Econ 104: Liberty, Prosperity, Health and Happiness

Econ 104: Liberty, Prosperity, Health and Happiness
Name
Institution Affiliation
Economic Liberty
It is the basic right of every individual to undertake an occupation without government interference and be responsible for their economic actions. It’s otherwise known as economic freedom. Economic liberty puts emphasis on free trade, free market as well as the ability to own private property under free enterprise. Most often governments infringe on individuals basic rights to free markets and free trade through unreasonable licensing and stringent requirements. These actions however, create barriers and impose additional costs that affect the whole economy. In addition, they reduce innovations by businesses and entrepreneurs and stifle service competition among professionals. They have no measurable benefits to customers or the entire society.
Free market is one of the principals advocated by economic liberty. It refers to an economy where the laws of supply and demand regulate production and labor and free from government intervention. It is characterized by workers demanding highest salaries that employers are willing to pay and business offering goods and services at highest prices that consumers are willing to pay (Georgiou, 2015). Firms and households determine resources allocation and control the production and sell of goods. Free markets lead to increased business innovations and helps businesses operate at reduced costs hence maximizing their profits.
Furthermore, economic liberty acts as a countermeasure to political freedom. Governments are not in a position to influence economic activities and as such there is a clear distinction with its political control and power (Hooper, 2016). In addition, economic freedom is important in raising the living standards of people in the society and overall economic growth. A free economy:
* Ensures a stable currency and monetary freedom.
* Ensures business freedom as they are established and run without regulations such as licensing and safety rules
* Ensures trade freedom and ability to import and export goods and services without impediments such as tariffs and quotas.
* Promotes investments as there is free movement of capital.
* Ensures that vices such as corruption and bribery are eliminated as it is run on transparency.
* Allows individuals to profit from the buy and sell of property.
Economic Prosperity
It refers to being financially stable and having enough money to fulfill ones needs and desires. An economically prosperous country is one that lives in excess of its needs. People in these countries can afford luxurious lifestyles and purchases of cars and large houses. The United States is an example of such countries. On the other hand countries that can barely afford medical care require food donations often and are characterized by poor infrastructures lack economic prosperity. Examples include most countries in Africa and war torn countries like Afghanistan.
Economic prosperity leads to economic growth. Economic prosperous countries have low levels of unemployment if any at all as firms are able to employ more workers. Individuals in these countries receive high incomes and wages enabling them to enjoy more goods and serv...