There are two philosophical types of freedom: “positive freedom” and “negative freedom,” also referred to as “freedom to” and “freedom from,” respectively. Government policies and programs have a big impact on the freedom we experience. “Freedom to” better aligns with democracy and equal opportunity. However, for 40 years, “freedom from” has dominated U.S. politics and policy making. President Biden and Democrats in Congress are working to change that and promote “freedom to.”
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My previous post began an exploration of what freedom means in a democratic society. It provided an overview of the two philosophical types of freedom: “positive freedom” and “negative freedom.” Negative freedom is often referred to as “freedom from” and positive freedom as “freedom to.” “Freedom from” means freedom from constraints of external forces, while “freedom to” means the opportunity to make choices, take advantage of possibilities, pursue happiness, and be safe and secure. “Freedom to” is facilitated by governments’ policies and programs that protect rights, promote equal opportunity, provide a safety net, and invest in public infrastructure, including investments in knowledge and innovation through research. (Note: The terms “freedom” and “liberty” are generally used interchangeably by political and social philosophers.)
Beginning in the 1970s and continuing to today, the “freedom from” philosophy has been ascendant in American policy and politics. As a result, there has been a push to reduce the role of government in our society. Efforts to reduce the size of government have been part of this, including through policies that cut taxes so government has less revenue to fund its activities and programs. Cuts in the safety net of economic supports and assistance have followed, including everything from the minimum wage and overtime pay to unemployment benefits to housing and food assistance. As a result, the economic security and “freedom to” of many middle and low-income people has been undermined.
The push for freedom from government constraints has been applied not only to individuals, but also to businesses. This has led to deregulation of business, which has predominantly benefited large, wealthy corporations and their executives and investors (as has the tax cutting noted above). One piece of this deregulation had been the suspension of enforcement of anti-trust laws. As a result, huge companies have been formed and now almost every sector of the American economy is dominated by a few large companies. These companies have monopolistic power over markets resulting in reduced consumer choice, fewer employment options, and often lower quality in goods and services. They also have the power to manipulate prices, squash market place competition, and exert significant influence over our economic and political systems.
Reduced government regulation of the private sector has resulted in a loss of “freedom to” in many ways. Private companies have reduced the economic security of workers, which reduces their freedom to pursue opportunities and happiness. For example, employers have been allowed to make cuts in employer-provided health and retirement benefits. Companies have also imposed external constraints on workers and consumers. For example, many employers require workers to sign non-compete clauses prohibiting them from going to work for a competitor – a significant loss of job opportunities. Consumers are required to sign mandatory arbitration agreements in many contracts for products or services, which ban consumers from suing companies, including through class action lawsuits. This is just one item in the lengthy contracts consumers are required to sign for many services, particularly in the software and Internet markets.
Reduced regulation of companies as employers, and therefore of the labor market, has led to a dramatic decline in union membership. This has reduced workers’ ability to bargain collectively for economic security through job stability and good pay and benefits. As a result, “freedom to” has been dramatically reduced for many workers. In addition, the exploitation of labor has gone so far as to lead to a push to repeal child labor laws. These protect children from working in unsafe and unhealthy environments and from working long and late hours, which inhibit their ability to learn in school and therefore gain knowledge and skills that will provide them opportunities (i.e., “freedom to”) in the future. [1] [2]
On top of policies that have allowed these huge companies to be formed, U.S. policies have allowed financial speculation, manipulation, and exploitation through private equity firms and vulture capitalism. This, coupled with reduced taxes, has led to extremely wealthy businesspeople and investors who have outsized influence in public (or what should be public) functions and decision making. These very wealthy businesspeople, usually men, have great power not just in the economic system, but also in politics and information dissemination through ownership of social media and of many media outlets (e.g., Fox TV, many other TV and radio stations, and many local and national newspapers). They even can have dramatic effects on international populations and events. The Gates Foundation exerts tremendous influence over education in the U.S. and global health initiatives. Elon Musk, through his ownership of the Starlink satellite Internet service, often controls communication in disaster or war zones. US policies have allowed him to launch over 4,500 satellites (over 50% of all active satellites) and to maintain control over their use. At least twice, he has cut off Ukraine’s use of Starlink communications when they were critical to their efforts to fight Russia. [3]
Basic economics describes capitalism as a system that advances “freedom to” for consumers and workers – freedom to make rational decisions and choices among good alternatives. Free market capitalism is supposed to provide perfect competition among multiple providers of goods and services, while consumers and workers have the full information they need to make good choices that are in their best interests.
However, this is not the economy we have, because without government regulation (i.e., with “freedom from”) the private sector has shown itself to be greedy and manipulative, even rapacious. Perhaps the greatest obstacle to economic freedom today is businesses’ monopolistic power over consumers, workers, and even government policies. We need to restore competition to promote innovation, protect workers, keep prices down, provide good choices, and preserve democracy. In other words, competition is needed to provide “freedom to.” Recent estimates have put the cost of the lack of competition at as much as $5,000 a year for a typical U.S. household.
To address the 40-year trajectory of declining economic competition and “freedom to,” President Biden has established a White House Competition Council. It is directing government-wide efforts to promote competition in the private sector. For example, the Federal Trade Commission is reinvigorating enforcement of antitrust laws As Biden recently stated, “Fair competition is why capitalism has been the world’s greatest force for prosperity and growth. … But what we’ve seen over the past few decades is less competition and more concentration that holds our economy back.” [4]
[1] Stancil, K., 7/19/23, “GOP assault on child labor laws under fresh scrutiny after 16-year-old dies at poultry plant,” Common Dreams (https://www.commondreams.org/news/mississippi-poultry-plant-teen-dies)
[2] The Conversation, 6/26/23, “States are weakening their child labor restrictions nearly 8 decades after the US government took kids out of the workforce,” (https://theconversation.com/states-are-weakening-their-child-labor-restrictions-nearly-8-decades-after-the-us-government-took-kids-out-of-the-workforce-205175)
[3] Richardson, H.C., 9/9/23, “Letters from an American blog,” https://heathercoxrichardson.substack.com/p/september-9-2023
[4] Richardson, H.C., 9/26/23, “Letters from an American blog,” (https://heathercoxrichardson.substack.com/p/september-26-2023)
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