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A Missing Piece of Entrepreneurship

July 25th, 2014 // 7:38 am @

What Some Entrepreneurs Are Missing

A missing piece of entrepreneurship Free enterprise rewards A Missing Piece of Entrepreneurship

I write a lot about entrepreneurship, even though my main focus is freedom. The reason for this is simple: free nations are always nations with a strong entrepreneurial sector. There are no exceptions in history.

Put simply, the great free nations of human experience had a flourishing free enterprise. This was true in ancient Athens and ancient Israel, the Swiss free era and the Frank golden age, the free periods of the Saracens and also the Anglo-Saxons, the American founding era and the modern free nations of Britain, U.S., Canada, Japan and Europe, among others.

Take away free enterprise, and a nation’s freedom always declines. Shut down the entrepreneurial spirit, and liberty rapidly decreases.

The main reason freedom rises or falls with entrepreneurialism is simple: 1) to succeed as an entrepreneur, a person must exhibit the character traits of initiative, innovation, ingenuity, creativity, wise risk-taking, sacrifice, tenacity, frugality, resilience, and perseverance, and 2) these characteristics are precisely the things that through history have proven necessary for free citizens to stay free.

 The Hidden Problem

The large majority of responses when I write about entrepreneurship are thoughtful, insightful, and even wise. But once in a while when I write an article pointing out the importance of free enterprise and entrepreneurship to freedom, I get a strange response. I call it “strange” because it shows that some people don’t quite understand what I mean by entrepreneurship. Such comments go something like this:

“I’m a born entrepreneur, and I’ve started dozens of businesses, so I understand that…”

“I have a list of ideas for successful entrepreneurial projects—could you suggest which of these might be the best options…”

“My spouse is constantly starting entrepreneurial ventures and using up our capital in such schemes, and your article made him want to do several more of them…”

These types of sentences are a real head-scratcher. Why? Because this isn’t what successful entrepreneurship and free enterprise is all about. Not at all.

Successful entrepreneurs typically start 2-4 businesses during their life, not dozens, and at least one of them becomes an important enterprise. The free market just doesn’t reward people who start dozens of businesses, frequently jumping around from business to business.

People who are constantly engaged in their latest “start-up” aren’t really following the entrepreneurial path. They’re just endlessly repeating the first part of it. Free enterprise rewards those who stick with a business until it becomes a real success, or who learn from the mistakes of the past and then stick with the next venture until it truly prospers.

A lot of successful entrepreneurs have had a failure or two, but not many of them have spent their years working on dozens of businesses. They soon learn to pick one and do what it takes to succeed. They buckle down and go through the process of turning their company into something.

In fact, many successful owners have suggested that it takes about 10,000 hours, or even more, to become good enough at a business or economic sector to make it profitable. Those who are constantly jumping around just can’t ever get there.

 The Real Thing

When people talk about an entrepreneurial attitude or viewpoint of always starting another business, that’s one thing. But it’s not the same thing as tenaciously persevering until one business flourishes—and then tenaciously persevering as it keeps thriving.

a missing piece of entrepreneurship hard work and tenacity 995x1024 A Missing Piece of Entrepreneurship

This latter approach is the kind of entrepreneurship that builds a nation. It’s more than just a posture or a habit of starting a bunch of businesses. It’s more than liking the idea of business ownership. It’s more than talking about being your own boss.

It takes an amazing amount of hard work and tenacity to make a business truly work. Nothing else really gets the job done—for entrepreneurship, or for freedom.

This might seem like a little thing, like a meaningless play on words, but it isn’t. It is huge! Entrepreneurship doesn’t spur liberty in a society just because some people have an independent, “I’ll do it myself” or “I’d rather be my own boss” attitude. That’s part of it, but there’s more.

Free enterprise is great when the enterprises work. This happens only when the small business owner pays the price to become a successful leader and make the enterprise blossom and grow.

Again, this might not always occur—and it never comes easily—but the leaders who build a free nation are those who hunker down and do the hard work to make it happen. Even if they fail, they make it happen the next time. One dedicated day at a time. Through all the hard times and challenges. Even when everyone else would have given up.

