Economic freedom gives each individual the opportunity to pursue their unique talents and ambitions — where barriers to success are replaced with pathways to opportunity, and innovation fuels widespread prosperity.
Economic freedom unlocks human potential, creating a ripple effect that uplifts entire communities, drives progress, and expands prosperity. It’s not about managing outcomes from the top down but removing obstacles that hold people back, ensuring that anyone, regardless of background, has the chance to contribute, innovate, and thrive.
What is economic freedom?
At its core, economic freedom is about choice, opportunity, and individual empowerment. It enables people to make economic decisions — such as starting a business, creating a product, or earning a living — without unnecessary restrictions.
When these conditions are met, progress emerges from the bottom up, enabling creativity, competition, and sustained economic growth.
5 key components of economic freedom
Economic freedom thrives when individuals have the opportunity to make their own choices and pursue their goals without unnecessary barriers.
These five foundational components create the conditions for innovation, growth, and widespread prosperity:
- Rule of law protects individuals, ensuring contracts are honored and the rights of all citizens are equally upheld.
- Property rights provide the confidence to invest and innovate, knowing that what you create or own is secure.
- Limited government prevents overreach, allowing market forces to guide economic decisions rather than centralized control.
- Free trade expands access to markets, increases competition, and fosters greater innovation by enabling people to exchange goods, services, and ideas freely.
- Regulatory efficiency ensures that policies enhance entrepreneurship and innovation rather than create unnecessary obstacles.
Entrepreneurship as a path to prosperity
The United States has a rich history as a land of opportunity, fueled by innovation and entrepreneurial spirit. Economic freedom thrives when individuals have the tools and knowledge to pursue their dreams. Supporting entrepreneurship, especially in underserved communities, is a powerful way to ignite transformation.
Rising Tide Capital, a nonprofit based in New Jersey, is proving how small investments in people can yield enormous results. Since its founding, this organization has empowered thousands of entrepreneurs who are solving real challenges in their communities. These entrepreneurs don’t just build businesses — they foster connections by creating jobs, offering mentorship, and reinvesting in their neighborhoods.
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How to advance economic freedom through innovation
Innovation and technology are pivotal in advancing economic freedom and prosperity, enabling people to solve problems in new ways, create better products and services, and expand opportunities for all.
Emerging technologies have the potential to break down barriers, revolutionize industries, and lift people out of poverty, but outdated regulations often prevent this.
To fully unleash innovation, we must remove the obstacles that prevent people from experimenting, learning, and adapting. By embracing policies that foster entrepreneurial discovery and technological progress, we can ensure that economic freedom leads to greater prosperity for everyone—not just the privileged few.
How to unleash an economy that works for all
We live in a period of unprecedented progress — economic, technological, social — but not everyone shares in that progress. While many people are getting ahead, many others are being left behind. How our country responds to this divide is among the greatest challenges of our time.
Inflation caused by reckless government spending erodes living standards, while regulations and red tape stifle entrepreneurship and innovation. The system increasingly rewards special interests over small businesses and those without connections.
The solution isn’t top-down control — like slowing innovation or restricting legal immigration — but instead embracing an economy of abundance.
This means:
- Breaking the cycle of generational poverty by removing barriers to entrepreneurship and work.
- Fostering upward mobility by expanding access to skills, education, and capital.
- Unleashing innovation-driven growth by allowing people to experiment, create, and compete on a level playing field.
When people have the freedom to contribute their unique talents, prosperity expands for everyone.
What can you do about economic freedom?
Addressing these challenges requires a combined effort from policymakers, business leaders, and everyday citizens.
Policymakers can:
- Streamline licensing laws to make starting a business simpler and more accessible.
- Reduce public spending by implementing fiscal policies that promote economic stability and build trust.
- Encourage innovation by eliminating unnecessary regulations and investing in grassroots solutions.
- Engage with local communities to develop policies that reflect bottom-up knowledge rather than one-size-fits-all mandates.
Individuals and communities can:
- Support local entrepreneurs by shopping small and investing in community businesses.
- Advocate for change by pushing for reforms that eliminate unnecessary barriers.
- Foster collaboration by connecting with others to tackle shared challenges, such as workforce development or building financial health.
Leaders at all levels — business, government, and community — must shift from top-down mandates to bottom-up empowerment, ensuring that economic freedom works for everyone.
Building a prosperous future together
Economic freedom is more than an economic system. It’s about recognizing that each person has something to contribute and ensuring they have the opportunity to do so.
By embracing innovation, supporting entrepreneurs, and advancing policies that remove barriers, society can ensure that opportunity isn’t limited to a select few — it’s accessible to all.
The future of economic freedom isn’t just about growth — it’s about human flourishing. When people are free to contribute their unique gifts and build solutions that benefit others, the economy expands, creating lasting prosperity for generations to come.
Learn more about Stand Together's efforts to make the economy work for all and explore ways you can partner with us.
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