CAPITALISM AND LIBERTARIAN GOVERNMENT

Thomas Jefferson based the Declaration of Independence on the  Lockean formula of government which men institute to protect and guarantee the inalienable rights that are given by God to all men and women. They were enumerated by Thomas Jefferson in the Declaration of Independence. The pursuit of happiness is Jefferson’s example of Locke’s ownership of property. Of course,the right to life itself is paramount. But life without liberty is of little value. We must be free to act as we desire so long as we do not harm another person or interfere with their rights. We must be free to protect our lives and we must be able to own our labor. What we have produced with our labor becomes our property with which we enhance our pleasure and satisfaction. That is what Jefferson meant by “the pursuit of happiness”. But mankind is wicked and covetous. It is necessary to protect our lives, our liberty, and our property from those who seek to take it. The protection of these rights and the prevention of harm may be difficult or even impossible for some. Therefore, governments are established for that purpose. The guiding principle envisioned by those who established our nationAt its simplest level that involves individuals, but individuals are capable of cooperating and forming groups for various purposes. One of those purposes is for conducting business. That is free enterprise, also known as capitalism. We call these groups  companies or corporations. The Supreme Court has ruled that corporations are composed of and by people and as such are entitled to the same rights and privileges as individual citizens. For that reason such groups that are formed for business purposes are also capable of immoral or harmful activities. We all know of these. They include unfair business practices, monopolistic endeavors, and secondary harms such as pollution and so forth. Many people see such behaviors on the part of companies or business combines and consider it a failure of capitalism. But that is an economic error of the first order and must be corrected. When corporations are guilty of harmful behavior those behaviors are the acts of men, or women who operate those business entities. Therefore those actions must be prevented by a usefully functioning government.

Adam Smith, the grandfather of economics, wrote The Wealth of Nations which set forth the principles of free enterprise. But he was also a student of mankind and understood the foibles and weaknesses inherent in our fallen state. He also wrote The Theory of Moral Sentiments and often remarked on the harm that individuals might do in the pursuit of their business activities. It is for this reason that government must act to prevent the harm that may be done in the name of business. But those who criticize capitalism in that regard make a personal and political error that strains credulity because capitalism is a system of business and systems do not make decisions. People do as per SCOTUS. So it is incumbent upon government to formulate laws that prevent the harm of those decisions. Government must also redress the financial harm with the business concern involved and the criminal harm, if any, with the individuals who made those decisions. That is in accord with the libertarian view of governments. Since corporations are people mistakes will be made and harm will ensue. It is folly to assign that harm to the corporation and demand economic and government changes. Decisions that are not made by individual businessmen must then be made by government bureaucrats who are also individuals but have no personal or financial interest in the transactions that they deem to control.  With no skin in the game so to speak, and without the intimate knowledge the scarcity of goods and cost of labor or the demand for the product mistaken government policies ensure economic disruptions. Business without freedom is failure. To paraphrase an old saying, when freedom flies out the window poverty walks in the door. 

The libertarian view of government’s economic responsibility for business is to enhance freedom and prevent harm. Capitalism thrives on freedom and stumbles with harm. That is the perfect scenario for the Lockean theory of government. And the inspired constitution of the United States of American which was written by wise men whom God raised up for that very purpose serves to ensure that our government fulfills its commitment in that regard.