A nation with a lot of such entrepreneurs has a real chance at freedom.

A nation without them never does.

*******************

odemille A Missing Piece of Entrepreneurship Oliver DeMille is the New York Times, Wall Street Journal and USA Today bestselling co-author of LeaderShift: A Call for Americans to Finally Stand Up and Lead, the co-founder of the Center for Social Leadership, and a co-creator of TJEd.

Among many other works, he is the author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, The Coming Aristocracy, and FreedomShift: 3 Choices to Reclaim America’s Destiny.

Oliver is dedicated to promoting freedom through leadership education. He and his wife Rachel are raising their eight children in Cedar City, Utah

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The Three Economies by Oliver DeMille

July 11th, 2014 // 9:42 am @

The Hidden Economy

TheThreeEconomies Thefuture The Three Economies by Oliver DeMilleThere are three economies in modern society. They all matter. But most people only know about two of them. They know the third exists, in a shadowy, behind-the-scenes way that confuses most people. But the first two economies are present, pressing, obvious. So people just focus on these two.

A couple of recent conversations brought these economies even more to the forefront of my thinking. First, I was meeting with an old friend, touching base about the years since we’d talked together. He mentioned that his oldest son is now in college, and how excited he is for his son’s future. I asked what he meant, and he told me an interesting story.

Over twenty years ago he ran into another of our high school friends while he was walking into his community college admin building. The two greeted each other, and they started talking. My friend told his buddy that he was there to dis-enroll from school. “I just can’t take this anymore,” he told him. “College is getting me nowhere.”

“Well, I disagree,” his buddy said. “I’m here to change my major. I’m going to get a teaching credential and teach high school. I want a steady job with good benefits.”

A Tale of Two

Fast forward almost thirty years. My friend ran into his old buddy a few weeks ago, and asked him what he’s doing. “Teaching high school,” he replied.

“Really? Well, you told me that was your plan. I guess you made it happen. How much are you making, if you don’t mind me asking?”

When his friend looked at him strangely, he laughed and said, “I only ask because you told me you wanted a steady job with good benefits, and I wanted to get out of school and get on with real life. Well, I quit school that day, but I’m still working in a dead end job. Sometimes I wonder what I’d be making if I had followed you into the admin building that day and changed majors with you.”

After a little more coaxing, the friend noted that he was making about $40,000 a year—even with tenure and almost thirty years of seniority. “But it’s steady work, like I hoped. Still, I’ve got way too much debt.”

After telling me this story, my friend looked at me with what can only be described as slightly haunted eyes. “When he told me he makes $40K a year, I just wanted to scream,” my friend said.

“Why?” I asked.

He could tell I didn’t get what he was talking about, so he sighed and looked me right in the eyes. “I’ve worked 40 to 60 hour weeks every month since I walked off that campus,” he told me. “And last year I made about $18,000 working for what amounts to less than minimum wage in a convenience store. I should have stayed in college.”

That’s the two economies. One goes to college, works mostly in white-collar settings, and makes from thirty thousand a year up to four times that. Some members of this group go on to professional training and make a bit more. The other group, the second economy, typically makes significantly less than $50,000 a year, often half or a third of this amount, and frequently wishes it had made different educational choices.

The people in these two economies look at each other strangely, a bit distrustfully, wondering what “could have been” if they’d taken the other path.

That’s the tale of two economies.

II.

Which brings me to my point. Ask members of either economy for advice about education and work, and they’ll mostly say the same thing. “Get good grades, go to college, get a good career. Use your educational years to set yourself up for a steady job with good benefits.” This is the advice my grandfather gave my father at age twenty, and the same counsel my dad gave me after high school. Millions of fathers and mothers have supplied the same recommendations over the past fifty years.

This advice makes sense if all you know are the two economies. Sadly, the third economy is seldom mentioned. It is, in fact, patently ignored. Or quickly discounted if anyone is bold enough to bring it up.

A second experience illustrates this reality. I recently visited the optometrist to get a new prescription for glasses. During the small talk, he mentioned that his younger grandchildren are in college, but scoffed that it was probably a total waste of time. “All their older siblings and cousins are college graduates,” he said, “and none of them have jobs. They’ve all had to move back home with their parents.”

