For our next discussion we will continue on with The Road to Serfdom by F.A. Hayek. We will read chapters 5 - 10 and our discussion will be lead by Jake Honsvick, Economics major at BYU-Idaho.
Jake has also put together a document of supplemental reading that can be acquired HERE and we highly recommend that you give it a read!
Feel free to use the comments to this blog as a forum to prepare for our discussion by posting thoughts, possible discussion questions, and additional articles/resources that would help us to prepare.
Be sure to invite anyone that you think would be interested in coming to our groups, we would love to have some opposing viewpoints in our meetings.
Feel free to use the comments to this blog as a forum to prepare for our discussion by posting thoughts, possible discussion questions, and additional articles/resources that would help us to prepare.
Be sure to invite anyone that you think would be interested in coming to our groups, we would love to have some opposing viewpoints in our meetings.
Second and follow up article:
ReplyDeleteThe middle and lower classes were deeply hurt by the Great Recession.
In 2011 unemployment remains around 10 percent, many millions have been displaced from their homes in the past two years, and middle-class debt is increasing.
Yet since 2008 the top three percent of earners have seen major increases in their income and net worth. The rich are getting richer even as the rest are quickly losing ground.
In truth, this trend has been occurring since the mid-1970s.
The Left blames the free market, and recommends more government policy to fix the growing gap between rich and the rest. The Right blames government policy and calls for lower taxes on the wealthy.
Unfortunately, the Left attacks any free enterprise suggestion by calling it unfettered capitalism and casting dispersions on the free market, and the Right downplays free enterprise solutions by promoting capitalism and free markets.
But the reality is that the legal and commercial codes in the United States give special benefits to those with money. The best investments are only available to people with a high net worth, so of course the rich continue to get richer.
When the economy tanks and only a few high-return investments are available, and unsophisticated lower- and middle-class individuals are banned from investing in them, the result is the widening gap between rich and poor.
This is capitalism. It is better than socialism, to be sure, but it is not nearly as good as free enterprise. As Americans we must understand the differences.
The American founding generation detested Britain's special benefits to some citizens, like tax-free tea to Britons while the American colonists were forced to pay the tea tax. Bostonians dressed up like Indians and threw the tea into the harbor.
Instead of such capitalism, the American framers wanted a free enterprise economy where everyone was treated equally before the law.
If we really want to see a booming American economy, a return to freedom (meaning: free enterprise) is essential. But first the American people must understand the difference between free enterprise and all the alternatives (such as free marketism and capitalism).
Capitalism and free enterprise are both against socialism, but they are certainly not the same thing. And in 2011, they are not even on the same side.
A return to free enterprise is essential if we want to maintain American prosperity in the decades ahead
Not sure what happened but one of my posts is lost in syberspace.
ReplyDeleteSorry I haven't been able to come to the Junto more than I have. My heart is with you though. The recent economic bubble has kept me busy. :)
I had posted annother short article about the nuances between Capitalism and the free enterprise system.
I have felt for a long time that the word and idea of Capitalism was not congruent with the founders principles of sound economics and the rule of law. A mentor of mine posted the previous post and the one that follows these initial remarks.
I know there at alot of smart people who proclaim the virtues of Capitalism-Glen Beck et al- but in the real world and in my experiance it's just reality that I you have more money you are treated differently than others with more modest resources and IMHO that is wrong.
Anyway, wondering your thoughts on these articles. I know they just scratch the surface so they should give us a good base for discussion. Any thoughts?
ing 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.
Good to hear that you have been busy Dan!
ReplyDeleteIn the spirit of what you are talking about I had watched this video of Sheldon Richman at GMU a few weeks back. http://www.youtube.com/watch?v=zSvoj76NRLM
He's a smart guy and deals with many of the semantics that you address.
Hope you are well!
Dan,
ReplyDeleteWhat would you say is the differences in the legal structure between free market and free enterprise?
Add me to the list:
ReplyDeletezjatreturns@gmail.com
~Jacob Trimble
Great Jacob, got you on there. Just sent out an email blast, let me know if you didn't get anything.
ReplyDeleteCan you delete my previous post with contact info in it? thanks. (and this one also)
ReplyDelete