Currently, free markets are the common thing especially with increasing levels of globalization. The problem is that for many people, the fight for free markets seems to lack proper direction due to the lack of understanding of the true meaning of free market and its effects on democracy. The free market is a real threat to democracy due to lack of an equilibrium between the buyer and the seller. The lack of equilibrium between buyer and seller leads to the exploitation of the buyer especially through high prices for commodities of less real value. In fact, the understanding of Philip Wicksteed’s opinion on political economy gives a great explanation for this. This paper will first discuss the effect of free markets on democracy, then explain how the political economy is a factor in our daily lives. The paper will then look at the role of power in markets, some of the neoliberal arguments for privatization, deregulation & trade liberation, and lastly, Philip’s critique to the market system followed by some responses.
Democracy Versus Free market
Definitions
President Lincoln defined Democracy as the government of the people, by the people, and for the people. This definition seeks to emphasize the fact that democracy is indeed all about the people and the power they possess in choosing their governments often through the ballot (Epstein, 2011). On the other hand, the free market is defined as a voluntary exchange between buyers and sellers on the basis of the forces of demand and supply; where the two agree to transact freely without the involvement of other parties such as the government. The definitions of both free markets and democracy show some type of interdependence between this two.  
Interdependence of Free Markets and Democracy
Free markets operate on the use of individual liberty, which is a critical part of democracy as well as a respect for privately owned property and capitalism (Nickolas, 2017). Some arguments indicate that the only reason free markets exists is due to democracy considering that it returns power back to the people (Eehines, 2011). 
Free Markets are an Enemy of Democracy
The problem comes in in the fact that in many cases the seller is a private entity. This means that in a free market the private entity transacts without the control and regulation of the public entities and the government. This is the only problem with the free market ideology, the imbalance of power, which leads to private entities emphasizing on increase of profits; which leads to a new class of the wealthy made by the uncontrolled and unequal power in free-market capitalism; so the rich continue getting rich while the gap between the poor and the which continues to widen.