The document discusses the relationship between political freedom and economic liberty. It argues that economists have proven free markets work better than state-controlled economies, and that governments can harm the economy by levying high taxes, enacting burdensome regulations, or imposing arbitrary standards. The state hinders economic functioning when it raises taxes too high or sets rules that are difficult to comply with. If taxes are too high, entrepreneurs and professionals may work less or commit fraud to avoid high tax burdens.

1. Political
freedom and
economic
liberty
Emilio
Navarro Political freedom and economic liberty
Emilio Navarro
enavarro@edu.xunta.es
Instituto San Rosendo
Marzo, 2014
Emilio Navarro (Instituto San Rosendo) Political freedom and economic liberty Marzo, 2014 1 / 7

2. Political
freedom and
economic
liberty
Emilio
Navarro
Lesson 17
Political freedom and economic liberty
1. Economists have proved that a free market works better
than an economy controlled by the state.
Emilio Navarro (Instituto San Rosendo) Political freedom and economic liberty Marzo, 2014 2 / 7

3. Political
freedom and
economic
liberty
Emilio
Navarro
Lesson 17
Political freedom and economic liberty
1. Economists have proved that a free market works better
than an economy controlled by the state.
I"kA:n@m@sts h@v "pru:vd D@t @ "fri: "mA:rk@t "w3:rks "bet@r D@n
@n I"kA:n@mi k@n"troUld baI D@ "steIt
Emilio Navarro (Instituto San Rosendo) Political freedom and economic liberty Marzo, 2014 2 / 7

4. Political
freedom and
economic
liberty
Emilio
Navarro
Lesson 17
Political freedom and economic liberty
1. Economists have proved that a free market works better
than an economy controlled by the state.
I"kA:n@m@sts h@v "pru:vd D@t @ "fri: "mA:rk@t "w3:rks "bet@r D@n
@n I"kA:n@mi k@n"troUld baI D@ "steIt
1. Los economistas han probado que un mercado libre
funcionan mejor que una economa controlada por el estado.
Emilio Navarro (Instituto San Rosendo) Political freedom and economic liberty Marzo, 2014 2 / 7

5. Political
freedom and
economic
liberty
Emilio
Navarro
Lesson 17
Political freedom and economic liberty
2. The state can hinder the working of the economy by levying
high taxes or setting regulations that are dicult to meet.
Emilio Navarro (Instituto San Rosendo) Political freedom and economic liberty Marzo, 2014 3 / 7

6. Political
freedom and
economic
liberty
Emilio
Navarro
Lesson 17
Political freedom and economic liberty
2. The state can hinder the working of the economy by levying
high taxes or setting regulations that are dicult to meet.
D@ steIt k@n hInd@r D@ w3:rkIN @v Di: IkA:n@mi baI leviIN haI
tæks@z O:r setIN regj@leIS@nz D@t @r dIf@k@lt t@ mi:t
Emilio Navarro (Instituto San Rosendo) Political freedom and economic liberty Marzo, 2014 3 / 7

7. Political
freedom and
economic
liberty
Emilio
Navarro
Lesson 17
Political freedom and economic liberty
2. The state can hinder the working of the economy by levying
high taxes or setting regulations that are dicult to meet.
D@ steIt k@n hInd@r D@ w3:rkIN @v Di: IkA:n@mi baI leviIN haI
tæks@z O:r setIN regj@leIS@nz D@t @r dIf@k@lt t@ mi:t
2. El estado puede obstaculizar el funcionamiento de la
economa recaudando altos impuestos o estableciendo
regulaciones que son difciles de atender.
Emilio Navarro (Instituto San Rosendo) Political freedom and economic liberty Marzo, 2014 3 / 7

8. Political
freedom and
economic
liberty
Emilio
Navarro
Lesson 17
Political freedom and economic liberty
3. If taxes are too high, many entrepreneurs and professionals
will work less than possible in order to avoid high

9. scal pressure
or they will commit frauds.
Emilio Navarro (Instituto San Rosendo) Political freedom and economic liberty Marzo, 2014 4 / 7

10. Political
freedom and
economic
liberty
Emilio
Navarro
Lesson 17
Political freedom and economic liberty
3. If taxes are too high, many entrepreneurs and professionals
will work less than possible in order to avoid high

11. scal pressure
or they will commit frauds.
If tæks@z @r tu: haI meni A:ntr@pr@n3: rz @nd pr@feS@n@lz w@l
w3:rk les Dæn pA:s@b@l In .O:rd@r t@ @vOId haI fiSk@l preS@r O:r
DeI w@l k@mIt fr6dz
Emilio Navarro (Instituto San Rosendo) Political freedom and economic liberty Marzo, 2014 4 / 7

