Less Govt, more Capitalism

Forbes has published a great article recently written by Brian S. Wesbury and Robert Stein. In this article, they make the case that our recent problems are not the result of capitalism run a muck, but rather the crowding out of the private sector by a government that is growing ever larger. I could not agree more.

I really like the point they make that the world's standard of living began to accelerate about the time when the US Constitution was established. This amazing achievement set forth a limited set of rules that unleashed the potential of free men.

So how far have we regressed? The Constitution is essentially just a few pages legislation. In these few pages, there is everything present to run a Federal Government. Now we have a bill that is in excess of 2000 pages, and all it deals with is Health Care. Do you think that might have something to do with fact that entrepreneurs have trouble navigating today?

Going back to the Forbes article, the comments amaze me. There are so many people out there that think bigger government will save the day. They give government the credit for a better life. One poster said most of the life expectancy gains come from better sewers, paid for by government. But you have to ask, where did government get the means to build those sewers? It came from a free society that produced wealth, that could in turn be taxed.

I don't dismiss that government can't provide necessary and valuable service to society. But I am confident that is does not need to spend $3 Trillion to provide that service. Government has to create the environment that inspires wealth creation. That's providing safety through a sufficiently strong military, establishing rule of law with a fair and just legal system, protecting private property rights with unwavering commitment, and keeping the confiscation of wealth low by keeping taxes low regardless of any person's accumulation, and protecting the free speech of all.

Government should be easy. Our elected officials have made it unreasonably complicated by imposing their will on the citizens of this country. Capitalism and small government have contributed more to the rising standard of living than any other force in the last 2000 years. Yet so many people want to sack capitalism and grow government? I doesn't make sense.