“The most important single central fact about a free market is that no exchange takes place unless both parties benefit.” -Milton Friedman
One of the best things about the free market is mutual consent that goes into each transaction. No transaction is forced in a free market; everyone gets to decide if they want to participate or not, based on their individual outcome. In this market environment, there is freedom to decide what value is attributed to labor, goods or services based on individual consent and reasoning. Voluntary exchange finds itself at the core values of a free market system this is because no transaction is forced. Without the ability to complete something on a voluntary basis, government overreach and constraints become clear in an economic environment. Some would argue that constraints on certain markets are a good thing, but others like myself would argue that over regulating a person’s ability to choose can create a perfect storm of a black market. The War On Drugs is a perfect example of over regulation. What are your thoughts on voluntary exchange? Let us know; this will be the topic for this week’s episode on the Of The Free Market Podcast.
