Return the Freedom to Choose to the People and to Businesses

Freedom is a core value of human life and also the highest principle of the Constitution. Because it is the most precious thing, it cannot be exchanged for anything else and takes precedence over other concepts. How, then, is freedom realized in practice? Freedom takes concrete form in reality through the act of choice. People enjoy freedom by freely choosing something.

Whether in politics or in the economy, choice is the process through which freedom is realized. Voting to elect leaders is also an act carried out through choice. Democracy symbolically constitutes political freedom. It means that the people can choose the leaders of their society. In such a society, elected politicians possess representativeness and exercise political power during their term of office. Through political choice, people select leaders and, furthermore, build institutions through representative government.

In the economic sphere, choice shapes each element of life, so unlike political choice, it occurs every day in many different areas and can change at any time. Which means of transportation to take, what food to eat—our lives are a continuous series of choices. In that process, choice becomes the foundation for the realization of freedom. Which school to attend and which hospital to use are all matters of choice as well.

Problems arise when choice is blocked and someone else holds the right to choose on one’s behalf. If an individual’s right to choose is infringed upon—by being told to eat this food, attend this school, or live in this house—freedom in that sphere is suppressed. Such suppression is mostly imposed by the government. It assigns schools and uniformly mandates various types of insurance. It even prohibits free private contracts. The government sometimes sets prices in place of individuals and controls the goods being traded. People’s right to choose is put on hold, and their freedom is infringed upon.

In Free to Choose, Milton Friedman explained how people’s freedom could be improved. The United States was able to dramatically improve people’s lives through the process of restoring the individual right to choose emphasized in that book. Naturally, the corporate economy also flourished, and society enjoyed prosperity.

Since the mid-1980s, South Korea has been experiencing a prolonged period of stagnation. Growth rates have steadily declined, and social vitality has diminished. The reason is that economic freedom has been weakened by restricting the right to choose. In particular, the freedom to do business has been constrained. By suppressing the freedom to invest, hire, trade, contract, and set prices, the corporate economy has been stifled. As a result, the economy has become infertile, producing no new large corporations.

It is right for each citizen to make his or her own choices. A system in which the government decides in their place and distributes accordingly is not only wrong but also reduces social welfare. Waste arises and satisfaction declines in the process of being forced to consume things one did not choose.

When the government chooses on behalf of the people, it fosters corruption. People work not to satisfy the citizens, who are the ultimate decision-makers, but to win the favor of the government as the agent that makes the selection. Such political behavior runs counter to the fundamental principles of the economy. A society that allocates resources politically cannot remain healthy. People will devote themselves to justification and agitation, and they will waste resources and time on rent-seeking for various privileges.

The government must move away from interventionist policies that suppress the right of individuals and businesses to choose. Only then can citizens make their own choices and increase their satisfaction. This is the proper path to democratization. Just as democratization in politics means creating a better political system through elections, democratization in the economic sphere means enabling each citizen to build a better life through acts of individual choice.

Restoring to the people the freedom to choose is more important than anything else. It not only advances freedom but also improves people’s lives. Our society has now reached the point where it must begin making efforts to expand the freedom to choose.

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Original title: 국민에게, 기업에게 선택할 자유를 되돌려줘라

Author: Sung-no Choi

Date: 2022-03-15

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=press&idx=24588