What is a Free Market?

I recently read an opinion article that included description of a free market, and I was quite shocked. It explained that a free market would make a person “responsible for building and maintaining his own roads” and “dig [his] own well and septic tank as well as build [his] own personal wind turbine to produce [his] own electricity.” I don't think anyone could be in favor of a market that was basically every man for himself. But this depiction doesn't describe anything that has to do with a free market.

Any market is made up of individuals interacting with each other and making choices. Often we talk about a market as some sort of entity of its down driving around willy-nilly and sometimes causing mayhem. But there is no such animal. That would be like saying if you live in North Carolina then there is only one way of life or one way of thinking. Our market is actually millions of people working together to find the best way to get what they want by giving something to someone else.

Wait – How can a market function with everyone running around just trying to get what they want? Well, most people realize that whether you pay for something with taxes or if you purchase it from a business, there is no such thing as a free lunch. This is what drives someone to open a burger restaurant or start a car wash or just provide their labor as an employee so that they can provide a product or service to others. In turn, they will receive compensation in the form of money that they can use to get what they want. It takes some people longer than others to figure it out, but eventually most people realize that the best way to get what you want is by giving.

When buying gasoline, most people choose a station that gives them the best price. But when buying a steak, most people buy from whoever is giving the better quality. When people work at a job that they enjoy and that pays them well, they give more of their attention and dedication to their employer. McDonald's isn't the most successful fast food chain because they take more of your money, they're more successful because they give the most convenience and consistency. When you purchase a Big Mac, they are required to give you a burger, the convenience and the consistency are given freely.

What does this have to do with a free market? Let's contrast the opposite – a restricted market. In a restricted market, the spirit of giving is removed. For example, in the hotly-contested Obamacare bill, health insurance companies are required to allow a child up to 26 years old to ride on their parents' policy. There is no spirit of giving in such a requirement, but you will pay for it with either taxes or premiums, whether you have any children or not. This is an example of taking, not giving and it is a very clear difference.

Free should not be confused with anarchist. Government is desirable and necessary in any market. A well-functioning government provides a guarantee of safety and penalty for fraud. Most countries rife with poverty are home to violence, corruption, or both. No matter how much the governments of these countries try to manage their markets and monetary policy, their conditions will never improve until they are strong enough to rid themselves of violence and corruption.

Believing in the free market is the recognition that anything worth having is worth earning. It is also the understanding that the best way to earn something is to give of yourself first, and then you can receive, and often more than you have given.