There are eight factors or prerequisites that make success possible. Without these eight factors, there is no possibility for success and, thus, no reason to pursue success.
#1 Free Market System
Success can only flourish in a free market economic system. Marxist-based societies (Communism/Socialism) are the arch enemies of a free market system because they take away the critical incentive to pursue success – the ability to accumulate wealth.
#2 Property Rights
In a free market society, businesses and individuals who succeed, are able to keep the property they create. That property includes:
- Income earned through your efforts
- Income saved
- Savings invested and
- Anything acquired by that income, savings or investment.
Another common name for the above four types of property is Wealth. Thus, Wealth equals property.
Property rights, therefore, represent a critical, necessary incentive that motivates businesses and individuals to pursue success in the first place. Without the right to keep the income you produce through your efforts, the incentive to pursue success would be lost.
High income taxes act as a disincentive to pursue success. Such high taxes take away property (income) that you create through your efforts.
#3 Free and Open Competition
Competition is critical to a healthy free market system. Monopolies or large businesses that are favored, legislatively or otherwise, by politicians or government (Crony-Capitalism), are an invasive form of cancer that can kill free and open competition.
A free market system requires winners and losers. Winners win because they provide better products or services than the losers provide. Winners add value to society by doing a better job in manufacturing products or delivering higher quality services.
In a free market economic system, winners make more money and accumulate more wealth than losers.
This is good because it forces the losers to self-assess and improve, so they can then compete, make more money and accumulate more wealth.
#5 Sound Infrastructure
Federal, State and Local government plays an important role by building a sound infrastructure, which is necessary in order for businesses and individuals to be able to engage in commerce with one another.
A sound infrastructure, therefore, enables individuals to pursue success in a free market system.
This is why some moderate level of taxation is necessary – it can be used to build and maintain the infrastructure that keeps the free market system running at optimal capacity.
#6 Safe Environment
Federal, State and Local government plays another important role by creating a safe environment that allows individuals to pursue success in a free market system.
In order for individuals to engage in commerce, they must feel safe.
This is why a strong national defense and a strong local police force is necessary.
A strong national defense secures a nation’s borders from external forces that mean to do harm. That harm can come in many forms:
- Direct assaults by other nations
- Direct assaults by terrorists
- Illegal entry by individuals from other countries. Government’s role is to act as a steward solely for the benefit of its citizens.
A strong local police force exists to ensure the safety of its local citizens. It does that by enforcing law and order. When law and order breaks down, individuals are no longer able to safely participate in a free market society.
When those engaged in commerce cannot do so safely, commerce ceases.
Once again, this is why some moderate level of taxation is necessary in order to fund a strong national defense and a strong local police force.
#7 Healthy Environment
Pollution disrupts the sound functioning of a free market system. Those who participate in a free market system must be able to do so without damaging the environment or being put at physical risk by an unhealthy environment.
Federal, State and Local government plays an important role in ensuring a healthy environment by creating and enforcing laws that maintain a healthy environment.
Once again, this is why some moderate level of taxation is necessary in order to provide government with the financial resources to ensure a healthy environment.
#8 Strong Family Unit
The nucleus of almost every society is the family unit. This is especially true in a free market society.
Family units are important because they act as mentors, teaching children the rules that enable them to grow up to become adults who contribute to society.
When the family unit breaks down, children grow up without these rules and become a burden on society. Government resources must then be diverted in order to deal with the fallout of the broken family unit.
This diversion of resources makes it much more difficult for government to provide the services that are necessary in order to keep a free market system operating satisfactorily.