Wednesday, April 28, 2010

The Free Market

Thomas Woods has a good article at lewrockwell.com . Dr. Woods demonstrates that plunder is immoral, central economic planning is bound for failure, and the free market provides a greater benefit (without compulsion) to civil society than regulations enacted with the intent to control "greed:"

Thomas Jefferson once observed that the mass of mankind was not "born with saddles on their backs, nor a favored few booted and spurred, ready to ride them." That is what the free economy is all about: anyone is free to serve the public in the manner he thinks best, and no one, not even those who have been most successful in the past, can claim exemption from the daily referenda that take place whenever the public decides to buy or to abstain from buying what he has to sell.

To my ear, the term "culture of enterprise" suggests a society that possesses a conscious appreciation of the distinct virtues of the market economy... and why it is morally and materially superior to statist alternatives... In other words, the points I have made in my remarks today are the kind of arguments that should resonate with and constitute important pillars for a culture of enterprise. Instead of being held up for condemnation and abuse, entrepreneurs in such a society would be respected and honored for the risks they assume with their own property in order to bring improvement to people's lives, from the latest technological innovation to the most mundane of necessities. For a true culture of enterprise to last, people must see in the unhampered market economy not merely the least intolerable system but a positive good, in which living standards consistently rise, human creativity is given free rein, and human interaction proceeds on the civilized basis of respect for others' person and property. The decades following World War II taught anyone who was paying attention how not to encourage prosperity or escape from less-developed status: demonize producers and the successful, nationalize industry, harass foreign investors, make property insecure, institute "import substitution" policies, and suffocate entrepreneurship through regulation. Development aid programs, meanwhile, either expressly endorsed these policies (as in the case of import substitution) or enabled them to continue by masking the true effects of such disastrous measures or propping up the regimes that implemented them. If the less-developed countries are to enjoy the prosperity of such success stories as Hong Kong and South Korea, or enjoy the growth rates being observed today in Ireland and even China, they must abandon the destructive and wicked policies of the past, discard the culture of envy their leaders have fostered, and embrace the principles of freedom that have allowed more people than ever before in history to enjoy the material conditions of civilized life. [My emphasis]


By the way, Goldman Sachs donated more to the campaigns of Democrats than Republicans. If the market could form words and speak for itself, it would say to the banderilleros: "Get out of my way!"

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