Why Free Enterprise Matters

The role of the government is to create an environment in which individuals and organizations can create prosperity by meeting the needs of others. Founder claimed that the right to pursue life, freedom, and happiness is given by our Creator, not by our government. The company can succeed and prosper only in countries where the government protects citizens' personal and property rights.

As Hayek pointed out, free enterprises can not survive the country under the rule of law, regardless of whether the government consciously destroys free enterprises. The rule of law is not just that the government implements its own rules in a consistent way for all subjects, as Stalin did in the great fear. The rule of law is not rule-based utilitarianism, it is incompatible with all forms of utilitarianism. In Utilitarian statements, the concept of rule of law is unexplainable and it is meaningless in Utilitarian philosophy.

In Western countries, free enterprises are associated with free - laundryism capitalism and philosophical liberalism. But free companies are different from capitalism. Capitalism is a way to produce and distribute rare resources. A free enterprise is a set of legal rules concerning business interaction. Legal codes similar to free enterprise systems do not spread for a long time. The first house of the modern free market was the UK from the 16th century until the 18th century. This will occur simultaneously with the first industrial revolution and the birth of modern capitalism. In the meantime, there are no barriers to international trade, tariffs, barriers to entry of most enterprises, and restrictions on private enterprise contracts in British laws and regulations.

There are no restrictions on free things, companies are companies. Therefore, a free enterprise is an economy in which a company is not controlled by the government. In free enterprises, prices fluctuate depending on supply and demand. If the demand is high, the price goes up. If the demand is low, the price goes down. A free enterprise refers to the situation of a private company without government intervention.