DOCSLIB.ORG

Principles of Economic Freedom

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Principles of Economic Freedom Chapter 1 Principles of Economic Freedom Ambassador Terry Miller and Anthony B. Kim [A] society that puts freedom first will, as a individual merit. Government decision-making happy by-product, end up with both great- is characterized by openness and transparency, er freedom and greater equality. Though which illuminates the shadows where dis- a by-product of freedom, greater equality crimination might flourish and promotes equal is not an accident. A free society releases opportunity for all. the energies and abilities of people to pur- In an economically free society, the power of sue their own objectives. It prevents some economic decision-making is widely dispersed, people from arbitrarily suppressing others. and the allocation of resources for production and consumption is on the basis of open compe- —Milton and Rose Friedman1 tition so that every individual or firm gets a fair chance to succeed. n an economically free society, each person These three fundamental principles of controls the fruits of his or her own labor economic freedom—empowerment of the I and initiative. Individuals are empowered— individual, non-discrimination, and open compe- indeed, entitled—to pursue their dreams by tition—underpin every measurement and policy means of their own free choice. idea presented in the Index of Economic Freedom. In an economically free society, individu- als succeed or fail based on their individual ECONOMIC FREEDOM: effort and ability. The institutions of a free and THE ROLE OF GOVERNMENT open market society do not discriminate either As Friedrich Hayek once observed, “To be against or in favor of individuals based on their controlled in our economic pursuits means to be race, ethnic background, gender, class, family controlled in everything.”2 Hayek’s keen insights connections, or any other factor unrelated to into economic freedom are based on the moral 11 truth that each person is, as a matter of natural and enjoy the fruits of their labor. For example, right, a free and responsible being with inalien- citizens are taxed to provide revenue for public able dignity and fundamental liberties that safety, the protection of property, and the com- righteous and effective political systems should mon defense. Other goods—what economists call regard as unassailable. Governments that are “public goods”—may be supplied more efficiently just, according to the U.S. Declaration of Inde- by government than through private means. pendence, are instituted precisely to secure Some public goods, such as the maintenance of these rights. a police force to protect property rights, a mon- Any discussion of economic freedom thus has etary authority to maintain a sound currency, and at its heart reflection on the critical relationship an impartial judiciary to enforce contracts among between individuals and the government. In parties, are themselves vital ingredients of an eco- general, state action or government control that nomically free society. When government action interferes with individual autonomy limits eco- rises beyond the minimal necessary level, how- nomic freedom. ever, it leads inevitably and quickly to the loss of However, the goal of economic freedom is freedom—and the first freedom affected is often not simply an absence of government coercion economic freedom.3 or constraint, but the creation and maintenance Throughout history, governments have of a mutual sense of liberty for all. As individuals imposed a wide array of constraints on econom- enjoy the blessings of economic freedom, they ic activity. Such constraints, though sometimes in turn have a responsibility to respect the eco- imposed in the name of equality or some other nomic rights and freedoms of others within the noble societal purpose, are in reality imposed rule of law. Governments are instituted to ensure most often for the benefit of societal elites or spe- basic protections against the ravages of nature cial interests, and they come with a high cost to or the predations of one citizen against another. society as a whole. By substituting political judg- Positive economic rights such as property and ments for those of the marketplace, government contracts are given societal as well as individ- diverts entrepreneurial resources and energy ual defense against the destructive tendencies from productive activities to rent-seeking, the of others. quest for economically unearned benefits. The A comprehensive view of economic freedom result is lower productivity, economic stagna- should encompass all liberties and rights of pro- tion, and declining prosperity. duction, distribution, or consumption of goods Government provision of goods and services and services. The highest forms of economic beyond those that are clearly considered pub- freedom should provide an absolute right of lic goods also imposes a separate constraint on property ownership; full freedom of movement economic activity, crowding out private-sector for labor, capital, and goods; and an absolute activity and usurping resources that otherwise absence of coercion or constraint of economic might have been available for private investment activity beyond that which is necessary for the or consumption. Constraining economic choice protection and maintenance of liberty itself. An distorts and diminishes the production, distri- economically free society encourages the han- bution, and consumption of goods and services dling of economic decisions in a decentralized (including, of course, labor services). The wealth fashion. Individuals are free to work, produce, of a nation inevitably declines as a result. consume, and