We like to believe that free market economics and a democratic or representational form of government are perfectly compatible and symbiotic partners. There are obvious similarities between both structures, of course, such as the theoretical empowerment of any average person instead of the inheriting of classes or rights by birth. However, when we talk about our own world, we forget to realize that we have moved far away from a purely free market. Our government has clearly taken a moderating hand against Adam Smith's invisible counterpart.

Have you personally ever worked in a sweatshop? Have you ever worked at or above minimum wage? Do your children work? Do they work out of necessity?

I can guess that most people will answer no to the first, yes to the second, and no to the fourth. The third depends on age group, but certainly, children under 12 probably don't 'work.'

Why? We have regulations regarding each of these things. Once, the answers to all of these questions might have been very different - before the late nineteenth or early twentieth century when law regulating the free market were instated. Before then, we probably reaped the most benefits of a laissez faire economic system...but at what costs?

At least for American history, immigrants and children faced abusive working conditions...too long work days for too little pay. But don't forget the consumers! Because there are no natural laws for consumer protection, of course consumers also were always under the threat of false advertising and defective products.

The worst thing is...these conditions might have lasted, had democracy not kicked in. Why didn't workers strike? Before regulatory rules, the business could simply bring in federal troops to stop strikes. It could easily file an injunction and then, by law, the strike must stop. But keep in mind as well that under the free market system, no other company was necessarily required to have better policies. An employee might risk losing their job and then there'd be no guarantee that the situation would improve if they worked for a different firm.

Fortunately for workers and consumers, we did and do have a working democracy which secures inalienable rights...especially for assembly. All it took were a few laws, signed with love from Democracy, to establish that there must be regulations on what companies can do. They can't file injunctions against strike workers. They can't force workers to sign no-union yellow dog contracts, and so on.

We reap the benefits of a democratic regulation of the free market every day. The system isn't perfect, but you generally don't have to worry about unsafe drugs and food getting to the market (and if something bad does get to the market, you can fight for damages if you are injured). As a worker, you can fight against employment discrimination, termination, or general conditions at work. Regardless of where you are in the economic system, chances are you can find several ways the government protects you.

Learn more about this author, Andrew Spriggs.
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