The Effect of Free Speech on Economic Freedom Name Course Name Instructor Name Date: 1 The effect of free speech on economic freedom It is a well-known fact that the engagement of people in the battlefield of ideas is important for the proper functioning of the democracy, however, what one does not realize is that it is also very critical for the functioning of the economy. Innovation and new ideas are critical for sustainable economic growth, and there is evidence which shows that the exchange of ideas tends to be one significantly important part of a growing economy. The example of the United States is evident which has been quite successful in fostering growth and innovation in its technology sector. The market capitalization of Facebook alone is greater than the tech giants of Europe combined. It can be seen that the economic prosperity of the United States is because of its non-moving commitment to the free exchange of ideas1 . The theory behind this perception that innovation and ideas are important for economic growth is not a new one. The creative destruction theory by Joseph Schumpeter is the widely known one for this concept. It explained that in any industry competition forces innovation among companies. The ones who lag are destructed by the innovative new ideas. Thus the creative destruction at micro level aids in the economic growth at a macro level. However, all economies need not be an innovator for their economic growth. The Solow growth model is one of the economic tools studied by economists who believe that the developing countries would catch up and converge with the rich countries2 . The reasoning behind the concept was that developing countries could imitate the innovations of the rich countries; the example is evident in the form of China and India who just has to start using the innovative ideas of the west to grow their economy. However, this cannot 1 Dreher, Axel, Martin Gassebner, and Lars-H. R. Siemers. "Globalization, Economic Freedom, and Human Rights." The Journal of Conflict Resolution 56, no. 3 (2012): 516-546. 2 Posner, Richard A. "Free Speech in an Economic Perspective." Suffolk University Law Review 20, no. 1 (1986): 1-54. 2 lead the countries to grow further as after reaching a certain level of the economic frontier the economy can only grow through innovation and progress in technology. The United States has been on the economic front for over a century and is growing at the base of the technology and innovative growth3 . It is important to know where this innovation occurs; innovation does not happen at the country’s level, it happens at the individual level where scientists and engineers are working in their labs, companies, universities. People who are tinkering in their basements, garages, and sheds are the driver of innovation, and this innovation is mostly derived in cities. It is a known the fact that most of the innovation occurs in cities. These are the center for the rapid dissemination of the information. The success of the city is dependent on the ability of its residents to generate new ideas and share them with others with freedom. The lack of ability of the individuals of the city to innovate would cause decay of the city and consequently the decay at the national level as well. The analysts have pointed out that the proximity of the people in the cities is one factor which causes the innovation to occur. The assumption implies that staking bunch of people together in one block will induce innovation. Economists like Clark Nardinelli have shown that the communication process for the generation of innovation is important to be analyzed. The market economy and its economy arise from the phenomenon when people with knowledge get together and have conversations. The conversation among these individuals is necessary for converting information into productive knowledge. It implies that the spreading of information needs communication among the people of any sorts. It can be in the form of watching videos, attending lectures, and delivering speeches 3 Steffensen, Filip. “Free Speech Decreases Bigotry and Creates Economic Progress.” Foundation for Economic Education. June 6, 2018. Accessed March 27, 2019. https://fee.org/articles/free-speech-decreases-bigotryand-creates-economic-progress/. 3 or presentations. The limiting speech informally and formally has pernicious effects on economic growth and innovation in the United States4 . The long history of the Americans in exercising their free speech rights and with the robust protection provided by the First Amendment, there is evidence of concerns over the extended use of this right by one segment of the society. Students in colleges of the United States are increasingly calling for limits on speech. There are many who have canceled the use of speakers because of the opposition of faculty and students causing the administrations to favor inclus
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