Limits on Economic Freedom

If a person can do what he wishes with his own property, time, and energy, then economists say that he is economically free. In all communities, of course, limits are imposed upon the personal freedom of their citizens and these limits are in some cases very complex but in others relatively simple. All individuals are required to conform to the laws made by their goverments.




Complete economic freedom of action can create greate difficulties, because the freedom exercised by various individuals often conflict. If citizens were completely free, some landowners might build factoriesin unsuitable places, while some factory-owners might make their employees word too long each day. If they were completely free, wordker might stop working when they got their first pay, and come back only when they needed more money. Such economic anarchy could cause instability( loss of production etc.) in whole whole economy of a country.

Laws related to economic conditions are sometimes concerned with contracts between employest and employeess. Sometimes they are concerned with wordker’s healthy. Wages and pensions, and sometimes with the location of plece of work. Sometimes they protect the interest principally of workers, while at other times they may be both employees and employers will depend very much upon the political and economic ideology adopted by the goverment, and may be biassed towards employers and capital on the hand , or workers and the problems of labour on the other

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Economic Activity

Most people work to earn a living, and produce goods and services. Goods are eather agricultural (like maize and milk) or manufactured ( like cars and paper). Services are such things as education, medicine and comerce. Some people provide goods, some people provide services. Other people provide both goods and service which helps him to maintain his car.

The work people do is called economic activity. All economic activity together make up the economic system of a town, a city, a country or the world. Such an economic system is the sum-total of what people do and what they want. The work people undertake either provides what they need or provides the money with which they can buy essential commodities. Of course, most people hope to earn enought money to buy commodities and services which are non-esential but which provide some particular personal satisfaction, like toys for children, visits to cinema and books.

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Different economic systems

Not all economic systems are the same. The economic system of the USA differs greatly from the system of the USSR. The american system is based on private enterprise with private ownership of the means of production, while the russian system is communistic and is base on the principles of karl marx, the 19th century political economist. The the economic ideologies of these two nations contrasr very strongly.

Britain is similar to the USA. It has an economic system based on private enterprise and private supplies of capital, which can be defined as surplusincome available for investment ini new business activities. Property in both the US and britain can be oened by individual citizens and these citizens exercise considerable economic freedom of choice. They can choose what they want to do and how they want to earn their live, but are not of cource entirely free to do as they wish. They must obey law. Otherwise, however, they can use their time, money and effort as they wish

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