• Economics,  Politics

    Free Market Economics vs. Capitalism

    Free market economics is about competition between businesses, and it operates under the assumptions of a closed system in which wealth can be redistributed, but the total wealth must remain constant. Capitalism is the contrary idea that the economy is an open system in which wealth can be infused, in order to create a net growth for the economy. The wealth infusion is carried out by the wealthy using a business model that is stripped of risks, and the lender is certain to gain wealth over time, making the rich get richer and the poor poorer. This post discusses how free markets are different from capitalism; in the former, wealth…