He laughed, but he seemed more frustrated than amused. “It’s the current economy,” he continued. “This presidential administration has been a disaster, and it doesn’t look like anyone is going to change things anytime soon. I don’t know what these kids are supposed to do. They have good degrees—law, accounting, engineering—but they can’t find jobs. Washington has really screwed us up.”

I nodded, and brought up the third economy, though I didn’t call it that. What I actually said was: “There are lots of opportunities in entrepreneurship right now.” He looked at me like I was crazy. Like maybe I had three heads or something. He shook his head skeptically.

“Entrepreneurship is hard work,” I started to say, “but the rewards of success are high and…”

He cut me off. Not rudely, but like he hadn’t really heard me. That happens a lot when you bring up the third economy.

“No,” he assured me, “college is the best bet. There’s really no other way.”

I wasn’t in the mood to argue with him, so I let it go. But he cocked his head to one side in thought and said, slowly, “Although…” Then he shook his head like he was discounting some thought and had decided not to finish his sentence.

“What?” I asked. “You looked like you wanted to say something.”

“Well,” he paused…then sighed. I kept looking at him, waiting, so he said, “The truth is that one of my grandsons didn’t go to college.” He said it with embarrassment. “Actually, he started school, but then dropped out in his second year. We were all really worried about him.”

A “Real” Job

He paused again, and looked at me a bit strangely. I could tell he wanted to say more, but wasn’t quite sure how to go about it.

“What happened?” I prompted.

“To tell you the truth, I’m not really sure. He started a business. You know, one of those sales programs where you build a big group and they buy from you month after month. Anyway, he’s really doing well. He paid off his big house a few years ago—no more mortgage or anything. He has nice cars, all paid for. And they travel a lot, just for fun. They fly chartered, real fancy. He and his wife took us and his parents to Hawaii for a week. He didn’t even blink at the expense.”

“That’s great,” I told him. “At least some people are doing well in this economy.”

He looked at me with that strange expression again. “I’m not sure what to make of it,” he said. “I keep wondering if he’s going to finish college.”

I was surprised by this turn of thought, so I asked, “So he can get a great education, you mean? Read the classics? Broaden his thinking?”

He repeated the three heads look. “No. He reads all the time—doesn’t need college for that. I want him to go back to college so he can get a real job.”

I laughed out loud. A deep belly laugh, it was so funny. I didn’t mean to, and I immediately worried that I would offend him, but he grinned. Then he shook his head. “I know it’s crazy, but I just keep worrying about him even though he’s the only one in the family who is really doing well. The others are struggling, all moved back in with their parents—spouses and little kids all in tow. But they have college degrees, so I keep thinking they’ll be fine. But they’re not. They’re drowning in student debts and a bunch of other debts. It just makes no sense.”

America Needs to Get It

He sighed and talked bad about Washington again. Finally he said, “I’ve poured so much money into helping those kids go to college, and now the only one who has any money to raise his family is the one who dropped out. It just doesn’t make any sense.” He kept shaking his head, brow deeply furrowed.

I left his office thinking that he’s so steeped in the two economies he just doesn’t really believe the third economy exists. He just doesn’t buy it, even when all the evidence is right there in front of him.

He’s not alone. The whole nation—most of today’s industrialized nations, in fact—are right there with him. We believe in the two economies, high school/blue collar jobs on the one hand, and college/white collar careers on the other. Most people just never quite accept that the entrepreneurial economy is real.

It’s too bad, because that’s where nearly all the current top career and financial opportunities are found. The future is in the third economy, for those who realize it and get to work. If you’ve got kids, I hope you can see the third economy—for their sake. Because it’s real, and it’s here to stay.

The first two economies are in major decline, whatever the so-called experts claim. Alvin Toffler warned us in his bestseller FutureShock that this was going to happen, and so did Peter Drucker, back when they first predicted the Information Age. Now it’s happening.

