This Thanksgiving, Celebrate the Benefits of Free Markets

As we gather to celebrate Thanksgiving, it is important to reflect on how far we’ve come in terms of food abundance. Unlike the guaranteed leftovers of today, where supermarkets offer a plethora of affordable, exotic products, history tells a different story; hunger and starvation were the norms. In contrast to spending more than a quarter of their income on food a century ago, Americans today allocate merely 12 percent, even in the face of inflation. This remarkable shift is largely attributed to the principles of free markets and capitalism, where secure property rights and the rule of law inspire innovation and efficiency. Farmers are motivated to maximize yields, while entrepreneurs streamline distribution, resulting in lower costs and a wider range of choices for consumers.

Despite the benefits capitalism has brought, there is a concerning trend where many Americans criticize the system and advocate for increased government intervention. Ironically, such interventions often lead to food scarcity and increased hunger, as evidenced by situations in nations like Venezuela and Cuba. In these countries, overreach in government control has not only resulted in empty store shelves but also a significant portion of the population struggling to find affordable food. The hardships they face reveal the stark contrast between capitalist economies, which tend to thrive when market forces are allowed to operate freely, and socialist systems, which frequently fail to meet basic human needs due to bureaucratic overreach and inefficiency.

The historical lessons from the Pilgrims provide a relevant case study. Initially, they attempted a communal living arrangement, sharing the harvest equally among all members of their settlement. However, this method resulted in a lack of motivation among some, leading to near-starvation. It was only when Governor William Bradford instituted private property rights, assigning individual parcels of land to each family, that productivity surged. The realization that individuals would work harder and be more industrious when they could keep the fruits of their labor marked a critical turning point. Bradford’s experience highlights an important theme: The failure of communal systems often stems from the inherent flaws in collective ownership, which can dampen individual initiative and accountability.

Fast forward four centuries, and the lessons learned by the Pilgrims seem increasingly forgotten. The attraction of socialism, centered on the vision of a harmonious collective, obscures its pitfalls, such as dependency and stifled creativity. Disagreements are inevitable in family dynamics, and extending that discord to millions of strangers in a collectivist society can render it unmanageable. History shows that systems predicated on communal ownership often lead to disaster; the Soviet Union and Maoist China experienced widespread famine and suffering precisely because of such misguided policies.

Economists explain the issue via the concept of the “tragedy of the commons,” where shared resources tend to be over-exploited. When no one has clear ownership, individuals lack incentive to conserve or manage resources sustainably. On the other hand, when property rights are well-defined and protected, individuals have the motivation to maintain and invest in their assets. This principle underlies a variety of societal interactions, demonstrating that prosperity thrives when property is privately owned.

Ultimately, the key takeaway from both historical and contemporary contexts is that capitalism—fundamentally rooted in individual rights and ownership—fosters the conditions necessary for abundance and economic growth. As we partake in Thanksgiving feasts, acknowledging the origins of our prosperity becomes essential. The invaluable lessons taught by the Pilgrims remind us that the encouragement of hard work and innovation through private property rights remains critical to sustaining abundance in today’s society. Each Thanksgiving, we should express our gratitude for the free markets that produce such wealth, ensuring that we continue to appreciate the principles that have led to our current abundance.