A 1 Minute Introduction to Economic Freedom and Capitalism
Why are private sector companies like BMW and Honda constantly innovating and copying each other’s innovations thus spreading superior knowledge and restructuring the social order into more advanced states as fast as humanly possible? Because the institution of ‘private property’ gives everyone in their role as consumers the ‘freedom to trade’ their wealth for what they like best. This ‘economic freedom’ is what inadvertently “turns on” ‘economic competition’ which is what motivates and inevitably forces everyone/BMW/Honda in our role as producers to produce something society values (our labor/products/services) which we do by innovating or copying existing innovations, or just doing what we are asked by managers/entrepreneurs, or just doing what we are asked by managers/entrepreneurs. As cost-cutting ideas emerge leading prices to continuously fall, new profitable ideas arise and once again spread via competition in an endless cycle of knowledge generation/innovation,or just doing what we are asked by managers/entrepreneurs. As cost-cutting ideas emerge leading prices to continuously fall, new profitable ideas arise and once again spread via competition in an endless cycle of knowledge generation/innovation. For example, computers were once very expensive, but once the price of making them came down enough, people easily realized that every home could have them, which gave birth to our computerized world and the Internet and all the great things that flow from it. The more wealth is produced, the more wealth has to be offered in exchange for labor as entrepreneurs/companies compete against each other for the labor they need which helps explain why the economic pie grows for everyone. Freedom, as opposed to leading to chaos, inadvertently “turns on” ‘economic competition’ which turns the planet into a distributed supercomputer that is constantly innovating and spreading superior information and subsequent social order. Socialist/‘Public sector’ bureaucracies are MONOPOLIES that lack the incentives in the always-competing private sector orders. They get their wealth through taxation so they have no pressure to be efficient and/or copy innovations which helps explain why Socialist/Communist countries are always run-down/poorer, copying all their technology from the Capitalist world, and have police-states needed to keep everyone going along with the plans/ideology. Below are North and South Korea

