Free Enterprise—Freedom of private business to organize and operate for a profit in a competitive system without interference by government beyond regulation necessary to protect public interest and keep the national economy in balance.*
We live in the most prosperous nation in the world with a robust economy and more citizens entering the ranks of millionaire than ever before. While the Internet, technology, and deregulation fuel our robust economy, the real reason we lead the global economy is simple: We are free. As Americans, we can chase our dreams—however big or small—in whichever way we choose. And the payoff for that freedom is limited only by our imagination, determination, and willingness to learn how to achieve our dream.
The United States Constitution was written with a singular, focused goal in mind: to limit the power of the government in the lives of Americans and ensure that we continue living in a free society. The idea sounds simple, but a look at the evening news during this election year reveals that there are as many opinions on how to do this as there are candidates running for all the offices.
Beyond all the campaign rhetoric and sound bites, politicians simply make policies that reinforce their opinions of what free enterprise means and its value in American society. Their perception of money, particularly wealth and how it should be generated and distributed, guides their decisions.
The Pie Theory Of Wealth
Some view wealth as a large pie, and everyone is entitled to a slice of it. While some have a huge slice (the "haves"), others barely get a sliver (the "have-nots"). Pie theorists believe that, to be fair to everyone, the pieces should be redistributed so that everyone’s slice is more equitable. This theory operates under the premise that wealth is a preexisting entity that everyone shares.
The Seed Theory Of Wealth
Others view wealth as something that is created—a seed that, with time and cultivation, will grow and mature. To seed theorists, wealth is a dynamic, living entity that grows or shrinks based on the skill of the "farmer." This theory operates under the premise that wealth can be limitless, provided it is earned with hard work and persistence.
Socialism: Everyone Gets A Slice
Socialism is defined as "any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods."* Philosophically, socialists see wealth as a pie, and they entrust the government to distribute and control it through heavy taxes and regulation. Individual effort isn’t important as the collective good. While that may sound compassionate, socialism ultimately discourages human innovation because it devalues individual effort. Who wants to create something profitable if they are forced to share its rewards with everyone else who didn’t put forth the same effort?
Capitalism: Everyone Gets A Hoe
Capitalism, on the other hand, is "an economic system characterized by a private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market."* In a capitalist society such as ours, we are motivated to create and cultivate our own fortunes because we are free to explore our individual potential. What’s ours is ours, and while we can share it however we like, the government can’t take it away. It’s what makes our country the economic powerhouse it is today.
What Price Is Freedom?
The more a nation’s economy is controlled by the government, the poorer it is. So it’s no surprise that the richest nation in the world, the United States, is also the one that thrives in a free enterprise society. That’s why our freedom is so precious to us. Without free enterprise, we wouldn’t be in this business. We couldn’t explore all the promise this business can bring us.
As Americans, we have a responsibility to protect our freedom. That means taking an active role in the election process. Which candidates will fight for your right to chase your dreams and plot your own destiny, and which ones will want the government to make your decisions for you? The choice is yours. Regardless of where you stand, on November 2, make sure you stand in the election booth.
Bob McEwen was guest speaker at the annual Biznet Productions Free Enterprise Convention
