Why is every vector space free, but not every module?

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For every vector space $V$ over a field $K$ we have that $V \cong K^n$ for some natural number $n$, and so every vector space has a basis (of $n$ elements in this case). Therefore every vector space is free.

However, for modules, this is not the case. Most modules are not free. Let $R$ be a ring, and $M$ and $R$-module, then we don't necessarily have $M \cong R^n$ for some $n$, not even $M \cong R^{(I)}$ for some set $I$.

Why is this the case, conceptually? The only different is that we are working over a ring instead of a field. To me, the vector space case seems weird, since it is normally not the case that every algebra in some class is free. For example we also don't have that every group is a free group, etc.

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Simply because you cannot divide by any non-zero element in an arbitrary ring.

More precisely, if you have a closer look to the proof of the fact than any $K$-vector space has a basis, you will see it relies heavily on the fact that any non zero element is invertible.

For example, you often have to use the fact that if vectors $x_1,\ldots,x_n$ are linearly dependent, then some $x_i$ is a linear combination of the others.

This is not true for arbitrary base rings. For example, in $\mathbb{Z}$, $2$ and $3$ are dependent since $2 \cdot 3 - 3 \cdot 2=0$, but $2$ is not an integral multiple of $3$, and $3$ is not an integral multiple of $2$.

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As GreginGre mentioned, fields are very particular rings. There are many situation where having a field yields more properties and that is pretty much all the time due to the invertability of every non-zero element.

Another example is that $R[T]$ is a pid iff $R$ is a field.