Who Should Have the Authority to Set Prices, the Free Market or the State? Why?

There is still much a debate on who should control the economy. One side of this argument argues that the government should have little say or almost no say when it comes to the economy. The other side states the opposite. A topic that goes along with this debate is the topic of prices. Who should have the authority to set prices? The Free Market or the State? Which one should actually have the authority to do this?

When it comes to the idea of the state setting prices there are risks. Who knows, maybe the state will manipulate the prices, for their own benefit. Also this would give them the authority to raise the cost of living, to whatever they please. Also the state is not a business, it is the state after all, so it would most likely not understand the concept of voluntary exchange. Then you must think of all the regulations that the state would put upon the economy. Overall having the state have authority to set prices would not be a very wise idea, and would most likely negatively affect businesses, and individuals.

As for the free market option, instead of being restrictive; sellers can sell at any price, and the buyers can choose to buy things at any price. If something is too expensive for the buyer he/her most likely will go to a different seller to buy the item. In short meaning that sellers, and buyers contribute when it comes to prices. In the free market there is choice.

Therefore, in my opinion the free market should have the authority to set prices, for a number of reasons including the fact that it leaves freedom to the actual seller and buyers. Being able to choose your own prices boosts the economy, and benefits others.

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