Torch, Winter 1992

TORCH: Dr. Baldwin, would you review for us the basic principles of the free enterprise system? supposed to work, that doesn ' t mean they aren ' t willing to bypass the system. The passive role of the government is overlooked in favor of the self-interest of certain individuals. For example, Dick mentioned having freedom to enter and exit the market, but people still talk about raising tariffs. There is too much emphasis on accumulating wealth. You see a lot of bumper stickers stating that "He who dies with the most toys wins." The focus today is on taking advantage of the system. other people of the world. That doesn't mean everything is clear or free. Government is involved and we are not totally free as business people. Many businesses are formed every year in our country but less than half of them survive very long. Most fail because of poor management, which might indicate a faulty understanding of free enterprise. If a person enters a business without a well-thought-out business plan and understanding of the commitment required of time, energy, and money, he will not necessarily succeed. Baldwin: The first tenet is private ownership of property rather than public ownership. Private ownership allows people to use property and resources as they wish. Second, in a free market system, price is controlled by supply and demand. Third, demanders and suppliers must have freedom of entry and exit from the market. Their activity depends on their own Stevenson: We have probably evaluation of whether the current prices and resources available are advantageous to them. Fourth, self-interest is the motivator in the system. While the large number of demanders and suppliers seem to work for their own benefit, the "unseen hand" described by economist Adam Smith brings about the best and lowest price for all who are involved. Fifth, the government's role is limited. Its functions are to make sure the system is working, to police it, and to make available the proper information to all participants who might wish to enter or exit the market. TORCH: Do people in America today understand how free enterprise is supposed to work? SIFE- College Students Learning, Teaching, Practicing Free Enterprise ~ •nnu•I Ced•"'iUe College Frne Ente'P'i" D•y offern" rniety of •ctiviti" tn increase awareness of the free market system. The event is one of many projects sponsored by the Students In Free Enterprise (SIFE) club. Students interact with business people who come from central and southwestern Ohio for chapel, workshops, and an evening banquet program. Since the chapel message is broadcast by the college radio station twice daily, a potential audience of two million people hear about free enterprise. Michelle Plunkitt serves as president of the Cedarville chapter of SIFE. A junior majoring in business management, she says, "Cedarville College students learn about free enterprise in their classes and through the business practices of the College. But SIFE develops projects to show them how the system actually affects them personally. "For instance, in conjunction with the business club, we invited several alumni to campus for a program called Transitions," she continues. "They shared with the students their ' after Cedarville' experiences as they entered the business world and the free market system." SIFE presents programs in area high schools. "We' ve received good response from both students and teachers," says Michelle. "We use skits to show them how the things they ' re interested in are affected by free enterprise. They're surprised to learn how different the supply and pricing would be under a government planned economy." Each year the Cedarville SIFE club members present their projects at a regional competition. In 1991 SIFE teams from 169 colleges and universities competed at 22 regional events. Michelle sees the free enterprise system as one which gives people responsibility as well as personal freedom . "Without extensive government intervention," she says, "free enterprise allows individuals the resources and the freedom to reach out to people and care for their needs." Michelle adds that through all the SIFE activities the students try to maintain a testimony for Jesus Christ and to look for ways to share Him with others. Students in Free Enterprise, Inc. (SIFE) is a not-for-profit co1poration sponsored by individuals, foundations, and corporations. SJFE's mission is to establish and direct student-generated free market economic education programs on college and university campuses to bring America's collegians and her citizens to a better understanding of and a greater appreciation for the free ente1prise system. STUDENTS IN FREE ENTERPRISE, INC. TRAINING MANUAL, STUDENTS IN FREE ENTERPRISE. INC. NATIONAL HEADQUARTERS, Springfield, Missouri, p. 3. West: The media has helped recently by talking about free enterprise, with the fall of the Berlin Wall and the breakup of communism. The commentators all say that communism isn't working and we need free enterprise. But while people understand how free enterprise is learned to use the system too well. In our "plastic environment" people have free choices about debt, credit, and financial stability, but are overusing the system of credit to their own detriment. Entingh: I think Americans have a better grasp of free enterprise than any TORCH: Why do people misunderstand or misuse the system? Is the problem in our education, our government, or just with some individuals? Aren't people supposed to follow their own interests in a free market?