Burlington High School
Burlington, Kansas
Teacher: Devra Parker
Freedom: A Capitalistic Role in the Untied States
Erica Reeves
12th Grade
Perhaps, when the Founding Fathers of the United States composed our Constitution, they had a general idea about the type of governmental system that would preside over the people of the country. Although these historical leaders denied proposing any form of monarchy, as England had once burdened the land, they did derive many of today’s laws and individual freedoms from previously written English documents of law. Such political philosophy was carefully investigated and measured, resulting, to some degree, in the discussion of whether capitalism or socialism would primarily exist as a centralized proposal. The outcome, as I look at the United States’ current stand on economic and individualistic liberty, is a nation founded, most certainly, on capitalism.
Before one goes about classifying the nation as capitalist, he or she must investigate what it is not—socialist. Socialism [allows]…a governmental branch, like Congress, to interfere with private enterprises’ business, property, and competition. Capitalism, on the other hand, defines…what government can and cannot do and by restraining politicians from carrying out [too many] actions that obstruct…choices.
First, the dependence on personal choice in a free enterprise market, like that of the United States, outweighs the…reliance the nation has on [the] political process needed to distribute resources, commodities, and services. This institutes a need for competition, a vital business complexity that pushes entrepreneurs to gather more talent, industriousness, and capital in hopes of pleasing a customer. If this was not practiced, the only option would be forcing equality in hopes that no man might have success over another.
By staying out of much of the business world, a capitalist country allows people to make monetary transfers of their own without heavy taxation. The working class that keeps more of its wages is freer, has a greater opportunity for decision-making, and is more capable of [sustaining] a healthy economy….
Also, a capitalist Government does have responsibility to protect its citizens' property and rights. America has clearly demonstrated a security through proficient court systems, enforcement officers, and the upholding of law and written contracts. [When people have] confidence that their earnings and possessions are being [protected, they] are encouraged to engage in productive activities that promote the wealth of the nation. The human race has…proven again and again [that] private property [is an incentive for individuals to] be passionate about what they have and what they do with it. …
Protecting currency means protecting freedom. Allowing the economy to function without state control decreases the chances of inflation. The people of the United States would not like to reach a point in which there is too much money and too few goods in the market. State involvement…may…provide short-term effects [for selected groups], but…does not…help the [entire] nation for any length of time.
Next, international trade is highly promoted by the United States’ government. Despite a limited need for tariffs and quotas, the technologically advanced world we live in produces all sorts of communication and transportation at [a] low cost. This trade, [which is] a capitalist liberty, allows…the management of international customs, freely exchangeable currency, and few restraints on the movement of capital… Capital[ism] permits consumers to carefully budget and spend earnings.
Finally, [our current form of] capitalism [permits] modest regulation of business operations. Companies [can benefit from the] exchange [of] merchandise and services…. [The labor force may…decide wages, conditions for release, and work incentives. The freedom to motivate people and their choices in positive ways is essential to building strong and ethical foundations. Because government has little [say] in [how] the business world functions, no businesses are favored at the expense of others.
[It is clear that] capitalism plays a key role in the development and continuation of a dynamic United States. The freedoms we find relate to the individual as greatly as it does to the economic world in which one is ultimately connected. … However, a free and independent people do not depend on…authority for sustenance and survival. They…unite under a common philosophy [and that philosophy is capitalism].
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."?
It is obvious that at no level are the people of society economically equal. Reed continues with this principle by suggesting that such equality may not exist among the ambition of peoples either. The government of Cambodia conveyed this in the 1970s when an attempt of such parity resulted in the death of millions in an extremely undeveloped society. The only way in which to force a concept of equal people would be to derive them of all freedom. Each man and woman would be restricted in terms of talents, industriousness, and savings and be conformed to the same level of potential as everyone else.
Q2- What is the deadly trade-off to reliance upon government, according to Reed?
Reed’s sixth principle shows us that a powerful government can either be a strong servant or fearful master. If we are to truly be independent, it is better that we do not look to the government for nourishment. He tells us that it is the government’s responsibility to solely provide freedom, peace, and opportunities. It is when we rely on the government for other needs, that we are forced to support one another out of our own pockets in a continual and enslaving practice.
The Calf of Democracy
Q3- Why did the
Founding Fathers assure that the United States became a republic rather than a
pure democracy?
