There are two main viewpoints in the debate over free-market capitalism: those who favor economic regulation and those who prefer a free market.
According to the Cambridge Journal of Economics, market governance must hold a "balance between economic and social goals and between individual and communal goals." The ideal system encourages efficient but responsible use of resources that aligns with the interests of individuals, corporations, and society as a whole.
Supporters of regulation believe that free markets are inherently unstable, unequal, and prone to boom and bust cycles. In order to achieve a functional, fair economic system, they believe government control is necessary, to soften the effects of good and bad economic periods and prevent systemic imbalances.
Economists who favor a free-market approach argue that government interference is what causes ups and downs in the first place. They claim that regulation misallocates resources and creates -- rather than softens -- market instability. According to them, a healthy market with maximum long-term growth and fewer highs and lows comes from a free market.
Other issues in the debate include privatizing public resources or utilities, the legislative push and pull over regulatory oversight, and the outsized role that money plays in our political system.
