Let the People Prosper
By James P. Gills, MD

The following is a summary of my latest project - a book on the problem of government intervention in our economic system.  I encourage all of you to learn more about what makes our economy efficient and effective (and what doesn't).

The individual motivation to prosper

A laissez-faire philosophy (minimal government intervention in the economy), along with a free market, capitalist-driven economy, provides individuals with the greatest opportunity for prosperity and satisfaction.  In a free market, individuals - not the government - determine the value of goods and services through the law of supply and demand.  The opposite of capitalism (a market where individuals compete for economic gain) is socialism (a system where government distribute wealth).  Ludwig von Mises, an Austrian professor of economics and advocate of the free market system, believed a socialist government that intervened on behalf of its citizens actually decreased the standard of living.  He taught that people should be given freedom with minimal regulation to pursue their goals.

Illustrations of the struggle between people and bureaucracy can be found in the Bible before Christ was born.  In I Samuel 8:10, Samuel responded to the Israelites' demand for a king by explaining that choosing a ruler would come with great personal cost.  A king would create bureaucracy, mandate excessive taxes, and reduce their wealth.  Samuel urged the Israelites to consider the sacrifice of their liberty and freedom.

The same is true today.  The purpose of government is to protect its people's freedom.  When its power and purpose exceed meeting basic needs, the economy's health suffers and the people ultimately sacrifice liberty.  Galatians 5:1 says, "Stand fast therefore in the liberty by which Christ has made us free, and do not be entangled again with a yoke of bondage."

Von Mises' Philosophy

The theme of von Mises' books is simple:  an ideal economy is one that is free not bogged down by government regulation and interference.  This philosophy is a sharp contrast to modern economies that are riddled with government intervention and manipulation.  In today's version of a free economy, government controls the money supply and interest rates.   Manipulating these is just a temporary way of producing wealth.  Von Mises once said increasing the money supply and reducing interest rates is like pumping air into a leaky balloon.  Our faltering economy was caused by expanding the money supply faster than it can be absorbed, then compensating by contracting it.  Economies in this state are fragile - and the people eventually pay the price.

In his book Socialism 1922, von Mises describes the downfalls of a socialist economy:

1. It is impossible to predict rates of expansion and costs of industry

2. Government is unable to dictate price as efficiently as consumers

3. Consumers cannot be forced to make unwanted purchases to stimulate growth

4. Penalizing productivity by redistributing income does not create wealth

5. It is impossible to change human nature

Von Mises believed that people rather than government should control the economy.  Socialism 1922 accurately predicted the political, social, and economic landscape of Russia and other socialist countries in the ensuing 80 years.

Time and again, history has proven that government intervention decreases the prosperity of its people.  Russia, Eastern Poland, and China are examples of countries lacking economic, political and religious freedom.  People in these countries have paid dearly, giving up rights that citizens of the United States often take for granted.

Accountability and individualism are required for a free market to thrive, but it's a mindset that is very difficult to implement, especially when forms of socialism have permeated our society.  True freedom only comes with empowerment, not when government is all powerful.  Political, economic and religious freedom is why many people have come to The United States.  Let's protect it!