Market economy

Free-market capitalism
See also: Free market
A capitalist free-market economy is an economic system where prices for goods and services are set freely by the forces of supply and demand and are expected by its supporters to reach their point of equilibrium without intervention by government policy. It typically entails support for highly competitive markets, private ownership of productive enterprises. Laissez-faire is a more extensive form of free-market economy where the role of the state is limited to protecting property rights and enforcing contracts.
Laissez-faire capitalism
Main article: Laissez-faire
See also: Economic liberalism
Laissez-faire is synonymous with what was referred to as strict capitalist free-market economy during the early and mid-19th century^{[citation needed]} as a classical liberal ideal to achieve. It is generally understood that the necessary components for the functioning of an idealized free market include the complete absence of government regulation, subsidies, artificial price pressures and government-granted monopolies (usually classified as coercive monopoly by free market advocates) and no taxes or tariffs other than what is necessary for the government to provide protection from coercion and theft, maintaining peace and property rights and providing for basic public goods. Right-libertarian advocates of anarcho-capitalism see the state as morally illegitimate and economically unnecessary and destructive. Although laissez-faire has been commonly associated with capitalism, there is a similar left-wing laissez-faire system called free-market anarchism, also known as free-market anti-capitalism and free-market socialism to distinguish it from laissez-faire capitalism.^[9][10][11] Thus, critics of laissez-faire as commonly understood argues that a truly laissez-faire system would be anti-capitalist and socialist.^[12][13]