Reason and freedom are the fundamental requirements of long-term success in business and life; our ability to flourish rests on them both. Sadly, the value of reason and freedom is not often recognized and their relationship is overlooked today.
To say that today’s culture and politics are anti-reason is an understatement. Emotionalism rules, and social media such as X [formerly Twitter] are used, not for reasoned debate, but attacks on those who hold different views. Climate alarmists lash out at those who question their “end-is-nigh” narrative and demands for curtailing people’s freedom in the name of saving the planet. Similarly, the woke attack the minority that still defends individual liberty and demand that it be restricted for the sake equity and social justice. Politics is divisive, based on visceral hatred of the “enemy:’ those outside of one’s own tribe.
The anti-reason cultural and political climate is difficult for many businesspeople to navigate. Although most business leaders know that sustainable, long-term success in business requires the use of reason, they are worried about activists’ response and consumers’ reaction to their pursuit of profits.
Instead of standing up for business and its right to maximize profits through production and trade, many CEOs apologize for it and appease the critics of business.
Oil, gas, and coal company leaders apologize for producing affordable, reliable and abundant energy that emits some carbon dioxide and assure that they are transitioning to produce energy from renewable—and thus far, unreliable and unaffordable—sources. The Business Roundtable re-defined the corporate purpose to de-emphasize wealth creation and focus on “serving society.” Many prominent business leaders, such as Bill Gates, advocate for more regulation of business, and others, such as Warren Buffett, ask for higher taxes, to achieve greater equality of wealth.
These are just a few examples. Many business leaders still focus on wealth creation and do not apologize for it. However, very, very few (such as Chris Wright of Liberty Energy) defend business and profit making and demand freedom to pursue them as a moral right.
Yet, in today’s anti-reason and anti-freedom (and pro-government control) culture, it is more important than ever that business leaders, and all businesspeople, take the moral high ground and defend business as the producer of the material values that we depend on for our survival and flourishing.
By the nature of their profession, businesspeople, along with engineers, are the remaining torch-bearers of reason in the increasingly irrational culture. (Government cronies or crooks do not qualify as businesspeople. With the politicization of science funding, we also cannot count on rationality and objectivity of scientists anymore).
To think and to exercise reason in order to create new businesses, products, and services, businesspeople need freedom. It is only in markets free of government control that competition spurs businesspeople to fully rely on reason, so as to innovate new, better products and services and more efficient processes that create more value for their customers and therefore, more wealth for their shareholders.
Throughout history, the freest markets (from England during the Industrial Revolution to the United States to Hong Kong before China’s clampdown) have always created the most wealth and flourishing. In contrast, the least free countries (from North Korea and the Soviet Union to Mao’s China, Cuba, and Venezuela) have created the most misery, including starvation and death for their citizens.
To use reason to produce, trade and maximize profits, businesses require freedom. But freedom is not automatic and needs to be protected against those who initiate physical force or fraud, whether foreign invaders or criminals. Protection of freedom is the task of government: to leave people free to exercise reason in business and other fields, as long as they do not resort to physical force and let others do the same.
This is my wish for the new year: more freedom—not interference—from the government for all to pursue our interests and protection against those who attempt to violate our freedom through force or fraud.
We also need more reason. It is bound to follow when we, including those leading and operating business firms, are accountable for our actions and cannot demand others to sacrifice themselves for our sake.
Since mere wishing cannot bring about more freedom and reason, I continue to advocate for them and hope also you will consider using whatever means available to defend these important values. That is the only way we can keep them.
