The Importance of Private Enterprise

Thoughts on a Free Market Economy…
“The Importance of Private Enterprise”
By Phyllis Hunsinger
May 1, 2016

The Grand Junction, CO Area Chamber of Commerce just published the 2016 Business Update. One of the many presentations in the Business Update was a listing of the major employers in the area as reported by the Grand Junction Economic Partnership and Area Businesses. A summary follows:
# Employees from Private Enterprise = 7001
# Employees from Public Entities = 6890

Why are these statistics alarming? Consider that the purported percentage of unemployed, never employed, or retired people in the United States is 47%. Let’s say that Grand Junction has even 40% of unemployed, never employed, or retired people comprising the populace. That leaves 60% of the populace working. The above statistics show that almost one-half of the employees in Grand Junction work for public entities. If 40% are not working, then 30% work for public entities, and 30% work for private entities.

Now, what’s the big deal about that? Public entities have no way of generating money. Public entities are totally dependent on tax dollars for funding. This is not to say that public entities, i.e., schools, colleges, law enforcement agencies, etc., are not critical to a society. They are; however, it is important to realize how public entities receive their funding.

Each day in the newspapers and television reports, the economic malaise and the slow growing economy in the United States is a topic for reporting and discussion. The economy can only grow when private enterprise grows. As demonstrated in Grand Junction, the public employees almost equal the private enterprise employees. This is not a healthy balance. If a vibrant economy is to be enjoyed, it will be because of booming private enterprises.

Private enterprise is the freedom to produce and sell, and the freedom to buy and consume; and the consumer, as well as the producer, is an integral part of the private enterprise system. As an economic system, private enterprise is characterized by competition, open markets, private ownership, and private initiative. (Samuel Lubell, 1965)

Private enterprise is the bedrock from which all economy flows., Phyllis Hunsinger © 2013 All Rights Reserved

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