Free Market based systems of economics are on balance, better off for countries.
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After 2 votes and with 8 points ahead, the winner is...
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Free Market: an economic system in which prices are determined by unrestricted competition between privately owned businesses.
The free market is an economic system based on supply and demand with little or no government control. It is a summary description of all voluntary exchanges that take place in a given economic environment. Free markets are characterized by a spontaneous and decentralized order of arrangements through which individuals make economic decisions
- Free Market: As EconLib states: "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 nontangible services. (1).
- As renowned Economist Paul Krugman states: "A free market economy is governed solely by the principle of voluntary exchange and the law of supply and demand" (2).
- Better: of a more excellent or effective type or quality.
- The Free Market system is perhaps the best system of economic trade and interaction. In this round, I will build the basics of my case and expand on my points as well as rebut CON in the second round.
- My argument is simple quite frankly as I believe what is resolved today to be a matter of fact. On balance, the free-market system creates wealth and improves countries.
- According to the competitive enterprise institute:
Over the years it has proven to be an incredibly robust prediction of how prosperous countries are or will become. The Fraser Institute has found that countries with institutions and policies more consistent with economic freedom have higher levels of income, more rapid economic growth, and a greater reduction in poverty rates. For example, in 2015, nations in the top quartile of economic freedom had an average adjusted per capita GDP of over $40,000, compared to around $5,000 for bottom quartile nations. Further, there is a strong correlation between prosperity and economic freedom even for the poorest nations. Out of the poorest 20 percent of countries, those with greater economic freedom have incomes that are 50 percent greater than those with less economic freedom (3).
- According to Catalyst
The good fortunes of most can be traced to the free exchange of goods and services for mutual gain. While an imperfect system, capitalism remains our most effective weapon in fighting extreme poverty. As we’ve seen across continents, the freer an economy becomes, the less likely its people are to become entrapped in extreme poverty.This can be corroborated by tracking the rise of “economic freedom,” which is related to the openness of a country’s markets and corresponding increases in living standards. Over the past 25 years, the global average economic freedom score—as calculated by the right-leaning Heritage Foundation—has increased by 3.2 percentage points, with many countries joining the ranks of at least the “moderately free” (4).
- What is the pattern here? As countries become more economically free and have freer markets they tend to reduce poverty, become more productive, and improve the general standard of living and prosperity. There is a reason why virtually every developed/core country has a free market economic system.
- We will expand on each of these ideas in the next round, but consider them as we move on.
- Now to CON.
- https://www.econlib.org/library/Enc/FreeMarket.html (Free Market)
- https://www.masterclass.com/articles/free-market (Free Market - Paul Krugman)
- https://cei.org/blog/why-economic-freedom-is-the-best-weapon-against-poverty/
- https://catalyst.independent.org/2019/06/14/capitalism-remains-the-best-way-to-combat-extreme-poverty/
- Unfortunately, CON's whole argument seems to boil down to a semantic objection to the term free market, and we can get to addressing that.
- based: have as the foundation for (something); use as a point from which (something) can develop. [oxford languges]
- If one thing is based on another, it is developed from it: [2].
- CON makes the case that there is no free market economy system.
- However, this would be true if CON had argued that there are no pure free-market systems, however.
- The key is the word pure here. A pure free market would have no state intervention and rely only or entirely on private interactions.
- However, I specifically made the resolution "Free Market based systems of economics are on balance, better off for countries" to specify that we aren't necessarily talking about pure free markets but economic systems that are based on the voluntary exchange principles of the free market even if they have some levels of government intervention.
- Ultimately, an economic system can be based on a certain
- The term “free market” is sometimes used as a synonym for laissez-faire capitalism. When most people discuss the “free market,” they mean an economy with unobstructed competition and only private transactions between buyers and sellers. However, a more inclusive definition should include any voluntary economic activity so long as it is not controlled by coercive central authorities. Using this description, laissez-faire capitalism and voluntary socialism are each examples of a free market, even though the latter includes common ownership of the means of production. The critical feature is the absence of coercive impositions or restrictions regarding economic activity.1 Coercion may only take place in a free market by prior mutual agreement in a voluntary contract, such as contractual remedies enforced by tort law [1].
