Has anyone pondered on the notion of economic freedom? Have you given it enough thought? What does economic freedom mean for you?
What is well know is that economic freedom is the freedom to buy and sell stuff but it is also a freedom to travel where you want, to interact with people, to converse, to say what you want to say. These things involve interaction with others and it is what makes the core of economic freedom.
There are a lot of pieces of evidence that suggest that economic freedom is associated with many things we think of when we consider a healthy society. What is significantly popping up is that states that allow for economic freedom have higher economic rate, less unemployment rate and less debt per GDP. But how does this translate to your business?
Well, certain things can be copied over in business since economic freedom is more than what is already mentioned. It also regards happiness and life satisfaction, two things that any business owner should look out for. It is widely known that if your workers aren’t satisfied or happy with their place of work your quality, quantity, and everything else will suffer because. If you want to check out just how your business freedom quotes, please check out profittrans4mations.com.au
1. More businesses
This one should be perfectly obvious. In a very free economic there will be more diverse businesses and you are not limited in any way regarding the quantity nor types of businesses you run. With more markets, there are more competitors but since it is all operating at free economy you have more chances, you can easily diversify and utilize everything that the free economy offers you. With current regulations, you have a lot of obstacles in your way and with this, you are losing time and money trying to get where you want to. With a free economy, there are fewer obstacles, more markets that operate on equal terms and with that your progress and growth is booming.
2. Wealthier population
Buying power of the population strongly influences your business. If there are 90% of low to mid-income families and just 10% of those who can afford your products then you are in a big problem. More to it is the fact that if you operate in a tough and crowded market, your product placement and sales will suffer. With that, you have to either cut down on quality to offer cheaper products or stop entirely. With free economic markets, people tend to have a higher GDP per capita which means that the wealth of the country is the well-divided meaning you have more of those that can afford what you offer. Even with the crowded market you could still come on top and have your business boom since you always have someone interested in your products. The wealthier population is happier and more willing to spend especially if they have an excess of their income.
3. Low taxes
With a free economy, a certain country prospers utilizing what we already mentioned, and with that in mind, you can have some benefits. One of those benefits comes in a form of tax. If a GDP of a country is high enough thanks to a free economy than citizens and business may be relieved by lower tax rates. How come? Well, taxes are what pays for schools, roads, parks, military, emergency services and a lot more and in a free economy where the wealth of a country is equally divided and everyone is more or less at the same level, a country prospers as well utilizing this state meaning it can lower taxes and still not have any problems. Lowering taxes is especially interesting for businesses. With lower taxes, a business can relieve their products of extra cost to the people making them even more affordable and more sellable. With this, your business as well as your capital significantly grows.
4. Less government interference
With a free economy and a free market, the government doesn’t influence the prices. At free markets, the price is dictated by supply and demand, and there are no hidden agendas or hidden intentions. At a certain market, there are no restrictions and everyone is welcomed which means that they are free to set the price on their own. The margins are what will dictate your competitiveness and whether you can survive in that market. This is what benefits businesses because they are left to decide by themselves and form prices and products by themselves. Free economy markets are made to benefit both parties involved – the buyer and seller, meaning that they will exchange goods between themselves for their well-being. Any intervention to the market will cause an imbalance and renders this kind of market to be less efficient.
5. Easier access to markets
Without any government regulations, and in the free market every business can easily approach any market and sell its good or service if there is a need for it. There will be no bottom lines you have to manage to be eligible for the market and there will be no obstacles to go around. Simply put if you have something that people need, and want to buy you can sell it. This is tied to the previous part and it means that without government regulations every market tends to balance itself out.
If there is a shortage of particular good the price will rise and draw in new suppliers or producers. When the need is met, the price will normalize and then you as a business will either stay on that market and continue to operate or look for another that has a higher demand for what you are offering. This way everything is balanced by itself, or rather by the market participants.
So after all of this, there is some to the free economy and all the benefits that it brings to a business. It is hard to neglect all the information’s which speak in a free economy benefit, and it is hard to overlook every positive you, as a business, can draw from it. It is needless to say but all countries with a free economy are thriving more and faster than that whit limited freedom.
Nicola Holder