July 3, 2007 | By DeEtte Chatterton

Free enterprise and irrationality

Liberals are mistaken in their belief that restrictions on commerce are good for the American economy, economist Bryan Caplan said yesterday at the Heritage Foundation.

A growing number of people, explained the George Mason University professor, support policies that constrain free enterprise—a trend that will only hurt the United States economy and limit entrepreneurial freedom.  This “anti-market” bias is one reason why many Americans support irrational economic policies.

Lawmakers only enact controls on international commerce, he explained, “because it’s a popular idea,” not because this government interference benefits the economy.

But while these liberal biases against free enterprise may be popular, they are also misguided. For instance, “foreign trade creates value in the American economy,” said the author of the recently-published Myth of the Rational Voter. In fact, reduced government restrictions on commerce will allow continued economic growth.

Caplan also described a large portion of the American people as “pessimistic.” Many people are “afraid that the American economy is going to hell no matter what.”

Here at The Heritage Foundation, though, we know this is wrong. Our policy experts have outlined a positive vision for the nation, and they have worked tirelessly to see that it takes hold—and it has, from welfare reform to tax cuts to missile defense and more. Heritage knows the future is bright if we remain true to our principles.

DeEtte Chatterton is an intern at The Heritage Foundation.