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Free Market Economy

Life is best lived in survival mode. Each of us is born with equal rights to be successful and live a good life. God has, through the life of Jesus, shown us how to live a good life. If humanity is to be successful and survive forever the goal must be for us to produce 110% of what we are capable of doing. Where does the extra 10% come from you ask? That 10% is the creative, innovative ability God makes possible when we give ourselves 100% to be productive. It is the one more thing that earns us eternal life. It is what enables man to live in an ever-changing universe. The world is only where we are from. There is so much more.

A free market is the best way to reach 110% productivity. It is the rare small/startup business that does not exist in survival mode and many fail. Government highly control some economies, a command economy. The government controls the means of production and the distribution of wealth. The government sets the prices of goods, services and wages. In a free market people are free to produce, set prices, buy and sell to each other based on decisions made freely by companies and individuals. Goods and services are sold at the highest price people/companies are willing to pay. Workers are paid the highest wage they can get employers to pay. A profit motive drives all sales forcing providers to work as efficient as possible in order to avoid loosing business to the competition.

In the real world an economy is not purely free or command; it is some combination of both, a mixed economy. In the United States we are 74.8% free market and 25.2% command economy as of 2021; this is down from 2019 when the US was 76.8%. The most free market economies in the world are near 90% free and 10% command. The government's involvement in the economy, command, includes any type of legislation or oversight; such as, minimum wage, duties, trade restrictions, stimulus payments and corporate taxes. The public school system as well as public services are not part of the free market. More and more of our healthcare system is slipping into the command economy. A command economy unlike a free market economy is widely open to unintended consequences, see the quote below from the New York Times:

When the Paycheck Protection Program began last year to help small business that were struggling during the pandemic, the federal government was determined to get the relief money out fast — so it waived much of the vetting lenders traditionally do on business loans.
The absence of those safeguards meant that fraud was highly likely. But just how much of the program’s $800 billion was taken illicitly?
A new academic working paper released on Tuesday contains an estimate: Around 1.8 million of the program’s 11.8 million loans — more than 15 percent — totaling $76 billion had at least one indication of potential fraud, the researchers concluded.

The command part of an economy is less-productive socialism. Forget the 110% productivity that a free market produces. Command economics never operate in survival mode. There is no force to work as efficient as possible and once spending starts it is hard to stop; in fact spending tends to increase over time. Providers, workers, in the command part of the economy are serving the public without the free market incentive to survive, compete and please the customer; there is no competition or profit incentive for the government or its workers. As long as they follow the rules they keep their job.

Command economy, government, sending means inflation. Welfare and stimulus spending is 0% productive and government services never come close to 100% productivity when compared to the same services provided in the supply side free market. Anytime we have more money to spend coupled with the same produced value, prices go up. Inflation only helps and emboldens the non-productive members of society. The 110% producers are discouraged and hurt the most. Science and nature has shown us the truth - there is no way to fake value.

Government can not spend on welfare and stimulus without hurting the most productive members of society. The best stimulus is limited command economy and more free market economy that takes place on a fair and balanced playing field. The best welfare comes from the most generous productive members of a society permeated by Judaeo Christian Values. Government could provide positive incentives for productive members of society to efficiently provide for the needy. If we are to survive as mankind we must be productive as possible, each and every one of us.

Supply side (Regan) economics, based on productivity, is the best way to stimulate growth, overall prosperity and scientific progress. Demand side (Keynesian) economics, based on demand, is not able to guarantee growth, productivity and scientific progress. Stimulus money alone does not guarantee supply; in fact, if it does not increase supply, the result is inflation. For example, look at today's Covid economy.

A stable economy is friendly (almost necessary) to real growth of the economy. "If we ever go off the Gold Standardwatch out below; the American Dollar will become an inflated joke". What was my father trying to tell me? To him each American Dollar must be backed by a finite and real amount of Gold, the Gold Standard. For 5,000 years the world Free Market existed and stabilized based on the Gold Standard. In 1931 Great Britton abandoned the Gold Standard as backing for the British Pound. The US did away with gold coins in 1933 but kept the Gold Standard backing each American Dollar until 1973. I remember how depressed my father was in 1973, "money will become meaningless and inflation will distort and ruin the Free Market, but the market was slow to change coming off the 5,000 years of deeply observed Gold Standard. The fiat money world began to change slowly then faster and faster until now we accept Bit Coin as value, just as COVID-19has disrupted the Free Market.

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WOW...Tom...everything you say is spot on....Well written....Look forward to more of your post...Bob

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