April 27th, 2017 // 8:39 am @ Oliver DeMille
“Wait!” she said. “Where did you hear that? That’s the opposite of what the news is telling people.”
“Of course it is. I didn’t get this from the news. Or social media.”
“Where did you get it?”
Part I: Conclusion
For many years I’ve recommended that people get their news in a special way: read 2-3 liberal publications, and also 2-3 conservative ones. Pay close attention, and note how both sides spin things. Watch for their assumptions and media agendas. Think about what you read, and draw your own conclusions.
But in the Trump era, it’s no longer this simple. The media has become so biased, so angrily bent on waging war against the current Administration, that even the conservative press frequently joins the mainstream media in its attacks—or in fighting them.
Objectivity in media reports is almost extinct. Manipulative spin is now the one constant in our national–and much of the local–media.
So, where should today’s concerned citizen get the news? The answer to this question is enlightening. In the new era of media—what could arguably be called the post-journalistic era—it’s not just about where you get the news. It’s more about how you read the news. Those who read it the right way will learn what’s really going on. Those who don’t, won’t….
Part II: Example
I open the magazine and read the first article. It’s a liberal magazine, and, like always, I’m enjoying it. Reading what people who disagree with me have to say about the current state of the world is invigorating.
When I was younger, it sometimes made me angry. A decade later it made me want to argue. Nowadays, I find myself laughing a lot. Or, once in a while, surprised by a new idea that deserves serious consideration.
For example, the first magazine I read begins with a long editorial about how the economy is “on the rise.” Markets are getting more good news than they have since 2008, and not the “media-spin economic upturn news” that Washington loved during the Obama years, but that always turned out to be false. This time it’s about a real upturn it seems.
Still, the editorial warns, the danger is that people are going to think that things like Brexit and actions of the Trump Administration are responsible for the good economic news. These are all coincidences, apparently, according to the article. Any intelligent person, the magazine seems to be communicating, will clearly realize that there is little or no correlation between Obama/European Union policies and the economic malaise that accompanied them, and the a significant economic upsurge following Brexit/Trump.
My grin turns to laughter. Are they serious? No correlation? Funny. Ironic, but humorous. The same magazine issue has the following question on the front cover: “Is the pope Catholic?” Note that the word “pope” isn’t capitalized. The article takes this question seriously—analyzing the ways the current Pope is rehashing many ideas long considered sacrosanct at the Vatican. This part isn’t funny. Interesting, and important. But I’m pondering, not laughing.
Another article proclaims: “From deprivation to daffodils… All around the world, the economy is picking up.” The cause of this, we are assured once again, has nothing to do with Brexit or conservative policies. In fact, we’re told, these things caused “jitters” and kept the economy from improving sooner.
In the same magazine, we are warned about populist uprisings from the Netherlands, Mexico, and Scotland—all part of a “dangerous” trend. (In fairness, if you favor the elite classes and a system that benefits elites above all others, it actually is a dangerous trend.)
I finish this magazine and pick up the next one. Its purpose, apparently, is to find clever and original ways to criticize Donald Trump and anyone who didn’t happily vote for Hillary Clinton or Bernie Sanders. A very popular hobby these days.
But this publication does it in such cerebral language that it’s really fun to read—as if reading it, just soaking it all in, must mean you are one of the smart people, the enlightened, the few, the wise. I do enjoy the creative, engaging writing, even as I find myself disagreeing with much of the content.
I start laughing again. After all, the articles work so hard to sound impartial, journalistic, even erudite. But their frustration and anger with the last election, and the current Administration, shows through on nearly every page.
For example, I read paragraph after paragraph of seemingly objective, unbiased prose (“Just the facts, ma’am, just the facts…”), then I run into words like “vengeful,” “binge,” “vindictive.” The reader is being swayed by largely journalistic writing peppered with emotional triggers. I like it. I mean, it’s interesting, and funny. Besides, the American people are smart enough to see right through this kind of bias, whatever elites think of them. Still, this kind of spin is an art, and the articles I’m reading are skillfully crafted to sway their reader—just like most of the television media.