invest in any way they choose under the even-handed application of laws, with MEASURING ECONOMIC FREEDOM their economic freedoms at once both protected The Index of Economic Freedom takes a broad and respected by the state. and comprehensive view of economic freedom, Some government action is necessary for measuring country performance in 10 separate the citizens of a nation to defend themselves, areas. Some of the aspects of economic freedom promote the peaceful evolution of civil society, that are evaluated are concerned with a coun- 12 2015 Index of Economic Freedom try’s interactions with the rest of the world—for prospects for long-term economic growth. Such example, the extent of an economy’s openness to a system is also vital to the maintenance of peace global investment or trade. Most, however, focus and security and the protection of human rights. on policies within a country, assessing the liberty A key aspect of property rights protection is of individuals to use their labor or finances with- the enforcement of contracts. The voluntary out undue restraint and government interference. undertaking of contractual obligations is the Each of the measured aspects of economic foundation of the market system and the basis freedom plays a vital role in developing and for economic specialization, gains from com- sustaining personal and national prosperity. mercial exchange, and trade among nations. All are complementary in their impact, howev- Even-handed government enforcement of pri- er, and progress in one area is often likely to vate contracts is essential to ensuring equity and reinforce or even inspire progress in another. integrity in the marketplace. Similarly, repressed economic freedom in one Freedom from Corruption. In the context area—respect for property rights, for example— of economic freedom, corruption can best be may make it much more difficult to achieve high understood as the failure of integrity in the eco- levels of freedom in other categories. nomic system, a distortion by which individu- The 10 measured aspects of economic free- als or special-interest groups are able to gain at dom may be grouped into four broad categories: the expense of the whole. Often a direct result of the government’s concentration of economic • Rule of law (property rights, freedom or political power, corruption manifests itself in from corruption); many forms such as bribery, extortion, nepotism, • Government size (fiscal freedom, govern- cronyism, patronage, embezzlement, and graft. ment spending); Corruption can infect all parts of an economy • Regulatory efficiency (business freedom, in systematic ways. There is a direct relationship labor freedom, monetary freedom); and between the extent of government intervention • Market openness (trade freedom, invest- in economic activity and the prevalence of cor- ment freedom, financial freedom). ruption. In particular, excessive and redundant government regulations provide opportunities Rule of Law for bribery or graft. In addition, government Property Rights. The ability to accumulate regulations or restrictions in one area may cre- private property and wealth is understood to ate informal markets in another. For example, be a central motivating force for workers and by imposing numerous burdensome barriers on investors in a market economy. The recognition conducting business, including regulatory red of private property rights and an effective rule of tape and high transaction costs, a government law to protect them are vital features of a fully can incentivize bribery and encourage illegiti- functioning market economy. Secure property mate market interactions. rights give citizens the confidence to undertake Ensuring transparency is crucial to dealing entrepreneurial activity, save their income, and effectively with corruption. Openness in regu- make long-term plans because they know that latory procedures and processes can promote
Load more

Recommended publications
  • Chapter 4 Freedom and Progress
    Chapter 4 Freedom and Progress The best road to progress is freedom’s road. John F. Kennedy The only freedom which deserves the name, is that of pursuing our own good in our own way, so long as we do not attempt to deprive others of theirs, or impeded their efforts to obtain it. John Stuart Mill To cull the inestimable benefits assured by freedom of the press, it is necessary to put up with the inevitable evils springing therefrom. Alexis de Tocqueville Freedom is necessary to generate progress; people also value freedom as an important component of progress. This chapter will contend that both propositions are correct. Without liberty, there will be little or no progress; most people will consider an expansion in freedom as progress. Neither proposition would win universal acceptance. Some would argue that a totalitarian state can marshal the resources to generate economic growth. Many will contend that too much liberty induces libertine behavior and is destructive of society, peace, and the family. For better or worse, the record shows that freedom has increased throughout the world over the last few centuries and especially over the last few decades. There are of course many examples of non-free, totalitarian, ruthless government on the globe, but their number has decreased and now represents a smaller proportion of the world’s population. Perhaps this growth of freedom is partially responsible for the breakdown of the family and the rise in crime, described in the previous chapter. Dictators do tolerate less crime and are often very repressive of deviant sexual behavior, but, as the previous chapter reported, divorce and illegitimacy are more connected with improved income of women than with a permissive society.
