In a free enterprise system, the law would allow all people to take part in any investments.

 

The law would be the same for all.

 

If this seems abstract, try starting a business in your local area.

 

In fact, start two.

 

Let the local zoning commissions, city council and other regulating agencies know that you are starting a business, that it will employ you and nine employees, and then keep track of what fees you must pay and how many hoops you must jump through.

Have your agent announce to the same agencies that a separate company, a big corporation, is bringing in a large enterprise that will employ 4,000 people (or, in a more urban setting, 24,000 people)--all of whom will pay taxes to the local area and bring growth and prestige.

Then simply sit back and watch how the two businesses are treated.

 

In most places in the United States, one will face an amazing amount of red tape, meetings, filings and obstacles--the other will likely be courted and given waivers, tax breaks, benefits and publicity.

 

Add up the cost to government of each, and two things will likely surprise you:

 

1) how much you will have to spend to set up a small business, and

 

2) how much the government will be willing to spend to court the large business.

Of course, I don't really suggest that anyone announce such a fake business.

 

But imagine, theoretically, what would happen if you did.

 

Our current mentality in government is to treat big business better than small business.

 

This is the natural model in a capitalist system.

 

Capital gets special benefits.

 

In free enterprise, in contrast, the costs and obstacles would be identical for the two businesses.

 

In free enterprise, the operative words are "free" and "enterprise."

 

Note that American business and ownership stayed mostly small--with most people owning family farms or small businesses--until the 1960s.

 

It was debt (often promoted by government) which wiped out the farming culture that dominated the South and Midwest, and the rise of big corporations over family-owned businesses came after the U.S. commercial code was changed by law to a capitalist rather than a free enterprise model.

 

If we altered today's laws at all levels so that government entities treated all businesses and citizens the same, regardless of their level of capital, the natural result would be the spread of more small businesses.

 

Note that nearly all major growth in America's economy since 1985 has come from small business.

 

Today, small businesses are struggling under a veritable "mountain" of regulatory red tape--the result is economic downturn.

And, while some in government hold an anti-business attitude, even many of those ostensibly promoting pro-business policies are more aligned with Wall Street corporations than the needs of small business.