Economic Prosperity

To create a place with economic prosperity certain principles have to be established. Among these principles are property rights, rule of law, markets, free trade, and free press. If we were to create a city in an uninhabited part of the world and were to apply these principles or rules, we would be able to sit back as the economy grew. This is because people will plan their own ways to be successful and it will naturally benefit others. It is through these principles that economic success is found.

Property rights are essential for any economy to grow. In our newly created city protection will be given to property rights. Entrepreneurs are the blood flow to any economy. These are the people who make the risks. They are those who have the vision and the self-interest to create a bigger economic pie for everyone. When a government can take away this property at their leisure no one would be willing to take the risk.

An example of this is Communism or a planned economy. Everything is taken from the individual and given to the government. In this kind of an economic environment little prosperity is produced. No one is comfortable with doing what it takes to create a business. When the government finds that a business is becoming successful they take it from the private owners. It takes property rights to insure entrepreneurs that the fruit of their labor will be theirs. Entrepreneurs left to their own will plan what is best for them by working hard to make a product desirable and beneficial to the public. This concept of everyone benefiting by the self-interest of another is known as the invisible hand.

Rule of law and markets will also be important for our city to be prosperous. The rule of law is the principle that even those who are in the government are not above the law. This is an extra protection of the other rules that we will establish. The rule of law stabilizes the government. It gives protection to the entrepreneurs who can understand all the rights that they have.

A market is an exchange of goods and services. We will need them to remain free if we want our new city to be able to prosper. Free markets encourage new thoughts, resourcefulness, and reason. They also allow for charity which can help to build an economy. Free markets allow us to have competition. It makes it so we use our limited resources wisely. Time is an example of a limited resource. If one is using his time to be a medieval historian, he cannot be a doctor. A free market will force those who want to succeed to put their resources like time into things that all people need.    

Free trade is the next principle that will have to exist in our city. As Leonard E. Read points out not one person knows how to make a pencil. It takes a lot of different people all looking out for their own self-interest to make the pencil. If restrictions are placed on trade, say my city places restrictions on everyone else not of my city, then everyone else will place restrictions the cities goods. This makes less competition and so people waste resources.

The last principle that will need to be in our city to boost economic growth is freedom of press. Press is so important for the advertisement of goods. If there are restrictions on who can advertise or how much one can advertise his goods, then again competition is eliminated. Free press allows for the limited resources going into any good or service to be broadcast to everyone so everyone has a fair opportunity to obtain that good or service. This allows for the market to remain constantly flowing with goods and services for anyone to obtain.

In comparison to a planned economy this new city we created, with all the freedoms which it possesses, will grow immensely. The new city will have the growth that Western Germany had in comparison to Eastern Germany or Hong Kong had in comparison to mainland China. These principles of freedom will ensure the economic growth and prosperity for any city, state, or Nation.