I'm writing a paper on trade and the term "free market" is constantly used.
It occurred to me that it's interesting that the word "free" in
English can mean both "open" and "urestricted", as it does in the
sense of the market, but it also denotes "independence", a concept
which is *totally opposed* to that of trade, ie if engaging in trade,
one is *by definition dependent*, and not "free", in that sense of the
word.  So, in that sense, the term may be misleading to
English-speakers.

The word also carries definite political-emotional attachment for many
Americans, and thus the usage of the term today, and the prevalence of
support for "free trade" among the powerful is a nice coincidence for
them.

I would like to know,
How and when did the term "free" enter the terminology of economics? 
Who was the first to use it?  For instance, in the term "free markets"
or "free enterprise"?  I would like to know, if possible, when the
term was first used in publication, or when it's use became accepted. 
Thanks,

Duncan Carroll

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Request for Question Clarification by pafalafa-ga on 23 Nov 2004 06:13 PST

The earliest use of "free market" that I've found thus far, is this
one, from a letter to the editor publisehd in the Edingurgh Advertiser
of January 7, 1772:


Sir,

I have heard complaint lately of the rise of butchers meat in this
city -- I submit to the magistrates, and to the public, whether a free
market, once a week, for all kinds of provisions, would not have a
good effect in keeping down the prices...

==========

So...it predates Wealth of Nations, anyway.  

Is that early enouogh for you, or are you looking for more precise
origins of the term?

Let us know.

pafalafa-ga

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Clarification of Question by duncancmu-ga on 23 Nov 2004 15:12 PST

Clarification:  Now that I've had a few days to mull the idea over, I
think what I am really interested to know is how the idea of a free
market is approached in other languages.  I'm assuming they would ue a
more specific word, like "open".  I just think it's interesting that
in English we use the word "free", what with all it's connotations. 
But I'll accept an "earliest use" answer.

The Oxford English Dictionary cites a 1606 usage of "free trade," and
notes that the famed economist Adam Smith popularized the term in the
late 1700s.

An Inquiry into the Nature and Causes of the Wealth of Nations by Adam Smith
Ch.8, Conclusion of the Mercantile System in paragraph IV.8.26 

"This reduction of price, it may perhaps be thought, by discouraging
the growing of wool, must have reduced very much the annual produce of
that commodity, though not below what it formerly was, yet below what,
in the present state of things, it probably would have been, had it,
in consequence of an open and free market, been allowed to rise to the
natural and proper price."

Numerous references to ?free trade?

Use the search facility here:
http://www.econlib.org/library/Smith/smWN.html

<quote>
ie if engaging in trade,
one is *by definition dependent*, and not "free", 
</quote>

Not necessarily: 
   'One takes on bonds in order to be Free'
   'Positive Freedom' - a positive sum game

Perhaps look at the antitheses
   - giving monopolies
   - Tariffs

Governments have always faced problems in raising revenue to support
themselves and buy the favour of those who support them. One of the
simplest methods of extracting funds is that of the 'Toll Gate' a
simple point of entry and egress that can be used to tax both imports
and exports alike.

Just a start

The word free in other languages, conncted to ecconomics and trade,
likely was used thousands of years ago.
 IMHO, the use of the word free is propaganda. ie Balance of trade
deficits are costly indirectly and demand some controls, rules etc
that detract from freedom to trade. ie The USA cannot continue long
term to pay trillions of dollars for foreign made goods and services
while exporting billions of dollars in goods and services.    Neil