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interesting to those who would be less likely to find themselves interested in a product about
economic principles. I believe it is important for every single member of society to know and
understand the importance of the capitalistic system of the free market, and to understand that
government can only have a negative impact on that system. Thus, my intended audience for the
trailer is all members of society, on domestic level, as well as foreign. My intention is for the
trailer not only to convey a message, but to make the individuals viewing it interested in learning
more about the topic at hand, and thus pursuing further research and becoming more wellinformed and knowledgeable about the vitally important elements of the economy around them.
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This statement expounds on the free market encompassing more than just the simple notion of
free trade. It elaborates, rather, on the invigorating influence it has on entrepreneurship. The
influence implies an endless amount of consumer demand for new products, which is
consistently met with entrepreneurial response, thus constantly stimulating the free market. In
the absence of government regulations and suppression, this flourishing cycle can yield powerful
economic results.
The role of government in the free market should be completely nonexistent, as is so
eloquently put by Mr. Adam Smith, who says:
Little else is requisite to carry a state to the highest degree of opulence from the lowest
barbarism but peace, easy taxes, and a tolerable administration of justice: all the rest
being brought about by the natural course of things. All governments which thwart this
natural course, which force things into another channel, or which endeavour to arrest the
progress of society at a particular point, are unnatural, and to support themselves are
obliged to be oppressive and tyrannical. (Otteson 139)
A strong emphasis must be placed on the importance of the phrase natural course that is used.
This expression is key, as it implies that the economy be allowed to run its course without
interference from governmental establishments such as the Federal Reserve. The implication
here is that government interference in the free market system is comparable to tyrannical
oppression of the system, which is stated as the result of unnatural forces at the hands of any
government entity. Thus, it is clear that federal overreach into the free market is an unacceptable
action of the government that should be vigorously repudiated. My created movie trailer
expounds on the tyranny of the Federal Reserves involvement in the free market through its
horror aspect. Though this theme is more dramatic than anything, it also serves the purpose of
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drawing attention to the extreme negativity that should be associated with the relationship
between the Federal Reserve and the free market.
To exemplify the toxicity of the governments involvement in the free market system,
consider the scenario of the 2008 financial crisis. Rather than allowing the free market to take its
course and react naturally to the events that occurred during the falling out of the housing
market, the government chose to allow the the national bank, the Federal Reserve, to step in and
supply artificial monetary support to the crumbling market. Instead of interfering, the
government should have utilized a laissez faire approach and allowed for the implementation of a
free market alternative. In this alternative situation, creditors would assume responsibility for
their investments, specifically, in this case, their investments in large financial institutions (Bagus
414). As such, they would have the opportunity to either have faith in the viability of their
institutions and proceed to weather the economic storm, or to liquidate them if the likelihood of
success seemed low and their chances of fiscal survival seemed slim (Bagus 414). In this
situation, if companies did indeed experience the pitfalls of bankruptcy, their collateral losses
would be directed exclusively to their creditors, rather than to the rest of society who were in no
way involved in the actions of these large financial institutions (Bagus 414). Such a system of
creditor accountability would be proper, as the creditors had the potential to profit off these
institutions times of success, so it is only fair that they also suffer the consequences during times
of failure. Those consequences should not be passed on to the members of society who never
had the opportunity to profit off the successes of these institutions, and who therefore should also
not have to suffer the consequences of their failures. Such unjust consequence to the masses is
further exemplification of the toxicity of the governments involvement in the free market.
Consider the individuals pictured in my movie trailer, who are shown removing their belongings
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from their place of employment, specifically the employees of Lehman Brothers after the
company went bankrupt. This individuals were likely shareholders in the firm, and as such,
shouldve been the ones to assume responsibility for the actions of their failing institution. In
addition, the federal injection of artificial support into the market makes it impossible for
investors to foresee the ebbs and flows of the market (Bagus 414). The resulting uncertainty
discourages investment, due to investors fear of the economic unknown. This uncertainty is a
huge factor in the markets inability to recover, as the flow of currency is very minimal. In a free
market alternative, this uncertainty would be nonexistent, and the ensuing continuation of
investment from creditors into the market would aid in a swift market recovery (Bagus 415).
The positive benefits of the capitalistic free market are clear. Consumer demand is met
with entrepreneurial market response. Entrepreneurs are rewarded with capital, thus encouraging
unremitting innovation and accompanying trade. The destructive drawbacks of governmental
interjection into this process are also clear. Rather than allowing consumers to take
responsibility for their own investments, the government pushes the mistakes of the few onto the
many, who are in no way responsible. Further, the government injects artificial monetary
support into the market, preventing investors from being able to spend with confidence, thus
limiting investment in the market and obstructing the capitalistic flow of trade. The potential of
free market alternatives to be effective means of recovery from economic crises are clear as well.
Creditors could be sanctioned to suffer from the consequence of their investments just as they
were allowed to profit off of them, in which case the market would not be so hampered by the
failure of financial institutions. Further, investors could invest with confidence due to an
absence of federal injection of synthetic capital into the market that makes market predictions
unreliable, and would consequently rectify the destitute state of the economy. Indeed, it can be
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factually stated that capitalism is a prosperous system with immeasurable potential, that it would
be beneficial for the free market to be truly uninhibited by federal interference, and that free
market alternatives have the ability to work properly and can invoke timely and proficient
recovery from economic crises. Government involvement can only have the opposite effect on
the economy, as pictorially exemplified by the plummeting Dow Jones Industrial Average graph
that is shown in my movie trailer, which proves the inability of the economy to thrive under
governmental influence.
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New Works Cited
Bagus, Philipp, Juan Julian, and Miguel Neira. A Free Market Bailout Alternative? Springer
Link. Springer Science+Business Media, LLC, 19 June 2012. Web. 4 Apr. 2016.
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Original Works Cited
Works Cited
"Brian S. Wesbury." ftportfolios.com. First Trust Advisors L.P., (n.d.). Web. 22 Feb. 2016.
Frequently Asked Questions." sba.org. U.S. Small Business Administration, Sept. 2012. Web.
22 Feb. 2016.
Gerhard, Gregory. "Falling Giant: A Case Study of AIG." Investopedia. Investopedia, 6 Nov.
2015. Web. 17 Feb. 2016.
Investopedia Staff. "Case Study: The Collapse of Lehman Brothers" Investopedia. Investopedia.,
30 Oct. 2008. Web. 15 Feb. 2016.
Nielsen, Barry. "Economic Meltdowns: Let Them Burn or Stamp Them Out?" Investopedia.
Investopedia, 06 Nov. 2015. Web. 22 Feb. 2016.
Singh, Manoj. "The 2007-08 Financial Crisis in Review." Investopedia. Investopedia, 28 Oct.
2008. Web. 12 Feb. 2016.
"Subprime Meltdown Definition." Investopedia. Investopedia, 02 Sept. 2007. Web. 22 Feb.
2016.
The Big Short. Dir. Adam McKay. Perf. Christian Bale, Steve Carell, Ryan Gosling, and Brad
Pitt. Paramount Pictures, 2015. Film.
Wesbury, Brian S. "The Real Truth about the 2008 Financial Crisis." YouTube. Tedx Talks, 3
Dec. 2014. Web. 17 Feb. 2016.