Pundits on the Right try to do this as well as those on the Left, but the Left has more true artists—masters of this process. Good for them. Seriously. I’m genuinely impressed. Conservatives really do need more effective artists, and more appreciation for well-crafted symbolism.
The End of the Expert
On the less artistic, more direct side of things, one article calls President Trump: “an untruthful, vain, vindictive, alarmingly erratic President.” My first thought is that this is mean-spirited. But wait. I re-read the list of criticisms more carefully. Actually, I tell myself, most of this is fairly accurate, with one exception: What liberals call “untruthful” in Trump is often more a case of inarticulate.
President Trump frequently uses imprecise language, to the point of confusing. It’s a wonderful blessing for his opponents. But I don’t think he knowingly lies as much as the media claims (not in the way career politicians so frequently lie: “If you like your health care provider, you can keep your health care provider” or “insurance premiums will go down,” or “the Benghazi attack was caused by a video made in California,” or “I did not have sex with that woman.”)
But the other things on the list are fair game. Vain. Vindictive. Erratic. The President has exhibited all of these traits at times. I’m laughing again as I ponder this twist—because the real joke is on elites. Seriously: Why did the American people elect someone who is so openly vain and vindictive at times?
This is pretty funny, when you think about it. Liberals want these things to convince Americans that he shouldn’t be president. But those who elected him don’t really care about these things.
In short, liberals seem to want a president they can look up to, hold up as a role model, even canonize (e.g. FDR, Obama). Like medieval courtiers at the palace, they want to put their king on a pedestal. “He’s such a good and great man. She’s such a good and great woman.” They want Josiah Bartlett back in the White House. Or at least Michael Douglass. Or, better still, Kevin Klein’s “Dave”.
Conservatives aren’t thinking of anything so lofty. They don’t need a prophet or a saint in the Oval Office. They just want a president who will reboot the economy and make us safer in the world. Even if he acts like a jerk sometimes.
Liberals don’t seem to get the joke. It’s funny. Think about it: the voters in a majority of states preferred someone who is sometimes vain and vindictive over the elite’s favorite choice—a lifetime politician who checked off all the boxes and did everything the Establishment considers necessary to be in the Oval Office. The voters wanted the exact opposite. The irony is rich.
I finish the second magazine and take a long, deep breath before picking up the next one. But something I just saw keeps nagging me, so I go back to the magazine and look for a certain ad.
Ah…there it is. A promotion for online courses from Julliard. Open to all. “Learn from the Julliard faculty,” the ad proclaims, “classes include…Music Theory 101, Sharpen Your Piano Artistry…. No audition required.” I can hardly believe it. Doesn’t this fly in the face of the elite prime directive: “Rule By Experts—In All Things”? Do we really live in an age where MIT, Harvard and Julliard offer open enrollment classes to everyone? What happened to rule “of the experts, by the experts, and for the experts”? Elites are using technology to promote the appearance of democracy while still focusing on elite rule in every sector.
I open the third periodical in the pile. The lead article picks up right where the other magazine left off: “How Americans Turned Against Experts.” I study this article closely, taking notes in the margins, and then I read a half-dozen others. Apparently, the people just aren’t all that impressed with rule by the experts anymore. (“What have all those experts done for us?” millions are asking. “And why can’t they fix our national problems? What’s taking so long? In fact, why do things keep getting worse in so many ways? If these Ivy-trained experts with all their lofty titles and salaries are so good for America, why don’t they fix things?”)
Cause and Effect?
Finally, I pick up the last magazine in today’s stack. Several of the articles are intriguing. For example, I read: “Poverty has profound effects on the size, shape and functioning of a young child’s brain. Would a cash payment to parents prevent harm from the experience of being poor?” At first blush, it is sad that economic struggles have negative effects on early childhood. It is also not surprising that progressives think passing out money would fix this problem—easily and effectively.
