Thursday, June 9, 2011

Freedom And Boundaries!

Robinson Crusoe was a story of a man who'd achieved total freedom, only limited by the constraints offered by the size of the island he was confined to. He was governed by his own whims, and the need for survival. Independent; interdependent upon no one. The island confines define to me, that no matter how free man is, there is always a limit or a boundary to that freedom. Some are defined by physical obstacles, and some are suggested by laws or religious belief.

Ideally society in it's simplest form consists of a number of independent households- a collection of Robinson Crusoes, if you will. Each household uses it's internal resources to maintain it's independence until the desire for satisfying a hunger for more expands it's need to become interdependent. "I'll trade what I have an excess of, for what you have that I desire." A means to better one's standard of survival, or the free market system. Where two individuals decide what value they place on their goods or services and barter that which they have excess of, hopefully seeking a win/win situation. Left to it's own, free of regulation, it's a pretty effective means of checks and balances, because those offering a less than equitable deal, will be shunned by other traders. Hence, no exchange will take place unless both parties benefit from it, until the trade becomes equitable. Cooperation is achieved without coercion!

Enter the government.....

Actually government has a role here...bystander. They do have a minimal responsibility to determine the "rules of the game" and act as the umpire to interpret and enforce those rules when violated. A great example is when a party has cornered the market on a necessary good or service and tries to take advantage of that situation. When all other hope of the market balancing that lopsided advantage out, the government should act as arbitrator.

We've strayed from these free market principles, and the result is the chaos our economy finds itself now in. The government has overstepped it's powers and chosen winners and losers. Propping up those deemed "to big to fail" and abandoning the rest. A true free market would allow those failing businesses to take their natural progression, one that's not necessarily bad! We learn from other's mistakes and new more efficient opportunities will arise from their ashes.But then that's only possible when the government takes a hands off approach!

God Bless
Capt. Bill

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