Liberty for Sale

Louis Winthorpe III: "Looking good, Billy Ray."
Billy Ray Valentine: "Feeling good, Louis."
--Trading Places

A core tenet in understanding financial markets is seeing both sides of the trade. For every buyer, there's a seller, and prudent decision makers seek to understand the trade off.

Perhaps the biggest trade off we face involves the market for security. Offer up enough of your resources (your money, your wherewithal to produce, etc.), and you'll find a seller of security. The seller will provide you food, shelter, and defense in a manner that will increase your economic and social security. That security comes at a price, however. Freedom declines when you've given up resources to others and become dependent on them.

The Founders understood this trade off. They concluded that life as a colony of England, whose security services included what was considered to be the greatest military force in the world, was not worth the reduction in freedom that came with being loyal subjects to the King.

This mindset was famously captured by Patrick Henry's words, "Give me liberty or give me death."

The question seems once more upon us. Do we increase our dependence on government and entrust them to keep us safe--in both the economic and social sense? Or do we value liberty--the freedom to pursue life on our own terms?

"Those who give up essential liberty to purchase a little temporary safety, deserve neither liberty or safety."
--Benjamin Franklin