A comparison between the merits of capitalism and free enterprise and those of communism is ongoing in America and has grown more persistent after Zohran Mamdani, a self-identified socialist, was elected to lead New York City as its next mayor. Paul Atkins, Chairman of the Security and Exchange Commission (SEC) spoke on this topic at the New York Stock Exchange on Tuesday morning. Jarrett Stepman reported on the speech – “Revitalizing American Markets” – in his article published at The Daily Signal.
[Paraphrasing
Atkins,] As America turns 250 years old, it’s important to remember that
freedom, not top-down communism, created our prosperity….
“In
seven months, [the American] story will reach a rare milestone when our
Republic marks its 250th year,” he said, noting that the creation of
the U.S. was a special moment because the Founding Father’s stood for the idea
that rights were “neither permissions to be earned nor privileges to be
revoked.”
The
attitudes of the Founders were shaped in part by what came before them in the
Old World and the New World, Atkins said. The SEC chairman said that before the
U.S. was a nation, it was an “investment.”
“The
first English settlements in this hemisphere were financed through joint-stock
enterprises that allowed people to pool together and share in the risk and the
reward of a very uncertain venture,” he said.
He
said that New York, once named “New Amsterdam,” also began as an investment project,
foreshadowing its future as the major center of global finance.
Atkins
noted that a long English legacy of restrained government power, the
preservation of property rights, and predictable rules rather than “royal whim”
allowed for market and human flourishing. The Founding Fathers inherited that
worldview, he said, then “forged a more perfect union.”
The
SEC chairman pointed to Alexander Hamilton … as a man who understood that “markets,
structured properly, can unleash the might of American dynamism as no monarch
or government ministry possibly could.”
It
was the commercial nature of the American people, Atkins sad, quoting Hamilton
in Federalist 11, that so greatly defines the country and creates an “inexhaustible
mine of national wealth.”
Atkins
said freedom and dynamism produced remarkable prosperity for the American
people. In the 20th century, other regimes tried to create a
top-down model of growth, he said, but these proved disastrous in comparison to
the free system of the United States.
“The
Soviet and communist system of central planning, coercion, mass murder, seizing
private property, and suppressing private enterprise, for example, collapsed
under the weight of its own contradictions,” Atkins said. “While the American
approach empowered its citizens to innovate, to invest, and to build wealth
within predictable and enforceable frameworks.
The
message from this larger set of historical examples is clear, Atkins said.
“Across
this long sweep of innovation, a pattern emerges with clarity: The great leaps
of American life were always produced by a willingness to tolerate and accept
risks within a system that rewards those who take those risks,” he said. “Our
prosperity is no accident of history – nor is our primacy assured in the
future. The 20th century was a triumph of economic freedom over
doctrines that sought to constrain it.”
Atkins
warned that “principles do not preserve themselves.” He said that freedom is
not a “relic” that we inherit, but a responsibility we must assume. In recent
years, “our regulatory frameworks have veered from the founding ideals that
helped the United States to once stand without peer as the world’s destination
for public companies,” the SEC chairman said….
“One
of my priorities as chairman is to reform the SEC’s disclosure rules with two
goals in mind,” he said. “First, the SEC must root its disclosure requirement
in the concept of financial materiality. Second, these requirements must scale
with a company’s size and maturity.”
With
these changes, Atkins said he could set the SEC on a better path to fulfilling
its original mission as a benign steward of financial markets.
“So
as America’s 250th anniversary approaches, the question before us is
not whether our entrepreneurs have the capacity to reinvigorate our capital
markets, but whether we, as regulators, have the will,” he concluded. “In this
new day at the SEC, and under President [Donald] Trump’s leadership, I am
pleased to report that we do.”