Free Market Economics

& Human Nature

Economics is defined as the branch of knowledge concerned with the production, consumption, and transfer of wealth and the condition of a region or group as regards material prosperity.

 

Human Nature is defined as the general psychological characteristics, feelings, and behavioral traits of humankind, regarded as shared by all humans. (Our human nature includes free will, individualism and the desire to survive, thrive and be free.)

Free Market Economics is defined as follows:  A free market economy is a market-based economy where prices for goods and services are set freely by the forces of supply and demand and are allowed to reach their point of equilibrium without intervention by government policy, and it typically entails support for highly competitive markets and private ownership of property. (It supports human nature)

Managed Economy Theory based on the ideas of economist John Maynard Keynes that optimum economic performance could be achieved by influencing aggregate demand through government fiscal (public spending and taxation) policy, not through the free market philosophy.

Keynes believed that, in a recession, the economy can be made to grow and unemployment reduced by increasing government spending and making reductions in interest rates. Keynes has now been proven wrong.

In the U.S., we started out with free market economics and wrote our Declaration of Independence, Articles of Confederation, Constitution and Amendments to be compatible with free market economics.

Over time, our federal government abandoned the Constitution and usurped powers reserved for the states and the people.  They embraced Keynes’ “managed economy” and since then, we have had a series of wars, decimated the value of the dollar, amassed unsustainable government debt, created unsustainable government liabilities

We now know that we can destroy a managed economy with excessive immigration, off-shoring manufacturing and decimating the free market economy if you really wanted to.

If we move away from a managed economy, I doubt that government could destroy a free market economy, especially if its authority is limited like it is in our Constitution.

From 1800 to 1900, we had ups and downs, but our dollar held its value.  We also invented all of the devices required to improve our health and prosperity. Removing the treasonous government mechanisms just requires voter resolve. We were better educated and our free market economy enabled citizens to thrive and prosper. We took care of each other without government interference. Why wouldn’t we want to return to that ?

So, now we have to ask: Have we had enough ?  Are we ready to fix this mess ?

Norb Leahy, Dunwoody GA Tea Party Leader