The truth about the free market

Many people mistakenly believe that trade is a 'zero-sum game' - that in every transaction one person exploits another. This is not the case at all - in a free market, people only take part in trade when each one benefits from the exchange. Murray N Rothbard explains how the free market really works - and shows that the worst forms of exploitation only occur when the government comes into the picture...

The Free Market is a summary term for an array of exchanges that take place in society. Each exchange is undertaken as a voluntary agreement between two people or between groups of people represented by agents. These two individuals (or agents) exchange two economic goods, either tangible commodities or non-tangible services.

Thus, when I buy a newspaper from a news dealer for fifty cents, the news dealer and I exchange two commodities: I give up fifty cents, and the news dealer gives up the newspaper. Or if I work for a corporation, I exchange my labour services, in a mutually agreed way, for a monetary salary; here the corporation is represented by a manager (an agent) with the authority to hire.

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