FREE ENTERPRISE ZONES

What are "Free Enterprise Zones" all about? They are about free enterprise, and that's where the controversy enters.

A "Free Zone" is an area, geographically limited, where the local and federal governments "back off" to some extent. Many incentives are created in the zones to encourage investors; tax credits, relaxation of licensing restrictions, streamlining of permit processes, variances to zoning laws and a general reduction of restrictive regulations. In other words, a little less government.

There are presently over 200 free zones in 11 states. A studied analysis of these zones is quite revealing. In six such areas in Connecticut the free zones have caused 62 million investment dollars resulting in the saving of 1,900 jobs and the creation of over 1,300 new ones.

Nationwide, the zones have generated about 160 new business starts and some 90 firms within the free zones have expanded. Across the nation investors have pumped over 450 million in business ventures and created over 20,000 new jobs.

The current California legislation is certainly not designed to create an extravaganza of Free Zones. The bill will allow only 25 new Free Zones per year, and these will be hand picked by Washington with the usual political manipulation.

COMMENTS

At first thought, one might wonder why the politicians are toying with the idea of "Free Enterprise Zones" in these United States, a nation widely acclaimed to be based on free enterprise. Most of you know this is definitely not the case.

Indeed, ours is a socialist nation, where the workings of the free market are hindered and shackled at every turn.

The exciting thing about the Free Zones is that, if they are enacted even in their limited versions, they will restore a degree of freedom in certain areas. Even a little more freedom for people to pursue business and trade with less interference from the bureaucrats will be a good thing.

"Free market" economists have been telling us for years that free enterprise capitalism will provide opportunities for virtually everyone. Opportunities for maximum employment and higher standards of living all around.

Now, with the "laboratory" example of some 200 Free Zones the evidence is in, and is irrefutable -- everyone gains in the Free Zones. Everyone except the politicians who must relinquish control and power over the lives of the people who live and work in the Zones. That's what the "free" in Free Zone means -- freedom from harassment by gangs of looters and robbers who refer to themselves as the "authorities."

One key feature of the Free Zone legislation is the relative lack of "social engineering." It is here that much of the resistance comes in. It's contrary to human nature to give up power once it is achieved. The Free Zones will mandate a reduction of some of this power. The politicos will suffer power loss to the same degree as the residents of the Free Zones prosper and benefit.

No longer will city councils, boards of supervisors, zoning administrators, building inspectors and other so-called "officials" have a stranglehold over licensing, size and location of signs, number of bathrooms, land zoning, taxes and development regulation.

The essence of the controversy over the Free Zones is much more significant than is first apparent. It is a life and death struggle over power itself. The zones represent a philosophical battle that strikes at the very foundation of our present governmental policy; namely, if the Free Zones are so obviously beneficial, why not expand the concept to ever larger areas? Why not declare an entire city a "Free Zone"? Why not all of the state? Why not all the states of America?

The reason, of course, is that such thinking threatens our long standing system where "the authorities" control and regulate every aspect of our lives and property.

The widespread misconception that the free market is a wild and dangerous beast to be constrained by a "benevolent state" will weaken and crumble. The myth of the wild free market will take its historical rest alongside witchcraft and shamanism. More and more people will see that freedom is not only a noble ideal, but is practical and beneficial for people of all economic means.

Just imagine the tremendous expansion of wealth and jobs that would ensue from less economic oppression by the state! It's incalculable!

The opposition objects on grounds that the Free Zones would be "too expensive," and that they are an election year "gimmick." More thoughtful detractors complain that the Zones would be unfair to those outside their boundaries who would have to compete at unfair disadvantage.

What hogwash! They are only "expensive" to tax consumers who will have to get by with less loot. They certainly won't be too expensive for those who prosper in the zones.

Are the Free Zones an election year "gimmick?" Be that as it may ... who cares? This "gimmick" could be the beginning of a turn-around from policies that produce poverty to policies that encourage wealth and prosperity. If one man's "gimmick" is another man's freedom, I'm for it.

The argument over unfair competition for those outside the zones has no merit. The solution is very simple. Widen the boundaries of Free Zones until there is no one left outside of them!

It's no wonder some politicians fear the Free Zones. If this "Free Enterprise Zone" thing gets out of hand, these unproductive leaches will be seen for what they are; useless bums who obstruct and interfere with the efforts of self-reliant working people to feed, house and clothe their families. They will then be hard-pressed to explain and justify their usefulness in a free society.