Burlington High School
Burlington, Kansas
Teacher: Devra Parker
Forever Freedom:America Remains Capitalistic
By Jamie Augustyn
12th Grade
Throughout the world there are many types of governments. For example, there’s communism, capitalism, and socialism. Communism is when the government owns the means of production, and they control the economic activities. Capitalism is when the people have private ownership of their means of production, and the production is determined by economic activity. Last, socialism is when there is public and private ownership of means of production, and the decisions are made by the consumers and business. Also, the government determines the economic activity. The United States is capitalistic. Some, though, find it to be socialistic. Although in America’s past it has shown potential of being socialistic, it has remained a capitalistic country.
The only time that I can think of people believing America might become socialistic is during Franklin Roosevelt’s term. He came into office right after the Great Depression. He was determined to help his country. One of his most imaginary plans was the Tennessee Valley Authority, also known as the TVA. It was built to develop the Tennessee River system for navigation, flood control, national defense, and to generate and sell surplus electricity to prevent waste of water power. Many frightened United States citizens considered this program to be publicly owned. After all, the government did basically control it. Many thought this was one step towards socialism. Then, they were afraid of socialism, because that was the first step towards communism. This is the only point in time America was even close to socialism, but America did not become socialistic; she remained capitalistic.
America’s ability to remain capitalistic can be backed up by many reasons. Every person in America has his or her individual freedom to own his or her own businesses. For example, without capitalism, Wal-Mart might not have been started, as well as many other big industries like McDonalds, Hobby Lobby, target, Barnes and Nobles, and many more. These were all started by small businesses by individual Americans. They had their right and freedom to start these businesses, and the economy is the one who choose to grow these businesses into what they are today. The government didn’t decide any of the choices that were made when people were purchasing items from these stores and/or restaurants. This allows citizens to make a profit off their businesses.
The amount of profit that comes into the businesses is determined by the free-market system. The key word here is “free.” They don’t call it a free-market system just for the pretty name. It’s called that because that is exactly what it is, free. This system is the trade agreement between the buyers and the sellers of America. Both parties are allowed complete freedom to buy anything that they are able to sell or sell any product for any price. I don’t see hot it can be any more free than that. Some people argue that the market should not even be free, because eventually America will have an economic crisis, also known as a market failure. I believe the Stock Market Crash, which led to the Great Depression, is a good example of this. Yes, it was a very bad and sad time for Americans, but the United States got through it. We are a strong nation. Yes, in a socialistic government the odds of this ever happening are very low, but is that worth all the power the government would have over every single individual? Of course it is not. That is why our founding fathers made us capitalistic. Not one government is perfect, but capitalism is definitely the closest, and that is what America is. Plus, if the free market system isn’t free, then that would be one step towards socialism. The free-market system should remain free and is great evidence of America’s capitalistic qualities.
Thus, America has an overwhelming amount of small and large businesses. Whether someone’s dream is to own his or her own little shop on the corner of his or her favorite street or owning his or her own corporation and determining the actions that come from that business. The reason every individual has these rights is because of our capitalistic government. Our free-market system is called that way because that is exactly what it is. American citizens are so fortunate to have a government that allows them to buy and sell goods through one another. There is no doubt that the United States, itself, is a capitalistic government. There might have been some scares in the past, like FDR’s decision on TVA, or the Great Depression, but America overcame those scars and has remained capitalistic.
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."?
Mr. Reed means by his statement is that if everyone has the same status then they technically are not free because they are controlled by other people in our government that allows them to make laws and decisions that control our everyday lives. In order to maintain exact equality then the freedom would be limited greatly because the people would have to obey extremely strict laws. No one would be able to overachieve anything because they wouldn’t be equal among their peers, so their freedom is gone within equality.
Q2- What is the deadly trade-off to reliance upon government, according to
Reed?
The deadly trade-off to relying on the government is not a good concept when actually thought about. The government has control over our liberties, peace, and opportunities. The people see this as a good idea that the government provides all these for us, but unfortunately the people tend to rely on the government too much. Since we make the government so powerful, they are able to take away our freedom, peace, and opportunities just as quickly as they provide them for us, and just as easily.
The Calf of Democracy
Q3- Why did the
Founding Fathers assure that the
United States
became a republic rather than a pure democracy?
The Founding Fathers chose being a republic rather that a pure democracy because a pure democracy wouldn’t have near the limits that a republic would have. A republic allows the people to states their opinions and run for any offices, but still limits what can and what can’t be made into a complete decision. The pure democracy would just take away the sole power of a government and this could cause chaos and bad decisions among the people. A country should be free, but also have a good leader to be in the country’s pilot seat.
4- What is the saving grace of democracy according to Lawrence Reed?
Saving Grace means that Democracy allows for political change without any violence. Even if the change that occurs is right or wrong, the violence is greatly limited according to Reed.
Freedom Is Not a
Doctrine
Q5- Richard Haas
gives two unusual reasons for advocating democracy. What are they?
I believe Richard Haas advocates democracy, because it enables the politicians
to campaign. This allows the terrorism percentage to be down. The more that
the young people are evolved within their government; there more likely they
feel worth something and less against their government. The second odd reason
that Haas states that democracy is good is that is can stop tyranny around the
world. This is a reason not too many individuals would think of.
Q6- Give two reasons
you personally would promote democracy.
I believe that
democracy is good, because it is much more peaceful than other types of
governments because violence is greatly limited when great decision are made or
changed. Basically, I agree with Mr. Reed on the idea that democracy is a
saving grace.
Another reason why I agree with democracy is that every individual feels like he or she has a part in our government. The citizens have the open opportunity to vote and protest whenever they want.
Q7- Comment (any length) on President Bush's current foreign policy.
I believe that President Bush’s foreign policy, like every policy or plan, has some drawbacks and some positives. His policy states that “America’s vital interests and our deepest beliefs are now one.” It is true that we should be concerned with our own interests and beliefs, but what I get from this statement is that our way is the only way and everyone else should basically bow down to us. We should also be concerned with other countries and their beliefs.
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")?
The first
official I see him as a King that inherited his thrown through his blood. The
second hat represents the man who was just wealthy so he came into power because
he had the money to do so. I believe the third hat represents the man who went
through a course of educational steps to get to his leadership position. The
last hat represents the working man who worked his way to the top by hard labor
and rough times.
Q9- How did you
interpret the megaphone, baby, knife/gun ("No matter how officials are
selected")?
I interpreted
that the megaphone represents the official that was selected through campaign
and he got his voice out to the people. The baby represents a child that was
born into a political family, and this individual was selected by people knowing
his or her parents or relatives. The knife and gun represents the individual
that was elected a leader through threat or blackmail.
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.
My favorite link was
the
http://www.economics.ge/ because it lead to me a political quiz. This
quiz’s link is
http://www.theadvocates.org/quiz.html . It allows me to answer with my
opinion and then get results of where I might stand in the political views of
government. It is a small and easy to understand quiz. People don’t want to
take a 10 page quiz. They want to make is short and quick, and this quiz
provides both characteristics.
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.
Austria- highest year is 2003 and their lowest year is 1975 Brazil- highest year is 2002 and their lowest year is 1985 Hungary- highest year is 2003 and their lowest year is 1980 Iran- highest year is 1970 and their lowest year is 1980 Mexico- highest year is 1970 and their lowest year is 1985
Q12- Which of your five countries had the greatest degree of economic freedom according to this exercise?
Austria has the greatest degree of economic freedom according to the charts because it has the greatest ratings and the most consistency.
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.)
The summary rating for Austria in 2000 was 7.4 and they were ranked 12th in economic freedom.