The Power of a Free-Market Economy
Classical Economics Still Holds Its Value
Salutations fellow Medium reader, here are some thoughts about the importance of a free-market economy in today’s society.
Modern day economics date back to the founding of the United States of America when, through the establishment of a free society, the Founding Fathers and their contemporaries launched what became the greatest socio-economic experiment in the history of Mankind.
Upon determining the need to protect human liberties through the American Revolution, the Founding Fathers encouraged a new economic model that rewarded merit above predetermined societal stature. This mentality led to the inclination towards the masterful idea that is a free-market society where there is minimal government intervention in business so that the economy may be left unadulterated and could keep its pure motivation to preserve its demand-supply based integrity.
Albeit the free-market society model within a democracy was an experiment, the idea was a success. The United States, the greatest sovereignty in human existence, thrived rapidly as a result of implementing the free-market economy. Large cities like New York, Washington D.C., and Philadelphia, rose quickly due to the influx of immigrant entrepreneurs who sought a better life by contributing to society and following their dreams (a term later christened as “The American Dream”) .
The nascent U.S. free-market society enabled the construction of everything we know about modern society. All aspects of municipal infrastructure and modern life such as roads, plumbing, buildings, healthcare, and entertainment came about thanks to the great work hard-working American dedicated to advancing their societies. Industry developed swiftly in the U.S. as a result of careful but “hands-off” government oversight, a key idea in Adam Smith’s “Wealth of Nations”.
By considering the aforementioned effects of employing a free-market society in the fabric of a democracy, it is safe to say that a free market economy optimizes human productivity. Human motivation is strengthened and put to good use. The inherent human desire to increase one’s social status is correctly channeled through industry and, when done correctly, individual members of society are able to contribute to themselves by contributing to the economy they are a part of.
Motivated and productive members of society yield incredible and innovative results. Perhaps the most immediate and notable example of this was the invention of the cotton press at the end of the eighteenth century. While the United States of America was still at its infancy, the revolutionary socio-economic model’s goals came to fruition. The use of automation with the cotton press sparked the First Industrial Revolution. Textile production became democratized. Now people of all social origins could wear well-made clothes and keep their bodies protected in a decorative manner. This fact may be taken for granted now but it marked a new beginning for society. Members of society had a wider arrange of garments to wear and became more confident in their appearance. Late eighteenth century/early nineteenth century folks could now integrate themselves in the rapidly developing Industrial Revolution that was emerging out of cities. With this in mind, it is safe to say a free market economy enabled the development of technology and innovation. Technology and innovation enabled the Industrial Revolution. The Industrial Revolution paved the way for modern society as we know it.*
Planet Earth’s current financial system is also a result of a free-market economy. The world financial system’s roots date back to late eighteenth century America when the Country experienced a growth in capital due to entrepreneurial effort, mainly in trade with an emphasis on Tobacco production. Today’s financial system was founded on world’s appeal towards Tobacco. The city of Philadelphia harvested this economic powerhouse of a financial system which later became Wall Street. Wall Street created a means by which businesses could engage and interact with each other in a fair way under the “law of the jungle”.
Despite the plethora of noise found today through all sorts of content, it is now easy to see the signal — a free-market economy is the only way by which an economy can thrive… as things stand. The U.S. established a successful system and in consequence, the World followed. However, it IS an experiment that transcends centuries and countless governmental administrations so it is by no means perfect and can be improved (may this happen soon as the modern world demands it).
In Truth, Love, and Service with Alacrity,
Camilo Amaya Castano
*Full disclosure: It goes without saying that the Industrial Revolution started what’s considered the Anthropocene Era where mankind began to severely impact the Earth’s Natural Ecosystem. No person or corporation is to be blamed for this. The effort of entrepreneurs, governors, and consumers of the time was performed without environmental impact in mind. Carbon emissions and Global Warming were issues not yet discovered. It was this industrial effort that now allows us to enjoy the (subjectively) advanced society we are a part of. Cheers.
