Why The Free Market and Capitalism Work
Nobel prize winning economist, Milton Friedman (1912-2006) said,
“So that the record of history is absolutely crystal clear, that there is no alternative way so far discovered of improving the lot of the ordinary people that can hold a candle to the productive activities that are unleashed by the free-enterprise system.”
I believe Mr. Friedman was, and is, correct in his assertion. The capitalist system has lifted more people out of poverty than any other system in history.
In fact for the first time in recorded history less than 10 percent of the world's population live in extreme poverty.
And the remarkable thing about capitalism is — it’s entirely voluntary.
No one puts a gun to your head to buy corn flakes or laundry soap. The people making those products or services have found a way to solve your problem at a price you can afford and still make a profit.
Can I Help You?
In 2017 there were more millionaires in the United States than ever before in history. Why do some people consider that a bad thing?
Why are the rich so vilified when their quest for success helps so many? I know of no business operating today that is successful that helps no one.
Successful people should be elevated to role model status rather than defined as greedy, corrupt “fat cat” CEO’s. And why are CEO’s always the target?
What about the ridiculous salaries of professional athletes and actors? We don’t see anyone picketing outside their homes wanting their “fair share.”
The Free Market Works
Compare Hong Kong with mainland China. The average Hong Kong resident will make $50,000 or more while the average Chinese citizen will struggle to make $7,000.
When people are free to evaluate products and services and make free decisions then the opportunities are unlimited.
Imagine what China could do with one billion people if they had the same freedoms and opportunities we enjoy in the United States.
Think of the advances and innovations in mathematics, computers, medicine, education, manufacturing, and healthcare that an unrestricted population of that size could accomplish.
Making The Free Market Work
Many people think the system is rigged. They believe the “haves” could not have come by their wealth honestly and the “have-nots” are shut out of the system with no hope of success.
How is that possible? How can one group get rich taking money from people who don’t have any? That just doesn’t pencil out.
Businesses that use the principles of free enterprise and capitalism will achieve success much faster than those that don’t. If you think in terms of helping the customer solve his or her problems, you’re on the right track.
Some Final Thoughts
If you think only in terms of profit then your road is going to be bumpy with lots of construction delays.
When you turn the key to open your business tomorrow morning, your primary thought should be, “How can I help someone today?”
That’s how capitalism, free enterprise and free markets work for the good of all of us. Make it work for you.