I hope more of us realize the truth before it’s too late. Because China gets it. So does India, and a bunch of other nations. The longer we take to get real and start leading in the entrepreneurial/innovative economy (the real economy, actually), the harder it will be for our kids and grandkids. The third economy will dominate the twenty-first century. It already is, in fact. Whether we’ve chosen to see it yet or not.

*******************

odemille The Three Economies by Oliver DeMille Oliver DeMille is the New York Times, Wall Street Journal and USA Today bestselling co-author of LeaderShift: A Call for Americans to Finally Stand Up and Lead, the co-founder of the Center for Social Leadership, and a co-creator of TJEd.

Among many other works, he is the author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, The Coming Aristocracy, and FreedomShift: 3 Choices to Reclaim America’s Destiny.

Oliver is dedicated to promoting freedom through leadership education. He and his wife Rachel are raising their eight children in Cedar City, Utah

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Corruption By Any Other Name – Oliver DeMille

April 25th, 2014 // 10:41 am @

Another Domino Falling

JPgodfather 300x214 Corruption By Any Other Name   Oliver DeMille Morgan recently settled a case brought by the government, agreeing to pay Washington $13 billion for its role in the mortgage bubble meltdown.

This creates a very dangerous standard. When something bad happens, Washington will naturally seek to find fault in a place that brings it a lot of extra cash—the most profitable businesses.

As Ken Kurson put it:

“This settlement sets a terrible precedent. Companies with strong balance sheets can expect to become targets of the government…”[i]

This is another domino in the decline of our freedoms, and it’s a big one. This new approach allows, even incentivizes, government corruption. Let’s review how this process works:

  • The federal government passes laws that require or incentivize businesses to give loans or offer services/products to people who can’t actually afford them. Businesses that refuse are penalized.
  • As a result of this kind of bad policy, many businesses fail. Businesses that comply, but only make middling profits, are left alone.
  • Businesses that comply, and make big profits, are targeted by the federal government and end up paying huge sums of money to the government.

Godfather Over Again

This is a great racket. It’s akin to a mafia protection scheme: “You need protection from us. We’ll provide it, for a fee. The fee will be set by us, without appeal or negotiation. If you don’t pay it, we’ll hurt you and/or your business—thus proving that you really did need protection.”

An official term for this new precedent is “corruption.” Except that the Supreme Court gets to determine the actual definition of the word. And who gave the Court the power to do this?

The Supreme Court did, in a string of cases starting in 1803 through 1936.

Is this recurring pattern starting to make sense?

“Wait,” the critics say. “The crash was real! And JP Morgan and other companies that participated need to pay! Right?”

As Kurson wrote:

“Of course, most of JP Morgan’s wrongdoing—70 to 80 percent of the exposure—was committed by two companies, Bear Stearns and Washington Mutual, it acquired in 2008 at the request, to the point of command, of then-Treasury Secretary Henry Paulson. JPM acquired those companies as acts of mercy during a crisis.”[ii]

Let’s get this straight. The economy was tanking, so the government demanded that JP Morgan buy two flailing firms—to help save the economy. Then, when the fall came, the government targeted JP Morgan for the mistakes of these two firms and made it pay for them.

Godfather corruption indeed.

Who It Hurts

How are businesses responding to this emerging new economy? Many are closing. Others are going abroad, to China, India, Brazil, etc.  Those that make enough from the U.S. economy simply pay the fines, settlements, and fees—it’s the cost of doing business.

The real problem is for American workers and families. JP Morgan has increased its litigation reserve up to $23 billion (from $3 billion in 2010).[iii] Other companies are learning to do the same.

What happens when the extra billions are refocused this way? Money moves away from salaries and purchases, the economy is hurt, private sector jobs are cut or curtailed.

The government is currently seeking similar payoffs from a number of other big companies. As this precedent sends its ripples through the economy, it will harm a lot of families.

More firms will move operations and jobs abroad, and others will shift more money from jobs and put it to litigation and fees.

Old Pattern, New Cloth

Oh, and just re-read the government’s pattern outlined above for the mortgage bubble, but this time read it with Obamacare in mind:

  • The federal government passes laws that require or incentivize businesses to offer services/products to people who can’t actually afford them. Businesses that refuse are penalized.
  • As a result of these bad policies, many businesses fail. Businesses that comply, but only make middling profits, are left alone.
  • Businesses that comply, but make big profits, are targeted by the federal government and end up paying huge sums of money to the government.

