One Big Question: What Does ‘Free Market’ Mean?
67% of free-market enthusiasts believe free markets should have trade barriers; 61% believe they require strong worker protections.
Americans broadly support “free markets,” which has prompted many political leaders and commentators to assume that they want the laissez-faire agenda promoted by market fundamentalists. Consumers, workers, and businesses are all supposed to protect their own interests by exercising their free choice in the free market.
That’s not, it turns out, what most people mean.
In a survey of 2,000 Americans, conducted in late 2024 in partnership with YouGov, American Compass put the question directly:
Suppose a politician who talked a lot about “free markets” wanted to earn your support. Which way of talking about free markets would you find more appealing?
Respondents were given two options related to trade…
In free markets, we have free trade. People and businesses in America should be free to buy from and sell to whomever they want around the world.
In free markets, we uphold fair competition and American values. We must protect the American market from countries that are hostile to us or do not play by the rules.
…and two related to labor.
In free markets, employers have freedom to run their businesses and treat their workers how they want, and workers have the freedom to leave if they don’t like their treatment.
In free markets, employers have protections from unfair competition, and workers have protections ensuring fair wages and working conditions that allow them to support families.
On trade, by a 14-point margin, Americans want to hear their leaders talk about free markets in terms of “fair competition and American values,” recognizing “we must protect the American market.” Among Republicans, the margin is even larger. Nearly 70% see protection from adversaries and unfair trade practices, not free trade, as the free market position.
When it comes to the labor market, the gap is even larger. By 71% to 29%, Americans want to hear free markets discussed in terms of “protections from unfair competition” and “protections ensuring fair wages and working conditions,” not “freedom [for employers] to run their businesses” and “freedom [for workers] to leave if they don’t like their treatment.” Republican views are similar, splitting 65% to 35% in favor of regulated markets.
Still, these questions asked what Americans want to hear from a politician who talks a lot about free markets. Could it be that they just don’t really like free markets, and thus want to hear as little free-market sentiment as possible? No.
We also asked a more basic question:
In political debates, the ideas of “free markets” and “economic liberty” come up a lot. Which is closest to your view? Free markets and economic liberty are…
Fundamental American values
Useful ideas that help create prosperity
Overused terms that don’t mean much
Ways for corporations and the wealthy to profit at everyone else’s expense
One quarter of respondents saw free markets and economic liberty as fundamental values. How did they want to hear politicians talk? Not that different from anyone else.
In fact, Americans who see free markets and economic liberty as fundamental values were more likely to want leaders to focus on protecting the market. They chose that approach over free trade 67% to 33%, a two-to-one margin.
By a similar margin, the Americans most committed to free markets also see those markets as depending on significant regulation to ensure competition and good outcomes for workers.
Support for free markets can be a winning political message, but the messengers must understand what they mean, or at least how they are understood. Americans want freedom, and they want markets. But they also recognize that genuine liberty, and healthy capitalism, require a robust role for public policy in shaping how those markets work.
Free trade with China and abandoning domestic industry are not the free market positions. Neither are allowing employers to impose non-compete agreements, nor cheering the demise of unions. Adam Smith wrote about this and Americans understand it, even if market fundamentalists cannot.
For more on these themes, see:
Oren Cass, “Searching for Capitalism in the Wreckage of Globalization,” American Compass, March 2022
Wells King, “Rediscovering a Genuine American System,” American Compass, May 2020
Chris Griswold, “Servants No Longer,” Comment, September 2022
Good points are made. If you want to understand the “side effect “ of totally free trade, read “Trade Wars are Class Wars” by Pettis and Klein. Having survived 6 years of a disastrous buy out of a German industrial machine manufacturer by a casket company (only to see the remains resold to a private equity firm), I found that the other culprit was the super easy money from 2012 to 2022. American manufacturing has been double-teamed by free trade (primarily with China) and private equity.
I encourage everyone to click through to the survey itself. There's a lot of interesting stuff there.
"Option A: A culture that defines success as someone moving to a place of great opportunity and reaching the top of a prestigious field.
Option B: A culture that defines success as someone building a decent life where he grew up, raising and supporting a family, and contributing to the community."
Even given this is a highly biased question, the results are astounding. Every single demo and party grouping prefers Option B by at least 30 points.
Same results for the question on maximize consumer choice vs maximize productive employment.
For most people, abstract questions about what "free markets" or "free trade" aren't really connected to reality. Questions like these are.