Analogously, individuals, businesses, and corporations must be free to compete in a free market that is situated within a clearly defined set of rules that are enforced. Most generally, I demonstrate in The Mind of the Market that we need political states based on the rule of law, with property rights, a secure and trustworthy banking and monetary system, economic stability, a reliable infrastructure and the freedom to move about the country, freedom of the press, freedom of association, education, protection of civil liberties, and a clean and safe environment. We need a robust military for protection of our liberties from attacks by other states. We need a potent police force for protection of our freedoms from attacks by other people within the state. We need a viable legislative system for establishing fair and just laws. We need an effective judicial system for the equitable enforcement of those fair and just laws.
The best politico-economic system to date is a liberal democracy and free market capitalism, or democratic-capitalism. In a system of democratic-capitalism, social liberalism and fiscal conservatism is a synergistic marriage that leads to the greatest prosperity, the greatest liberty, and the greatest happiness for the greatest number.
—Michael Shermer, Altadena, California, June 16, 2008