Economic freedom Essay Example | Topics and Well Written Essays - 1000 words

Economic freedom - Essay Example The essay "Economic freedom" concerns the concept that called economic freedom. Studies have shown that human beings operate more efficiently when not under pressure. Freedom allows individuals to practice and fully exploit their creativity. Sociologists have linked human freedom to human creativity and have found it to be working hand in hand. The Sociologists argue that it allows for greater risks taking that would generate better ways of doing business. Economic freedom has three classical viewpoints, institutions, political and indices of economic freedom. This paper presents a discussion on economic freedom. For there to be a smooth flow of trade between parties, there are institutions of economic freedom set to achieve it. The first is the observance of the rule of law. In the application of the law, all parties are equal, and none is superior. The rule of law has obligations that ensure equality of individual in spite of any form of difference between them. Observance of the l aw protects traders from unfair completion. In law, two kinds of parties exist, the one with power and the other one who is governed. Both parties should act in a manner that is required of them and feel protected by the law. In as much as there is the observance of equality, it is not logical for every party to earn the same income. Equality comes in the sense of treatment of one another and not in the distribution of private resources. It is illogical for the government to redistribute earned resources. from citizens in the name of equality (Asafu-Adjaye 78). The next institution is a clear outline for the rights to own private property. A free market allows for the right for people to control their property and benefit from them. In addition to this, the individuals have a right to transfer their property at their own will. Therefore, an individual cannot be prevented from doing whatever he or she likes with the property. With this kind of system, traders are motivated to pursue their goals and continue adding value to their property. The traders are confident that they are capable of transferring their income anytime without the fear of having to leave anything behind when they opt to leave. Studies show that areas with well-defined property rules have a faster economic growth as compared to the areas without. Most research argues that this property rule is the main reason for poverty in third world countries since they do not have well spelt out systems. The third is the freedom of contract, which refers to the right of choosing whom to trade with, or not. The individual parties choose the form of contracts to get into and establish an agreement. However, once establishing the contract they both have to fulfill the terms and conditions and see it through whether one realizes that he will incur losses. In as much as most of the contracts are fair, some are not especially when the parties are unequal. An example is in the case of workers and employers when negotiating a number of working hours. The employer would be looking at maximizing the hours while the worker will be looking at minimizing it. However, since the employer has an upper hand, he tends to win the negotiation (Noyes 43). Economical freedom has come hand in hand with political freedom. Since the market is free, it has prevented politics to dominate trade. This has reduced the threat of suffering because of a political affiliation. It is a point worth noting that economical freedom has grown with the coming of political freedom.