Trump Is Creating a Global (Nearly) Free Market Economy

Most economists will say that free markets produce the greatest amount of output, the lowest price for goods and services, the greatest efficiency, and the highest quality. Free markets are innovative, responsive to the needs of the consumer, and result in higher incomes for all workers, although some workers get much, much higher income than others.

To be fair, some economists disagree. Since in a free market each person is paid according to their contribution, there are often large differences in income between the top management and the average employee. This leads to severe income inequality. These economists would argue that a goal of economic policy should be to somewhat regulate markets to reduce income inequality. That improves economic and social welfare which, they say, is the goal of an economy.

Free markets seldom completely occur. When they do, the results are always the same: more output, lower prices, more efficiency, and the highest quality. An example might be the market for Lasik eye surgery. This is an elective procedure that repairs eyesight to the point where corrective lenses are no longer needed.

Insurance companies will not pay for elective procedures like this. So it was simply a free market. Both eye doctors and consumers were free to enter the market and seek a price. The…