Question

Who has the most power in a free market the government or the people?

Answer 1

What is a free market?

A free market is an economic system of government that allows citizens to navigate through the economy without government control. Part of the laissez-faire ideology of government (laissez-faire translating to leave it alone essentially), the government has no control over the supply and demand production, pricing limitations and employment. Because companies and items are controlled by private scetors, the government does not even have a say in the materials allocated and used in production.

Due to this definition, the people have the most power in a free market as they have the freedom to financially act however they deem necessary for the success of their business.

This freedom, however, does have its pros and cons:

While financial freedom (freedom to set prices, pay workers self-determined wage, no limit on the geographical spread of company) is great for individual businesses, unfortunately, the lack in government involvement can possibly lead to poor working conditions, use of inefficient material for faster production and much more.

Answer 2

That means that individuals — and not the government — own most of our country's resources. Free enterprise also means that supply and demand determine how our resources are used. In a free society, people own most of the country's resources and private markets determine the best use for these resources.