Are We the Greatest Threat to Global Prosperity?

Of course, investing overseas entails political risk, such as the uncertainty of what governments in far-flung locales such as China or Russia will do. Of even more concern, however, is the uncertainty as to what our government, supported by our fellow citizens, will do to hinder the prospects of global capitalism.

The spread of global capitalism (read: globalization) is the adoption of greater economic freedom around the world. From Estonia to India to Vietnam, global capitalism has benefited all. Wealth, jobs, opportunity and quality of life has risen in these "emerging markets," along with the stock portfolios of those of us who've invested in their growth.

Here's the rub: Most people support global investing but are uneasy about globalization. And it's not just the stoners throwing rocks at a World Bank protest: Presidential candidates and elected officials from both parties are critical of globalization. Witness the popular campaign rhetoric that we should "buy American," stop the "offshoring" of American jobs and seal the borders from illegal immigrants.

All questions about globalization come down to one issue: Do we as Americans have a right to do business with anyone we choose, from a Japanese auto manufacturer to a Mexican immigrant housekeeper to an Indian accountant to an investment prospect in Singapore? And, is global trade productive or destructive for Americans and our trading partners?

The answer is that the spread of global capitalism is 100% good. We should have completely unrestricted trade between our nation and other nations — the only exception being nations that pose a threat to us, such as Iran.

The moral right to trade is rooted in the principle of individualism: the American idea that we have the unalienable right to our own lives, liberty, property and pursuit of happiness. Individual rights imply a responsibility for preserving your own life — the same responsibility you would have if you were alone on a desert island. Whether you want a potato or a Porsche, you have to earn it — either by producing it yourself, or more likely, producing the equivalent in value and trading for it.

Of course, if a business wants your money, it has to earn it as well — by producing something that you want to buy instead of all the other things you could buy.