Jamestown: A Controlled Or Planned Economy

Imagine living in a world where the government controlled: what goods you could produce, the quantities of goods you could produce, and the price of those goods. Nothing was in your realm of jurisdiction. This may sound familiar to some. This type of economy is known as a controlled or planned economy, some communist countries use this economic system, such as, Cuba, North Korea, and the former Soviet Union. Now, let's jump to the other side of the economic spectrum to free enterprise or free market. Unlike a controlled economy, a free enterprise allows individuals to have the freedom to: private property rights, voluntary contracts, and competitive bidding of goods and services; which over the past two centuries these three aspects of this
economic system have contributed to the American heritage. Private property rights have been around for over two centuries since the day this country was born . Let us rewind into the past to 1607 when colonists had first established Jamestown.
We all know that King James the I sent over a group of colonists to discover and colonize the land for himself. At that time the colonists were allowed to live on it, but technically did not own it; it was the King’s land which he could grant ownership to you if he pleased. After a while the colonists grew weary of the King once he started to implement taxes, thus began the fight for independence. Fast forward to almost 200 years later, to July 4, 1776, when America became its own free country and the idea of free enterprise began. With a new country, the founding fathers had to implement laws, which can all be found in the constitution that was created in 1789. Within this document of laws and regulations was the fifth amendment. This amendment clearly states “No person shall be... deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.” Once more, fast forward to present day USA where this amendment is still in effect. This is related to an agricultural aspect because the government cannot control what crops or livestock that are grown on your private property. Without this amendment farmers and ranchers would not be able to make a sufficient living because it would all belong to
the government. Wayne Hage, a rancher and property rights activists once said “If you don’t have the right to own and control property then you are property.”. This can be applied to people in countries such as North Korea where a source, Ju-Hee Park, Joyce Williams, claims “Until now, the North Korean government had deemed the private purchase of land or real property as illegal.”. The people of this country cannot purchase or own property so therefore they are figuratively, property. We have come along way as a country, one of the main reasons people are drawn to the U.S. is because of endless opportunities we have to offer, such as free enterprise. This economy allows someone to go from having nothing to having everything just by him/her being able to purchase their own land or own their own business. Voluntary contracts is a straightforward concept and plays a vital role in the free enterprise system. A voluntary contract is a contract where both parties reach a voluntary agreement in which a court will enforce. This is very important because this is the foundation for most business owners, landowners, and any major purchases. This contract is what gives people the advantage to do as they please. However, In most communist countries there are coercive contracts where others can be threatened or harmed so they will agree to the terms of that contract. This is what separates our country from others. The government does not force, threaten, or take advantage of its people by making them agree to contracts. We the people are allowed to make our own decisions throughout voluntary contracts without the government's interference. Free Enterprise tends to lean towards capitalism - an economic and political system in which a country’s industry and trade are managed by private owners for profit, instead of the state.
This allows the people to choose: what they want to buy, how much they want to charge for an item, and how much of an item they want to produce. Friedrich Hayek, a nobel winning economists, called this system a “spontaneous order.” His point was that this type of economy is not regulated nor unplanned, instead the planning and regulation come from the arrangement of decentralized knowledge among countless specialists, not the government. There are communist countries where the government controls: what to produce, how much of a good they want to produce, and the price of an item. These countries proclaim that controlling the economy has its advantages. They are able to distribute resources to maximize social welfare and they have more control of employment. However, with advantages comes disadvantages, such as, the countries face shortages and surpluses
frequently.
With every economy comes pros and cons, but the free enterprise system has proved itself to be perhaps one of the best economies out there. If we did not have it then most of what we have today would not be possible. Entrepreneurs are able to pursue their own businesses. Farmers are able to produce whatever crops they want and however much they want. Why is this? Because we live in a country where we have the freedom to do as we please, none of this would be possible if we did not have the free enterprise system. “No person shall be... deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.”