Free Markets or Government Control?
Creating an economy for the good of everyone and not just a few
By now, the value of free markets has been demonstrated worldwide. Even the Chinese Communist Party uses them. Rather than having government officials set prices, a free market allows individuals to set prices based on their own judgments. This allows freedom and leads to better decisions. Such a system makes life better for everyone. We can see the difference when we contrast South Korea with North Korea. Free markets in South Korea have created a thriving economy, wealth, and happiness. Government control in North Korea has led to misery and prison-like conditions.
We need to support free markets. Laws that keep prices down usually have unintended consequences. As the Wall Street Journal (https://www.wsj.com/articles/fast-food-economics-in-la-la-land-f54cf3e2?page=1) has pointed out, increasing the minimum wage for fast-food restaurants in California has decreased the number of jobs available while increasing inflation.
At the same time, we can also recognize that markets are not perfect. They can be unfair when they are manipulated to create an unfair advantage. This can happen with monopolies or in international trade. The role of government is not to replace markets. Rather, governments should establish rules to make sure that markets function for the good of everyone and not just a few.
In the case of monopolies, our anti-trust laws recognize that a monopolist can control a market in a way that creates unfair advantages. But our anti-trust regulation needs to carefully weigh each situation. Big technology companies are successful because of their dominant status in their own areas: Google in internet search, Amazon in online shopping, Meta in social media, and Apple in phones. Each of these companies has been able to create a common space for people to interact. Consequently, each of them has incredible power in their own space. It is tempting for government officials to try to break up one of the companies to diminish its power. But these companies still compete with each other for our attention. None of them has a clear monopoly, and they are all racing to develop artificial intelligence tools for the future. Government should not intervene just because a company is large and successful. Governments should only intervene if a company uses its position to shut out competition and keep prices high.
In international trade, it is appropriate to apply tariffs when other countries unfairly subsidize their own industries, like China often does. But tariffs need to be targeted to those cases when a country is creating an unfair advantage. A blanket tariff on all goods raises prices and increases inflation. Even if we protect some industries that are unable to compete against foreign products, we are raising costs for other industries and preventing them from selling overseas. If we want to continue to export our products, we will need to provide other countries with this same opportunity, as long as they are engaging in fair trade.
Free markets are an incredible tool for creating wealth and well-being for everyone. Governments should allow them to do this. But markets also need a stable environment to function, which only a strong and consistent government can provide. Governments set the rules to allow markets to work properly and to make sure that markets help everyone rather than just a few.
Help keep prices down and create more opportunities. Support my congressional campaign by volunteering or donating at DavidPanforCongress.com.
