Quote of the Day – Economic and Political Power

It seems I can hardly open Ayn Rand’s “Capitalism: The Unknown Ideal” without finding quotes worth sharing. This time it is about the difference between economic and political power:

Now let me define the difference between economic power and political power: economic power is exercised by means of a positive, by offering men a reward, an incentive, a payment, a value; political power is exercised by means of a negative, by the threat of punishment, injury, imprisonment, destruction.  The businessman’s tool is values; the bureaucrat’s tool is fear.

So in a free society, a business cannot compel you to buy their product if you choose not to.  This is not to say that you own personal economic power does not sometimes place limits on your choices but a business, unlike the government, cannot compel your choice.  Your choice is always the best you can make given the options available.

For example, one winter, in Vermont mind you, I was without a car.  I had the choice to either borrow money to buy some sort of car to get me through the winter, or walk the 5 mile round trip, one leg of which would be at night.  Neither of these are particularly appealing.

I chose the 5 mile walk.  For me the money I saved not buying the first car I could find and pay for the gas an older car would burn was worth the 2 hours per day I spent walking to and from work, not to mention the health benefits from getting some exercise in the process.   No oil company or auto company tried to force me to buy a car or face a fine, no shoe company threatened to throw me in jail if I didn’t buy their brand of boots.

Compare this to upcoming provisions of Obamacare where my choice regarding buying health insurance is taken away.  Well, I suppose I have the choice of buying insurance I likely won’t be able to afford even with the subsidy or pay a fine, but notice that type of “choice” is not one a business can force upon you.