Politicians Should Learn the Lessons of a Free Market.

AuthorKANE, TIM D.
PositionOriginal role of federal government - Brief Article

THE NEXT TIME some fledgling democracy decides to hold a presidential election, do you think it will invite U.S. observers to make sure things run smoothly? In the free market, consumers go to the "polls" each day and "vote" for products that best meet their needs. Victorious firms redouble their effort to become even better; losers "concede" by producing a different product, or ceasing operations entirely, releasing resources to be used by the remaining candidates. Teams of lawyers do not descend upon the winning firm to audit their books; "recounts" are not demanded; and ballots need not be "certified." When it comes to picking economic winners, the market's "electoral" process is quiet, thorough, and brutally efficient.

It proceeds continuously without evoking as much as a shrug from the voters--which raises an obvious question: Why did these same voters become bitter, accusatory, belligerent, and litigious in the 2000 presidential election? The answer lies in a 70-year expansion of Federal powers far beyond those enumerated in the Constitution.

The Founders created a Federal government to "form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity." They feared a future expansion of Federal power that would threaten individual liberty. To guard against this dangerous expansion, the Tenth Amendment "reserved to the States respectively, or to the people" all powers not specifically granted to the Federal government.

Originally, the Federal role was to provide an environment wherein a free people could create wealth for themselves and, in the process, enhance the welfare of others and of their country. The nation's wealth was recognized to be a direct consequence of the industriousness and creativity of its people, not of government largesse. Creating this historically unique environment required that government only protect us from foreign invasion, guard the fruits of our labor from domestic theft, enforce the rule of law, and act as impartial mediator to resolve civil disputes.

The Great Depression began a transformation of this role. First, people wanted protection from unemployment and price fluctuations; then, from material want and unfair treatment; later, from poor health; and, finally, from the consequences of their mistakes. As the welfare of particular citizens moved to the forefront of...

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