The key to economic prosperity is less government regulation in the market.
State regulated markets hinder competitive market forces. Strict regulations make it increasingly difficult for citizens to find jobs and cover living expenses. Those living paycheck to paycheck are finding that rising out of poverty is seemingly impossible.
So, how can we facilitate opportunity for individuals living paycheck to paycheck?
Currently, the government regulates the supply of housing. Lack of supply merely spikes the price of any good. Rent control, a policy that limits the amount of housing available, must be lifted. Without rent control more housing can be built. Increased supply will drive prices down.
New businesses trying to enter the marketplace are bombarded with hefty fees, taxes, and restrictions. These regulations create enormous barriers to entry that prevent new businesses from being created. More jobs can be created by decreasing taxes and regulations placed on new businesses.
Occupational licensing laws require an individual to go through extensive processes to meet the qualifications necessary to become licensed in a specialized field. Understandably, individuals need to be experienced and knowledgeable in their fields. These laws do keep consumers and employers safe, but there are significant limitations to this. In the past 60 years, occupational licensing laws have quintupled. These laws no longer simply determine whether or not a person is qualified to do his or her job. Instead, these laws limit the ability for new competition to enter the market.
While it is true that an economy cannot exist without regulation, it is important to understand that the term “free market” does not inherently call for a market void of regulation. In actuality, a free market calls for the control of regulation to be taken away from centralized government. An economy regulated by market forces, individuals acting for themselves rather than government bureaucrats seeking incentives for centralized government, is an economy geared towards the betterment of all people. Less government regulation allows for more economic freedom.
In America, some people are born poor and some people are born rich. We all start life with different circumstances. A free market allows for competition that makes where one starts irrelevant. The key to economic prosperity is simple: remove centralized government intervention in the market.