Growth of the Economy

           The key institutions I would put in my economy to make it prosper and prevail are property rights, free trade, rule of law, and free markets.  These are just a few of the institutions of economic growth I would pick to help the economy.

            Property rights are extremely important for economic growth.  The constitution created property rights and helped set us on our way to creating a better economy.  Property rights allow us to keep the fruits of our labor.  The right to property is also the key institution to the establishment of a free market economy.  Without the right to property a free market economy would be replaced by another system.

Through the commerce clause the Constitution created a large landmass where trade was able to freely flow.   Free trade allows us to trade across state lines without being taxed.  This helps our economy by keeping costs lower and also helps avoid tax wars.  We saw how in the founding father’s day not having free trade created contention among the colonies.  So creating a free trade stimulates the flow of goods in the economy.

Rule of law makes it so we have consistency over time.  It helps prevent corruption, some examples are of governments changing the laws or taking property.  Entrepreneurship in the United States is hard and we have the rule of law, other countries without the rule of law and property rights have no guarantee for their business.  So the rule of law is a major part of a stable and growing economy.

Free markets help our economy grow and help for creating better quality products and also newer technology.  The idea of a free market economy was expressed in the Declaration of Independence.  Free markets also allow entrepreneurship to flourish, which in return stimulates our economy.  In a free market economy the Invisible Hand influences people with self-interest to act in the interest others.  The free market coordinates the resources of millions of people around the world to create an item.  So the free markets help our economy greatly and without it we would be just another country in poverty.

So in conclusion my economy would flourish by having property rights, free trade, rule of law, and a free market economy.  Without these great institutions my economy would be in poverty and not have a chance to grow.