- But what CON means is that pure free markets don't exist.
- This does not preclude that free market-based economies that feature the principles of a free market system are a mixed capitalist economy don't exist and this is exactly what we are debating. Whether these economic systems are better off for countries on balance.
- Moving on to CON's arguments
- Any country has diminishing marginal returns as it develops. This is just a law of economics. Obviously, as you develop from a lower stage, you will less overall development progressively because you keep improving to a higher stage of development. You don't show how this is a bad thing, and it really is not.
- As I pointed out in round one; free market-based systems and economic freedom are the best ways to develop and reach these stages
- Lastly, my opponent mentions GDP as an argument for why freer countries arent better but larger countries almost always have more GDP. The way we can compare is by looking at GDP per capita which Singapore's is over 50,00 and Mexico is around 8000
- https://www.worldometers.info/gdp/gdp-per-capita/
- https://www.investopedia.com/terms/f/freemarket.asp
- https://dictionary.cambridge.org/us/dictionary/english/based
- The term “free market” is sometimes used as a synonym for laissez-faire capitalism. When most people discuss the “free market,” they mean an economy with unobstructed competition and only private transactions between buyers and sellers. However, a more inclusive definition should include any voluntary economic activity so long as it is not controlled by coercive central authorities. Using this description, laissez-faire capitalism and voluntary socialism are each examples of a free market, even though the latter includes common ownership of the means of production. The critical feature is the absence of coercive impositions or restrictions regarding economic activity.1 Coercion may only take place in a free market by prior mutual agreement in a voluntary contract, such as contractual remedies enforced by tort law [1].
- Moving on to CON's arguments
- Any country has diminishing marginal returns as it develops. This is just a law of economics. Obviously, as you develop from a lower stage, you will less overall development progressively because you keep improving to a higher stage of development. You don't show how this is a bad thing, and it really is not.
- As I pointed out in round one; free market-based systems and economic freedom are the best ways to develop and reach these stages
- Lastly, my opponent mentions GDP as an argument for why freer countries aren't better but larger countries almost always have more GDP. The way we can compare is by looking at GDP per capita which Singapore's is over 50,00 and Mexico is around 8000
- https://www.worldometers.info/gdp/gdp-per-capita/
- Sourcing: CON makes many claims and simply dumps a list of sources for all of them afterward so it is a little difficult to tell which source is for which specific piece of information
- CON compares the GDP of Mexico and Singapore thinking that because Mexico has a higher GDP they are...better off?
- According to economic source, Investopedia: "Per capita GDP is a global measure for gauging the prosperity of nations and is used by economists, along with GDP, to analyze the prosperity of a country based on its economic growth" [1].
- According to cis.org (center of immigration studies): "To be sure, a larger population almost always results in a larger aggregate economy. More workers, more consumers, and more government spending will make for a larger GDP. But the standard of living in a country is determined by per capita (i.e., per person) GDP, not the overall size of the economy" [2].
- Signapore has a GDP per cpaita of 59,797.75 USD (2020). Mexico has a GDP per capita of 8,346.70 USD (2020). [world bank provided by Google] [3].
- CON makes a false dichotomy between a slightly regulated market economic system is and what is a free market-based system. Simpy, a free-market base system is based on the principles of a free market. As I have proven this includes lassiez-faire economic systems as well which are prevalent in Europe as we will point out.
- I would have to agree that Free Market based systems are amazing which is what the entire resolution is about because of the amount of economic prosperity they have brought to regions of the world.
- It's semantic in the sense that you are arguing what the words free market mean in a sense of what a pure free market is. Granted I did not define "based" in my round ot but I believe it was such an obvious word it didn't need a definition.
