Tag Archives: Free Enterprise

A British journalist assesses the significance of Memorial Day in America

Arlington National Cemetery
Arlington National Cemetery

Timothy Stanley writing in the UK Telegraph.

Excerpt:

The apparent paradox of ignoble sacrifice can be resolved by considering what Americans actually fight for. The USA is unique in that it was founded on an idea. That’s why I’ve headlined this piece with the controversial statement that it’s the “greatest country in the world.” To qualify: Britain is clearly God’s garden, but it belongs only to the British. America, because it is founded on the universal principle of free will,belongs to humanity. It can assimilate any individual, family or entire culture because the principle is so much more powerful than the nationality of the person who integrates into it. As a Briton living in America – even without being a citizen – I feel more American than British on the strength of enjoying free speech, a free market, the free exchange of ideas, freedom of faith. Most importantly, I am unencumbered by the European poison of class. In the US, folks are defined by the content of their individual character, not what their ma and pa did for a living. If they want to become a nun and feed the poor, they can. If they want to become Donald Trump and screw the poor, they can do that, too. The Americans leave judgement to God.

[…]…American imperialism is unlike any other. The Europeans came to exploit, then they built a cultural edifice upon the wasteland. The Americans, by contrast, have rarely physically stayed anywhere very long. The US went through a period of European colonialism in the late 19th century, but the goal of Korea, Vietnam or even Iraq was to create a democratic state that could defend itself. America has tirelessly pursued dialogue with countries that have been determined to destroy it (Maoist China, the Soviet Union); it ended the Cold War without firing a single shot. Given their reputation for being gung-ho, one of the greatest virtues of the American people is their patience. And throughout it all, there’s always been a vocal opposition at home that reminds the soldiers of the precious freedoms for which they fight. For all the wrong reasons, Richard Nixon was right when he said “[Our enemies] cannot defeat or humiliate the United States. Only Americans can do that.”

But my need to understand the strange pride that even I – a foreigner – feel when I walk among the graves at Arlington is, ultimately, redundant. On days like Memorial Day, a civilian has to just shut up and stand in silence – an act of respect for the giants in the earth, and for the great country that made them. God bless America.

Everyone can be an American in spirit. You just have to honor American heroes for their sacrifices.

Arthur Brooks: true fairness means rewarding merit, not spreading the wealth

Arthur Brooks is an economist, a Christian and the President of my third favorite think tank, the American Enterprise Institute. He has been making a push lately to convince conservatives to become more articulate when making the case for the free enterprise system. One of his major ideas is that happiness is not related to the amount of money you have, but it’s related to how well you can achieve your own prosperity and independence by your own labor. His research shows that people are happiest when they feel in control of their own prosperity, even if they have less wealthy than people who depend on the government to take money away from others so they don’t have to work.

Here’s an article he posted on AEI entitled “True fairness means rewarding merit, not spreading the wealth”.

Excerpt:

There are two main ways to define fairness: fairness in terms of opportunity, and fairness in terms of outcomes. The first means leveling the playing field, and the second means spreading the wealth around. The first means lifting people up on the basis of merit, and the second means bringing successful people down.

[…]In a 2005 Syracuse University poll, researchers asked a cross-section of Americans if they b14elieve that “everyone in American society has an opportunity to succeed, most do, or only some have this opportunity.” Some 71 percent of respondents said that all or most Americans can get ahead.

This is consistent with most of our experiences. It’s almost impossible to argue that American success is not earned. We can all think of times when our hard work has gotten us ahead or when we’ve been punished at work or in life for making poor decisions. Even if America’s not perfectly meritocratic, we all see how hard work pays off.

Now, of course, America is far from perfectly fair. But that‘s because life isn’t fair. For instance, all other things being equal, taller men and prettier women make higher salaries than their shorter, plainer counterparts. Believe it or not, there are studies that show these things (as if we needed them). More seriously, some people have substandard elementary education or childhood nutrition, which creates a lifelong disadvantage. Worse still, some children are born into families that don’t emphasize the values that beget opportunity: honesty, hard work, and education.

We need to address these inequities. Still, we shouldn’t abandon the idea of meritocratic fairness just because not everybody has completely equal opportunity. But this is what the president appears to be asking us to do.

America is built around the shared values and aspirations of mobility, opportunity, and merit. Even if only, say, half the outcomes in our life are due to merit, that’s still the half within our control. We should focus on increasing the role of merit, not dismiss the idea because it’s imperfect. Without a belief in meritocratic fairness, we have little incentive to work hard, be honest and optimistic, and create value in our lives and the lives of others. Fatalism and envy are simply not American values.

We need to make the case for the free enterprise system now, using moral arguments like this, otherwise we are going to find ourselves treading the path of countries like Greece, where almost no one works and almost everyone depends on the government to take care of them. It’s not sustainable.

Twenty years of fiscal conservatism in Sweden: has it worked?

Map of Europe
Map of Europe

From Investors Business Daily, a story about about a nation that changed course – and won big.

Excerpt:

The turnaround has been driven in no small part by the election of Fredrik Reinfeldt as prime minister in 2006. He took office in October of that year and by January of 2007, tax-cutting had begun. The Reinfeldt government also cut welfare spending — a form of austerity — and began to deregulate the economy.

[…][A]s Finance Minister Anders Borg told the Spectator, the Reinfeldt government was simply continuing the last 20 years of reform.

[…]Sweden fell into recession in 2008 and 2009, as did many developed nations. But it’s pulled strongly out of the decline, posting GDP gains of 6.1% in 2010 and 3.9% last year, when it ranked at the top in Europe’s list of fastest-growing economies.

[…]Under Borg, Sweden handled the downturn in the most un-European way. “While most countries in Europe borrowed massively, Borg did not. Since becoming Sweden’s finance minister, his mission has been to pare back government. His ‘stimulus’ was a permanent tax cut,” Fraser Nelson wrote last month in the Spectator.

Borg strongly opposed the Keynesian solution, which the left continues to advance while it inveighs against an austerity that has yet to be implemented.

He also refused to resort to the trickery of a stimulus, instead cutting the taxes that he knew were hindering entrepreneurs from giving the economy the kick it needed.

The country needed innovators and capitalists — “the source of job creation,” says Borg — and he did what he had to, to attract new ones and to keep those already there from leaving.

During Sweden’s decline into a welfare state, it became, as Borg told the Spectator, “a textbook case of European economic sclerosis” punished by “very high taxes and huge regulatory burden.”

That lasted until the 1990s, when the nation realized it had to return to the market policies that had made it rich prior to the onset of its cradle-to-grave coddling.

How much further can Borg and Reinfeldt take their reforms? Will voters ask them to come back and complete the job?

After all, it’s not over. Though it continues to fall, Sweden’s government debt as a share of GDP is still too high at 38.4%. And while it’s dipped below 45% for the first time in decades, the country’s tax-to-GDP ratio is still far too steep.

Despite this unfinished business, Sweden is still moving in the right direction. We might be able to say that about America after the 2013 Inauguration Day. But we can’t say that now.

If liberals are so smart, why can’t they take time off from taxing, spending and buying votes, in order to look at countries that are having economic success? Isn’t it “smart policy” to do what works? Why listen to Hollywood celebrities and people with journalism degrees when we can just do what has been proven to work? It’s not like what we are doing now is working.