A pure democracy calls for a vote on all issues, public or private, proper or improper, that can be passed as favorable or unfavorable by a fifty percent vote plus one. It allows all citizens to vote despite their lack of expertise in the area. The founders of this nation, however, chose to build a republic, one still successful in providing everyone “say” in government. This is accomplished if one decides to run for an office, support candidates, speak publicly, or even vote. It does eliminate the chaos of holding an infinite amount of ballot casting by the common unqualified people.
Q4- What is the saving grace of democracy according to Lawrence Reed?
Unlike a government run by military tyranny, in a democracy decisions are made by way of ballots not by bullets. This saving grace does not define the quality of government, but allows for change with a humane effort.
Freedom Is Not a
Doctrine
Q5- Richard Haas
gives two unusual reasons for advocating democracy. What are they?
Advancing democracy is a useful way to fight against terrorism. The more connected a country’s people feel towards the government, the more likely that they will chose not to rebel against it. The freedom we find in democracy is also a major component of Bush’s foreign policy. It suggests bringing an end to all tyranny, not by forcing all countries to adopt democratic policies, but instead, by encouraging cooperation.
Q6- Give two reasons you personally would promote democracy.
Democracy is very imperative. Like Haas, I agree that if citizens of a nation were involved in a democracy and its politics, then they would have a greater sense of connectivity and nationalism. An attitude of love for one’s country, and possibly other democratic-run countries, would significantly change the current “hate” displayed by today’s terrorist. It is also democracy that supports the value of its citizens, spelling out the significance of human rights, meaningful economics, and political participation. These core ideas can unify the world and standardize a level of equality.
Q7- Comment (any length) on President Bush's current foreign policy.
Bush has a democracy-first foreign policy in hopes of ending all tyranny in this world. However, the United States cannot continue to force this political idea on foreign nations at the cost of their cooperation. The States have always acted as a big brother, choosing to protect the unjustly treated people of other countries, and thus, extending its own democracy and values past its own borders. But, by prioritizing our relations with other countries, we find it vital to focus on an approach that will simply prevent our nation from being forced into war. Survival and peace is more important than global democracy.
Internet Activities
Q8- How did you interpret each of the four different hats (“officials with fine hats”)?
Life, liberty, and property can be taken away from by the initiation of fraud or force. Individuals, groups, or “officials with fine hats” may immorally conduct such murder, slavery, and theft. These types of officials are interpreted as people of authority: a king or ruler, a wise scholar, a rich entrepreneur, or a citizen with a high social class. All have acquired power, and may chose to use it unethically be depriving people of their self-ownership.
Q9- How did you interpret the megaphone, baby, knife/gun (“No matter how officials are selected”)?
When campaigning, officials may try to gain the favoritism of a person in several ways. Each may attempt to loudly voice his or her ideas and opinions, attract popularity by acts of innocence and compassion, or make threats of hostility, offering an ultimatum. Despite the technique the official uses to get elected, he or she cannot claim rights over other individuals.
Q10- Browse “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.
One discovery I made was about Hong Kong’s economic freedom at its site: http://www.hku.hk/hkcer/freedom.htm. It supplies numerous economic reports that prove Hong Kong as the freest nation in terms of political, civil, and economic forms. Its people and their lives are truly enriched as it is ranked number one as the world’s most economically free country.
This discovery inspires me to continue in my quest of understanding freedom and its development in socialistic and capitalistic nations.
Q11- Once again go to www.freeworld.com and this time note the question near the top of the page: “How much economic freedom exist in your country?” and randomly choose five countries. List the name of each and their highest and lowest year for economic freedom.
Country Highest Year Lowest Year
1. Egypt 2000 (6.7) 1975 (4.3)
2. Israel 2002 (6.8) 1980 (3.6)
3. Venezuela 1970 (7.0) 1995 (4.2)
4. Hong Kong 1995 (9.1) 1990 (8.2)
5. China 2003 (6.0) 1980 (4.0)
Q12- Which of your five countries had the greatest degree of economic freedom according to this exercise?
Hong Kong had the greatest degree of economic freedom across the board. Since, 1970, even its lowest year of economic freedom has exceeded the highest year of economic freedom of the four other comparable countries.
Q13- What was the summary rating and rank in the year it achieved this degree of economic freedom?
The summary rating is the average of the five area ratings: size of government, legal structure, sound money, international trade, and regulation. Hong Kong's summary rating, in 1995, was 9.1 on a scale of 1 to 10. This ranked Hong Kong as number one in economic freedom around the world.