Burlington High School
Burlington, Kansas
Teacher: Devra Parker

Capitalist Nation or Creeping Socialist
By Chris Hopkins
12^th grade
 

Free elections, private owned businesses, and freedom of speech are...evidence [that] the U.S. is a democratic, capitalist nation. Many would argue that although we are supposed to have a say in everything, ...we are a more socialist country...because the government basically makes the decisions. We elect the leaders to represent us and carryout our ideas, but they don’t always reflect what our opinions are, much like a socialist or communist nation. It is my belief that even though we leave it up to the government for decisions, that we are a capitalist nation in most senses of the way.

The United States is based upon a free market economy which allows almost anybody the right to start their own business, and become tremendously wealthy. Such rights don’t truly exist in societies that are classified as socialist. Bill Gates, Sam Walton, and Pierre Omidyar (founder of EBay) are living success stories that prove that we are a free economy. The only article the government steps in on is protecting the land acquired from foreign attack, upholding the rights of private property, and guaranteeing contracts. Our financial system is based on buyers and sellers with free decisions on what to spend their money on, while a socialist is limited to where he can spend his because of government control. The checks and balances systems we have established ensure that we can make free decisions without complete government control.

If we were a socialist economy, we wouldn’t be the lone super power in the world. We would have one similar to one in Russia or North Korea. The government would be controlling our every decision which could lead to a ruthless dictator or a military run- type government. United States’ national date has risen to over eight trillion dollars, but it’s the interest that we are having a hard time paying off. In other words, even though we seem to be in debt, we have a stable economy. If we truly were a socialist economy we would have a few thousand people jobless, and millions more homeless. There would be a lot less jobs and self- made businesses here which would be hurting the market.

Another interesting aspect would be our insurance policies here in the United States. Here in the United States if you’re rich, you can get great health care and dental care with our different types of insurance. In places such as Europe, there are people that live in horrible conditions, and therefore cannot afford...proper [health] care. In the States, about 70% of the households have insurance proving that our market economy is in place and is very effective. If we were more socialistic, we would need more economic aid. The down side is that these doctors and physicians can make a quick dollar at all expenses without actually helping their patients.

Many citizens take for granted their everyday freedoms and decisions that other countries aren’t granted. Freedoms such as freedom of the press, freedom of religion, and the right to choose your own jobs are some basic ones. In non-secular socialist countries, in order to fit in with the political system, [a person] doesn’t even have [religious] options.... In places such as Russia, North Korea, or China, [citizens] are told what specific job each will hold...for the rest of his/her life. ... Note that...prices of...consumer goods are [set] by the government. ... Farming in these areas is done by commune farming, meaning that they specifically work for an official or specific person. The U.S. obviously can choose any career in which they wish to pursuit. Lastly, just recently Vladimir Putin, President of Russia, charged a writer for expressing his opinion on how their government is run. Our checks and balances power would once again not allow for this to occur.

In our society, people are endowed with never ending freedoms that they face every single day. They have unalienable rights given to them in order to chase down their dreams and occupations for individual happiness. Economies classified as Socialist are living their lives through the government with only certain areas of sovereignty. They live as though they are robots with no opinion, thought, or idea of how they live. With our decisions, we decide what we want to do and can really make the quick dollar without the consent of the government. Without having to worry about these problems, this allows for our regime to focus on more important political tribulations.

Answers To Questions Prompted By The Required Reading

Seven Principles of Sound Public Policy
Q1- What does Mr. Reed mean when he says "Equal people are not free."  

A: He is saying that if we had an equal amount of income it would be impossible to enforce because it would be telling people not to succeed. Basically limiting the people of money and not allowing them to be free.

Q2- What is the deadly trade-off to reliance upon government, according to Reed?

A: Basically saying that if everyone depended on the government then it would have too much power and it would be more like a communism type of government.

The Calf of Democracy
Q3- Why did the Founding Fathers assure that the United States became a republic rather than a pure democracy?

A: So that the country could make decisions on its own rather than asking the people for advice on everything. If it was a pure democracy we would never get anything done but maybe make bills. If we had a pure democracy, not everybody would agree on all the decisions.

Q4- What is the saving grace of democracy according to Lawrence Reed?

