Freedom in America is a foundational value, deeply embedded in the nation’s identity and legal framework. From its inception, the United States has prioritized individual liberties—freedom of religion, speech, press, assembly, and association.
Economic freedom is a vital part of American liberty, closely linked to our country’s embrace of capitalism. In the U.S., individuals are free to own property, start businesses, and engage in voluntary exchange. The capitalist system rewards initiative, risk-taking, and hard work, providing incentives that drive productivity and innovation. This structure has contributed to a dramatic rise in living standards, lifting millions out of poverty and creating a society where upward mobility is possible for people from all backgrounds. The pillars of economic freedom - private property, open markets, and limited government intervention—have proven to be powerful engines for prosperity and opportunity.
Socialism
And yet, as we enter our 249th year as a nation, it seems many people are willing to move away from this system of relative economic freedom toward a more Socialist system. Whether it’s the NYC Mayoral candidate - self-described Democratic Socialist - or so many of the people we see protesting a variety of social issues, a move toward more government intervention to help ensure “equal outcomes” in people’s lives is gaining momentum.
But what the support for socialism lacks is understanding that basic human nature is such that if we can obtain something for nothing, we’ll take it. That may sound extreme, but if our needs can be met (legally) with little to no effort, few of us would not sit back and let it happen.
A few years ago, my wife and I took 2 of our grandchildren (ages 7 and 10 at the time) bowling. We bowled 2 games, one with bumpers and one without. There was a stark contrast between the effort put forth in game one verses game two. When the bumpers were in place, they naturally dialed back their effort to roll the ball down the middle of the lane. They knew they were backstopped!
While the incentive to work must be an integral part of any economic system but it must also include a system of rewarding initiatives AND risk-taking while allowing the possibility of loss of capital. Much of the social and political embrace of socialism began after the Great Recession, where there were many examples of “financial backstopping” for individuals - but more so for corporations.
America’s Greatness
Former Secretary of State Condoleezza Rice once said - "The essence of America - that which really unites us - is not ethnicity, or nationality or religion - it is an idea - and what an idea it is: That you can come from humble circumstances and do great things."
The American model demonstrates that freedom—both personal and economic, along with risk and reward - is essential not only for prosperity but for the dignity and flourishing of individuals. Making America a beacon of hope and opportunity for generations.
Happy 4th of July! Enjoy your Independence Day Celebrations!!!
Michael P Henderson, CFP® CKA®
Founder–Crossover Point Advisors
CERTIFIED FINANCIAL PLANNER™
Securities offered through LPL Financial, Member FINRA/SIPC. Crossover Point Advisors is another name for Independent Advisor Alliance, LLC. Investment advice offered through Independent Advisor Alliance, LLC an SEC Registered Investment Advisor and separate entity from LPL Financial
Content in the material is for general information only and not intended to provide advice to any individual