COLUMN: The value of free enterprise
Our nation has been blessed by an unprecedented amount of prosperity. We enjoy a standard of living that is is unparalleled in history. In order to maintain our prosperity, it is important we understand the principles upon which it depends.
America has been prosperous because of her free market economy. Unfortunately, these very principles that have brought about our prosperity have been slandered and ridiculed in our society. We are beginning to see our prosperity and the principles that have brought it about about as immoral, cruel and selfish. It seems it is common in our society to regard successful individuals with a great deal of distrust and contempt. The very word capitalism has been sent to a position of disgrace and shame.
The contempt and fear of success stem from an incorrect perspective of wealth. There are those who feel there is only a limited pool of wealth that must be distributed equally. Under this premise, it would be immoral for individuals or nations to strive for prosperity, as it would come at the expense of others.
This notion is false. Wealth is created by work. It is created in a free enterprise system in which people can own property, choose a vocation, take risks, invest their capital and profit from their labor. Those who are more successful are then able to use their wealth to create new jobs. They can expand their businesses, invest or create other opportunities.
Therefore, society is benefited by their success. It is important that the successful are allowed to enjoy the fruits of their labor; otherwise there will be no incentive for them to create more wealth. In a system based on free enterprise, work, initiative, imagination and efficiency are rewarded. This inspires the successful to work harder, be more creative and find ways to use resources wisely.
It is unfortunate there are those who abuse the freedom given them in a free market economy. Not all are honest. Many are motivated merely by profits and engage in activities that harm society in order to make money. However, the abuse of freedom by some does not give an excuse to restrict the freedom of all.
There are those who feel capitalism is cold and cruel. If it is abused, it can be. On the other hand, it allows people to reach out and help others of their own free will. Those whose own needs are met are much more capable of helping others. The perceived ills of a free enterprise system can be alleviated when individuals learn it is in their best interest to help others. The most successful people are those who help others succeed.
It is the role of the government to protect each individual in their right to work and enjoy the fruits of their labor. It is not the government’s role to guarantee every man a livelihood. In a free market economy, the government is to be a referee, not a competitor.
It is not an accident that the free enterprise system has out-produced both socialism and communism. The nations whose governments take the least amount of their citizen’s wealth, allowing them more freedom to decide how that wealth is to be used, are also the most prosperous.
Thomas Jefferson, in his first inaugural address, described the value of our free market economy when he stated, “Still one thing more, fellow citizens – a wise and frugal government, which shall restrain men from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government.”
Colby Lyons is a senior majoring in law and constitutional studies. Questions and comments can be sent to him at c.lyons@aggiemail.usu.edu.