But there’s more to this than initially meets the eye. I’m reminded of the economic idea of “helicoptering”: if the economy is struggling, dump cash from helicopters to poor families. They’ll spend it, and this will provide increased demand, supply, more jobs, and an improved economy. Of course, economists don’t suggest literally throwing cash out of helicopters (like turkeys on WKRP in Cincinnati), but rather depositing money directly into the accounts of people below a certain income level.
Conservatives tend to reflexively balk at such proposals, because they believe in the law of unintended consequences. In other words, paying people without asking them to work for it makes more people want to do nothing, and more citizens become increasingly dependent on government handouts—leaving the productive people to fund it all. Not good for society.
On the flip side, I like to point out to conservative friends that one of the early proponents of such financial “helicoptering” was Milton Friedman. Why? In truth, the direct cost of giving money to poor parents is far less than the amount currently spent by governments to provide all the services they and their children receive.
If we’re going to offer a lot of socialist programs, let’s at least be efficient.
The real answer is to get rid of socialism altogether. Besides, in the long term, there’s a deeper problem. The idea of giving cash to poor parents in order to help their kids either assumes that the parents will spend it in ways that actually address the problem, or assumes that the government will monitor such spending and force parents to use it “effectively” (an escalation from helicopter parenting to “helicopter government”).
Reading the article even more closely, it becomes clear that there “are dramatic differences from person to person.” Meaning: Some people raised in poverty have normal or even above-average brains, but on average they are smaller, less developed. I’m not laughing anymore. This is deep, and important. The biggest challenge seems to occur where single parents are forced to work so much to pay the bills that there is little time for interaction with young children. The negative consequences last for generations.
Surely our society can find ways to deal with this. Sadly, in our modern world, any talk of real problems seems to turn into demands for more government programs–as if government is the only way to fix anything.
We’re all at fault here: liberals tend to want government to solve everything, and conservatives often fail to provide non-governmental solutions to real challenges that should be addressed by the private sector. Both sides just end up pointing fingers and criticizing, while the problems remain (or grow).
The article provides a lot of interesting details and proposals. I don’t agree with everything I read, but it makes me think outside the box. I finish the magazine and lean back in my chair.
The New News
We have a major problem today with media, but it’s not what most people think. The biggest issue is the fact that few of us are reading enough news. Forget the electronic news. And forget newspapers. Both are too trapped in today’s 24-hour news cycle—and the race for ratings. We need to read bigger ideas, and from a variety of sources.
Readers of quality news magazines and journals are less easily manipulated than those who get their news from TV or social media. Such readers can more adroitly identify spin or media agendas and see right through them—then grin, or laugh, or decide to study more about a certain topic.
If you’re getting most of your news from TV, newspapers, online headlines, or social media—consider moving on. Start reading longer articles, in publications or posts that treat things more deeply, like Foreign Affairs, The Economist, The Harvard Journal of Law and Public Policy, Vital Speeches of the Day, and issue-oriented online sites and articles.
Read things that make you think, really ponder and analyze. And read a mix of conservative, independent, and mainstream sources.
If you do decide that you prefer to get your news from TV or online news sites, go to the business news. Where the regular news tends to focus on network political agendas, thereby frequently skewing the day’s news stories, the business news will tell you how the economy is actually doing and how today’s events impact it; this is nearly always a more accurate indication of whether to be worried or optimistic about the news of the day. The business news usually tells the story more directly, with less partisan slant.
Whatever your political views, knowing how to get the real news, to see through the media and understand what’s really happening in world events, is part of being an informed and good citizen. All of us benefit from people who do media right.
These two simple changes (1-Reading deeper issue-oriented articles rather than watching or reading the daily event-focused articles, and 2-Going to the business media rather than the political media for a clearer understanding of the news) will drastically increase how well each person understands the news and knows what’s actually happening in the world.
If you stick with the daily TV news or newspaper (or online equivalents), you are always in danger of being another one of those people who actually believe what they hear on the nightly news. In other words…grossly misinformed.
(For further helps on where and how to get the real news, check out my Current Events Course at The Leadership Education Store. This will help you significantly upgrade your ability to see through media spin and know what’s really happening in the world.)
March 14th, 2017 // 4:52 pm @ Oliver DeMille
Why Did the American People Give Donald Trump the Presidency?
