The case for free markets in California and beyond

January 1, 2025

OPINION by STACY KORSGADEN

In the great state of California, once known as a beacon of opportunity and innovation, we now find ourselves at a crossroads. As conservatives committed to the principles of economic freedom and individual liberty, it is imperative we address the creeping over-regulation and government interference that threaten to undermine these foundations of our nation. This is not just a Californian issue—it’s an American issue.

Free market principles are not merely economic policies; they are the very bedrock of our liberty. They ensure that individuals and businesses can thrive without the heavy hand of government tipping the scales. In California, however, we see a different story unfolding—one where excessive regulations stifle innovation, curb economic growth, and limit consumer choice.

Consider the plight of small businesses across our state and the nation at large. These enterprises, which form the backbone of the American economy, are being choked by regulatory burdens that make it increasingly difficult to succeed. Each unnecessary rule and compliance requirement acts as a barrier to entry, discouraging would-be entrepreneurs from even starting up. This is not the American Dream; this is a bureaucratic nightmare.

The situation in our insurance sector is a glaring example. California’s insurance market, once vibrant and competitive, is now languishing under layers of state-imposed regulations. Proposition 103, for example, which was meant to protect consumers by regulating insurance rates, has had the unintended consequence of limiting insurers’ ability to price risk accurately. This has led to fewer choices for consumers and higher costs overall. Such regulations don’t protect our citizens; instead, they push the very services they need out of reach.

It’s essential to understand that every time the government imposes a new regulation, it’s not just adding a rule—it’s potentially harming a family’s ability to secure insurance, a small business’s capability to expand, or an innovator’s opportunity to bring new solutions to market. Over-regulation doesn’t just impact businesses; it impacts lives.

The allure of socialism and increased government control, as propagated by many on the left, might seem appealing to some. They promise equality and fairness, but at what cost? History has shown us, repeatedly, that socialism’s promises are empty: they lead to inefficiencies, stifle creativity, and ultimately result in a lower standard of living for everyone. This push towards socialism, even in subtle forms, must be resisted at every turn.

We need only look at the broader implications of free market stifling to understand the urgent need for change. A thriving insurance industry, for instance, isn’t just about policies and premiums—it’s about enabling people to take risks, whether that’s buying a home, starting a business, or investing in new technology. Insurance is fundamental to economic activity because it provides security that encourages investment and innovation.

Now, imagine a California—and indeed, a United States—where free markets are allowed to flourish once again. Imagine a place where entrepreneurs are celebrated, not saddled with red tape; where businesses compete based on the value they provide to consumers, not on their ability to navigate bureaucratic labyrinths. This is the vision we must strive for, and it is attainable through the reduction of government interference and the preservation of market-driven principles.

What can we do as conservatives to ensure that this vision becomes a reality? First, we must advocate for significant regulatory reform. We need policies that make it easier, not harder, for businesses to operate and for consumers to enjoy a wide range of choices. Every unnecessary regulation should be scrutinized and, if it does not serve a critical public good, it should be eliminated.

We must also educate our fellow citizens about the dangers of socialism and the benefits of a free-market economy. This isn’t just about economic theory; it’s about the very fabric of our society. When people understand that their freedoms are intertwined with economic policies, they are more likely to support conservative principles.

Furthermore, engagement in the political process is crucial. It’s not enough to complain about the state of affairs; we must actively participate in shaping them. This means voting for candidates who support free market policies, getting involved in local and state politics, and holding our elected officials accountable.

Finally, we must stand firm against the progressive narratives that dominate much of our media. As conservatives, it is our duty to support and amplify voices that speak for economic freedom and individual liberty.

In conclusion, the preservation of our economic freedoms through free market principles is not just an economic necessity—it is a moral imperative. It is about defending the very essence of what makes America great. Let us be clear-eyed about the challenges we face in California and across the nation, and let us be resolute in our commitment to a free, prosperous, and innovative society. Together, we can ensure that the United States remains a land of opportunity for all.

Stacy Korsgaden is a 35-year insurance and financial services professional and consumer advocate for insurance choice and customer protection. She can be reached at stacy@stacykorsgaden.com.