In unregulated free market capitalism, trade is in no way regulated or controlled by the government. Supply and demand is controlled by the market; prices are determined between buyers and sellers. One of the dangers that arises from this type of market is monopolies. With unregulated trade, a company that becomes powerful enough gains the ability to buy out all competition. Competition between companies produces better products at lower prices. Once one company controls that product, they are free to price as they see fit. Such a situation would be detrimental if the product was considered necessary. Once prices grew to certain levels many would not be able to afford the product.
What role should the government have in preventing the collapse of certain free markets? If they are referred to as free, the government has no right in interfering. The collapse of a market does not mean it will disappear. Companies come and go. Once the government lends its hand to one market, it had better be ready to do the same for others if need be. I believe that free market capitalism is the best economical choice. There is room for improvement, though.
