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American Focus > Blog > Economy > A Blueprint for Freedom: The Classical Liberal Path to Prosperity
Economy

A Blueprint for Freedom: The Classical Liberal Path to Prosperity

Last updated: February 21, 2025 3:12 pm
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A Blueprint for Freedom: The Classical Liberal Path to Prosperity
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The eternal struggle between order and liberty has been a central theme in human societies since the dawn of civilization. Throughout history, nations have risen and fallen based on how they navigate the delicate balance between centralized control and individual rights. The United States, founded on the radical principle that government exists to secure God-given rights rather than grant them, has seen its original vision eroded by expanding bureaucracies, redistributive policies, and a political class more focused on power than principle.

To restore the government to its rightful role of serving rather than ruling, a fundamental restructuring is necessary at the federal, state, and local levels. Renowned economist Milton Friedman advocated for a minimalist government that prioritizes individual liberty and economic freedom. He argued that government’s role should be limited to protecting life, liberty, and property, with everything else left to markets and voluntary institutions. Friedman warned that economic freedom is a prerequisite for political freedom, as government control of the economy inevitably leads to encroachment on personal and political liberties.

However, the federal government has exceeded its constitutional limits, dictating everything from business operations to education administration. This centralization of power has stifled economic dynamism and prosperity. Friedrich Hayek’s “The Road to Serfdom” cautioned that government planning results in the loss of individual choice and freedom, even with good intentions. He believed that the federal government’s legitimate functions should be limited to national defense, securing contracts and property rights, and ensuring a basic rule of law, with everything else left to states, local communities, and individuals.

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The failure of government can be attributed to its incentives, as explained by James Buchanan’s public choice theory. Buchanan revealed that politicians act in their self-interest, seeking re-election and rewarding special interests that fund their campaigns. This cycle of political self-preservation leads to rising spending, uncontrolled debt, and dominance of special interest groups in policy-making.

Government welfare programs have expanded beyond their original purpose, dehumanizing and entrenching dependency. Economist Thomas Sowell demonstrated that government intervention in welfare disincentivizes work and weakens community responsibility. Private charities and churches, on the other hand, provide not just financial assistance but also moral and social support that help individuals regain independence.

Taxation must be simplified and made transparent to eliminate unjust practices that punish productivity and distort economic incentives. A flat consumption tax, as proposed by Friedman, would remove complexity, political favoritism, and make taxation more transparent.

The manipulation of money by the Federal Reserve has fostered economic instability through artificial credit expansion and reckless monetary policy. Historically, competitive banking systems without central banks have led to more stable monetary environments. A sound monetary system rooted in free banking, where private institutions compete to issue currency backed by tangible assets, holds the government accountable and prevents fiscal irresponsibility.

Federal regulations distort markets and hinder innovation, shielding politically connected industries from competition. Local governments should phase out property taxes by capping spending and shifting to user-based fees, allowing for true property ownership and financial independence. Education policy should prioritize choice, allowing funding to follow students to improve performance and efficiency.

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In conclusion, the ultimate goal of governance should be to create an environment where individuals are free to make their own choices and take responsibility for their lives. A truly free society does not require a powerful state but rather a restrained government that allows individuals, families, and communities to flourish without interference. Restoring government to its limited, accountable, and subservient role is essential for letting people prosper.

TAGGED:BlueprintClassicalfreedomliberalpathProsperity
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