Let The Free Market Place Live!
September 2009
Our free market place is not perfect and it will never be perfect, but it is the most spectacular wealth generating machine in the history of the world. No one likes what has happened recently to our economy, but we should never forget that wealth is created by individuals and business, not government. Our systems of economic freedom, innovation and entrepreneurship will continue to generate spectacular long term growth, as long as we don’t mess it up.
Does anyone really think that more government regulation is going to make a difference? It won’t. More regulation means higher cost to do business, which translates to consumers paying higher prices for goods and services. Attempting to regulate ourselves to perfection can only lead to paralysis.
Our nation was founded on the principles of freedom that include limited government and maximum personal rights. We cherish our right to freely pursue any legal business opportunity with minimal government restriction. That’s how our phenomenally successful system works.
We can try any “wild and crazy” idea for a new product or service, as long as we don’t violate the various laws and regulations. It is “wild and crazy” ideas that lead to innovation and wealth creation – “wild and crazy” ideas that we should encourage and celebrate!
Suppose you have a “wild and crazy” idea about a new product. You borrow a little money, buy some raw materials, assemble your product, and then sell it. Most ideas fail, but let’s say yours works. Next you rent a building, lease some equipment, and hire an engineer, a few production folks, an accountant and a salesman. You are creating product for customers, employment for half a dozen people and wealth that you will likely reinvest in your growing start-up business. This is the American way!
Wealth cannot be created by government, but it can be redistributed by government. The more we borrow to redistribute (to be paid back by future taxes), the more we increase taxes and the more regulation we impose, the more we discourage the entrepreneurial spirit. The more the government takes and the more it regulates, the less incentive to innovate and produce.
Our collective objective – all of us – should be systems, processes, regulations and laws that encourage wealth creation. We do have the best economic system in the world and, no matter what has happened recently, we should never forget how we achieved such success in the first place. The free market place is the wealth generator, and the wealthier the nation, the more opportunity for every citizen.
Joe Scarlett, joe@joescarlett.com
Retired Chairman of Tractor Supply Company
Founder of The Scarlett Leadership Institute at Belmont University
September 2009
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