A: According to Lawrence Reed the saving grace of democracy is the 1^st 10 amendments to the constitution which is the bill of rights.

Freedom Is Not a Doctrine
Q5- Richard Haas gives two unusual reasons for advocating democracy. What are they?

A:  He states that they are not always peaceful. Immature democracies or ones that hold elections but lack checks and balances are particularly vulnerable to being hijacked by popular demand. Serbia is a prime example. It is very difficult to spread democracy. In order to put something better in its place, you have to oust the old form. Such convincing would take lots of time, effort, and maybe even lives. As Iraq demonstrates with the rise of modern nationalism proves that opportunities will be rare, despite an investment of billions of dollars and thousands of lives.
 
Q6- Give two reasons you personally would promote democracy.

A: Promoting of democracy is important because I believe that it sends out the right message to less civilized nations. It gives each individual of the state a say in the government, which promotes freedom and represents the country as a whole. It is my belief that since they are the ones that make up the country, then they should decide how it is run. Backing democracy also helps protect people from unfair restrictions and ruling. If we didn’t have a standard form of government, we would never get anything done. Nothing would be enforced, and other people could come into our nation and rule. In situations such as the current one in Iraq, we need to keep doing what it takes to instate democracy, no matter what the costs are. The situation could compare to the drug war, although they maybe never completely done away with, it is still a battle we should fight. 

Q7- Comment (any length) on President Bush's current foreign policy.

A: While the nature of other societies should always be a foreign policy consideration, and cannot always be the foreign policy. Trying to ensure democracy may work for a while in some cases, but once the official’s time has come, he might do away with the democratic process to maintain power. Such an individual would include Hitler. This just ends up costing our government our money and time, even though it is trying to promote the right idea. As stated in the required reading, you have to convince the majority of the people from the government they have lived with, and get them to go along with something entirely new that they may not believe will work. In some cases, like the Israeli and Palestinian conflict that has been occurring since the day Israel was recognized in 1948, the democratic foreign policy may not work.
 
Internet Activities
Visit the Society for Disseminating Economic Knowledge: "New Economic School-Georgia" Georgia was part of the old Soviet Union.

You will find this web site by browsing the Economic Freedom Network and scrolling to "S" for Society.  http://www.freetheworld.com/other.html  On first impression the site may appear amateurish. The English translation may materialize only partially. However it provides a link to a very well done flash presentation. http://www.isil.org/resources/introduction.swf 

Q8- How did you interpret each of the four different hats ("officials with fine hats")?

A: My interpretation of the four hats was that they were four different types of leaders.  The hats were symbols of how they rule their people. 

Q9- How did you interpret the megaphone, baby, knife/gun ("No matter how officials are selected")?

A: My interpretation of the megaphone was that it was a symbol of power.  I think that the baby was a symbol of growth and development as a leader and the knife was a symbol of force used.

Q10- Browse the "Favorite Links" of the Economic Freedom Network http://www.freetheworld.com/other.html and share one of your favorite discoveries with us. Make sure you copy the url. Tell us why you chose it.

A: I think it is very interesting that North Korea has hardly any economic freedom due to the fact that the country is completely ruled by dictatorship.

Q11- Once again go to www.freetheworld.com and this time note the question asked near the top of the page: "How much economic freedom exists in your country?" and randomly choose five countries. List the name of each and their highest and lowest year for economic freedom.

A: Argentina in 1975 had its lowest with 3.4, its highest was in 2000 when it had 7.2. Brazil had its lowest with 3.6 in 1985 and in 2002 it was the highest at 6.1. China’s lowest was in 1980 where it had 4.0 and its highest was in the year 2003 where it had 6.0. Germany’s low was in 1975 when it had 6.7 and was highest in 2000 with 7.6. Columbia had its lowest in 1980 with 4.7 and it was highest in 2001 with 5.5.
 
Q12- Which of your five countries had the greatest degree of economic freedom according to this exercise?

 A: Germany with 7.5 had the greatest degree of economic freedom.

Q13- What was the summary rating and rank in the year it achieved this degree of economic freedom?
(You can find this information by clicking on the Economic Freedom of the World: 2004 Annual Report and then choosing Chapter 3 and scrolling to your chosen country.)
       
A: 19 0f 127

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