The Balance of Power - Free Enterprise
Money is power and anyone who strives for power also strives for money. Why do think governments throughout history have spent lavishly on great displays of wealth? It is meant to show the whole world the power and greatness of the government. When the United States of America was young there was no income tax. The Federal government acquired money through excise taxes, private donations, and public debt. Most of the money was in the hands of the State governments and the citizens. But as the Federal government grew in power so did it's need to collect money.
By limiting the amount of money the Federal government has to spend you limit the amount of influence it has. That is why pork barrel spending is such a problem. Sure the Federal government provides funding for public education. But in turn the schools must comply with Federal regulations. It is the same for highway funds, environmental funds, and law enforcement funds. The Federal government collects your money and then doles it out to people but with strings attached.
Free enterprise can act as a balance against the government by having it's own money to use for influencing society through new research, charitable donations, and investments in communities. I'm not just talking about mega corporations either. Mid-tier business also can have a tremendous influence in their communities. I believe that when the money and power is more evenly distributed to the local communities, you have more freedom.
As long as the government is strong enough to act independently of the businesses you can achieve a balance of power. The government can prevent businesses from obtaining a monopoly, and to prevent corporate abuse, while businesses can use their influence to help reign in the government.
- Thomas Paine 2
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