Free market capitalism is briefly defined as ...
"A system of economics that minimizes government intervention and maximizes the role of the market."
A better version would be that entrepreneurs decide to take a calculated risk to develop a business model that recognized the age old philosophy of “see a need and fill it.” Toward that end the business owner will work to provide a quality service or product and will supply it to customers seeking that end product.
Of course a book had a major impact on the development of this free market capitalist opportunity. Adam Smith wrote “Wealth of Nations” around the time of our nation’s break for independence.
The Constitution provided a system of laws that protected personal liberty and private property ownership. Those original laws also provided for limits on government intervention in the economic affairs of private business.
Our country was the first to fully embrace the concepts of Adam Smith’s writings. The result of this concentration of effort and ingenuity was to create the wealthiest country on earth.
I've included a link with some added insight into Adam Smith's ideas about economic growth. Please pay particular attention to a section about half way down this linked article. The section subtitle is "productive and unproductive labor."
The Constitution never promised equality of results or economic equality. It provided for the opportunity to succeed. Not the guarantee. It is inevitable that some will reach higher income levels and have greater success. Some will work harder; many will just have more particular talents. Quite a few will make better life choices along the way.
But it was that great human desire to achieve more and improve their lives coupled with limited government and greater economic liberty that enabled many people to lift themselves up and in the process, lift a nation.
Critics would argue that such a system concentrates wealth and promotes greed and an unjust distribution of wealth. They would have the federal government redistribute the wealth to everyone regardless of personal motivation or effort.
The government doesn’t give anything because they do not create
anything. Anything they give has been
taken from someone else. Our current
government, (and I do mean those from both sides of the aisle) specialize in moving
assets from one segment of the population to another. The result is an entitlement mentality.
The growth of the free market capitalism system is the one advancement that benefits all people. The federal government has proven for decades to be an abject failure in lifting our nation’s poor out of their situation. All they have done is promote multi-generational levels of continued poverty.
We need to remember that our country was
created by people with a huge mistrust of a central government. And it
was built by people seeking relief from tyrannical government
intervention into their personal lives. They used the free market economy system to go from absolutely nothing to the greatest manufacturing dynamo the world has ever seen.
In another page we’ll discuss the concept of “crony capitalism.” Along with federal over reach into our personal and business lives and the ever growing welfare state that government redistribution has created, this crony inspired tax dollar waste is weakening the foundations of our nation.
But if we remember our history and heritage, we can use the ballot box and the Constitution to turn the country around. The free market capitalism method is the best way to lift more people out of poverty and to once again lift a nation.
That is why the idea is spilling over into even the most restrictive countries. Governments don’t like free market capitalism. It keeps them accountable. Politicians hate being accountable. And it restricts their personal portion of that “redistributed” wealth.
Of course they have the same opportunity as everyone else. No guarantees. Just an opportunity. That seems fair.