The mainstream media doesn’t get it. Why did the majority of people in the majority of states—enough to win the Electoral College—vote for Donald Trump in the last national election? For much of the elite class, not just in national newspaper offices and television network suites, but also in Hollywood circles and the halls of academia, the election of Trump makes no sense. They blame flaws in Hillary’s campaign, or Jared Kushner’s algorithms, or even Putin’s hackers.
The underlying belief among much of the elite is, “Someone smarter than the masses must have made this happen; the people certainly didn’t do this all on their own.” For elites, the explanation is still as shocking and elusive as it was on election night. The impossible happened, in their view. Therefore something must be amiss.
The truth is much more simple. The American people chose Donald Trump, for better or for worse, because they saw something the media and other elites never grasped—and still don’t. Love Trump or hate him, or anything in between, but it’s important to understand what happened, to know why voters put him in the Oval Office. We need to understand what they wanted, and what they’re still expecting from him today and in the years ahead.
Powers Big and Small
To get to the bottom of this blue-state mystery, we first need to reject the typical media attempts to explain something they don’t really understand. Simplistic rationalizations such as “white backlash” or “the rise of the angry-uneducated-poor” lack comprehension. These types of analysis show just how deeply most elites misunderstand the situation. Their shocked faces on election night demonstrated the level to which they lack clarity on what occurred—and is still occurring.
The problem is a huge gap of understanding between elites and the masses. The rift between these two groups is extreme—and widening. Today there is a great need to translate the view of the masses on freedom and progress to the elite classes (who are deeply dipped in the sauce of university-ism, careerism, and professionalism, all of which color their attempts to understand).
To begin with, the great challenge of freedom is that it is vulnerable, as Michael Polanyi assured us in his 1951 classic The Logic of Liberty. If freedom isn’t protected by the vigilance, sacrifice, and wisdom of the masses, it is even weak. Note that it is the vigilance and sacrifice of the masses that matters, not the training or sophistication of the upper class. Indeed, freedom is vulnerable and even weak precisely because the elite classes exist—and are always trying to take over. When elites of any sort rule, freedom declines for the large majority of people.
Thus the American framers gave the voting power–ultimate sovereignty and control over the government–to the masses. Not to the popular vote, but rather to the majority of people in the majority of states (through the electoral college). They did this so that a few of the most populous states couldn’t combine as a kind of elite ruling group. The framers not only wanted the people to rule, but for all people, even in little towns and on the back roads, to have a real say in government.
Why? History is clear on this: whatever group is in charge treats itself better than other groups. Always. Thus the solution to dominating rule is to have the masses govern. But even this would lead to some corruption, so the framers had the masses rule certain things (locales, states, the House, the purse strings) while elites in each state were allowed to rule other things (the Senate, foreign relations, protection of the states). National elites were given no direct power under the Constitution because the framers considered them too dangerous.
Checks in Action
Freedom is vulnerable, even weak, unless the people keep elites in check–but how? Answer: Elections. The framers knew that the masses understood something the various elite groups would never quite grasp: what the people really want. Of course, elites always think they know what is best for the masses, believing that somehow their “superior” education, training, views or wealth make them better able to tell their “inferiors” what is needed. This was arguably the framers’ biggest worry, that such elites would rule (e.g. Federalist 1,10,14,17-20,51).
Elections were designed precisely to put down such elite power.
The elite classes certainly dislike this arrangement. Who wouldn’t? But it is the very arrangement the framers gave us, and for this precise reason: to keep elites in their place. That the elite establishment is still shocked when it happens is ironic. No matter how often they think they’ve finally circumvented the Constitution and replaced chaotic Jeffersonian-society with clean, ordered aristocracy (though they never openly use this term), elections somehow keep coming along and disrupting their plans. Madison must be grinning from beyond the grave.
