Economic Freedom is the Heart of Capitalism

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At the heart of any capitalist structure is the fundamental belief of economic freedom. This liberty focuses on two areas that are critical in order for any economy to survive and prosper. This economic theory refers to an individual’s freedom of choice and enterprise. By definition, freedom of choice refers to any person who is free to make his or her own economic decisions in a world of limited resources. This comprises various actors’, (consumers, savers, buyers, and producers) to behave in a purely voluntary manner. Freedom of enterprise on the other hand is a system in which governments place few restrictions on business activities and ownership. In this sense, businesses would be limited by competition and the forces of supply and demand in the marketplace. These two characteristics of economic freedom are the basics of constructing a capitalist system that promotes growth and a robust middle-class. Central to this idea of economic freedom is the belief of private property, which is the groundwork of all personal freedom, activity, and independence. Prior to the 18th century, the term property was made in reference to land ownership. Recalling from the Communist Manifesto, Marx explained the dissonance between the two social classes commonly referred to as the bourgeoisie and proletariat. The bourgeoisie or class of modern capitalist controlled the means of social production and were employers of wage labor. The basic principle behind this class was that it needed to expand the market for its products. The bourgeoisie continued their drive to expand the market with the principle that they must nestle and settle everywhere. Overtime this would eventually lead to an overproduction of goods and the market would be saturated w... ... middle of paper ... ...other than Microsoft to copy and sell windows. Although there are more than three characteristics in a capitalistic society that achieve both high rates of growth and a robust middle class, private property, entrepreneurship, and government regulation are the elements needed to achieve this goal. People should have the right to dispose of ones property in any manner they see fit. If an individual wants to build a business on land they acquired creating jobs they have a right to do that. That same person building a business is more or less an entrepreneur taking risks and driving the economy forward. Lastly a government that sets rules and gives everyone an opportunity to build a business and fail, but also encourages trade on national level backed by a strong currency will allow a nation to prosper and strengthen its economy.

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