Home » Posts tagged 'free market'
Tag Archives: free market
(This is derived from an old essay I wrote for university)
The size of government is an important yet seldom discussed issue. This is a peculiar phenomenon as the size of government is integral to our freedom. When government power is not limited those with power are able to encroach upon the freedoms of the people. However, when the powers of government are limited people are able to live in peace, freedom, and prosperity.
The Age of Enlightenment (c. 1685 – c. 1815) represents a period in history where the principles of the old world were replaced by new ideals. It was during the Enlightenment that the concepts of modern democracy (democracy originated with the Ancient Greeks, albeit in a rather primitive form), liberty, and inalienable rights began to emerge. One of its key concepts, limited government, came about during the High Enlightenment (c. 1730 – 1780). The English philosopher John Locke (1632 – 1704), perhaps the greatest defender of limited government, believed civil power should be derived from individual autonomy and that the separation of powers was necessary to protect people from tyranny.
Limited government works on the idea that governments should have a little interference in people’s lives as possible. Supporters of small government believe that big government destroys human creativity and innovation because. As the Austro-Hungarian philosopher, Friedrich Hayek (1899 – 1992) stated: “the more the state plans, the more difficult planning becomes for the individual”. Numerous supporters of democracy and liberty had held limited government as an important, and necessary, ideal. The American statesmen, founding father, and President, James Madison (1751 – 1836) sought institutions which would limit the scope of government and give more rights to the individual. Similarly, the Australian Prime Minister, Malcolm Fraser (1930 – 2015) argued that “the power of the state should be limited and contained”.
In no other area is this been clearer than the economy. The economist, Adam Smith (1723 – 1790) argued that regulations on commerce are not only ill-founded but also counter-productive as countries depend on capital accumulation . According to James Madison, guarding persons and property would: “encourage industry by securing the enjoyment of its fruits.” Nations with small governments create their own fortune by allowing the people to participate freely in the marketplace.
Small government makes them master of their own destinies rather than making the government master of them. The people should never forget, as Ronal Reagan put it, “we the people are the driver, the government is the car.” Only small government can continue to survive into the future, only small government can protect the rights of the individual, and only small government celebrates human achievement. This is why small government matters.
- Adam Smith Institute, ‘the Wealth of Nations’: http://www.adamsmith.org/wealth-of-nations. [23/03/2014]
- Australian Greens, ‘the Greens’: http://greens.org.au/. [23/03/2014]
- Australian Greens, ‘the Economy: We Live in a Society, Not an Economy’: http://greens.org.au/economy. [23/03/2014]
- Australian Greens, ‘Standing Up for Small Business’: http://greens.org.au/small-business. [23/03/2014]
- Australian Government, ‘Australian Constitution,: Australian Politics, http://australianpolitics.com/constitution-aus/text [23/03/2014]
- Australian Government, ‘Australia’s System of Government’: Australian Government: Department of Foreign Affairs and Trade, https://www.dfat.gov.au/facts/sys_gov.html. [23/03/2014]
- Australian Government, ‘Australian Government Taxation and Spending’: 2011-12 Budget Overview, http://www.budget.gov.au/2011-12/content/overview/html/overview_46.htm. [23/03/2014]
- Moran, ‘Economic Freedom Delivers Results’, Review – Institute of Public Affairs, vol 59, no. 3. 2007.
- Australian Labor Party, ‘Australian Labor Party’: http://www.alp.org.au/. [23/03/2014]
- Australian Labor Party, ‘Labor is for Growth and Opportunity’: Growth and Opportunity, http://www.alp.org.au/growthandopportunity. [23/03/2014]
- Eltham, ‘Size of Government: Big is Not So Bad’: the Drum, http://www.abc.net.au/unleashed/3912918.html. [23/03/2014]
- Bonner, ‘the Golden Rule: He Who Has the Gold Makes the Rules’: Daily Reckoning Australia, http://www.dailyreckoning.com.au/golden-rule/2008/03/05/. [23/03/2014]
- Bowen, ‘Economic Statement August 2013: Joint Media Release with Senator the Hon Penny Wong Minister for Finance and Deregulation’, Australian Government: the Treasury, http://ministers.treasury.gov.au/DisplayDocs.aspx?doc=pressreleases/2013/016.htm&pageID=003&min=cebb&Year=&DocType. [23/03/2014]