12. Political
freedom and
economic
liberty
Emilio
Navarro
Lesson 17
Political freedom and economic liberty
3. If taxes are too high, many entrepreneurs and professionals
will work less than possible in order to avoid high

13. scal pressure
or they will commit frauds.
If tæks@z @r tu: haI meni A:ntr@pr@n3: rz @nd pr@feS@n@lz w@l
w3:rk les Dæn pA:s@b@l In .O:rd@r t@ @vOId haI fiSk@l preS@r O:r
DeI w@l k@mIt fr6dz
3. Si los impuestos son demasiado altos, muchos
emprendedores y profesionales trabajaran menos de lo posible
para evitar la alta presion

14. scal o cometeran fraudes.
Emilio Navarro (Instituto San Rosendo) Political freedom and economic liberty Marzo, 2014 4 / 7

15. Political
freedom and
economic
liberty
Emilio
Navarro
Lesson 17
Political freedom and economic liberty
4. If taxes on consumption are high, products are more
expensive and consumption is slowed.
Emilio Navarro (Instituto San Rosendo) Political freedom and economic liberty Marzo, 2014 5 / 7

16. Political
freedom and
economic
liberty
Emilio
Navarro
Lesson 17
Political freedom and economic liberty
4. If taxes on consumption are high, products are more
expensive and consumption is slowed.
If tæks@z t@ k@ns@mpS@n @r haI prA:d@kts @r mO:r IkspensIv
@nd k@ns@mpS@n z sloUd
Emilio Navarro (Instituto San Rosendo) Political freedom and economic liberty Marzo, 2014 5 / 7

17. Political
freedom and
economic
liberty
Emilio
Navarro
Lesson 17
Political freedom and economic liberty
4. If taxes on consumption are high, products are more
expensive and consumption is slowed.
If tæks@z t@ k@ns@mpS@n @r haI prA:d@kts @r mO:r IkspensIv
@nd k@ns@mpS@n z sloUd
4. Si los impuestos al consumo son altos, los productos son
caros y el consumo se enlentece.
Emilio Navarro (Instituto San Rosendo) Political freedom and economic liberty Marzo, 2014 5 / 7

18. Political
freedom and
economic
liberty
Emilio
Navarro
Lesson 17
Political freedom and economic liberty
5. Government can also harm the economy by exacting the
application of unnecessary rules or imposing arbitrary standards.
Emilio Navarro (Instituto San Rosendo) Political freedom and economic liberty Marzo, 2014 6 / 7

19. Political
freedom and
economic
liberty
Emilio
Navarro
Lesson 17
Political freedom and economic liberty
5. Government can also harm the economy by exacting the
application of unnecessary rules or imposing arbitrary standards.
g2v@rm@nt k@n 6lsoU hA:rm Di IkA:n@mi baI IgzæktIN Di
æpl@keIS@n @v 2nnes@seri ru:lz O:r ImpoUzIN A:rb@treri
stænd@rdz
Emilio Navarro (Instituto San Rosendo) Political freedom and economic liberty Marzo, 2014 6 / 7

20. Political
freedom and
economic
liberty
Emilio
Navarro
Lesson 17
Political freedom and economic liberty
5. Government can also harm the economy by exacting the
application of unnecessary rules or imposing arbitrary standards.
g2v@rm@nt k@n 6lsoU hA:rm Di IkA:n@mi baI IgzæktIN Di
æpl@keIS@n @v 2nnes@seri ru:lz O:r ImpoUzIN A:rb@treri
stænd@rdz
5. El gobierno puede tambien da~nar la economa exigiendo la
aplicacion de reglas innecesarias o imponiendo estandares
arbitrarios.
Emilio Navarro (Instituto San Rosendo) Political freedom and economic liberty Marzo, 2014 6 / 7

21. Political
freedom and
economic
liberty
Emilio
Navarro
Lesson 17
Political freedom and economic liberty
Exercises
What is a free market economy?
Why it is necessary to have an economic system?
What are the taxes?
Who does levy taxes?
What do the government raise taxes for?
What does regulations mean?
What does

22. scal mean?
What is a fraud?
Why are frauds bad?
What is a tax on consumption?
Emilio Navarro (Instituto San Rosendo) Political freedom and economic liberty Marzo, 2014 7 / 7