What is free economy?

The state should not intervene in the economic activities on its territory and leave the markets to control themselves. This means that this state adopts the free economic system.

what does that mean?
What are the implications of this system?

A market economy, a free economy or a capitalist economy are many labels that have one meaning: the system based on the freedom of the individual, which means that he has the right to undertake any economic activity that he wants, based on the private ownership of the means of production and the individual initiative.
The interaction of supply and demand in the market is the cornerstone of this system which controls prices, as well as free competition, which plays an important role in controlling prices and freeing them from any restrictions that the state can use.

However, a market economy does not mean in any way the absence of the public sector and the role of the state in regulating economic life. The market economy was reevaluated after the severe global financial crisis in late 2008, and socialism was brought into the free market, such as nationalization by the Obama administration in curbing the financial meltdown in the world's largest economies. Thus, the most prominent characteristics of this system are the ownership of the elements of production by the individuals. The law recognizes and protects this property.

The owner has the freedom to dispose of his property and has the right to exploit it in any field as long as it does not conflict with the law. He can employ his money and what he has in the agricultural or industrial activity or leave him unemployed, he is free to own. One of the most important functions of the private property right of the elements of production is that it drives savings.

The profit motive is the primary driver of increased production, and is the main driver of any decision taken by producers. Competition between producers and consumers among themselves leads to the efficient exploitation of economic resources, where competition theoretically leads to the provision of goods at the best quality and best prices. The main disadvantages of this system, which were revealed by the experiences, are: the growth of the monopoly phenomenon in the sense of domination of some sectors and control of prices, poor distribution of income and wealth so that the gap is very large between the rich and poor classes. In addition to increasing unemployment and economic fluctuations so that the volume of economic activity in a certain period and witness a remarkable recovery and in another period shrink and cause recession and stagnation.

The free economy also increases social crises, especially among vulnerable groups.

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