Charter City, Lesson Six

Every city, state, nation, and even the world have a constantly running economy.  Every day there is money and man power being poured in to keep the economy, on any level, running.  While every country has their own way of how their economy operates; there are certain principles that keep the more successful ones running smoothly.  Despite the fact that some do run more smoothly than other, there are still things all of them could to do improve.  The most important ones that any economy should learn to perfect would be property rights, Free trade and limited government involvement. 

            Property rights are extremely important because everyone should have the right to keep and do what they please with the things they produce or make.  Everyone should have the right to keep the things that they produce.  If someone owns a horse then they have the right to sell or keep their horse.  If they want they could buy another one and breed them.  If they choose to do that then they also own any offspring that come from their horses.  This is a very important aspect to an economy because without it there would be no drive for entrepreneurs.  By having the right to keep the things that they produce people will be more willing to create more new things.  This helps expand the economy and build up the amount of products that can be bought, sold, or traded. 

            Free trade is imperative in a country with numerous states.  This is because having trade restrictions in a single nation can add up to a lot of unnecessarily money for companies.  It also makes it easier and cheaper for the citizens of your country to buy and sell things to each other across state lines. 

Limited Government involvement is also a huge part of keeping an economy on the right road.  As we discussed in class, countries that are run under a strict dictator can fall behind economically.  This is usually because the government takes any industry that becomes successful and makes it government owned.  If you work in fear of the government pulling all of your hard work out from under you there is no motivation.  There would be no incentive to work harder and build up your industry.  By limiting government involvement in certain areas of the economy you can allow citizens the opportunity to help build up the economy in their own ways. 

    The economy is obviously a crucial part to any country.  By building it up and expanding it you can grow your country in a similar way.  There are certain things that are necessary to observe if you want your country to have a successful economy.  The citizens must be allowed property rights, free trade between states, and the government must only be involved in a limited manner.  If your country goes about building up their economy in a manner that is beneficial to both government and citizen it is much more likely that it will succeed.