Support for Capitalism

Thoughts on a free market economy…

“Support for Capitalism”

By Phyllis Hunsinger

February 1, 2016

The United States was founded on the principles of capitalism and free markets.  Capitalism is defined as an economic system in which the means of production, distribution, and exchange are privately owned and operated for private profit.  Free markets mean an economic system in which prices are determined by unrestricted competition between privately owned businesses.

Knowing that these are the bedrock principles on which the United States was founded, consider this: Forbes in the January 18, 2016 edition published “The Best (and Worst) Countries for Business” and Europe dominates the annual ranking of the finest countries for capitalism.  Denmark ranked first.  Despite the high taxes required in a socialist economy, the country received high marks for low corporate tax rates, innovation, and monetary freedom.  New Zealand, Norway, Ireland, and Sweden complete the top five Best Countries for Business.

Where do you think the United States falls in this ranking?  The U.S. is number 22 on the list of Best Countries for Business.

Why do you think a country founded on the principles of capitalism and free markets would rank 22 on the list for “The Best Countries for Business?  The answer lies in excessive government interference.  Every single law, rule, and regulation designed to ‘improve something’ impacts businesses.  Laws are passed with seemingly no regard for the unintended consequences which often add stumbling blocks to innovation in the form of red tape, expensive compliance to regulations, and fees.

Elizabeth Harrington in The Washington FREE Beacon on May 12, 2015 reported the results of a study by the Competitive Enterprise Institute that the cost of federal regulations neared $2 Trillion in 2014.  This cost must be passed on to consumers; therefore, onerous and often needless rules and regulations affect each and every one of us in the United States.  We pay dearly for federal overreach and control.

It is interesting reading the list of “The Best (and Worst) Countries for Business” while realizing that even professed socialist countries recognize the importance of free markets and capitalism in order to have a thriving economy.  The United States of America needs to hit the reset button and go back to the founding principles of capitalism and free markets.  In the absence of that on this list in the near future, the U.S. will be appearing somewhere around Libya(#142), Guinea (#143), and Chad (#144).

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