- CON accepts the framework of the debate, but to address some points:
- It is not a "new" framework because this was directly in the resolution and It is not moving the goalposts if this was stated in the resolution, to begin with.
- By "our" I have no idea what my opponent is referring to. You have to be more specific than that and name an actual country. The assumption seems to be that we are speaking about one specific area or what we live in the same country?
- It makes it impossible to respond to this claim in a specific way.
- Mercantilism according to Britannica "promoted governmental regulation of a nation's economy for the purpose of augmenting state power at the expense of rival national powers" [6]. So it is a largely defunct system and according to The Canadian Encyvolopediia "fell out of favor as an economic theory beginning in the late 18th century" [7].
- I think it's fair to interpret that you are referring to a general modern/current system of economics based on the free market. Your argument is moot. Mercantilism may have been a feature in history, but modern economic systems in developed countries arent based upon it because they don't operate with it as a foundational principle.
- Their foundation is simply the principles of voluntary exchange, low levels of government regulation, free enterprise, and more lassiez-faire capitalism. We will get more into this later
- First I will break down the statement then I will respond to the question.
- in response to the Investopedia quote I used to establish a better idea of what it means to be "based" in a free market, CON does not dispute that free-market systems can include laissez-faire capitalist economies. Consider this point dropped.
- The Investopedia quote specifically states a "more inclusive definition should include any voluntary economic activity so long as it is not c." So the quote does not say anything about mere restrictions, but control by a coercive central authority such as the North Korean system which is a centralized command economy.
- Even pure Free markets themselves can have restrictions. As Investopedia states in their definition "little or no government control."
- Now to answer after getting through the incoherent elements I will rephrase it as "can you tell me when we didn't have an economy controlled by coercive central authorities"
- Sure, simply for as long as we did not have slavery or a command economy.
- I would agree that slavery is the opposite of a free market-based system.
- As Investopedia states from my round one sources, free markets consist of voluntary economic interactions.
- Slaves were not allowed to voluntarily trade their labor, they were forced to submit their labor. Therefore, slavery is antithetical to the free market. Perhaps closer to soviet union communism if anything. As Wikipedia states about the Soviet Regime "In the years that followed, under the communist regime, the government began taking rights and enforcing new policies of forced labor."
- So really so long as slavery does not exist in a state-sanctioned way, which was around the 1870s/80s.
- The "red scare" doesn't say anything specific about the economy, so I am confused about that.
- The "cold war" doesn't say anything specific about what type of command control of economic freedom you are referring to. Give some specific points, otherwise, I dont think you understand what you are saying.
- Lastly, slavery was not the cause of economic growth. As digital hustory states "although slavery was highly profitable, it had a negative impact on the southern economy. It impeded the development of industry and cities and contributed to high debts, soil exhaustion, and a lack of technological innovation" [8].
- CON admits there is nothing inherently bad with diminishing returns and I agree. If anything they are good because as countries keep improving they need less improvement progressively.
- How do countries improve
- The argument is that free market-based systems of voluntary exchange are what bring countries to prosperity.
- CON seemingly does not defend their bad argument based on the GDP of Mexico meaning they concede/drop my rebuttal on GDP per capita.
- Saying "I'm sure we would find" isn't an argument. It means nothing.
- Contrary to the latter point, according to Cato: "Nations in the top quartile of economic freedom had an average per capita GDP of US$50,619 in 2019, compared to $5,911 for bottom quartile nations" [4]. So there is a very strong correlation between these free market-based systems and higher GDP per capita.
- CON has not sufficiently challenged the resolution
- CON drops the argument from GDP per capita
- CON has not shown a single way that economies based on the free market are not better off for countries.
- https://www.investopedia.com/terms/p/per-capita-gdp.asp
- https://cis.org/Camarota/There-No-Evidence-Population-Growth-Drives-Capita-Economic-Growth-Developed-Economies
- https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=MX
- https://www.cato.org/economic-freedom-world/2021#:~:text=Nations%20in%20the%20top%20quartile,in%20the%20least%20free%20nations.
