In free markets, voluntary interaction makes up the economy’s structure, allowing for little to no state regulation and thus mutually beneficial trade.
Free trade allows for goods and services to move freely across borders. As a free system, it is the best way to distribute resources to those that value them most.
Many libertarians argue that though market failures exist, private solutions still work more effectively than government intervention.
The black market refers to those markets involving extra-legal organizations and paths for the trade of goods and services.
In this entry, Alexander Volokh examines how externalities are generated in the market and questions the assumption that government should act because of them.
When the government uses price controls to influence the affordability of products, shortages or surpluses occur - often making the problem worse.
A great 19th century French economist, Gustave de Molinari was outspoken about his opposition of protectionist government policy.
Henry Hazlitt was an economic journalist and popular author whose works explained and elaborated on many libertarian ideas.
Entrepreneurship, or the development of new products, methods, and means by individuals, is considered to be a compelling factor in economic growth as well.
With many private contract enforcement options in existence, libertarians now question whether government is needed to guarantee contracts are upheld.
Government regulation of the market is often argued to be a response to market failures. However, often these regulations make society worse off.
One example of a prosperous and relatively free society, the Dutch Republic was a major world power between the 16th and 18th centuries.
Charles Murray’s work has questioned the effectiveness and implications of the American welfare state and promoted individualist solutions instead.
Libertarians believe that laissez-faire policy, or the freest form of economy, provides the greatest net benefit to individuals and to society.
Competition between multiple firms fuels innovation, trade, and efficiency. For this reason, competition is an important part of a free market economy.
Frank H. Knight was an economist whose skeptical writings on economic planning and limited government informed the work of the Chicago School.
George J. Stigler was a Nobel Prize winning economist who wrote on a number of topics, including prices, regulation, and information theory.
Israel M. Kirzner is a noted economist of the Austrian School known most for his work on the role of entrepreneur in the market.