    [Show full text]
  • Economic Freedom” and Economic Growth: Questioning the Claim That Freer Markets Make Societies More Prosperous
    Munich Personal RePEc Archive “Economic freedom” and economic growth: questioning the claim that freer markets make societies more prosperous Cohen, Joseph N City University of New York, Queens College 27 September 2011 Online at https://mpra.ub.uni-muenchen.de/33758/ MPRA Paper No. 33758, posted 27 Sep 2011 18:38 UTC “Economic Freedom” and Economic Growth: Questioning the Claim that Freer Markets Make Societies More Prosperous Joseph Nathan Cohen Department of Sociology City University of New York, Queens College 65-30 Kissena Blvd. Flushing, New York 11367 [email protected] Abstract A conventional reading of economic history implies that free market reforms rescued the world’s economies from stagnancy during the 1970s and 1980s. I reexamine a well-established econometric literature linking economic freedom to growth, and argue that their positive findings hinge on two problems: conceptual conflation and ahistoricity. When these criticisms are taken seriously, a very different view of the historical record emerges. There does not appear to be enduring relationship between economic liberalism and growth. Much of the observed relationship between these two variables involves a one-shot transition to freer markets around the Cold War’s end. Several concurrent changes took place in this historical context, and it is hasty to conclude that it was market liberalization alone that produced the economic turnaround of the 1990s and early-2000s. I also question market fundamentalists’ view that all forms of liberalization are helpful, arguing that the data show little to no benefit from reforms that did not attract foreign investment. Word Count: 6,698 (excl.
    [Show full text]
  • Private Property Rights, Economic Freedom, and Well Being
    Working Paper 19 Private Property Rights, Economic Freedom, and Well Being * BENJAMIN POWELL * Benjamin Powell is a PhD Student at George Mason University and a Social Change Research Fellow with the Mercatus Center in Arlington, VA. He was an AIER Summer Fellow in 2002. The ideas presented in this research are the author’s and do not represent official positions of the Mercatus Center at George Mason University. Private Property Rights, Economic Freedom, and Well Being The question of why some countries are rich, and others are poor, is a question that has plagued economists at least since 1776, when Adam Smith wrote An Inquiry into the Nature and Causes of the Wealth of Nations. Some countries that have a wealth of human and natural resources remain in poverty (in Sub-Saharan Africa for example) while other countries with few natural resources (like Hong Kong) flourish. An understanding of how private property and economic freedom allow people to coordinate their activities while engaging in trades that make them both people better off, gives us an indication of the institutional environment that is necessary for prosperity. Observation of the countries around the world also indicates that those countries with an institutional environment of secure property rights and highPAPER degrees of economic freedom have achieved higher levels of the various measures of human well being. Property Rights and Voluntary Interaction The freedom to exchange allows individuals to make trades that both parties believe will make them better off. Private property provides the incentives for individuals to economize on resource use because the user bears the costs of their actions.
    [Show full text]
  • Liberty, Property and Rationality
    Liberty, Property and Rationality Concept of Freedom in Murray Rothbard’s Anarcho-capitalism Master’s Thesis Hannu Hästbacka 13.11.2018 University of Helsinki Faculty of Arts General History Tiedekunta/Osasto – Fakultet/Sektion – Faculty Laitos – Institution – Department Humanistinen tiedekunta Filosofian, historian, kulttuurin ja taiteiden tutkimuksen laitos Tekijä – Författare – Author Hannu Hästbacka Työn nimi – Arbetets titel – Title Liberty, Property and Rationality. Concept of Freedom in Murray Rothbard’s Anarcho-capitalism Oppiaine – Läroämne – Subject Yleinen historia Työn laji – Arbetets art – Level Aika – Datum – Month and Sivumäärä– Sidoantal – Number of pages Pro gradu -tutkielma year 100 13.11.2018 Tiivistelmä – Referat – Abstract Murray Rothbard (1926–1995) on yksi keskeisimmistä modernin libertarismin taustalla olevista ajattelijoista. Rothbard pitää yksilöllistä vapautta keskeisimpänä periaatteenaan, ja yhdistää filosofiassaan klassisen liberalismin perinnettä itävaltalaiseen taloustieteeseen, teleologiseen luonnonoikeusajatteluun sekä individualistiseen anarkismiin. Hänen tavoitteenaan on kehittää puhtaaseen järkeen pohjautuva oikeusoppi, jonka pohjalta voidaan perustaa vapaiden markkinoiden ihanneyhteiskunta. Valtiota ei täten Rothbardin ihanneyhteiskunnassa ole, vaan vastuu yksilöllisten luonnonoikeuksien toteutumisesta on kokonaan yksilöllä itsellään. Tutkin työssäni vapauden käsitettä Rothbardin anarko-kapitalistisessa filosofiassa. Selvitän ja analysoin Rothbardin ajattelun keskeisimpiä elementtejä niiden filosofisissa,
