A pro-capitalist agenda is what’s needed to help countries struggling with social problems such as poverty, unclean drinking water, illiteracy and even child labour, says the head of the Fraser Institute.
Citizens of the world don’t have to choose between a free-market system and greater social development – one will follow the other, Michael Walker told a recent luncheon at the Calgary Chamber of Commerce.
“If you want more human development, you need economic freedom to produce it,” argued Walker, an economist, policy advisor and author who is also executive director of the conservative policy think-tank.
Compared to all other provinces in Canada, Alberta is the most capitalist jurisdiction in terms of economic freedom, Walker said.
“You in Alberta are fortunate to find yourselves in a jurisdiction which draws that line very much on the side of private choice, rather than public choice,” he said.
Economic freedom, he added, is defined very much the same way as capitalism, “basically the ability of consenting adults to engage in capitalist acts. The government leaves people alone so they can get on with business.”
Walker told the business audience that it’s no coincidence poorer countries have policies which constrain economic freedom, and consequently are open to more evils such as corruption, child labour, political instability and low labour productivity.
He added that the Fraser Institute is pressing for the spread of capitalism and competitive markets not for their own sake, but for the “wonderful results” that economic freedom produces. Higher taxes and more government regulation are anathema to producing wealth and positive social incomes that everybody wants to achieve, he added.
Walker noted that University of Calgary political science professor Barry Cooper – a senior fellow at the Fraser Institute and managing director of the institute’s office in Calgary – will be joined in January by former Reform Party leader Preston Manning, who will examine social issues including health care, social security and pensions.
The Fraser Institute was formed in 1974 to research and promote public policy discussion in areas including taxation, welfare reform, education and the role of government. It is funded from the contributions of members and the sale of publications.
While some critics have said the Vancouver-based institute’s views are too extreme and need to be more moderate to capture the attention of mainstream Canada, Walker quoted former U.S. president Ronald Reagan as saying the only things in the middle of a road are yellow lines and dead skunks.
“Our job is to think the unthinkable, think the politically unattractive and unappetizing, and to put those ideas out there so we change where the middle of the road is,” said Walker.
“We have to change the margins of the road so people will make the better choices to make our economy and our society work more effectively.”
