Chapter 14: The Free Market

Under this constitution, the private sector is regulated only by the rule of law derived from the Non‑Aggression Principle. This ensures a truly free market for labor, goods, and services.

The state cannot interfere with the free market or manipulate the economy.

As Milton Friedman said: A free market is all about freedom from coercion. There is only joint action where people have been persuaded to act together. A free market is great because it is based on voluntary cooperation. The free market has the enormous virtue of achieving voluntary cooperation without conformity. Everyone can do their own thing.

Consumers are free to purchase any products they like, from anyone they like. Likewise, producers are free to produce any good or service they like, sell it to anyone they like, for any price that they like. The state cannot impose price controls, such as rent caps. The private sector is free to compete directly with public services offered by the state.

Workers are free to choose who they work for. Likewise, employers can employ who they like and offer as much pay as they like. There are no diversity, equity, and inclusion mandates, and no anti‑discrimination laws imposed on businesses The state cannot enforce minimum wages. Worker entitlements such as for leave are part of voluntary contracts. There are no regulations that mandate entitlements.

Producers are free to organize however they wish. There are no antitrust laws. Companies may merge, split, form cartels, fix prices, hike prices when there is increased demand, or lower prices to drive out competitors.

The state cannot interfere with labor unions or worker cooperatives. Workers are free to form collectives, to strike, and to exercise power over companies. Membership in unions remains voluntary, consistent with the NAP.

Finally, the state cannot impose fees on producers: no registration fees, no license fees, and no income taxes.