"For classical economists such as Adam Smith, the term free market does not necessarily refer to a market free from government interference, but rather free fro

"For classical economists such as Adam Smith, the term free market does not necessarily refer to a market free from government interference, but rather free from all forms of economic privilege, monopolies and artificial scarcities." so this usage is at least 250 years old - and canonical. I suspect the 'free from government interference' definition is a modern conservative creation, attempting to claim the ground of what an ideal market looks like in the public's imagination.