In the 2016 presidential election, the framers’ system once more stood up and rocked the institutions of the elite. That they’ll fight back is clear. But what will they fight against? It isn’t Trump that did this. Madison did. Hamilton gave it eloquence, Franklin added gravity, and Washington provided clout. And here’s the rub: few elites even understand why it happened. They fight it in a rage, but what, exactly are they fighting against? Most aren’t sure…
In contrast, most of the masses do understand. It was time to reduce elite power.
There is a reason most elites struggle to cut through the clutter and understand what happened. Their language isn’t designed to explain this. Their training never included it. They grasp at straws, like sophomore students of Mandarin, content to memorize vocabulary but only vaguely aware that the tone of each word drastically alters its meaning. For elites, today’s political tone from middle America is distant, unclear, alien. Most aren’t even sure it is real.
They prefer to explain away the masses as “angry.” But ask them what causes the anger, or why so many people thought Trump was the solution. The elites don’t know how to explain this to their children, much less articulate it fluently to themselves. It is a mystery… something most modern elites deeply resent and consider inferior. Not quite tangible.
With all their training, status, and cosmopolitanism, why are many elites so clueless about the masses? Because most non-elites communicate their political views in a different language, something elites find strange and unexpected. Also, partly, because most elites have spent a lot of personal and institutional effort trying to climb the status ladder away from the masses. To “rise above” their roots. To leave the crowd, which they largely, as mentioned, consider inferior.
Once they’ve “arrived” and become part of the professional and elite classes, the thought of going back, or, even worse, of realizing that the masses have something elite culture doesn’t—or, horror of horrors, that it might even be better in some ways—is largely unacceptable to them. The socialization of professional and elite culture makes people almost purposely unable to understand what is going on among the masses.
In other words, modern professional/elite education and training customizes people with a certain way of seeing the world. As a result, they frequently believe nobody has more wisdom than they do—certainly not people who weren’t trained to see things in the same way. But people who don’t bother or don’t know how to analyze certain things in the accepted academic way aren’t less intelligent, they just aren’t trained to respond to things in the prescribed academic format.
Instead, they use their intelligence in other ways—analyzing, considering, noticing, and responding to myriad additional clues in their search for understanding. As such, they naturally come up with different conclusions than the proscribed expert/professional method.
Who is to say their way is inferior? The truth is, the framers believed that the masses should be given more power than elites in electing our political leaders. The framers knew that the American masses would be best at knowing what is best for the American masses.
It’s really very simple. The masses vote for what they want, and elites sometimes don’t understand it because the elites want something very different. Specifically, the 2016 election meant the following to the masses:
- America was on the verge of turning its entire government and culture over to elite domination, and we have been heading in that direction ever since the end of Ronald Reagan’s tenure.
- It was time to reverse this trend, to reduce the power of elites and give more power back to the people.
Like the shocking upheavals that lifted a Jefferson, Jackson, or Reagan to the presidency (tearing down the growing power of elite groups, even wreaking havoc and division, but the very kind of chaos and division that drastically reduces elite power) the majority of people in a majority of states turned to Trump. Indeed, if the masses in the Democratic Party would have had their way (without the elite-class power of super-delegates), Bernie Sanders, another anti-elitist, might well be the president right now.
Two Different Elections
To the professional/elite classes this all made little sense. Accustomed by educational training and long years of seeking status in the world, the elite classes computed the election using the accepted tools of academia, career, and government. The masses had no such blockage. While the establishment shook its head in dismay, saying “he’ll bring chaos,” “he’s a blowhard,” “he’s so offensive,” “he’s spreading hatred,” and so on, many of the masses said, “He’s not one of them. He doesn’t talk like them. He doesn’t think like them. We need to stop them.”
The elite class voted based largely on the issues. They emphasized facts, figures, policies, and specifics. That’s what all politicians do—at least those who appeal to the elite classes (including most of the mainstream media).
In contrast, the masses voted to reduce the increasing power of elites.
Read that last sentence again. That’s what happened in the 2016 election. The masses wanted someone to fight against elites. They chose a Jackson. Hated by the establishment. Hated even, perhaps, by a majority of the masses. But seen as one who hopefully might be able to stand for the majority of people in the majority of states—against any more power to the elite class.
