Date: 10/04/2010
Free Markets Create Jobs
by Ron Paul
In this struggling economy it is essential for politicians to take a step back and think about what government has been doing to business in this country. In less than 200 years, the free market, property rights, and respect for the rule of law took this nation from a rough frontier to a global economic superpower. Today, however, our nation and our economy clearly are headed in the wrong direction.
Of course, America has never enjoyed absolute free-market capitalism: creeping government intrusion and special interest political patronage have existed and increased since our founding. But America historically has permitted free markets to operate with less government interference than other nations, while showing greater respect for property rights and the rule of law. Less government, respect for private property, and a relatively stable legal environment allowed America to become the wealthiest nation on earth.
By contrast, the poorest nations almost always demonstrate hostility for free markets, private property, and the rule of law. Capital formation, entrepreneurship, credit, and wealth accumulation are uniformly discouraged in poor countries. Private contracts are not reliably enforced, and private property is not secure in the hands of owners. The predictable result is widespread poverty and misery.
First and foremost, the role of government in business should be limited to resolving contractual disputes. As long as both parties of a contract enter into the arrangement willingly, without coercion, and with complete and accurate information, they should be expected to live up to their end of the deal. When a party cannot or will not honor the terms of a contract, it is acceptable for government to provide a court system to resolve disputes in a fair and impartial way.
Government should not dictate the terms of a contract to the parties involved. However, throughout the 20th century, our government became increasingly comfortable mandating terms that politicians find acceptable without regard to what businesses or their customers might want. This interference has had a chilling effect on the economy.
For example, government increases labor costs through minimum wage laws, union requirements, healthcare mandates, and various other stipulations that decrease a business’s capacity to hire as many employees as they might otherwise. And because they can only hire a few, they must reserve those spots only for top candidates. Thus, a teenager or a handicapped individual may miss out on job opportunities and work experience because of government-created job shortages. What if someone was willing to work for less than the government-mandated minimum wage, and a business was willing to give them a chance? Government makes this illegal, and both the business and the worker are worse off for it.
By contrast, business flourishes when government gets out of the way. One example is playing out in the 14th congressional district in Texas. A major multinational company, Caterpillar, is building an assembly facility in Victoria, Texas, rather than in one of the heavily unionized midwest states where it operates other plants. Texas, as a “right to work” state, offers more manageable labor costs. It also offers a more business-friendly regulatory landscape, and an overall lower tax burden with no corporate income tax. I am pleased that because of this, the people of Victoria will be rewarded with more job opportunities.
Freedom and a restrained government are what made us an economic power house. If we keep chasing businesses away with onerous taxes, mandates, and regulations, they will eventually leave. The best approach to our economic woes that will help the most people is simple: get back to the Constitution and demonstrate respect for free markets, private property, and the rule of law.
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Went to the store to buy Texas Longhorn shirts for my grandchildren. First rack was made in Pakistan, next rack was Indonesia, next rack China and fourth rack Taiwan. Give companies tax breaks for hiring and making American people and products. By the way, we didn’t buy a shirt.
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Mr. Paul´s free market at work (again)!
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That Caterpillar plant is building in Texas because of poor regulation, low taxes and cheap labor. Ron Paul – try living on $10 an hour. This is your free market at work.
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Is this Sluggo from the TB forum?
Anyway, GREAT OBSERVATION!
An Austrian individualistic anarchist-capitalist society without a state and where the money represents gold cannot long continue to function on that basis. There will soon come a concentration of power in which a small group of powerful individuals (oligarchs) take all the power because they have more gold than the rest.
A private bank or a George Soros will become the actual power of a state and build a private army to protect its interests. This will lead to a power struggle among the oligarchs until a few of them are in control. There is nothing to prevent this because all individuals with less capital and less power will be employed by the oligarchs out of self-interest, or develop criminal activities out of frustration and needs.
Ultimately, you will have a feudal society. And ultimately this will change into a different form of society. Ideal societies do not exist and people will always try to do things out of self-interest, and there will always be people who fight for power and control.
But Mathematically Perfected Economy solves an important issue, because capital is accessible to everyone without interest if he / she are creditworthy and with the collateral as backing (our labour and produc(tion). This will push the capital oligarchs out of the game and they cannot impose their will by just having capital, and therefore gain unlawful and undeserved (usury) profits, because that capital (our true medium of exchange) is freely available subject to compliance and the conditions as laid out before.
This preventive approach will be a major shift in which everyone has equal opportunities with a much broader social base in which crime out of frustration will largely disappear.
If we accept anything less we will fail (again)!
Or in Benjamin Franklin´s words: JOIN, OR DIE
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http://freemarketeconomicsinastory.blogspot.com/2010/08/governments-cannot-create-jobs-part-2.html
Trillions of dollars of stimulus have done nothing to improve the employment picture as the unemployment rate has climbed from 5% to 9.5%. All that we have to show for ourselves is trillions more in debt. The Keynesian big government approach to dealing with recessions is clearly fatally flawed.
A free market approach would be to understand that the government can only make things worse. Malinvestments must be purged from the system. Companies that made bad bets must be allowed to fail. Companies that lose money must be allowed to go bankrupt. The capital and resources that were poorly managed must be freed up so that entrepreneurs who have the wherewithal to manage them profitably can create the goods and services that will result in a robust self sustaining economy.
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NO
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NO
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You guys should be thankful EVERY DAY for having a guy like Ron Paul. In MY country, we don’t have right-wing parties. We have two left-wings, and people think there’s NO other option other than communism. Which a lot of them support. That’s why Brazil is such a shit-hole. I wish Ron Paul would come here and save us, but he’s truly one of a kind.
Don’t sell your freedom like we involuntarily did. Listen to Ron.
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FUCK THE GOOFY MARKET
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FUCK THE GOOFY MARKET
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im not a sucker
atleast not of ron pauls white wrinkly dick
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Sooo, and the Jön Türkler are your source for that? An Jesuit Gang?
Come on.
Don’t be a sucker.
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ron paul is a racist and a homophobe
/watch?v=de_CSuJCsfY
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you are a lynch man
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you are a lynch man
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