Adam Smith defined a free-market economy as a state of market affairs where no single entity can dominate the economic environment. Hence, perfect competition is an essential component of a free-market economy. In most cases, the perfect competition is disrupted by government intervention, but in some cases, it is undermined by monopolies. But let's face it, most businesses simply do not have the capital or the innovative capabilities to monopolize the market without the aid of the government. Thus, the key strategy to preserving perfect competition is that of avoiding government intervention in the economy and allowing it only in the extraordinarily unusual cases where a certain business manages to dominate the economy autonomously.
As Luwdig Von Misses famously said, the most prosperous countries achieved economic growth by making progress towards creating a free-market economy. The United States is only the 10th freest economy in the world behind Canada, Australia, New Zealand, Hong Kong, Singapore, Chile, Denmark, Mauritius and Switzerland! http://www.heritage.org/index/
Imagine how much more prosperous we would be if we truly were serious about becoming the freest economy in the world. Allow me to make the following recommendations.
1. Legalize slavery: slaves are a viable market-commodity that can increase production and stimulate growth. Surely, slaves do not work as efficiently as paid workers, but 10 slaves can outperform a single worker. Imagine where our economy would be if we laid off 10 million people in one industry and replaced them with 100 million slaves? We could achieve this without disrupting economic growth in other industries by importing slaves from foreign nations of Central America and Southeast Asia. In short, the free Americans, the denizens of the best country in the world will remain free to work in enterprises of their choice, but unlawful immigrants are to be employed only as slaves. In fact, this should be our new immigration policy: when an undocumented alien is captured on the U.S soil, he should be sold into slavery instead of being deported.
2. De-legislate the current child-labor laws: Surely, children may become more productive in our economy once they mature, but who is to say that they can't work between the ages of 9 and 14 and then go to college in their mid 20s to become engineers, surgeons, researchers and so on? Quite obviously, children can stimulate our economic growth in the long-run as long as their work-duties do not interfere with their education and maturity.
3. De-legislate the current laws against white-collar fraud: Let's face it, it is the big businesses that generate the most growth in our country and not the government intervention! In short, it doesn't matter how our CEOs make money, just that they do. The more money they make, the more jobs they create and the more jobs they create, the more our economy grows!
4. Promote organized religion: There is no question that our people's work-ethic is grounded in their Protestant faith. The majority of American protestant Churches of the 19th century subscribed to the Calvinist predestination doctrine that all individuals were elected by God for salvation or perdition. Hence, it was presumed that the people who displayed the "fruits of the spirit" including that of industriousness were believed to be saved and those who failed to become wealthy through hard-work were presumed to be left reprobate. Thus, Americans aspired to convince themselves and others of their "electness" by doing everything in their power to seize wealth. Although most modern Americans don't think that way, we can always count on our religious leaders to motivate Americans to be as industrious as possible. We should never discount the role that our Protestant heritage can play in fueling our dynamic capitalist economy!
5. Promote traditional family values: Remember the good old days when most families were supported only by fathers? The feminists have ruined it all for us! Because women are now free to procure jobs with comparable compensation to that of their spouses, men are no longer motivated to contribute to our market-economy! Since divorces are so prevalent, they settle for lower-paying jobs and that stultifies economic growth! We need to ban abortion, enact laws preventing most companies from hiring married women and disincentive women from obtaining marketable skills. Ronald Reagan banned various government-sponsored shelters for battered women and we must follow in his foot-spots, for he was a real American!