Strangely
enough, with all the rhetoric directed at which presidential candidate
is better qualified to "save the middle class," few in the media have
asked just what it actually takes to do so. The short answer is economic growth. Candidates Romney and Ryan get this, even if the president does not. But how exactly does one conjure up growth?
The short answer, again, is that one produces goods and services that consumers prefer over those of others. In a free market, the supply of goods increases, the quality improves, and the price goes down. All consumers are better off, assuming they are able to compete in the marketplace.
This is the classic case for free markets articulated by Milton Friedman in his book and television series Free to Choose. Friedman understood that competition is the lifeblood of every successful society, and especially so in an era of global competition. If the Chinese can produce quality sweaters at lower cost than American businesses, consumers will be better off purchasing their sweaters from China. If Americans can produce corn or timber more cheaply than the Chinese, the Chinese would be advised to purchase these goods from America.
There are many obstacles to free trade, but in the long run, a nation that produces goods and services of good quality at a low price will thrive. Other nations will purchase its goods and make available competitively priced goods in return. Living standards will rise for all who compete in the free market.
The short answer, again, is that one produces goods and services that consumers prefer over those of others. In a free market, the supply of goods increases, the quality improves, and the price goes down. All consumers are better off, assuming they are able to compete in the marketplace.
This is the classic case for free markets articulated by Milton Friedman in his book and television series Free to Choose. Friedman understood that competition is the lifeblood of every successful society, and especially so in an era of global competition. If the Chinese can produce quality sweaters at lower cost than American businesses, consumers will be better off purchasing their sweaters from China. If Americans can produce corn or timber more cheaply than the Chinese, the Chinese would be advised to purchase these goods from America.
There are many obstacles to free trade, but in the long run, a nation that produces goods and services of good quality at a low price will thrive. Other nations will purchase its goods and make available competitively priced goods in return. Living standards will rise for all who compete in the free market.
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