- Cracked, ‘Australian Greens’: http://www.cracked.com/funny-6522-australian-greens/. [23/03/2014]
- Boaz, ‘Remembering Ronald Reagan’: Cato Institute, http://www.cato.org/publications/commentary/remembering-ronald-reagan. [23/03/2014]
- M. Cooray, ‘More About Limited Government and the Role of the State’: http://www.ourcivilisation.com/cooray/westdem/chap6.htm. [23/03/2014]
- Western, ‘Big Government is Good for You’: the Guardian, http://www.theguardian.com/commentisfree/cifamerica/2009/oct/13/obama-healthcare-economy-socialism [23/03/2014]
- W. Younkins, ‘John Locke’s Limited State’: Le Quebecois Libre, http://www.quebecoislibre.org/06/060219-4.htm. [23/03/2014]
- For Dummies, ‘How the Enlightenment Affected Politics and Government’: http://www.dummies.com/how-to/content/how-the-enlightenment-affected-politics-and-govern.html [23/03/2014]
- History, ‘Enlightenment’: http://www.history.com/topics/enlightenment [23/03/2014]
- Indiana University Northwest, ‘Two Enlightenment Philosophes: Montesquieu and Rousseau’: http://www.iun.edu/~hisdcl/h114_2002/enlightenment2.htm. [23/03/2014]
- A. Dorn, ‘the Scope of Government in a Free Society, Cato Journal, vol 32, no.3. 2012. Pp: 1 – 14
- Novak, ‘Small Government Means Better Governance’: the Drum, http://www.abc.net.au/unleashed/4147992.html. [23/03/2014]
- P. Sommerville, ‘Limited Government, Resistance and Locke’: http://faculty.history.wisc.edu/sommerville/283/283%20session10.htm. [23/03/2014]
- Liberal-National Coalition, ‘the Coalition’s Policy to Increase Employment Participation’: http://lpaweb-static.s3.amazonaws.com/13-08-27%20The%20Coalition%E2%80%99s%20Policy%20to%20Increase%20Employment%20Participation%20-%20policy%20document.pdf. [23/03/2014]
- Liberal Party, ‘Our Plan for Real Action’: https://www.liberal.org.au/our-plan. [23/03/2014]
- Liberal-National Coalition, ‘the Coalition’s Policy for Trade’: http://lpaweb-static.s3.amazonaws.com/Coalition%202013%20Election%20Policy%20%E2%80%93%20Trade%20%E2%80%93%20final.pdf. [23/03/2014]
- Lobao and G. Hooks, ‘Public Employment, Welfare Transfers, and Economic Well-Being across Local Populations: Does a Lean and Mean Government Benefit the Masses?’, Social Forces, vol 82, no. 2. 2003. Pp: 519 – 556
- R. Cima and P. S. Cotter, ‘the Coherence of the Concept of Limited Government’, Journal of Policy Analysis and Management¸ vol. 4. 1985. Pp. 266 – 270
- Baird, ‘The State, Work and Family in Australia’, the International Journal of Human Resource Management, vol 22, no. 18, 2011. Pp: 1 – 14
- New Learning, ‘Ronald Reagan on Small Government’: http://newlearningonline.com/new-learning/chapter-4/ronald-reagan-on-small-government. [23/03/2014]
- Parker, ‘Religion and Politics’, Distinktion: Scandinavian Journal of Social Theory, vol 7, no. 1. 2006. Pp: 93 – 115
- Public Interest Institute, ‘A Short History of Economic Theory Classical Economic Theory: From Adam Smith to Jean-Baptiste Say’: http://limitedgovernment.org/ps-12-9-p3.html. [23/03/2014]
- Hollander, ‘John Howard, Economic Liberalism, Social Conservatism, and Australian Federation’, Australian Journal of Politics and History, vol 53, no. 1. 2008. Pp: 85 – 103
- Kelman, ‘Limited Government: an Incoherent Concept’, Journal of Policy Analysis and Management, vol. 3, no. 1. 1983. Pp. 31 – 44
- Pryce, ‘the Thatcher Years – Political Analysis: Putting the Great Back into Britain?’: Margaret Thatcher: 1925 – 2013, http://www2.granthamtoday.co.uk/gj/site/news/thatcher/analysis.htm. [23/03/2014]
- Dunlop, ‘Small Government Can Equal Big Problems’: the Drum, http://www.abc.net.au/news/2014-02-28/dunlop-small-government-can-equal-big-problems/5287718. [23/03/2014]
- US Government, ‘Bill of Rights’: the Charters of Freedom “a New World is at Hand”,http://www.archives.gov/exhibits/charters/bill_of_rights_transcript.html. [23/03/2014]
- US Government, ‘Constitution of the United States’: the Chapters of Freedom “a New World is at Hand”, http://www.archives.gov/exhibits/charters/constitution_transcript.html. [23/03/2014]
- Various Authors, ‘Social Issues and Political Psychology’, International Journal of Psychology, vol 47, no. 1. 2012. Pp: 687 – 697
- We the People, ‘Principles, Priorities, and Policies of President Reagan’: Ronald Reagan and Executive Power, http://reagan.civiced.org/lessons/middle-school/principles-priorities-policies-president-reagan. [23/03/2014]
- Voegeli, ‘the Trouble with Limited Government’, Claremont Review of Books¸ vol 7, no. 4. 2007. Pp: 10 – 14.