    [Show full text]
  • Economic Freedom in the United States and Other Countries Robert A
    3. Economic Freedom in the United States and Other Countries Robert A. Lawson Southern Methodist University 1. Introduction For over two decades, scholars have been working to measure the degree to which a nation has implemented a certain set of policies that Adam Smith called a “System of Natural Liberty”; Marx called “Capitalism”; some call “laissez faire”; and we shall call “economic freedom”. Economic freedom is present when individuals are permitted to choose for themselves and engage in voluntary transactions as long as they do not harm the person or property of others. Individuals have a right to their own time, talents, and resources, but they do not have a right to take things from others or demand that others provide things for them. The use of violence, theft, fraud, and physical invasions are not permissible in an economically free society, but otherwise, individuals are free to choose, trade, and cooperate with others, and compete as they see fit. When government agents, such as police officers or judges, work to protect people from private predators, government acts in support of eco- nomic freedom. On the other hand, government agents, such as tax collectors and regulators, often violate the economic freedom of individuals by preventing them from trading as they see fit. When governments plan at the collective level the eco- nomic decisions of people, they violate their economic freedom. In summary, the Major elements of this chapter were drawn, with permission, from Chapter 1: Economic Freedom of the World in 2012, in Gwartney, Lawson, and Hall, 2014: 1–23. Fraser Institute d Mercatus Center d 67 68 d What America’s Decline in Economic Freedom Means for Entrepreneurship and Prosperity cornerstones of economic freedom are (1) personal choice, (2) voluntary exchange coordinated by markets, (3) freedom to enter and compete in markets, and (4) protection of persons and their property from aggression by others.
    [Show full text]
  • Free Markets and Civil Peace Some Theory and Empirical Evidence by Indra De Soysa & Krishna Chaitanya Vadlamannati
    2014 Economic Freedom of the World EARLY RELEASE Free Markets and Civil Peace Some Theory and Empirical Evidence by Indra de Soysa & Krishna Chaitanya Vadlamannati Chapter 4 Free Markets and Civil Peace Some Theory and Empirical Evidence Indra de Soysa and Krishna Chaitanya Vadlamannati Scholars of armed conflict generally focus onmotive and opportunity as analyti- cal categories for narrowing down causes, much the same way as investigators of crime narrow down a list of suspects (Poe, 2004; Gartzke, 2005; Collier, 2000; Most and Starr, 1989; de Soysa, 2002). Social and individual grievances of vari- ous sorts, such as the lack of political rights, may provide motive for organizing violence against a state, but opportunity must also exist, whatever the nature and level of grievance, which is a hard concept to measure objectively (Theuerkauf, 2010). Such a perspective has also been salient for understanding revolution, where means and opportunity play a leading role (Tilly, 1978). Recent research on con- flict has focused on the capture of natural resources as motive but, more impor- tantly, also as opportunity because expensive conflict can be financed (means) by looting resources. This article takes a broader perspective on both opportunity and means to argue that economic repression and economic mismanagement supply the “means, motive, and opportunity” for groups to challenge states because economic distortions spawn underground economies that form the “organizational bases” of insurgency that allow groups to succeed and be sustainable in the face of superior state forces. In other words, grievance alone cannot explain successful insurgency. Anti-government individuals in the United States have enough grievances to bomb a federal government building in Oklahoma City, but whether they have the means to sustain a fight against the US government’s law enforcement agencies is another matter.
