Article by Jocelyn Woods
"I place economy among the first and most important virtues,
and public debt as the greatest of dangers.we must make our choice
between economy and liberty, or profusion and servitude. If we can
prevent the government from wasting the labors of the people under the
pretense of caring for them, they will be happy."
The economy of a nation is a major indication of its success;
it also influences other countries and their relations. One
aspect of nation's economic success or failure is the
system of government. Whether a nation is socialistic, communistic, ruled by
absolute sovereignty, or is based on capitalistic principles can be a key factor
in a country's economic success or failure. A country's government can encourage or stifle money management
and investment, thus directly affecting future planning. Certain governments also
deprive freedom of choice and implement regulations that control property and rights.
Other governments encourage
free trade, allowing the individual to prosper in a free market
economy. The basis of such a system is the people buying and selling to meet
the country's supply and demand. The control of workers and the
market, or economic freedom in a country is extremely significant.
The economy is the prosperity of a nation and its earnings. An example of government
that controls the economy is communism: a command economy. Many countries in Europe and Asia adapted this system.
The premise was that all the people should own all the property, but the
governments of communistic nations took control of the market. People are told
how to work, when to work, and what to work on. All profits go to the
government, but the money is divided equally among the people. In such
a work environment, people have no choice in their
trade. The government controls almost
everything - there may be some free running business owned by rich
governmental-associated affiliates, but that's about it. The rest is
under strict regulation and control.
When people become poor and unemployed, they have the potential to
lose self-respect, and become lazy. They also lose
values and morals, and become resentful of the wealthier class.
This is repeatedly shown in history, and can be correlated with the
government's control of the economy. Likewise, when the citizens
(in many cases the government officials) of a country become wealthy, they often
become greedy, selfish, and morally depraved as well.
This can result in more freedoms taken away from others, as they end up being
controlled by those with more money. Nations with this kind of setup result in an economic slump.
Examples of this include Russian and Asian countries.
Many believe that economic crisis can be prevented and solved by
implementing government regulation and control. Others believe the International Monetary Fund should be
granted a supply money, and that joining together the nations with
a regulation of currency (as with Europe and the euro dollar) will be
The people's success is a nation's success. People's economic
success is a result of their own endeavors, and often correlated
with the type of government they live under. Another type of goverment based on a
free market economy encourages people to plan for the future and make the most of what
Freedom of choice and the right to own
property come together to shape the free market - the
principles of true capitalism. A nations success should be measured by
what its entrepreneurs and its work force produce, as believed by "the
father of economics", Adam Smith.
Furthermore, when people have the freedom to make choices, own property,
and work for whom they desire (whether it be themselves working as an
entrepreneur, or another), they put more effort into their work and
reap the fruits of their own labor. Adam Smith believed
that a nation's success lied within its workers and
businesses to produce and sell. People's
desire to make a profit from their own labor, and receive their own
profit, naturally encourages them to manage their money in a way
that would bring the best result.
The United States is an example of a free market economy. There are many
regulations in the US system of government that don't allow for a
complete freedom, but the freedoms that do exist are
the fundamental reasons that the nation continues to prosper
economically. When the global crisis that
developed in Asia hit the USA - considered the greatest economic
threat since World War II - it's position as the world's biggest open
market helped imports to prosper. Although there was some
decline in the economic percentage statistics, the USA got through the
crisis. It's a free market economy that brings increased competition and
individual entrepreneurs that are meeting supply and demand at
their own inspiration. The freedom of choice, the right to own
property, and supply and demand all come together to form a system that causes a
nation to flourish.
"Debt is the slavery of the free,"
Publilius Syrus once said. Wendell Phillips once commented on debt
as a "fatal disease of republics, the first thing and the mightiest to
undermine governments and corrupt the people." Monopolies and
devaluation plays their parts just as agricultural
decline does for nations dependent on agriculture.
Ultimatetly, it is the people themselves at which lies the heart of supply
and demand. This, in turn, makes the form of government a key
factor in the economic situation within a country.