america's great economic miracle


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a time for choosing - ronald reagan

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america's great economic miracle

the story of the united states is the story of an economic miracle and a political miracle that was made possible by the translation into practice of two sets of ideas?both, by a curious coincidence, formulated in documents published in the same year, 1776.

one set of ideas was embodied in the wealth of nations, the masterpiece that established the scotsman adam smith as the father of modern economics. the second set of ideas was embodied in the declaration of independence, drafted by thomas jefferson to express the general sense of his fellow countrymen.

economic freedom is an essential requisite for political freedom. by enabling people to cooperate with one another without coercion or central direction, it reduces the area over which political power is exercised. in addition, by dispersing power, the free market provides an offset to whatever concentration of political power may arise. the combination of economic and political power in the same hands is a sure recipe for tyranny.

smith and jefferson alike had seen concentrated government power as a great danger to the ordinary man; they saw the protection of the citizen against the tyranny of government as the perpetual need. that was the aim of the virginia declaration of rights (1776) and the united states bill of rights (1791); the purpose of the separation of powers in the u.s. constitution; the moving force behind the changes in the british legal structure from the issuance of the magna carta in the thirteenth century to the end of the nineteenth century. to smith and jefferson, government's role was as an umpire, not a participant. jefferson's ideal, as he expressed it in his first inaugural address (1801), was "a wise and frugal government, which shall restrain men from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement."

free to choose
by milton friedman

some writers have so confounded society with government, as to leave little or no distinction between them; whereas they are not only different, but have different origins. society is produced by our wants, and government by our wickedness; the former promotes our happiness positively by uniting our affections, the latter negatively by restraining our vices. the one encourages intercourse, the other creates distinctions. the first is a patron, the last a punisher.

society in every state is a blessing, but government even in its best state is but a necessary evil in its worst state an intolerable one; for when we suffer, or are exposed to the same miseries by a government, which we might expect in a country without government, our calamities is heightened by reflecting that we furnish the means by which we suffer!

common sense
by thomas paine

you and i are told increasingly that we have to choose between a left or right, but i would like to suggest that there is no such thing as a left or right. there is only an up or down--up to a man's age-old dream, the ultimate in individual freedom consistent with law and order--or down to the ant heap totalitarianism, and regardless of their sincerity, their humanitarian motives, those who would trade our freedom for security have embarked on this downward course.

a time for choosing
by ronald reagan

what is america's great economic miracle? the economic system of natural liberty which allows the voluntary cooperation of individuals currently known as capitalism.

as with all systems, an economic system may be either natural or artificial, the former being defined by freedom and the latter defined by coercion. the natural system, capitalism, i will refer to as an informal system; the artificial systems, i will call formal systems.

why is capitalism an informal system? a crucial part of the definition of capitalism is the idea of laissez-faire, a french term which roughly translates into "allow to do" or "leave alone." capitalism is an informal system in the sense that it does not seek to impose answers upon society to the three fundamental questions facing all economies: what should we produce? how should we produce? and, for whom should we produce?

capitalism suggests that rather than these questions being answered by kings, governments, or even well-intentioned central planners on society's behalf, these questions should be answered by you and i and every other individual in a free market. in other words, capitalism is simply what occurs when we are all left to our own economic devices; as a system, capitalism is characterized by the absence of formal systems. as adam smith explained, "all systems either of preference or of restraint, therefore, being thus completely taken away, the obvious and simple system of natural liberty establishes itself of its own accord."

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milton friedman put it another way: "fundamentally, there are only two ways of co-ordinating the economic activities of millions. one is central direction involving the use of coercion ... the other is voluntary co-operation of individuals." formal economic systems (communism, feudalism, etc.) are defined by some form of coercion in order to direct production and to impose answers upon society; the definition of capitalism, the informal system, is the absence of coercion.


definition of capitalism

what is the political spectrum?


the idea of a political spectrum, is one of the first concepts taught and analyzed in poly-sci and economics courses in college. it is a listing of the world's various political-economic systems on a chart, placing each system on the chart toward the left, middle or right, according to the basic type of government that system upholds. it is a natural way to provide the over-all perspective needed in judging the different political and economic forms that exist, and thus a very important tool in teaching what the political world is all about.


political spectrum according to aristotle's doctrine of the mean would be as follows


the political spectrum con
by nelson hultberg

what is the species of domestic industry which his capital can employ, and of which the produce is likely to be of the greatest value, every individual, it is evident, can, in his local situation, judge much better than any statesman or lawgiver can do for him.  the statesman who should attempt to direct private people in what manner they ought to employ their capitals, would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it.



i don喃畂w about you, but i am impatient with those republicans who after the last election rushed into print saying, ?锟絬st broaden the base of our party绋 what they meant was to fuzz up and blur even more the differences between ourselves and our opponents.

it was a feeling that there was not a sufficient difference now between the parties that kept a majority of the voters away from the polls. when have we ever advocated a closed-door policy? who has ever been barred from participating?

our people look for a cause to believe in. is it a third party we need, or is it a new and revitalized second party, raising a banner of no pale pastels, but bold colors which make it unmistakably clear where we stand on all of the issues troubling the people?

ronald reagan

let them go their way

march 1, 1975



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