With the economic ruin that is plaguing many nations today, world leaders desperately search for a way to lift their country out of the pits of poverty.
It may be as easy as following five simple rules.
At a lecture entitled “The Economy and The Price of Freedom: Global and Domestic” held at Fairfield University, world publishing leader and former presidential candidate Steve Forbes discussed the conditions necessary to foster prosperity and build a healthy economy.
“These five principles seem so basic, but you would be surprised. So many nations cannot seem to follow them,” said Forbes.
The first of Forbes’ rules is one of law, in which he stressed that there must be a sense of safety in a nation before a business will commit to the location. Likewise, Forbes touched upon the importance of unified property rights, using the example of Egypt, which currently has eight different property systems.
A sound system of taxes is also necessary for economic growth, said Forbes. According to him, Russia is leading in this aspect, as it has implemented a nationwide flat-tax rate of 13 percent.
“I never thought the day would come where a former communist would get it right on the tax issue,” said Forbes, who ran for president on the promise of a flat-tax.
Forbes’ third principle asserted that money must not change in value. He used the analogy of a clock asking the audience how one would react if the amount of minutes in an hour varied each day. Confusion and anarchy would erupt, which is the general response of nations without a set currency amount.
Starting a business should not be an overly difficult process, said Forbes. Many poor countries are comprised of loose villages that remain without addresses and therefore do not attract new business developments.
Barriers preventing the exchange of goods and prosperity of businesses should be removed. Forbes discussed Ireland and its rapid economic growth over the past two generations, using its prosperity to illustrate the profitable results one may have by removing trade restrictions and other unattractive barriers to business.
Malcolm Steven Forbes was born in 1947 in Morristown, N.J. He received an undergraduate degree from Brooks College and a B.A. in history from Princeton University. While at Princeton, Forbes founded his first magazine, Business Today, which grew to become the country’s largest business magazine published by students.
Forbes worked in radio after being named by Ronald Reagan as chairman of the bipartisan Board of International Broadcasting in 1985. He assumed the chief executive officer and editor in chief positions of Forbes Magazine in 1990, where he currently remains. Forbes also unsuccessfully campaigned for presidency in both 1996 and 2000.
Students and townspeople alike reacted positively to Forbes’ lecture on Oct. 27.
“It was informative. I liked that he talked about other countries and the impact they have on America,” said Yvonne Harris ’05.
“[It was] terrific. I was amazed of his knowledge of other countries,” said Marion Fuhro, a resident of Fairfield.
Extensive experience in the worlds of business and politics has given Forbes a reputation for accuracy regarding economic predictions.
Nevertheless, can economic prosperity really be packaged into five basic principles?
Forbes shared a favorite family saying with the audience, “You make more money selling the advice than following it,” he added, “So you are all on notice.”
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