Proud to be a Capitalist!
Time-proven economic system maximizes liberty and opportunity

Our economic system of capitalism, so essential to American freedom, is too often taken for granted. Nothing has a history of lifting millions of people from poverty to prosperity like our free market economy. Yet, American-style capitalism continues to be under assault in other parts of the world and, more and more, even here in the U.S. Some of our opportunistic politicians mount furtive assaults, proposing “pie in the sky” government programs with no mention of the anti-capitalism consequence.

Capitalism is the only economic system compatible with individual freedom. While socialism, where the means of production is government-controlled, can be very seductive by promising to “give people things,” it confiscates freedom. Socialism attempts to make everyone the same, with big government giving to everyone, but at an unacceptable price. It steals initiative and leaves individuals at the government’s mercy.

Nevertheless, some countries continue to embrace socialism in spite of its failure to produce vibrant economies and overall prosperity. Recently, English Prime Minister Tony Blair, along with the Dutch and Swedish prime ministers and Germany’s chancellor, contributed a commentary to the Washington Post taking credit for their leftist policies. Their commentary advocated activist government and boasted of the survival and “successes” of their self-proclaimed welfare states and socialist policies.

Such socialist leaders disdain capitalism and fail to recognize the loss of individual freedom in a socialist economy. Thirty years ago, Canada’s was a capitalist economy like our own. Beginning with Prime Minister Pierre Trudeau, however, the Canadian economy has progressed steadily toward socialism’s inherent government control. From health care to energy to industrial production, socialism’s signs are evident everywhere.

Redistribution of income accomplishes neither individual nor overall prosperity. Socialism’s inability to achieve economic growth has been thoroughly documented for more than 200 years. History is replete with nations failing in experiments in socialism or collectivism. Yet, the worlds’ socialists, including those in the U.S., continue to propose policies which compromise or subvert free market policies essential to economic growth.

When bureaucracies and legal systems unreasonably inhibit the free market, investment is stifled and the whole country loses. Piling up regulations and pushing the envelope for executive prerogatives has true costs and puts the economy at risk. So-called “independent” federal agencies like the Federal Communications Commission possess nearly unlimited regulatory power and use it with impunity. Yet, the American press frets over too much congressional power of these regulatory agencies. “Executive Order” power of the presidency, mandating by fiat without or against approval of Congress, has been exercised exorbitantly in recent times at great cost to American citizens.

Heritage Foundation studies show a 261 percent growth in federal regulations from 1986 to 1998. According to the Competitive Enterprise Institute, this trend toward federal micro-management of every employment setting translates to a total Federal regulatory burden of $700 billion, a burden bigger than Canada’s entire economy. It represents a hidden tax of approximately $7500 yearly for a typical two-wage earner U.S. family.

Individuals risk their own capital and energy to build businesses for the prosperity of themselves and their families. In doing so, they create jobs and wealth for other Americans. Kentucky capitalist extraordinaire and fast food genius Warren Rosenthal has always proudly called himself a capitalist. He did not inherit his business or wealth. Through sacrifice, he built Jerrico/Long John Silver’s into a highly-successful enterprise from the ground up, risking his own capital and energy. In creating his own wealth, Rosenthal created untold jobs and wealth for others.

Capitalism and opportunity for individual reward spur growth of new business; socialism takes away that spark and leads to stagnation and mediocrity. Public policies maximizing a free market environment promote true freedom and enhance people’s lives. Capitalism is something to be proud of. It builds individualism and individual wealth and creates a strong economy.

Pat Freibert is a former Kentucky state representative from Lexington
editorial@lanereport.com

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