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A personal blog. I am an: Award-winning writer. Non-profit entrepreneur. Activist. Religious professional. Foodie. Musician. All around curious soul and Renaissance man.


Thursday, October 16, 2008

The Freedom of Restrictions: In Economics, In Relationships

We often distinguish between two types of "freedom" in theology. The first is called the freedom from. This refers to freedom from oppression, from rules, from any kind of limitation. This is what most people have on their minds when they talk about freedom. They want to be un-tethered.

The second kind of freedom is freedom for. This describes the kind of freedom whereby you have the time, resources and capacity for a particular goal.

Going to school can limit freedom by having to take classes, do homework and pay tuition. But in the long-run, it can give you the freedom for a wide open future that you wouldn't have otherwise had.

This plays out in a committed relationship. You do lose the first type of freedom in a long-term relationship. You aren't free to date other people and there are bills to pay, diapers to change and school supplies to buy. However--here is what most people forget--you have the second freedom in abundance: The freedom to take that long-term relationship to the limit, something you would never have the freedom to do sitting on the sidelines going from one date to the other. It's the freedom to be a parent and a spouse and to grow in love.

Kris Kristoffersen understood this when he wrote, "freedom's just another word for nothing left to lose." A freedom from limitations by itself gives you nothing, unless it also provides the freedom for something.

The biggest mistake people make is spending a lot of energy securing the first kind of freedom while giving the second freedom only an afterthought. Yet, the second freedom is the most important one. Are we free to do what we want to do? Every decision we make is going to have limitations. The focus should not be about which limitations we can live with, but most importantly what opportunities we have.

A perfect example is my beloved stoplight scenario. At its most basic level, it is very true that stoplights limit our freedom. They tell us when to stop and when to go. However, a traffic light system keeps everyone moving like a well-oiled machine. The end result of this "restriction" is that we can drive where we want to more safely and quickly. This restriction increases freedom!

This is a simple lesson we all learned in elementary school fire drills: If we line up single file, we can all exit smoothly and safely. If everyone runs screaming for the door, we're going to have a pile-up and nobody's going to get out very easily at all.

Restrictions in the Economy

Capitalists usually freak out when they hear about restrictions. In theory, capitalism espouses a system of anarchy where the market should be kept totally free. The theory stresses that the fewer limitations the market has, the better the economy will function. Capitalists immediately assume that restrictions limit the ability of commerce to flow.

In reality, smart restrictions function like a traffic light system.

The more safeguards to protect people and institutions, the smoother it runs. I don't want to drive through a city without stoplights, nor do I want to work in a job market where I can be fired without provocation or be subjected to life threatening physical danger at any moment.

Businesses raged against regulations such as minimum wage, child labor laws, health insurance, unions, 40-hour workweek, the environment, you name it. But all of those things actually made their workforce more stable, healthy and happy. People were more productive and in turn spent their money back into the economy. Businesses did not lose productivity due to employees quitting or getting injured. By investing in safety, good wages and safeguards for workers, businesses prospered. Granted, these businesses did it kicking and screaming, as if they were in a hurry and held up at a red light. But they were not thinking about how everything would grind to a halt if there were not the occassional red light.

But then why are so many business people politically conservative? For a single business, it seems great to lower restrictions. Every law seems to hurt their ability to make money. In their minds, it makes all the sense in the world to unshackle them as much as possible.

What they don't take into account is the net effect of an entire system of people who have agreed to abide by a certain regulations. It does negatively impact an individual business in the short run if the government makes them pay their workers more through minimum wage laws or overtime requirements. All things being equal, now the business has to pay their workers more and they get nothing in return. However, if every business out there were doing this, the situation changes dramatically. Suddenly, all workers out there are making more money. And what do they do with their money? They spend it right back into those businesses!

In the above scenario, all businesses are taking a hit by paying their workers more. Since all businesses are doing it equally, there is no loss of competition in the market. This is why the government is the ideal body to mandate these changes--a single business would lose their competitive edge if they enacted these changes on their own, because other businesses would undercut them.

Businesses tend to support a conservative agenda because it speaks to these short terms fears, but you need to look at this with a prophetic eye to see where it's all going. Frankly speaking, the conservative agenda is not good for business. Too much unfettered capitalism just creates an unstable marketplace that is bad for business.

The Bottom Line

I've never forget a comic I saw on the office door of a college professor. It had four panels, each showcasing a different crisis in business: The application of Child Labor Laws, Minimum Wage, Safety Regulations, 40-Hour Workweek, etc. In each panel there was also a businessman screaming at the top of his lungs that these regulations would ruin his business! And in each instance, business not only did well but continued to prosper. We need to keep this in mind every time the business community tells us that some new regulation is going to ruin business.

In the year 2008, it is often those "environmental regulations" that are the scapegoat. Or universal health care. But look deeper: These programs may costs a lot, either to the government or business. But in the end, they will stabilize our society which lowers risks and will support the economy. Universal health care would give you the freedom to start new ventures, knowing your family is protected. Good environmental practices will improve our health and enable a future.

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