3. Free market philosophy
*History 8 Mesopotamia Vocabulary
Free market is a type of market or economy where goods can be bought and sold without governmental regulation or restriction and prices are controlled by supply and demand. Because no pure form of any economy exists, free market only exists in theory and therefore is a philosophy. Primitive hunter-gatherer societies had a type of economy based on tradition and solved their economic problems by adapting. When states with centralized power arose, the idea of command and rulership greatly affected the economy. This organizing principle of command took much of the population away from their traditional occupations and used their labor to accomplish the wishes of a ruling people or small elite group. This system could generate a great surplus of wealth for the ruling elites, creating some market forces that still exists today and leading to the modern free market. Free market philosophy is one of the basic principles of Western modern society that was influenced by the first civilizations that arose in the Middle East.
Resources:
- Origins Manual, Page 92
- http://school.eb.com/levels/middle/article/20150
- http://school.eb.com/levels/middle/article/106203#61117.toc
Picture:
Yukiko Chevray