- https://www.investopedia.com/terms/f/freemarket.asp
- https://www.britannica.com/topic/mercantilism#:~:text=mercantilism
- https://www.thecanadianencyclopedia.ca/en/article/mercantilism
- https://www.digitalhistory.uh.edu/disp_textbook.cfm?smtID=2&psid=3558#:~:text=Although%20slavery%20was%20highly%20profitable,a%20lack%20of%20technological%20innovation.
Pro argues free markets lead to more wealth and other improvements within areas which practice them or strive toward them.
Con kritics that free markets are really still regulated, so shouldn't be called free... This was already headed off in the description "free market is an economic system based on supply and demand with little or no government control." Thus, a little government involvement is still allowed.
Pro defends that the resolution does not have the qualifier "pure" next to free market.
Con goes on to talk about Merchant Capitalism, which was a cool history lesson, but doesn't connect the dots back to what free markets are defined as in common use today. He does slide in a nice point about slavery being banned means it's not a pure free market, but this needed to be built up a lot more if trying to show the horrors of the free market; and ultimately, some other system which is better is all but essential for this type of debate.
I like the vibe of the double speak talk, but it was not executed with the grace needed to have it override everything... I'll give more feedback in the comment section.
Conduct for missed round.
Kudos points to con for "...Free Markets are amazing, everything good on this God-forsaken planet comes from Free Markets, the Sun orbits around Free Markets and so forth..." It made me laugh.
I'll begin by checking in my baggage: I am pretty hostile to semantic maneuvering that undermines the clear intent of a debate. For that reason, I was predisposed against Con's argument that free market economies - or (sigh) free market *based* economies - do not exist. It is very obvious what Pro meant when establishing this debate; instigating a debate around labels is juvenile.
Regardless, the debate did revolve around whether or not free market based economies exist. If they did, Pro had sources reporting the expert consensus in his favor. If they did not exist, well, the point would be moot.
It was a good move for Pro to highlight the "based" part of free market based, as it allowed him to include regulated capitalist economies (i.e. literally almost every economy on the planet) in his case, instead of purely "free" market economies (of which none exist). Con took up the "based" challenge by appealing to capitalism's historical roots in mercantilism and monarchical command economies. While the thread does trace its way back there, I think Pro did well to point out that mercantilism is defunct and the core principles of free markets form the foundation of all modern economies, which he defines as "free market based."
At this point, the debate was close enough that Con could have pulled off a win in the final round, depending on how he played his cards. But the forfeit simplifies matters, leaving Pro on top.
I should also note that the general tone of the debate was acidic, unsportsmanlike, particularly on Con's part. Had Con not conceded, I would still have considered docking conduct. But, again, the forfeiture simplifies matters, transforming a borderline case into a clear case.
Thank you Barney for notifying me.
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>Reported Vote: Conservallectual // Mod action: Removed
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>Reason for Decision: "I am pro free market."
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I see what you were going for there, but when Kritiking, you have a fairly small window of opportunity to be taken seriously.
Something you may find helpful:
https://info.debateart.com/kritik-guide
What may have worked was if you argued that Merchant Capitalism is on balance better, leading to more economic growth such as the discovery of the Americas... Obviously worse off for countries like those in North America, but worse off for not practicing it (maybe find a source to show that they were a free market... I'm spit-balling here on how this could have been successfully trolled and kritiked).
Please vote
Hey man, could clarify what you were saying here: "This does not preclude that free market-based economies that feature the principles of a free market system are a mixed capitalist economy don't exist and this is exactly what we are debating. Whether these economic systems are better off for countries on balance."
I'm not trying to do some debate tactic thing here, I'm just kinda confused lol sorry. Like, you don't have to re-explain it in some technical debate way, I just wanna know what you're trying to say here.
"by looking at GDP per capita which Singapore's is over 50,00 and Mexico is around 8000"
Just so you know this is meant to be "50,000" it was a slight error.