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During the Cold War it became common to use the ideals of
free enterprise, capitalism and democracy almost interchangeably.
One side of
the war was capitalism/democracy and the other side was everything
non-capitalistic and non-democratic.
The differences between capitalism and
free enterprise were often lost in this environment. Furthermore, the phrase "free
enterprise" was mostly replaced by the concept of "free markets" in the
American usage.
These changes led to a loss of freedom as Americans lost
sight of the principles of economic freedom hidden behind these differing
phrases.
Where free marketism believes in the unfettered power of leaving
everything to the markets, capitalism approaches the economy by creating
special benefits for big capital. Neither are socialistic or communistic, it is
true, but neither are the economic ideal encouraged by the American founders.
Free enterprise, in contrast to both capitalism and free
marketism:
- holds that the role of government in the economy is to protect equal
rights for all
- it does not attempt to create equal financial results for all
like socialism and communism
- it does not leave everything (including
inalienable rights) to the market like free marketism
- and it does not give
special economic benefits to certain groups with more capital like capitalism.
For example, in capitalistic nations like the modern United
States, the legal and commercial codes don't allow people of lower incomes to
invest in high-return investments. A person must have a certain net worth to
even receive a prospectus for high-end investments.
This is promoted in the
name of protecting unsophisticated investors, but it is capitalism pure and
simple.
Another example: At a city council meeting or local zoning
meeting a small family company seeks zoning waivers or permission to expand
their business by purchasing a building in a residential area and turning it
into a business. In the same meeting a major company, say Walmart or Home
Depot, seeks zoning changes or waivers to build their store.
In a free
enterprise system, these two groups would be treated the same. In a capitalistic
society, the family business meets opposition (after all, they only employ 2
people) while the Walmart team leaves with zoning waivers, special tax breaks
and promises of additional help if they locate in this town (after all, they
will employ many hundreds and drastically improve the tax base and property
values).
In a free enterprise system, both groups would be treated
equally. And all investors would have the same options.
In free enterprise systems, everyone has the opportunity to
live the American dream.
In free market and capitalistic systems, the rich get
richer and the middle class gets increasingly into debt. In socialistic and
communistic societies, the middle class becomes a huge lower class.
The free enterprise system is the basis of freedom. It is
time for America to return to free enterprise.
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Social Leader Daily by Oliver DeMille
