The great economist, Adam Smith, described free market capitalism. His theory was the millions of people, each making their own decisions for their own individual benefit would guide society and the economy as a whole, like an invisible hand.
Smith said, in the Glascow Edition, “It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages, making decisions for their own benefit.”
By so doing, Smith argued, society benefits from the collective decisions of millions doing what is in each ones’ best interest.
The guided tenants of a free-market economy are supply and demand, where price is determined by the supply of a product and the demand for a product.
Next, an economy needs a voluntary exchange, where buyers and sellers are free to choose, competition amongst vendors and purchasers.
To thrive, individuals need private property rights where they can control their own resources and make their own choices on how to invest and develop those resources.
Finally, an economy needs minimal governmental interference so the free market can operate in a capitalist environment.
Recent political events indicate a trend in Wyoming away from a free market economy into a bureaucratic government economy where those in power pick the winners and losers.
Wyoming looks like a political microcosm of the federal government.
Perusing the pages of Cowboy State Daily, several instances of folks running to the government to stop projects are apparent.
A gravel pit, originally leased on state lands, was killed by the State Board of Land Commissioners after angry residents concerned about the Casper Mountain viewshed protested the pit.
Solar farms in southeast Wyoming have attracted the scrutiny of legislators concerned about renewable energy projects spreading across the state.
They would prefer renewable energy to create energy elsewhere, to protect the agricultural greenscapes of southeast Wyoming.
Most recently, a combination wind and solar project in Goshen and Platte County came under governmental scrutiny. Local leaders would prefer a coal or natural gas project power plant located in the area.
Although approved by the Natrona County Commissioners, a state legislator and others have logged their objections to a facility that plans to build micronuclear reactors near Casper.
The reactors would be sold to the military, primarily, to be used in locations around the world, and not exclusively Wyoming.
Despite being supported by the coal industry, the Freedom Caucus has attacked Wyoming’s carbon capture and sequestration mandates.
Coal consumption has declined more than 40% since 2015, and renewable energy in the US economy has actually passed coal consumption.
The issue is not one of supply, but of demand, and packaging coal in a way makes it more marketable to out of state consumers would seem a worthwhile legislative effort.
But, the Freedom Caucus and Speaker Neiman think otherwise.
One representative, a member of the Freedom Caucus, wants to eliminate a governmental entity designed to seek out new business and attract it to Wyoming.
Rep. Ken Pendergraft calls grants for attracting new businesses a huge waste of time.
While Rep. Pendergraft is correct that providing grants is the government meddling in business, he forgets that other states are competitively seeking new jobs and new businesses.
By terminating the program, Wyoming is placed at a competitive disadvantage.
Wyoming finds itself at a policy crossroads.
Wyoming can become a park for rich people where even generational ranchers cannot survive and other core industries stagnate.
The state can continue send two out of three of its youth away seeking jobs and opportunities elsewhere – a place where school and infrastructure funding becomes secondary – and a place where the free-market economy is replaced by a government-regulated monopoly that picks winners and losers.
Or a forward-thinking group of policy makers could set the stage for whatever economic development the economy brings our way, by creating a legal infrastructure to allow innovation and economic expansion.
The trend toward saying “no” to everything and taking Wyoming back to the paper ballot era of the 1950’s is only going to cripple the state’s future.
We deserve better.
A personal note: In CSD articles last week, it was represented that I am an “expert” in the Wyoming public records act. Wyoming attorney ethical rules prohibit any attorney from representing expertise. The rules permit me to say I’ve had 40 years’ experience working with the public records act. I appreciate the Corporations Committee listening to what I had to say.
Tom Lubnau served in the Wyoming Legislature from 2004 - 2015 and is a former Speaker of the House. He can be reached at: YourInputAppreciated@gmail.com
