Measuring Freedom from Lack of Market Distortion

Free access to scriptures religious leaders try to censor

Individual freedoms correlate positively with efficient allocation of resources.

Countries that respect individual freedom are rich and that must because people in those countries realized, often correctly, that their interest match their productivity.

So we wouldn’t make much mistake if we “define” individual freedom by lack of market distortion governments’ create. That’s what we’ll do in this article.

Say government says that you cannot buy orange. Than governments trample on your individual freedom, namely your right to buy orange.

But it depends on the punishment. We can’t say the government violates our individual freedom if the punishment is too light.

Say the government says that if you buy orange you need to be fined by $1. Then well, that’s your oppression. $1. Big deal.

Say the market price for apple is $5 and government says that it should be $6. So every time you buy an apple you are fined $1. Tax and fine is the same thing.

That also means that orange suppliers get a subsidy of $1.

Also by being a consumer of orange rather than the supplier, you forgo the $1 subsidy that the orange supplier makes. So that’s another $1 punishment for you for every orange you fail to make. Government has forced everyone to produce orange by not giving them $1 that government gives to orange producer.

The same way free health care is punishment against those who are healthy. Free education is punishment for those who do not have kids. If paid by income tax, that means punishment for those who earn money.

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