More Freedom

This is a reprint from an article I wrote in early September, just after the credit crisis began.  It seems more poignant than ever, given that the choice in this election, between more freedom (McCain) and less freedom (Obama), becomes clearer every day.

This seems like one of those times when one needs to reflect on core principles.  There’s no playbook for how to handle the financial crisis we’re in.  McCain’s right that the fundamentals of the economy are strong (American innovation, productivity, knowledge, skills and resources), but I’ve never seen this much fear and panic in the financial markets. 

My first career was as a stock broker during the 80s and early 90s so I’ve been a “market-watcher” for thirty years and I would have never guessed Lehman Brothers would go bankrupt.  Lehman has survived the Civil War, the Great Depression, two World Wars but couldn’t survive the recent credit crunch.  Even seasoned veterans are shaking their heads.

The first step in solving any problem is to face it squarely and honestly take stock of what went wrong.  So, what went wrong?  I believe the current problem has to do with what writer & philosopher Ayn Rand called the “mixed economy”, that is, the attempt to seek a compromise between socialism and capitalism:

“…no man has the right to seek values from others by means of physical force…The only social system that bars physical force from human relationships is laissez-faire capitalism. 

Men must deal with one another as traders, giving value for value, by free mutual consent to mutual benefit. 

Capitalism is a system based on the recognition of individual rights, including property rights, in which the only function of government is to protect individual rights, i.e. to protect men from those who initiate the use of physical force.” 

Thus (we should) reject any form of collectivism, such as fascism or socialism, (that uses the threat of force (jail time) to give one group an artificial advantage over another.  For example, to take money (taxes) from “Joe the Plumber” and give it to groups like ACORN.  If Joe says no, he goes to jail). 

So, contrary to the populist calls for more regulation and more government involvement, is it possible there was too much?? 

Is it possible that Fannie and Freddie are textbook evidence of why a “mixed economy” is just as bad as collective forms of government? 

Maybe pushing banks to loan to people that couldn’t afford a home, or even verify their income, was too much regulation and government control.

Perhaps the way forward is more freedom not less.

• Let bankers decide who to loan to and who not to.
• Let investors know exactly what their investing in & assume all the risk. 
• Let oil companies drill where the oil is. 
• Let schools choose to set aside time for prayer or meditation. 
• Let doctors practice medicine without fear of a frivolous lawsuit. 
• Let minorities succeed or fail because of the content of their character. 
• Let health insurance be independent of a job or the government. 
• Let people invest their payroll taxes in their own retirement account.
• Let a state put to death a 300lb man who rapes his 8yr old stepchild. 
• Let schools and hospitals choose to turn away illegal immigrants. 
• Let people choose to use a gun to defend their family in their home.  
• Let parents choose the best school for their children.

More freedom, not less