Economic Liberty Assignment Help

Economic Liberty Assignment Help

Economic Liberty Assignment Help

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Economic liberty is the condition of any society in which it can undertake all the economical decisions, directions and actions on its own. It’s a kind of politico – economic philosophy.  Another term used for economic liberty is economic freedom. It is a state of improved quality of life. It is a key to greater opportunity. Economic freedom is the state where an economy can take decision on:

  • How to produce
  • How to sell and
  • How to use its own resources

Economic freedom is the driver of prosperity and raises standards of life. It’s the economic freedom, due to which some countries are stronger and some are weaker economically.  In economic liberty/economic freedom, there is no restriction or intervention by a government or any economic authority.  There, everyone is liberal/free to secure his/her resources and personal property. It is found mainly in capitalist countries.

According to Friedrich August von Hayek (The Road to Serfdom, University of Chicago Press, 1944).

“The economic freedom which is the prerequisite of any other freedom cannot be the freedom from economic care which the socialists promise us and which can be obtained only be relieving the individual at the same time of the necessity and  of the power of choice. It must be the freedom of economic activity which, with the right of choice, inevitably also carries the risk and the responsibility of that right."

Economic Liberty Assignment Help

There is no universally accepted definition economic freedom. The classical liberal and libertarian traditions focus on the free trade, free markets and private property with free enterprise. Welfare economicsstudy states that economic freedom comes from a greater/larger freedom of possible choices. Some other concepts say that economic freedom includes the freedom in collective bargaining and freedom from want.

According to the free market concept, economic liberty is the freedom to produce, trade without force, fraud or any kind of theft.  According to this concept, economic freedom requires rule of law and rule of law needs economic freedom.  It states that private property rights are an important part of economic freedom.   There are two main rights in private property rights:

  • Right to voluntary transfer of property
  • Right to control and benefit from the property

According to the economist Milton Friedman, “property rights are the most basic of human rights and an essential foundation for other human rights.”  When there is a well established state of economic freedom, people are free to make use of their property on their own. They can earn it. They can transfer it to anyone voluntary. A state of secured property rights has the potential to create a successful economy, facilitating investments.  Many countries have economic growth as they have strong property right policies. While some countries have weak economies because they don’t have a well defined economic property right policies.

We are living in such a world which is considered to be the most advanced, prosperous time in the human history. Due to economic freedom, world has grown and developed. Many social and economical barriers have to broken. Due to economic freedom, poverty, sickness and ignorance have been reduced.  The governments allow free flow/free movement of capital, goods and labor. In a well established state of economic freedom, everyone is free to:

  • Use and control his/her property and labor
  • Free to work
  • Free to produce
  • Free to consume
  • Free to invest

Measurement of Economic Freedom

Economic freedom is measured, based on many factors which are counted quantitative and qualitative. There are:

  1. According to Rule of Law, economic freedom is measured as property rights and freedom from any type of corruption, fraud and theft.
  2. According to Limited Government, economic freedom is measured on the basis of government spending and the fiscal freedom.
  3. According to Open Markets (Free Market), freedom of trade, (free trade), freedom of investment and financial freedom are the measurement of economic freedom.
  4. According to Regulatory Efficiency, the freedom of business, the freedom of labor and monetary freedom are included.

Economic freedom touches all the aspects of human life. A society with economic freedom has higher incomes and longer life expectancies with lower unemployment, lower poverty and a clean and healthy environment.  It leads to higher life quality with more economic freedom.  Countries with higher economic freedom have higher rate of per capita GDP.  In such countries there is greater improved health, wealth and education. This is because individuals have control on their property and labor without any intervention of the government.

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