    [Show full text]
  • Economic Freedom of North America 2020
    Dean Stansel, José Torra & Fred McMahon Economic Freedom of North America 2020 The map uses the subnational index. MOST FREE 2ND QUARTILE 3RD QUARTILE LEAST FREE Economic Freedom of North America 2020 Dean Stansel, José Torra, and Fred McMahon FRASER I N S T I T U T E Fraser Institute 2020 ii / Economic Freedom of North America 2020 / Stansel, Torra, McMahon Copyright ©2020 by the Fraser Institute. All rights reserved. No part of this book may be reproduced in any manner whatsoever without written permission except in the case of brief quotations embodied in critical articles and reviews. The opinions expressed by the authors are those of the individuals themselves, and do not necessarily reflect those of the Fraser Institute, its Board of Directors, its donors and supporters, or its staff. This publication in no way implies that the Fraser Institute, its directors, or staff are in favor of, or oppose the passage of, any bill; or that they support or oppose any particular political party or candidate. Printed and bound in Canada Date of issue: 2020 Cover design by Peng Wei. Cite this publication Authors: Dean Stansel, José Torra, and Fred McMahon Title: Economic Freedom of North America 2020 Publisher: Fraser Institute Date of publication: 2020 Digital copy available at <https://www.fraserinstitute.org/studies/economic-freedom-of-north-america-2020>. Cataloguing Information Stansel, Dean Economic freedom of North America 2020 / Dean Stansel, José Torra, and Fred McMahon. 2002– Issues for 2004– have subtitle: Annual report; issues for 2008– have subtitle: Annual report (Canadian edition); issues for 2010– have subtitle: 2010; issues for 2011– have subtitle: 2011; issues for 2012– have subtitle: 2012; issues for 2013– have subtitle: 2013; issues for 2014– have subtitle: 2014; issues for 2015– have subtitle: 2015; issues for 2016– have subtitle: 2016; issues for 2017– have subtitle: 2017; issues for 2018– have subtitle: 2018; issues for 2019– have subtitle: 2019; issues for 2020– have subtitle: 2020.
    [Show full text]
  • Egalitarian Liberalism and Economic Freedom
    University of Pennsylvania ScholarlyCommons Publicly Accessible Penn Dissertations 2019 Egalitarian Liberalism And Economic Freedom Pierce Randall University of Pennsylvania Follow this and additional works at: https://repository.upenn.edu/edissertations Part of the Philosophy Commons Recommended Citation Randall, Pierce, "Egalitarian Liberalism And Economic Freedom" (2019). Publicly Accessible Penn Dissertations. 3680. https://repository.upenn.edu/edissertations/3680 This paper is posted at ScholarlyCommons. https://repository.upenn.edu/edissertations/3680 For more information, please contact [email protected]. Egalitarian Liberalism And Economic Freedom Abstract This dissertation considers three major challenges to egalitarian liberal institutions made by classical liber- als: that egalitarian liberal institutions involve too much coercive interference with individual economic decisions, that free markets tend to do better at rewarding people on the basis of their economic choices, and that only by recognizing full liberal rights of ownership can a society best promote a stable property regime consistent with our pre-political conventions of ownership. Each of these objections fails, but they point to an underlying concern that egalitarian liberal institutions fail to adequately protect economic freedom. The dissertation then develops and defends a conception of economic freedom that is reflected in egalitar- ian liberal institutions. Economic freedom depends on the quality and availability of options individuals have in markets,
    [Show full text]
  • Adam Smith's Theory of the Persistence of Slavery And
    1 Adam Smith’s Theory of the Persistence of Slavery And its Abolition in Western Europe Barry R. Weingast1 Stanford University July 2015 Abstract Adam Smith made two positive claims about slavery in the context of developing economies. First, Smith explains that slavery is in general highly inefficient. By his account, the net product under freedom is 12 times larger than under slavery. Second, he observes that, despite its inefficiencies, slavery persists in most of the world. Taken together, these claims create a fundamental puzzle: Why do elites – owning slaves and holding political control – fail to make themselves better off by freeing their slaves? Smith gives two very different answers to this puzzle. The first is psychological. Smith asserts that people have a fundamental desire to dominate others, and slavery provided that opportunity for slaveholding elites. The first explanation is the most commonly advanced in the literature. Yet no where else does Smith use the assumption of domination. This explanation therefore seems ad hoc. I favor instead Smith’s second explanation. This argument, far less known, involves commitment problems. Freeing the slaves would deprive slaveholders of their property. How would they be compensated? In principle, a long-term compensation scheme could solve this problem. But in the undeveloped societies Smith discusses, such as feudal Europe, long-term contracts were difficult to enforce. Indeed, I show that both parties to the long-term compensation scheme had incentives to dishonor it. In the presence of commitment problems, masters could not be assured they would, in fact, be better off freeing their slaves.
