Are there good reasons for limiting the free market?

Since the collapse of the Soviet Union, many political commentators (e.g. Saunders, 1990) have commented that the structure and dynamics of planned ‘communist’ societies have been shown to be ineffective in meeting the goals of providing individual liberty, economic efficiency and prosperity. It was assumed that the ‘free market’ economic model was superior due to its dynamism and flexibility. The recent global economic crisis has revived the urgency of debates regarding just how much freedom’s markets should have. This essay explores the Utilitarian argument in favour of the free market model and discusses alternatives and criticisms to this approach.