This really is as shocking as it sounds. Yes, this really is happening in the United States.

The worst news in all this is that most people will do nothing about it, because this kind of financial news is considered technical mumbo jumbo.

Citizens usually just ignore it. “What can I do, after all?” is the typical response.

This is how freedoms decline: slowly for a while–then all at once. The amazing part is that when the “all at once” crash comes, almost everyone acts surprised.

But what can a regular person do? Really? It’s not like you can stop government overspending, party bickering, or a growing culture of corruption with a call to your Congressman or a letter to the editor.

The answer to this major post-modern question (What can a regular person do?) is interesting: We can start with not being surprised.

Problems and Solutions

We can know what is coming. A government addicted to spending and borrowing, and constantly increasing its spending and borrowing, is going to cause problems for the economy and for its citizens.[iv]

A government addicted to increased regulations is going to cause problems.[v]

A government that demands official secrecy from its own people while increasing how it spies on its own citizens is going to cause problems.[vi]

A government that inflates its currency and borrows from its biggest enemies and competitors is going to cause problems.[vii]

A government whose top officials routinely make promises during elections or to pass big agendas and then break them once they win is going to cause problems.[viii]

A government that uses statistics it knows distort reality (just revising them a few months later once decisions have been made), in order to support its continued ideological course, is going to cause problems.[ix]

A citizenry that turns a collective blind eye to these realities is enabling the very problems it fears. Then the people claims surprise when the crash comes.

Anyone who is surprised by the next crash has been lying to themselves for a long time.

False Recovery

As Allan Greenspan wrote in November 2013:

“One can hope that in a future financial crisis—and there will surely be one…”[x]

Calomiris and Haber noted that banking crises should be expected:

“The banking system in the United States has been highly crisis-prone, suffering no fewer than 14 major crisis in the past 180 years.”[xi]

The question isn’t if, but when, the next one will come.

Or consider what J. Bradford DeLong wrote in a piece in Foreign Affairs titled “The Second Great Depression: Why the Economic Crisis is Worse Than You Think”:

“The U.S. economy has enjoyed a recovery [since 2009] only in the sense that conditions haven’t gotten worse…. But it is unlikely that the economic downturn will be over by 2017…[xii]

Greenspan suggested the second thing people can do. He wrote:

“Financial firms could have protected themselves…if…they had prepared for a rainy day.”[xiii]

Though he addressed this belated counsel to companies, it certainly applies to regular people as well.

Time and Two Steps

To summarize, we have covered two things a regular person can do about our current problems. First, know about them. Pay attention. Keep a close eye on the government, the economy, and current events. Read the fine print and the technical mumbo jumbo put out by government.

The English word for this daily activity and focus is “citizenship.”

The second is to prepare. Look around, see what is really needed, and what is likely to be needed in the years ahead—and take action to help your community flourish.

Not just for you, but for others.

The word for this kind of initiative and foresight is “entrepreneurship.” It isn’t pessimistic, doomsayer, or extreme. In fact, effective entrepreneurialism is precisely the opposite.

It only works if it is optimistic, positive, and sustained.

Without such citizenship and entrepreneurialism, the decline of freedom is only going to accelerate. We’ve still got time for these two things to work, but time is running out.


[i] Ken Kurson, “The Portfolio,” Esquire, February 2014.

[ii] Ibid.

[iii] Ibid.

[iv] See, for example, Edward Conard, “How to Fix America: Which Tools Should Washington Use? Unleash the Private Sector,” Foreign Affairs, May/June 2013. See also: Fareed Zakaria, “Can America Be Fixed?: The New Crisis of Democracy,” Foreign Affairs, January/February 2013. For example: “In 1980 the United States’ gross government debt was 42 percent of its total GDP; it is now 107 percent.”

[v] Ibid. For example, the United States is ranked 76th in the world for its “burden of government regulations.”

