Revision as of 20:24, 3 November 2014

Before we get into the article let's play a game.
We'll set up a scenario of two alternatives and you vote for which you would prefer to live in. It is an exercise to have you consider what economic freedom means before reading the article and to illustrate that real economic freedom goes beyond what we are used to today. Its ok to change your vote at any time. We don't have a convenient way to record your votes. But, if you are so inclined, you can leave a comment on the "Discussion" page for this article by clicking on the tab at the top of the article to tell us how you voted.

Here is the scenario: The United States splits into two countries - the states on one side of the border retain the political and economic arrangements of the U.S. as it is today (as-is). On the other side of the border there is a new U.S. that adheres to a policy of maximum economic freedom. The focus in this game is on economic freedom with political freedom playing a supporting role only as needed. Don't try to think about how it splits geographically. That is unimportant to the game (though it might be a fun diversion).

Alternative 1: The new US:

• In the "new" US, economic freedom is pursued as an end in itself.

It is too difficult to describe everything that entails and we want to be brief,so we'll list just enough to give you the flavor.

A thing to notice is that we are silent on welfare. Welfare is not a restriction of the economic freedom of the recipient. For example, food stamps do not restrict the economic freedom of those who receive therm.

While it might be argued that welfare restricts the economic freedom of those who pay the compulsory taxes to fund it, we will keep that discussion separate.

• No one is required to contribute part of their income to a retirement program that is administered by the federal government. Tax deferred savings accounts are allowed.

(i.e., no Social Security taxes or benefits, but 401Ks and IRAs are allowed)

• No one is required to contribute part of their income to purchase old age health insurance.

(i.e., no Medicare taxes or benefits)

• No commercial corporation, company, or group is singled out for special tax or regulatory treatment.

(i.e., no crony capitalism whatsoever)

• Farmers are not regulated in how much of a certain crop they can produce.

Nor do farmers receive federal subsidy or price controls for any agricultural product.

• There are few government regulations restricting trade.

In the "new" US, you can buy a foreign product or sell to foreigners with the only restrictions relating to national security.

• In the "new" US, business entities face far fewer regulations. There are only the essential regulations that set mandatory financial reporting standards for the administration and financial reporting of publically traded companies. Investors, consumers and those providing services and products are protected by laws that relate to enforcement of contract and similar laws.

Example: The Sarbanes-Oxley Act of 2002 that took financial reporting requirements to new levels does not exist.

• The federal government has few or no laws enacted in the interest of "consumer protection"

Example: The Dodd-Frank Wall Street Reform and Consumer Protection Act does not exist

• Licenses are not required to participate in any occupation (though people may form groups that adopt voluntary certification)

Examples: cab drivers, barbers, doctors, lawyers

• The government takes no role in determining minimum pay for any employee of a private enterprise nor does it regulate comparable pay between occupations or groups of people. (example: there is no minimum wage)
• Employees have the right to form and support unions, but each employee also has the right to work without belonging to a union or paying union dues.

Alternative 2: The as-is US:

• The starting point is a snapshot taken in the fall of 2014 about the time of the 2014 mid-term election.
• In the as-is US all of the examples of programs and regulations that are noted above as absent in the "new" US, are present in the as-is US.

Consider the two alternatives and decide which you would prefer to live under.

Now let's get on with the article:

Economic Freedom and Political Freedom

Is it possible that economic freedom and political freedom can exist in isolation from one another in the sense that any political arrangement can be coupled with any economic system? It is believed so by some, and usually by two types:

1. "Socialist democrats" believe that a state run, centrally planned economy can be run by a government that guarantees individual freedom through political policy; and
2. Totalitarian governments who seem to believe that, by allowing a limited amount of economic freedom, that their population will be sufficiently comfortable to endure single authority rule.

Those who believe in the first of these usually consider "material" considerations to be beneath them and of little importance. Such a view is often held by the intellectual class (who considers intellectual pursuit on a higher plane) and seldom by the working middle class or most other folks.

Economic freedom can be thought of as part of freedom, as illustrated in the game above, to be desired to

The CW sponsors hold to the premises that underlie this article. However, many of the ideas in the writing of the article are guided by the writings of a few economist / social scientist thinkers - primarily: [Milton Friedman], [F.A. Hayek], [Charles Murray], [George Gilder], [John Kenneth Galbraith] and [John Maynard Keynes]. References are provided in some instances. But some supporting arguments are taken from these authors without providing specific reference. We admit to freely and frequently using their ideas and arguments. CW claims no economic expertise of a technical nature.

The reader may conclude that we are influenced more my some than by others, or positively by some and negatively by others. We state that we are influenced by a reverence for freedom of individuals, which is what it used to mean to be a liberal. Our starting point is that freedom is a virtue to be strived for and use the writings of the referenced authors accordingly. Our definition of freedom is presented in the article: Freedom