Foster Friess

Opinion contributor

Congresswoman Alexandria Ocasio Cortez,

I hope you will say “yes” to the invitation we sent to your office last week to be my dinner guest Friday, April 5th?

The Horatio Alger Association of Distinguished Americans will induct 12 new members for 2019 that evening in Washington D.C.. From Oprah Winfrey, President Ronald Reagan, Maya Angelou to Condoleezza Rice, Horatio Alger members started life in “humble” conditions and worked hard to achieve the American dream.

Over 100 students who receive Horatio Alger college scholarships will be in attendance. All of which overcame challenging life and economic adversity and worked hard to achieve remarkable success in their high school years.

Meeting these amazing students inspires us to remember our own humble starts and to celebrate all that is special about the unique opportunities that America provides to come from nothing and achieve success.

In achieving the American dream, “Income Inequality” is an unavoidable result. It’s created by the stunning success of companies like Facebook, Google, Amazon, Apple and Microsoft, and their wealth creation should be applauded, not cursed. Why scorn their success?

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Where would we be without the products, services and millions of jobs the above companies and other fine companies have created if an overbearing government stifled their initiative? The “opportunity economy” of free enterprise and free markets has lifted millions of American people out of poverty, delivered cures to diseases, and created enormous innovations.

What about the $410 billion of philanthropy in 2017 alone or the 37.3% of income taxes the top 1% pay?

Why should we punish success?

Why should we punish our most successful people, many who came from nothing? Instead let’s close the gap by helping low incomes rise. One example that has started with a Horatio Alger member is increasing scholarships for low income students to trade schools versus just college.

“Socialism,” “democratic socialism,” “collectivism” or whatever statists brand government control, punishes those who work hard. Often those who are punished are those who had to overcome the greatest adversity to achieve their success.

Socialism is not consistent with fundamental principles of human behavior. It has one critical defect: it ignores incentives. The “free” stuff government offers comes with a price. Denmark’s 56% and Sweden’s 62% income tax rates are the highest in the world, that’s not including their high sales tax.

We know what government control of healthcare looks like. In the Veterans Administration hospital system, people die waiting for care. In the military, you do not select your doctor. How many foreigners travel to reservations to receive care from the Indian Health Service? These are the entities that the government now runs. Why would we emulate them?

A 2018 Gallup poll revealed 77% of Americans rate the quality of their healthcare as "excellent" or "good." Their central complaint: the expense. In every other sector of the economy, when you allow the free market to work, prices drop and access improves.

A first step in reducing costs is full pricing transparency. Your colleagues Ed Perlmutter (D-CO), Mike Gallagher (R-WI) and Senators Bill Cassidy and Rick Scott work to achieve it. Please consider joining their efforts. I strongly support pricing transparency with the creation of PatientsUSA.com.

Free markets drive better futures

Another area where government control is well established is education. Denver oil developer Alex Cranberg attacks generational poverty. His Alliance for Choice (ACE) raised $83,000,000 since 2000, providing $2,000 to $3,000 scholarships to 35,000 low income families to attend privately financed schools. Those students have a 90% graduation rate and are nearly twice as likely to go to college as their low-income peers! Parents also contribute to rescue their kids from failing government financed schools.

The spectacular American economy derives from a government which encourages private initiatives that achieve the wealth that makes these scholarships possible.

When we meet, I hope you will sense that I love this country as much as you do. Don’t just see me as some wealthy guy, defending the free market. Instead see me as the son of a mother who dropped out of school in eighth grade or the $800 I had when I started my career.

Better yet, think of fellow 2012 Horatio Alger member Wanda Austin, who like you, grew up in the Bronx and rode three buses a day. Through hard work, she escaped the projects and served as President and Chief Executive Officer of a nearly $1 billion in revenue aerospace company.

I pray you will say “yes.” You will feel at home and a kinship with my fellow members as you, too, embody the spirit of the American dream. You, also have accomplished much from your humble beginnings.

Respectfully,

Foster

Foster Friess founded money management firm Friess Associates which grew to over $15 billion of assets under management. Forbes Magazine named him among the 10 Greatest Fund Managers of this generation, along with Warren Buffett, Peter Lynch and John Templeton. Today he focusses on returning civility to politics. Follow him on Twitter: @FosterFriess