[vi] See Jack Shafer, “Live and Let Live,” Foreign Affairs, March/April 2014. “[A]ccording to the White House review panel convened last year to examine the NSA’s surveillance practices, the bulk collection of phone records has stopped precisely zero attacks.”

[vii] See, for example, Minxin Pei, “How China and America See Each Other: And Why They Are On A Collision Course,” Foreign Affairs, March/April 2014. For example: “In 2007, the United States’ economy was four times as large as that of China; by 2012, it was only twice as large.”

[viii] E.g. “If you want to keep your doctor, you can keep your doctor.” See also: Michael A. Cohen, “Hypocrisy Hype: Can Washington Still Walk and Talk Differently?” Foreign Affairs, March/April 2014.

[ix] See Zachary Karabell, “(Mis)leading Indicators: Why Our Economic Numbers Distort Reality,” Foreign Affairs, March/April 2014.

[x] Allan Greenspan, “Never Saw It Coming: Why the Financial Crisis Took Economists by Surprise,” Foreign Affairs, November/December 2013.

[xi] Charles W. Calomiris and Stephen H. Haber, “Why Banking Systems Succeed and Fail: The Politics Behind Financial Institutions,” Foreign Affairs, November/December 2013.

[xii] J. Bradford DeLong, “The Second Great Depression: Why the Economic Crisis is Worse Than You Think,” Foreign Affairs, July/August 2013.

[xiii] Op Cit., Greenspan.

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Why Do We Keep Losing the Freedom Battle?

March 20th, 2014 // 3:00 pm @

Two Avenues of Destruction

Why does government keep growing, no matter who we elect, no matter which party is in charge? 20111125 rockwellFreedomSpeech 234x300 Why Do We Keep Losing the Freedom Battle?Why do freedom lovers, those who truly want limited, Constitutional government, continue to lose the battle?

There are two answers. First, the freedom battle loses—year after year, election after election, decade after decade—because it is poorly funded. The political parties are well funded, mind you, but neither party truly stands for freedom. Freedom lovers lose because they are underfunded, pure and simple. More on this below.

Second, those who stand for freedom lose the battle to bigger government because the regular people can’t see what is happening. We don’t see armed troops in jackboots marching daily through our streets, entering our homes, and stealing our property and lives.

When the people can’t see this happening, it’s hard for them to get too excited about it. They don’t know what to fight against. They don’t know who the enemy is. They aren’t sure who to fight, or how to fight them.

The Paper Sword

We don’t realize that Soft Power attacks (certain licensing requirements, regulations, agency policies, commercial codes, revenue bills, statutory changes, executive orders, secret agency procedures, exemptions, ex post facto decisions, and court cases) are as dangerous to freedom as Hard Power attacks (invading armies, armed rebellions, political officials with their own armies, or government use of force against its own people).

In history, the regular people often respond to Hard Power attacks on freedom, but they seldom even notice Soft Power attacks until their freedoms are too far gone to recover.

Citizens of nations almost never realize it when Soft Power is attacking them. The biggest irony of this is that throughout human history Soft Power has taken away more freedom than Hard Power. In fact, Hard Power is seldom used until Soft Power has weakened a nation.

Today, we are witnessing a wholesale reduction of our freedoms—nearly all through Soft Power attacks that few people notice.

To See and Understand

As one insightful friend wrote to me in an email: “We don’t know who or what to fight against. I still believe the majority of Americans value freedom… We, as a culture, do not know how to defend freedom in this new age of information, nor do we know who or what to defend it from. All the average citizen sees—or is supposed to see—is things going a little darker, a little dirtier, a little more crowded, each day. There is, for most Westerners in any case, no force-of-state brutes-in-boots and uniforms…. We see only the results of class stratification and economic divergence…. The most dangerous enemy is the one you can’t see.”

Americans would stand up and vote to get their freedoms back, if only they understand how much they are under attack.

If they could see their freedoms being stolen by Hard Power attacks at the level that they are truly under siege from Soft Power, they’d change things—and fast.

But the regular people don’t see, because Soft Power is used behind-the-scenes, on paper.

How to Win It

This is why only a nation of voracious readers can maintain its freedoms. This brings us back to the first reason freedom is losing: underfunding.

