Book Summary
FREEDOM MANIFESTO
Why Free Markets Are Moral And Big Government Isn't 
By Steve Forbes and Elizabeth Ames
Published by Crown Business (2012)

The battle for the soul of America is between the belief in free markets and the faith in government regulation. Adam Smith or John Maynard Keynes? Which will provide the best way to a moral society? According to the authors, apparently against popular sentiment, free markets is the way to go.

They cited several reasons for their advocacy for less government intervention and more market freedom:

(1) Citing the Declaration of Independence and the Constitution, they contended that freedom was the original guiding spirit behind the intentions of the Founding Fathers.

(2) Quoting Adam Smith, they believed that if everyone is motivated by self-interest in a free market to satisfy the needs and wants of other people, these mutually beneficial exchanges will form an "Invisible Hand" that creates and allocates resources in a manner that will generate innovations and wealth, raises living standards and, by competing with each other, produces amazing new products which become readily available at a low price. On the other hand, the prime motivation behind government action is often merely political survival.

(3) By preserving our right to make free choices, a free system will create a wider array of new goods and services to meet demand. This will help to generate abundance from scarcity thereby fostering a prosperous society. In contrast, government regulation works by coercion which sometimes lead to undesirable outcomes.

(4) Free markets unleashes human ingenuity and creativity. In a process where successful products can soon become obsolete and learning from failure can lead to better products, democratic capitalism can lead to innovations that will help to solve real problems and improve the lives of many. On the other side of the coin, because the core competency of government is order and security, it leads to rigidity and stagnation.

(5) Free enterprise bestows personal autonomy which helps to empower people, whereas government support only traps people in a cycle of dependency and entitlement.

(6) Free markets reward people and companies for their ability to meet the needs and demands of society. Therefore, it promotes a purer form of meritocracy that allows people to move up the social ladder. Political cronyism, on the other hand, only channels privileges to a favored few, running the risk of encouraging corruption.

(7) Free market transactions are based on an inherent trust and cooperation between market participants and an optimistic view of human nature. The pessimistic assumptions of government prioritize the need to safeguard people, minimize risks and control chaos.

Notwithstanding the enthusiasm of the authors for free markets, I wonder what the latter can do to protect the environment, to narrow income disparity and to address controversial issues concerning health care, housing and finance.