Join us as we discuss free market and economic progress.
In 2011, then to be Senator Elizabeth Warren made a speech that has since been made famous by President Obama, that said the help and infrastructure of most of this country was built by government.
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| Left to Right: W. Michael Cox, PhD, Peter Goettler |
Warren said: “there is nobody in this country who got rich on their own. You move your goods to market on roads the rest of us paid for. You hire workers the rest of us pay to educate. You are safe in your factory, because of the police and fire forces that the rest of us paid for. You don’t have to worry that your factory will be seized by marauders, because of the work the rest of us did. Part of the underlying social contract is you take a hunk of that and you pay it forward for the next person that comes along.”
Join us for a very spirited discussion between host, Dennis McCuistion, and our guests who question her premise:
- W. Michael Cox, PhD: Director of the O’Neil Center for Global Markets & Freedom at SMU’s Cox School of Business, and
- Peter Goettler: President/ CEO Cato Institute
Dr. Cox says this is erroneous in several ways: “7% of America’s infrastructure which is used on a daily basis is not supplied by government. It comes from private organizations that have a profit objective”.
“Warren left out all of the private sector capital that people use. She mentions school transportation, roads used at other people’s expense etc. She didn’t mention that you use electricity, utilities, internet around the globe, computers, software, apps, cell phones, oil pipelines that come from private sector companies that mine and refine them, and all of the rest of the things that are built by private citizens. She just focused on the few public sector things”.
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Peter Goettler argues, “We shouldn’t be subsidizing ANY business. If it’s doing well it doesn’t need subsidies, if not it fails. The whole thing is incestuous. Capital markets are supposed to be competitive. As government becomes more involved in having a role in markets people are waiting for the Feds to do something”.
Cato, a public policy research group and libertarian think tank, promotes the moral and philosophical case for liberty, the cornerstone values of free markets, limited government and individual liberty and peace. He adds, “The vast majority of the resources to build a factory are actually provided by the private sector. Some things, yes, are provided by government and that doesn’t mean it’s necessarily well run. Education for instance”.
Dr. Cox agrees, “No amount of water will fill up the drain when the stopper is out and that’s what government is doing with our money”.
All believe solutions must begin at the Constitutional level. Congress should not be bailing out or subsidizing business.
McCuistion stirs up the debate when he says, “you can’t blame people for taking the money if it’s there.” Cox says, “of course I can. You make the laws that prohibit it”.
McCuistion asks we consider that there are ideologies involved without a doubt, but it’s the facts that really matter. This rousing segment on free market and economic progress is one you definitely do not want to miss.
Join us as we talk about things that matter… with people who care.
Niki N. McCuistion:
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Organizational, Personal, Culture Change
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Cox and Goettler display the same level of partisanship as Senator Warren, former Secretary Clinton, and President Obama on the issue of who creates jobs and builds wealth.
Cox and Goettler are absolutely right – free market capitalism is the primary driving force in job and wealth creation. And, they also conveniently downplay the role of government in the process. In fact, much of their displeasure seems to focus on how government operates rather than the role it plays.
Here are a few of the government contributions they failed to mention. They may not be the majority, but it would be hard to discount their impact:
• The freedoms that exist in the United States make it possible for individuals to pursue their dreams. They are enshrined in the Declaration of Independence. Try starting and growing a business in countries where that freedom is not allowed.
• The quality of the economy is heavily influenced by the skills and abilities of the workforce. Those skills are developed in our schools which for most of us are funded and operated by local and state governments. Decrying their performance doesn’t diminish their role.
• Governmental regulations and policy decisions make it easier or more difficult for businesses to operate and add jobs. Cox and Goettler complain about over-regulation, but there are incentives and enterprise zones created by government agencies that also influence job creation. And, we can’t forget the role of the Federal Reserve Bank. The low interest rates we’ve experienced have certainly influenced job growth.
• Over 20 percent of the U.S. gross domestic product (GDP) comes from federal spending. Spending by state governments contributes another 8 to 9 percent. And, local government spending exceeds 10 percent. You may not agree with the amount of spending that is currently in place, but you can’t discount it.
Cox, Goettler, Senator Warren, President Obama, and former Secretary Clinton are all shortsighted in defending their beliefs. The entrepreneurial spirit and environment that inspires people to take risks and start businesses is linked to the policies, regulations, taxes, fees and types of investment made by the government at all of its levels.
The problem today is that the discussion is controlled from the fringes. It’s not government. It is politics. There are those on the left who completely discount the role of business and entrepreneurship in creating jobs. And, there are those on the right – like Cox and Goettler – who believe that the government is, at best, a necessary evil that should be throttled lest it run amok.
The answer lies in understanding and maintaining a responsible, balanced view. And that is virtually impossible in an environment where the candidates we elect and the media we watch encourage both sides to run from the middle and embrace their respective fringes. The middle doesn’t make for great television, but it does contribute to better decisions.