- W, ‘Size of Government: Brooks and Ryan’s False Choice’: the Economist, http://www.economist.com/blogs/democracyinamerica/2010/09/size_government. [23/03/2014]
President Trump unleashed a new plan for tax reform in a speech at the Indianapolis State Fairgrounds on Wednesday.
The plans are the product of discussions between White House Treasury Secretary, Steve Mnuchin, the House Ways and Means Chairman, Kevin Brady, the Senate Finance Chairman, Orrin Hatch, House Speaker, Paul Ryan, Senate Majority Leader, Mitch McConnell, and White House economic policy chief, Gary Cohn. Their purpose will be to strengthen the middle class, grow the economy, and engender economic recovery by broadening the tax base, closing loopholes, and fostering growth.
According to a press release by the Treasury Department, the reforms will mean that less of the earnings of middle-class families will be subject to Federal income tax, and will reduce the number of tax brackets from seven to three: 12%, 25%, and 35%. It will also increase child tax credits and repeal the death tax and alternative minimum tax.
For business, the reforms seek to reduce the corporate tax rate to 20% and limit the taxation imposed on small and family-based businesses operating as sole proprietorships and small businesses corporations to 25%.
“This has been a long time coming. Instead of a source of pride, our tax code has become a constant source of frustration. It’s too big. It’s too complicated. It’s too expensive. Today, we are taking the next step to liberate America from our broken tax code.”
Similarly, the House Freedom Caucus, which is comprised of Congress’ most conservative members, said in a statement:
“President Trump has delivered a forward-looking tax reform framework that will let hard-working Americans keep more of their money, simplify our system, end carve-outs for special interests, and will help make our businesses competitive abroad. The Freedom Caucus looks forward to sending a final bill based on this framework to President Trump’s desk as soon as possible.”
At a security conference in Germany, the former British Prime Minister, David Cameron, condemned multiculturalism as a failure. He stated: “we need less of the passive tolerance of recent years and much more active, muscular liberalism.” In a similar statement, the French president, Nicolas Sarkozy, also condemned the doctrine of multiculturalism. Sarkozy told the French people: “we have been too concerned about the identity of the person who was arriving and not enough about the identity of the country that was receiving him.” In recent years, the Western nations that have preached multiculturalism and diversity as bastions of peace, tolerance, and diversity – Great Britain, France, Germany, the United States – have been the primary targets of radical Islamic terrorism.
Progressives like to believe multiculturalism and diversity create harmonious and peaceful societies. When, in reality, it creates division. Telling newcomers that they do not have to assimilate into their adopted culture fosters tribalism: Irish form communities with fellow Irish, Muslims form communities with fellow Muslims, Japanese form communities with fellow Japanese, and so forth. As these cultures, especially those lacking the fundamental roots and beliefs of their adopted countries, compete for supremacy, they inevitably conflict with one another. So, whilst Germanic and French cultures may be able to live harmoniously thanks to their shared Christian heritage, the same cultures would not fare as well if they were expected to co-exist with a culture whose central tenants are profoundly different.
Why am I harping on about the inherent faults in multiculturalism and diversity? It is because I believe we have created the greatest culture mankind has ever seen: a culture that has produced Shakespeare, Mozart, Voltaire, Plato, Aristotle, John Locke, freedom and democracy, the television, the I-Phone, the movies, free market capitalism, Van Gogh, Da Vinci, Einstein, Newton, Mary Shelley, the Bronte sisters, and more. And I believe it is a culture worth protecting. And how do we protect it? We start by protecting the very things that have made the West so great in the first place: Christianity, an adherence to truth and a deep esteem towards the logos, the supremacy placed on individual rights and liberties, the free-market place of ideas and commerce, Small Governments, and political freedom.
Moral and cultural relativism is being used to tear down and replace the existing social order. When the Mayor of London, Shadiq Khan, is able to state “terror attacks are part and parcel of living in a big city” and young German women are able to hold signs proudly proclaiming “will trade racists for rapists” unopposed, it is clearly time for certain ideas to go away.
The White House welcomed a hundred small business owners to participate in the “Engine of the American Dream” event on Tuesday. The event was designed to highlight small businesses and the role they play in the American economy. President Trump was joined by the administrator for Small Business Administration, Linda McMahon, and senior advisor, Ivanka Trump.
During his address, Trump highlighted his administration’s efforts to cut regulations, ease restrictions on energy, and cut taxes. He also thanked the small business owners for their hard work and for their contribution in growing the economy and creating jobs.
“You are the dreamers and innovators who are powering us into the future”, Trump told them, “that’s exactly what you are — and my administration will be there with you every step of the way.”
This event, and others like it (such as the ‘Made in America Week‘), symbolise an administration committed to helping business. Over August, conservative and business-aligned advocacy groups plan on spending millions boosting tax reform.