention from a government or economic authority” (Business Dictionary). This is rarely the case in the real world. Companies and organizations are always held accountable for their actions. This is usually by the largest governments and economic regulatory bodies in the world. The regulation simply makes their economic decisions devoid of liberty. The government and other regulatory bodies restrict these companies by placing taxes, sanctions, protocols, and other types of laws on them. These types of restrictions can be imposed in several different ways, each of which have benefits and drawbacks to society. The government’s priority is not how prosperous the company is, they simply care about how stable the economy is after the company’s economic actions. Through the use of legislation, these government and regulatory bodies are able to force companies to make decisions they otherwise would not have made. This, as a result means that true economic freedom does not exist in our modern capitalism driven world.
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In practice this does not occur. With true unregulated economic freedom, the economic environment allows true unlimited prosperity for both companies and average people. It should allow the concept of ‘risk versus return’ to be directly proportional. Instead, with restrictions on investments that people can make, it undermines the implied economic ‘freedom’. Governments impose sanctions on countries resulting in investments and capital to be frozen or seized. This causes the markets to shrink and eliminates investment opportunities for people.