The Economic Miracle of America, 250 years in the Making

CEI’s John Berlau was quoted regarding the economic development of America by The Epoch Times.

America’s culture of encouraging inventors, not just their inventions, played an important role in the country’s economic success.

The Founding Fathers, particularly George Washington, fostered innovation by advocating for strong patent protections, said John Berlau, senior fellow and director of finance policy at the Competitive Enterprise Institute.

Berlau, who is the author of the book “George Washington, Entrepreneur: How Our Founding Father’s Private Business Pursuits Changed America and the World,” said the Constitution and the Patent Act of 1790 established intellectual property rights early in the nation’s history.

Inventors such as John Fitch and James Rumsey famously clashed over their competing steamboat designs in the late 18th century. Their rivalry played a key role in shaping early American patent law.

In the early 19th century, the United States also made entrepreneurship more accessible by allowing ordinary people to form limited liability corporations, rather than reserving corporate charters for political elites as Britain had done.

“State laws made it easy to form limited liability corporations,” Berlau told The Epoch Times, noting that entrepreneurs no longer had to risk all their personal assets to start a business.

By limiting personal financial risk and simplifying business formation, states created a flexible legal environment that encouraged more people to start businesses, he said.

Read the full article at The Epoch Times.