5kYL: Principle Fifteen

FREE-MARKET ECONOMICS

After reading this chapter I am tempted to tackle the tombs of Adam Smith. However, it may be imperative to understand the formula to free-market economics Skousen outlined along with the four laws first. Until we as a nation relearn these and begin to apply them fully, I can hold off trying to digest the particulars of The Wealth of Nations.

So what is the formula to free-market economics?
1. Specialized Production - So far we are safe in this aspect, except for institutions such as affirmative action.
2. Government interference is all we're witnessing these days. Everyday the words of Jon Galt run through my head: "Get the hell out of my way!"
3. Government monopolies are forming in the financial institutions, auto and soon the health industry.
4. Supply and Demand - Because of government intrusion into the private sector, prices can not be regulated by the morally superior means of competition. This is because the government isn't concerned with making profit. This leads to the next point...
5. Profits - This is the only reason for the free-market to exist. However, companies like Exxon have been scorned for years because of their record profits. No matter they provide a service that without it, this country and the world would shut down.
6. Competition - Without competition, improvements aren't necessary and prices go up.

What are the 4 Laws?
1. The Freedom to try.
2. The Freedom to buy.
3. The Freedom to sell.
4. The Freedom to fail.

The founders knew that the government is the greatest threat to economic prosperity. But they also believed that it had a limited role. The responsibilities of government is to prevent:
1. Illegal Force
2. Fraud
3. Monopoly
4. Debauchery

One important responisbility of the government that was never rightly implemented was the regulation and coining of the U.S. currency. This was never intended to be the role of a private institution like the Federal Reserve.

Question to consider:
Why is it unfair for government to obtrude on the private sector?

5kYL: Principle Fourteen

PROPERTY RIGHTS ESSENTIAL TO LIBERTY

God commands man to multiply and replenish the earth, to subdue it and bring it under dominion.

Because property earned is a right of it's owner, it can't lawfully be taken away. This creates incentive for innovative people to continue developing, creating, and profiting. Property is an extension of life, energy, and ingenuity.
One main cause for the American Revolution was because the English Crown was excessively confiscating the property of the colonists by means of taxation without their consent (or representation).

A prominent government function is to protect the rights of property of the citizenry. However, the meaning of "general welfare", has been distorted. Since the 16th amendment of the Constitution was ratified, and the confiscation of peoples' property was made legal, that property has been misappropriated in the form of redistribution to non-earners.

So what is an accurate definition of "General Welfare" that appears often within the Constitution?
It is the belief that the poor should be taken care of, but who's role should this be, and to what capacity?