    [Show full text]
  • Individual Freedom and Laissez-Faire Rights and Liberties
    Individual Freedom and Laissez-Faire Rights and Liberties ---Samuel Freeman, Philosophy and Law, University of Pennsylvania (Please do not circulate or cite without Author’s permission) “Law, Liberty, and Property are an inseparable trinity.”---Friedrich Hayek “Capitalism is a cultic religion.” ---Walter Benjamin1 The traditional philosophical justification for full or laissez-faire economic rights and liberties is an indirect utilitarian argument that invokes Adam Smith’s “Invisible Hand”: Individuals’ self-interested pursuit of income and wealth against a background of free competitive markets, with free contract and exchange and full property rights, maximizes aggregate income and wealth, therewith overall (economic) utility. The only limits allowed on economic liberties are those needed to maintain market fluidity and mitigate negative externalities. The traditional doctrine of laissez-faire also allows for taxation and provision for public goods not otherwise adequately provided by private market transactions, and perhaps even a social “safety net” (e.g. the English Poor Laws) for people incapable of supporting themselves. These arguments have a long and respectable history going back to David Hume and Adam Smith; they were refined by the classical economists, including J.S. Mill, were further developed by Friedrich Hayek, Milton Friedman and 1 Hayek, Rules and Order, vol I of Law, Liberty and Legislation, p.107. Walter Benjamin, ‘Capitalism as Religion,’ Fragment 74, Gesammelte Scriften, vol.VI. This is a chapter from a manuscript on Liberalism and Economic Justice I am working on. I apologize for its length. 1 Hayek, Rules and Order, vol I of Law, Liberty and Legislation , p.107. Walter Benjamin, ‘Capitalism as Religion,’ Fragment 74, Gesammelte Scriften, vol.VI.
    [Show full text]
  • Economic Freedom and Inequality in the Art Market: the Case of the Commercial Gallery
    arts Article Economic Freedom and Inequality in the Art Market: The Case of the Commercial Gallery Ronit Milano Department of the Arts, Ben-Gurion University of the Negev, Beer-Sheva 8410501, Israel; [email protected] Received: 13 August 2020; Accepted: 4 December 2020; Published: 8 December 2020 Abstract: This article aims to consider the contemporary art market vis-à-vis the concept of economic freedom. Drawn from a larger study, this paper offers a glimpse of the political function of the art market, which is essentially an economic field. What I demonstrate is an inevitable clash between a free market and between political constructions that effect levels of freedom—concentrating on the parameter of inequality. The article focuses on the case of commercial art galleries, and analyzes their operation under neoliberal conditions, which represent the implementation of the idea of freedom in the economic field. Subsequently, I demonstrate the how high levels of concentration in the art market erode the levels of the equality of the players in the field. Ultimately, I argue that this case offers an example of the more general operation of the art market, which follows neoliberal principles, and thereby undermines the concept of economic freedom that is intrinsic to them. Keywords: art market; neoliberalism; freedom; equality; concentration; competition 1. Introduction Before moving to its new home in Manhattan’s Meatpacking District in 2015, the Whitney Museum celebrated its last show in the Breuer building with a high-profile retrospective of works by the American celebrity artist Jeff Koons. This lavish exhibition, which featured artworks worth half-a-billion dollars, received leadership support from Gagosian Gallery, which represents Koons.
    [Show full text]
  • Tocqueville on Crisis
    Journal of Markets & Morality Volume 15, Number 1 (Spring 2012): 65–88 Copyright © 2012 Marek Tracz-Tryniecki Tocqueville Researcher at the Alexis de Tocqueville Centre for Political and Legal Thought on Crisis University of Lodz (Poland) Although Tocqueville’s comments on economic crisis are hardly known, they constitute an important part of his thought because he treats this phenomenon as an inevitable factor of the economic, social, and political reality of a modern democratic society. This article examines the nature, reasons, and consequences of both short-term economic crises and permanent crises, which are essentially rooted in the deep principles of some socioeconomic systems. One of the crucial questions in this respect is how Tocqueville understands the laws that govern the economy. In the last section, the article focuses on the remedies that he proposes to mitigate the problem, including widespread private ownership, freedom, virtue, and the activity of the state with its proper limits. The economic crisis that started in 2008 provokes many Tocquevillian scholars to pose a question: What might the author of Democracy in America say about such a phenomenon? Significantly, even if coincidentally, the first complete monograph of his concept of political economy was published a year after the outbreak of the crisis.1 This article attempts to analyze three questions that are important to reconstruct Tocqueville’s view on economic crisis: the problem of crises com- merciale, the situation of permanent economic crisis, and the remedies he offers. Short-Term Crises: Crises Commerciale If we look at the place of the question of economic crisis in Tocqueville’s thought, we can easily note that he treats this phenomenon, first of all, as a social problem, which could have some serious political implications.
    [Show full text]