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Texas
Agriculture Archive
November 15, 2002
Foundations of Free Enterprise
Editor's Note: The following is an essay on free enterprise written by Grace Cary of Longview. Cary attended the 2002 Texas Farm Bureau Citizenship Seminar and wrote the essay in order to qualify to return as a junior counselor next year.
By Grace Cary
"Will you take the baby? Please, take her to America," asked a woman caring for her neighbor's orphan child. While my Dad, a medical doctor, was treating patients at a mission church in San Pedro, Dominican Republic, he was asked to take this child.
Two years ago I went with my family on a medical mission trip to the island country of the Dominican Republic. It was on that mission trip that I witnessed firsthand the differences between a controlled government and a free government. So desperate is the poverty and so pervasive is the social chaos of this post-dictatorship country that questions like this are not so far out of place. Indeed, the question was asked so the baby girl could have a life of hope and freedom.
For 31 years, Rafael Trujillo was dictator of the Dominican Republic until his assassination in 1961. He controlled the economy and restricted freedom to the bare minimum, and using the government as a tool, grasped any wealth he could. Even in the post-Trujillo era, government restriction of private property continues to devastate the island country.
Shockingly viewed by a 15-year-old Texas girl of privileged middle class of America was a contrast in life potential. After seeing a people enslaved by the shackles of a controlled economy, I appreciate the clear vision of America's founders.
Our forefathers were greatly influenced by the Judeo-Christian ideals of philosopher John Locke, and the Bible. Locke had the idea that all men are equal and independent by nature. The state was a "mutual contract" among men guided by their desire to safeguard their natural rights of life, liberty and property. Locke had a great influence on the early leaders of America such as Thomas Jefferson and James Madison, and that influence is evident in the Declaration of Independence, the Constitution, and other documents pertaining to the molding of America's future government.
Greatly influenced by the Bible, John Locke presents his view on laws made by man: "Laws human must be made according to the general laws of nature, and without contradiction to any positive law of scripture, otherwise they are ill made."
The thinking of the day, "Thou shalt not steal...thou shalt not covet," applied to governments as well as individuals.
Our founders believed that by nature man is greedy, and they wanted to limit government so people would not suffer from totalitarianism, such as occurred with European dictatorships.
They embraced democratic capitalism for a number of reasons. The Bible not only grants the right to private property but also calls for men to be good stewards of their property. Biblical stewardship sees God as the owner of all things and man must account for the use of whatever he has and must work to increase the Owner's investment.
Locke stated, "God who hath given the world to men in common, hath also given them reason to make use of it to the best advantage of life, and convenience. Thus the grass my horse has bit; the turfs my servant has cut; and the ore I have [digged] in any place, where I have a right to them in common with others, become my property, without the consent of any body. The labor that was mine hath fixed my property in them."
Competition in a free market also works according to comparative advantage, which allows everyone to be the best producer of some service or good, and this validates the worth of each individual.
Capitalism is more socially just, encouraging the wealthy to create more wealth, thereby aiding all of society. The wealthy use the free market effectively to multiply the goods and services available, which in turn creates more opportunity for rich and poor alike.
Our founding fathers had those views in mind when they established our government, and they believed that justice was important to the economic system. Biblical justice is impartial in the protection of human rights, whereas the humanists' and Marxists' views of justice enforce strict equality.
Equality ignores the difference in abilities, and dedication of individuals, and strips away man's human rights. Calvin Beisner, a professor in theology and Christian apologetics, says: "Justice is rendering to each his due in accord with the standards of God's law. It demands impartial application of all laws to all people. It respects natural, divinely ordained spiritual and physical differences among men, and respecting these, also respects their inevitable effects: diversity of intellectual, social, economic, and spiritual achievements."
In Luke 10:7, there is a connection between work and fruit: "Give man the fruit of his labors, for he is worthy of his wages."
Free people would most desire an economic system that would promote justice by protecting the rights of men from infringement by others. If men were inherently good, one might not worry about infringement of rights.
But man is not naturally good, and the best economic system contains checks and balances to protect human rights against man's inclination to do wrong, or greed.
Man should be free from state force in order to use his abilities to God's glory, and, with integrity, to work and reap just rewards. This economic freedom protects the individual from force by the state, such as a totalitarian government. Free enterprise is a market economy that grants man a freedom of choice regarding production and consumption.
In the real world, capitalism creates more wealth than any other economy and distributes it more justly. The free market is better able to meet the need of a changing society because it is driven by supply and demand.
However, there is unlawful enterprise that goes against what is lawful and true. Men, who get rich by selling drugs, illegal trafficking, insider trading or any other unlawful method, are violating the very principles that free enterprise is based upon. Working outside of the law causes man to be ambitious, not for the common good of everyone, but for his own personal interests. His wealth would not create a better economy, but put money into his own pocket.
On the other hand, working inside the law using God-given abilities builds up the economy by competition and promotes the goodwill of all. It gives rise to a less bureaucratic, wealthier society.
In contrast, a government controlled by a few, for their own good, suppresses wealth of others and promotes poverty and injustice. The economic system that checks injustice and gives man responsibility, both in terms of private property and economic decisions, can allow men the freedom to act with dignity as men created after God's own image.
The Declaration lists as rights, life, liberty and the pursuit of happiness, which the government cannot take away, because these rights are given by God. Our government is controlled by people to prevent a dictatorship from evolving, such as the one controlled by Trujillo.
Because of its biblical foundation, free enterprise is one of the cornerstones of the prosperous economy we enjoy today.
Free enterprise promotes competition and incentive to do one's best. This causes production to soar and produces better quality products. Competition is good for our economy and free enterprise strengthens this tool of capitalism.
According to the Constitution, owners are free to employ whomever they will, pay whatever wages they wish, and to disengage an incompetent worker. Every aspect of life is not controlled by government as it would be in other countries. Free enterprise has produced a better work ethic in America and results in many booming businesses today. The economy is soaring because of people who have worked hard to succeed. They have promoted productivity by free enterprise and the right to be their own boss.
I am grateful that I was born in America and enjoy privileges that the baby girl from the Dominican Republic would not have. Neither of us chose to be born where we were, nor the leaders who control our governments. I pray that the leaders of America keep her heritage strong by upholding the laws created by her founders, and that she never become corrupted by the selfishness of men such as Trujillo.
