Lesson 6 Charter City Essay

If I were to establish a charter city, I would establish a setting of free markets, personal liberty, and continuous opportunity. The most important aspect for economic prosperity to prevail, is establishing a set of rules based off of the United States Constitution and the Declaration of Independence. This key institution would protect life, liberty, and property. Without protection of life, liberty, and property from government, there would be no economic prosperity. Also, things like the Commerce Clause and the Bill of Rights help protect freedom in the markets and trading so prosperity may emerge. With rules based off the US Constitution we would have the Rule of Law which gives sovereignty to the people. Government would not have the power to control people or the economy. All of these aspects are extremely vital to achieve a prosperous economy.

            The Second most important institution that I would create would be to establish a free market economy based on capitalism. Capitalism can only prosper where people’s property rights and other liberties are protected by government. Therefore, in order to have a capitalistic society the very first step is to establish rules that protect such things. It is important to have a free market because a free market promotes competition which is fueled by people’s self interest. Competition promotes economic activity and prosperity for the whole. Hence, it is important to be “greedy.” In “Greed” the video from class we learned how free markets allow people to pursue self-interests which helps build wealth, provides more jobs, and creates a better standard of living. When people follow their self-interests and are unhindered by tyrannical government we see the invisible hand. This invisible hand as it has been called is only present in a capitalistic society. In I-Pencil, the invisible hand controls millions of people who all come to create a pencil. No one person really knows all the complexities of how to make a pencil. No one person or group of people can control the economy. The invisible hand is very important. In pursuing one’s own interests, you help others pursue their interests as well.

            The third and extremely important institution I would create is the adoption of modern technology. I would promote new technology because technology is vital for a prosperous economy. Technology provides more work and improves efficiency of workers which builds wealth and creates more surplus. This is shown by Daniel Boone who made nails like his father. Daniel could make 50 nails per day. The lack of technology back then created a low standard of living. Today, nail factories can create millions of nails in a day which lowers the price of nails and creates a better standard of living. Also important is entrepreneurs. In Brother Johnson’s essay it clearly shows the importance of entrepreneurs. “In countries with entrepreneurs we see implementation of technology and wealth creation, whereas, in countries without entrepreneurs we see stagnation.” Technology and entrepreneurship create opportunity and wealth. In order to have a successful economy there needs to be moral based rules which protect individual life, liberty, and property. There needs to be capitalism which is propelled by self-interest and the invisible hand which use technology and entrepreneurship to create wealth. There needs to be freedom of trade and partnerships. People need to be protected from government and the market needs to be protected from governmental intervention. Only with these key aspects can there be true economic growth. I know that a city following these institutions would become very prosperous.