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Free Enterprise & Economism - The Difference
by Orrin Woodward on
Mon 27 Sep 2010 12:14 PM EDT
Free
Enterprise describes a society that allows each man or woman the liberty of economic
choices, permitting the companies that best serve the customers to survive by the
good will engendered. Government and private coercion are held in check, providing
a free environment for the people to thrive based upon their efforts. Government,
in the free enterprise system, plays the role of an umpire, ensuring equality of
playing conditions, so that the winning team is the one that serves the customer
the best, giving no special deals to any team. Although free enterprise is
the best system in theory and practice, it has rarely been understood in theory
and never applied in practice.
Economism describes a society where big business partners with government to provide
positive economic arrangements for the chosen few. Government, instead of
playing the role of a neutral umpire, becomes the 12th man on the proverbial football
team, helping assist Big Businesses, regardless of the on the field performance.
It’s not hard to find evidence of Economism, simply glancing at any city newspaper,
you will read about the latest government “bail out” of XYZ company for the sake
of “protecting American jobs.” Every bail out, in the end, is funded by tax
payer dollars, which means the tax payers get to subsidize the wealthy business
owner who isn’t competently running his business. Bail outs cost more to job
holders than any protection of jobs the bail out can offer, but that is of secondary
importance and not the immediate concern of the politician who is only in office
for a limited time anyway. Government involvement brings in a political element
into the economic sphere, damaging the ability of the customers to vote for the
business which serves them best.
The sad part of Economism, a confused middle way between Fascism and Free Enterprise,
is people will assume Free Enterprise has failed. In fact, Free Enterprise
hasn’t failed in America, it hasn’t been tried. Any time government involves
itself positively in the economy, it begins to play a god-like role, choosing which
companies will survive, and which companies will die, even though, it's less
qualified to do so than the millions of customers playing that role in a true Free
Enterprise system. Economism isn’t new, dating back to Egypt under the
Pharaohs, if not even earlier, but its modern day examples play god on a much bigger
scale. Look at China, it isn’t communist any longer, but it isn’t free enterprise
either; instead, it’s a blend of big business partnered with government, i.e: Economism.
Sadly, China is giving more freedom to business owners in its titular communist
system than the United States is giving to business owners in its titular free enterprise
system.
What first attracted my attention to this was the astonishing extent to which the
rich received special deals from the government. This is simply unacceptable
in a Free Enterprise system. Many, but not all, of the great fortunes were
made by means which were patently unfair, and were known to be so. Owners
of large conglomerates who gained control or at least influence of the State’s machinery,
and were using it to their own advantage by way of land-grants, tariff concessions,
franchise monopolies and every other known form a law-made privilege, abused the
system, all in the name of American Economism. In view of American justice
for all, this was shamefully bad. Yet on should not blame business owners
for exploiting the existing system to their personal advantage, after all, flowing
water always follows the riverbed; therefore, true change needs to correct the riverbed,
not just punish the water for following the riverbed. Economism gives the
government the unnatural right to intervene in protective tariffs, income taxation,
regulation, etc; we should not be shocked that some enterprising, but characterless
individuals utilize government intervention for exploitation purposes. True
Free Enterprise has no part and parcel with Economism, knowing that favoritism can
never be squared with justice. On the contrary, free enterprise views government
as a neutral umpire in the game of business, while Economism views government as
a partner to exploit the masses for the benefit of the elite politicians and business
owners. With Economism reigning as the world-view of nearly all politicians
and Big Businesses, what could we expect but a continuous struggle for control of
the State machinery, many resorting to pay offs, corruption and the lot to win,
all for the right to exploit others with State's power for one’s personal advantage.
While there are many issues, some listed above on the short sightedness of government
intervention in the economy, one of the biggest is the concept called “Destruction
of the Commons.” Government when it ceases to be an umpire and starts playing
as a participant in the economy, quickly becomes the battleground of competing groups
for control of government’s monopoly of power. Since citizens have no appeal
to any source that isn’t part of the government, gaining control over the political
means of power is a major competitive advantage for any big business over its unconnected
competitors. Politicians do not own the government, but only rent their seats
for a time, willingly surrendering their influence to the needs of big business
in order to ensure their elections. The politician is thinking of his gain
by being elected and isn’t worried about the long term effects of his behavior to
the people in general, which perfectly describes the “Destruction of the Commons.”
When you rent a car, you’re not as worried about taking care of it, it isn't
yours and the owner will have to fix those brakes, shocks etc anyway. If you
go faster over bumps in the road, it isn’t the end of the world since it isn’t your
car anyway. Sadly, most politicians think that way about our government, caring
little about the national debt, crippling taxation, and economic ruin as that will
be someone else's problem, not theirs.
As a leader, father, and an American, I am asking for my fellow American’s to get
educated and informed on our American history and ideals. What the Founding
Fathers envisioned, implemented, and expected, they certainly weren't perfect
and we could learn much from their successes and failures, would be a great start.
There are many books to begin this journey, but I recommend starting with Albert
Jay Nock, Our Enemy the State.
It clearly explains why government and business do not mix; even though it is written
in the 1930’s, it predicts accurately many of America’s
current fiscal dilemmas. The best way to change the future is to learn
from the past and to act in the present. I think its time we start that process.
God Bless, Orrin Woodward
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