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  • Essay / Free Market and Social Justice Essay - 1097

    The free market is run solely by the “invisible hand” and there is no government intervention (Smith, n.d.). As there is only private ownership of goods or each property, there will be no public goods or common goods shared collectively by all. Some people exploit common resources because of their own interests and ignore public interests (Hardin, 1968). Other people must suffer the tragedy of the common: they are less likely to use these resources. They bear the costs arising from the behavior of others. It is not fair that those who do not exploit the resource suffer these additional costs. Social justice is affected and people are treated unfairly due to the tragedy of the commons. In a free market, not all goods and resources will be distributed by the government. The allocation of resources will depend on people's demand and their willingness to pay for what they ask for. Resource allocation will be more efficient to the extent that resources are used by the people who value them most. There will be less exploitation of resources because people do not want to pay a high price for it. If the government distributed resources, it was difficult to ensure full utilization of resources and the allocation of resources was