Not only do we need a nation of voracious readers, we need a lot of successful businessmen, professionals, entrepreneurs, and others of means to fund freedom—to fund those things that help the regular people see and understand the impact of Soft Power.

This is the current battle for the future of freedom.
1. Will people of means fund effective responses to Soft Power attacks on our freedom?
2. Enough to win the battle?
3. ill enough regular people take entrepreneurial action and become people of means?

On these three questions turn our future.

Which of these three battles are you helping fight?

*******************

odemille Why Do We Keep Losing the Freedom Battle? Oliver DeMille is the New York Times, Wall Street Journal and USA Today bestselling co-author of LeaderShift: A Call for Americans to Finally Stand Up and Lead, the co-founder of the Center for Social Leadership, and a co-creator of TJEd.

Among many other works, he is the author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, The Coming Aristocracy, and FreedomShift: 3 Choices to Reclaim America’s Destiny.

Oliver is dedicated to promoting freedom through leadership education. He and his wife Rachel are raising their eight children in Cedar City, Utah.

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America’s Great Degeneration

March 5th, 2014 // 1:24 pm @

Speaking of how the government runs its finances today, historian Niall Ferguson wrote:

america crumbling 300x163 Americas Great Degeneration“The present system is, to put it bluntly, fraudulent. There are no regular published and official balance sheets. Huge liabilities are simply hidden from view. Not even the current income and expenditure statements can be relied upon. No legitimate business could possibly carry on in this fashion. The last corporation to publish financial statements this misleading was Enron.”

This basically sums up the modern American problem. The government operates on one set of rules, hides it from the regular citizenry, and enforces a different set of rules on businesses and families.

No such system has ever remained free.

This is already extracting a terrible toll from our economy. As Ferguson put it:

“In a 2011 survey, [Michael] Porter and his colleagues asked [Harvard Business School] alumni about 607 instances of decisions on whether or not to offshore operations. The United States retained the business in just ninety-six cases (16 percent) and lost it in all the rest.

“Asked why they favored foreign locations, the respondents listed the areas where they saw the U.S. falling further behind the rest of the world. The top ten reasons included:

1. the effectiveness of the political system
2. the complexity of the tax code
3. regulation
4. the efficiency of the legal framework
5. flexibility in hiring and firing.”

In short, a number of other countries have more economic freedom than the U.S. We have more regulations, a more complex tax code, and other problems that make business abroad more attractive for about 84 percent of businesses deciding whether to stay in America or leave.

The average citizen isn’t aware of this reality, or the fact that corporation after corporation is moving to other countries because of Washington’s policies.

Our freedoms are being lost, as business leaders see every day. Yet it continues to happen, and most Americans simply don’t realize it. Nor do they realize how much this hurts our economy and the pocketbooks of U.S. families.

As regulations increase, making it harder and harder for businesses to make a profit, more jobs, capital, and corporations are leaving. The American Dream is declining day after day, right in front of our noses.

For most Americans, the only solution in mind is to elect better government officials. But this hasn’t fixed the problem yet — not by a long shot. The problem gets worse (government spending and regulations increase) whichever party inhabits the White House.

Some other solution is needed, and it will require a return to good, old-fashioned American initiative and innovation — from regular people, not government. Yes, the government makes this more difficult with nearly every passing regulation, but freedom is worth overcoming it anyway.

If we rekindle the American spirit of entrepreneurialism in the next few years, this is a battle we can win. Nothing else will fix the problem.

What are you doing to promote, spread, and teach entrepreneurialism?

*******************

odemille Americas Great Degeneration Oliver DeMille is the New York Times, Wall Street Journal and USA Today bestselling co-author of LeaderShift: A Call for Americans to Finally Stand Up and Lead, the co-founder of the Center for Social Leadership, and a co-creator of TJEd.

Among many other works, he is the author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, The Coming Aristocracy, and FreedomShift: 3 Choices to Reclaim America’s Destiny.

Oliver is dedicated to promoting freedom through leadership education. He and his wife Rachel are raising their eight children in Cedar City, Utah.

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