Free People vs. Equal People

By Chad Buchholz

12^th grade

Are the people of the United States of America free or equal? The dictionary meaning of the word capitalism is an economic system in which the means of distribution and production are privately owned and operated for private profit. The dictionary meaning of the word socialism is a system in which people as a whole, and not individuals, control and own all property. Based on the definition of capitalism and socialism, the United States of America more resembles capitalism because of privately owned businesses and property, private profit, and free trade and a free market.

Capitalism has the private ownership of land, farms, factories and service industries. Capitalism gives people in the United States of America the ability to buy or sell property and possessions however and whenever they want. Citizens of the United States would also be able to get the same houses, cars, clothes and whatever else they would want. Unlike socialism the American government doesn’t have control over the properties and possessions of the American people. In the past half century, American capitalism has drawn Americans into deeper participation in the economic system by spreading the base of private ownership of publicly traded corporations. The spread of ownership, directly and especially indirectly through retirement plans, is far beyond anything that had previously been achieved by capitalist societies. Spreading corporate ownership makes large amounts of capital available for investment. As modern enterprises become larger and larger due to economies of scale and scope, raising this capital becomes critical. Perhaps even more importantly, this spread ownership creates a personal commitment of employees to their enterprises. This is a critical ingredient for economic success in the information age, where human capital is the most important factor of production. Like Lawrence Reed said in his second principle, “what belongs to you, you tend to take care of; what belongs to no one or everyone tends to fall into disrepair.

Capitalism allows people to make profits on their own investments. Everyone has his or her own jobs, the amount of hour’s worked and separate paychecks. If the United States of America was more socialism, then people would have equal opportunities to get the same jobs, be paid the same amount of money, and would have the same amount of hours to work. If everyone had equal opportunities to get the same jobs, pay, and hours then we are all equal. The constitution says the citizens of the United States have the freedom and right to life, liberty, and the pursuit of happiness. Then what Lawrence Reed says in his first principle, “free people are not equal, and equal people are not free”. When people are free to be themselves, to be masters of their own destinies, to apply themselves in an effort to improve their well-being and that of their families, the result in the marketplace will not be an equality of outcomes. People will earn vastly different levels of income; they will accumulate vastly different levels of wealth. Capitalism also allows people to work as hard as they want to get as good a job they want. So if they have a better job, then they would get more money to buy more and better stuff for their families and themselves.

Capitalism allows people to do whatever trading and marketing that they want to do. Private owned businesses go to markets to purchase products and goods to sell or trade for a profit in their business. Our countries financial backbone is built on entrepreneurship. An Entrepreneur is a person who launches or manages a business venture. This business person would have to be resourceful and adventurous to build his own business. An example of an entrepreneur is Bill Gates who built Gateway computers, which is a multi billion-dollar industry. Socialism would not allow a business person to work at building his own business. But the United States, however, is a capitalistic country and allows people to do any kind of trading or marketing for their own business.

The United States of America resembles capitalism because it is financially based on free trade and free market. Private ownership, which is becoming larger and larger, is a personal commitment to get a greater financial return. Capitalism allows people to work as hard as they want to get whatever profit they want out of it. It also lets people do their own trading for their businesses and go to markets. So the people of the United States are free and live in a capitalistic country.

Answers To Questions Prompted By The Required Reading

1. What does Mr. Reed mean when he says “equal people are not free”?

He means that if everyone would be forced into being equal and if you’re forced to do something then you’re not free.

2. What is the deadly trade off to reliance upon government, according to Reed?

Equality between everyone, but no economic freedom.

3. Why did the founding fathers assure that the U.S. became a republic rather than a pure democracy?

Everyone wouldn’t vote because they might not want to or they couldn’t because of any voting polls to go to.

4. What is the saving grace of democracy according to Lawrence Reed?

The saving grace is not that it ensures either good or limited gov’t; it is nothing more than that the system allows for political change without violence-whether the change a majority favors is right or wrong, good or evil.

5. Richard Haas gives two unusual reasons for advocating democracy. What are they?

They are hard to spread around and are not always peaceful.

6. Give two reasons you personally would promote democracy?

Can vote for what I want and I am not ruled by a King.

7. Comment on President Bush’s current foreign policy?

We should get out of Iraq and let them figure everything out.

8. How did you interpret each of the four different hats?

Crown hats- is our gov’t

Graduation hats– are the representatives

Top hats- is everyone

9. How did you interpret the megaphone, baby, and knife/gun?

Megaphone-leader does lots of campaigns

Baby- born into the leader

Knife/gun- forced his way to being leader

10. Share one of your favorite discoveries with us. Make sure you copy the URL. Tell us why you chose it.

CATO Institute USA, www.cato.org, I was interested about the subject

11. 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.

U.S. - high in 2000 low in 1970

Canada-high in 2000 low in 1975

Germany- high in 2000 low in 1975

Mexico- high in 1970 low in 1985

12. Which of your five countries had the greatest degree of economic freedom according to this exercise?

United States

13. What was the summary rating and rank in the year it achieved this degree of economic freedom?

8.6, 2 of 123

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