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Showing posts from September, 2010

Government Based Upon Natural Law - (Part 7) - Economic Policy

What economic system should the United States have?

Really, the answer is none. The Constitution does not directly specify a particular economic system, although, as I’ll show below, it implies that the government cannot interfere with economic transactions. Two common terms are used to describe economies in which people are free to engage in whatever economic transactions they choose: “free enterprise” and “free-market economics”.

It is common to refer to our economy as a “free-market system”, even though it is not a system, because it is not defined or controlled by anyone, nor by the government. It’s just another aspect of freedom. That said, I won’t quibble with those words, and I’ll even use them.

Having free-market economies essentially means that the means of production are privately owned, and that buyers and sellers of goods and services can freely interact, as long as the interaction is voluntary and informed i.e. not coerced or fraudulent.

What about the term “capitalism”?

That …