Elite culture wanted someone who appealed to them, their standards, their values, their tone, their club—a Gore, a Bush even, a McCain, Romney, Biden, Kerry, Rubio, or Clinton. Someone who played the establishment game—universityism, careerism, professionalism. Put very simply: They wanted someone who believed in and trusted experts.
According to all their metrics, Trump wasn’t even qualified to run for president. But to the winning voters, only one qualification mattered: Can he stop or slow the increasing power of elites? Not all voters articulated their feelings this way, but it was the pivot-point of the election.
First, however, such voters wanted to be sure he wasn’t actually one of them, one of the elites. He was a billionaire, after all. How could they be sure he wasn’t just pretending to be against elite rule? They found their answer in his speeches, in his language. Where the elite classes hated Trump’s imprecise language (his penchant for ignoring the facts and even stating wrong facts as long as they supported his narrative), this very approach convinced the masses that he isn’t one of the elites. Not for more elite rule. Rich, yes. But not one of them.
The more the media railed against him for his imprecise language, “tenuous connection to the facts”, and “outlandish claims and attacks”, the more secure the masses became. “He’s not one of them, he’s on our side,” they said. This continues long after the election, and most of the elite media still seem to have no idea it is happening.
The People’s Goals
A lot of voters hoped Trump could stop the power of elites, including many who disliked his personality or disagreed with him on the issues, or worried that he might turn authoritarian. Truly effective CEOs, Peter Drucker taught, are selected not on the basis of their overall strengths (the “impressive” candidate) or for their lack of weaknesses or personal flaws (the “affable” candidate), but because they are the most likely to accomplish the one biggest thing the organization most desperately needs.
Many American voters saw Trump in this light: Stop or slow the spread of elite power.
This changed the whole equation—but in ways the professional/elite/expert-loving class couldn’t even fathom. It was so far outside of their training that they laughed when Trump’s name came up, from the beginning of his campaign right up until late evening on election night. Even then, they refused to believe what they were witnessing.
Once he won, their laughter turned to anger. But they still didn’t understand. The American people elected Trump precisely because these laughing elites and professionals wouldn’t like it. He was elected to reduce their power and influence, to keep them from becoming any more powerful. To block them, thwart them, weaken them. To give the economy and our national destiny back to the masses, not leave it to the whims of the few in elite conclaves of power and influence.
The masses want change. They want to remake the economy into a nation for all, not just a nation for elites or those who play the education/career game outlined by elites (mainly for the benefit of elites).
As the establishment slowly figures this out, the more enraged and extreme their reaction becomes. The election was a referendum on them! Thus their angry opposition in the media will continue.
“Did the masses even understand candidate Trump’s position on the issues?” elites ask. Answer: Yes. They understood that his take on the issues was mostly the opposite of what the elites stand for. That was enough.
Questions and Answers
But there is more. What exactly is it that the masses understand in their non-establishment-style assessments of the election? What wisdom do they have that the elites simply can’t grasp—and that isn’t being reported in the media? What are those who put Trump into office actually seeking? On the one hand, it’s simple: reduce the power of elites. On the other hand, now that the election is over, what the masses want from Trump is deeper than the elite classes realize. What is it?
The answer to this question will be discussed in Part II of this Article, out next week.
For now, the glaring reality of the election stands, and there are those who know what it is, and those who don’t. To repeat: Voters elected Trump to reduce the power of elites.
Those who understand this, understand the election. They also understand why the media is so extreme and angry right now, and why this extremism will continue. Those who don’t understand this don’t understand the election—or current politics in Washington and around the nation.
Those who understand this also know that the elite media will do everything in its ability to get back its power. Everything. We no longer have anything resembling an objective mainstream media—it is now the leading arm of elites on the warpath. We need to see everything coming from the elite media in this light.
January 26th, 2017 // 7:59 am @ Oliver DeMille
(How Bias in Media is Getting Even Worse, and What To Do About It)
The U.S. media hasn’t been so blatantly biased since the days of the muckrakers. For decades many Americans have known that the mainstream media has a liberal lean. It treated Bush I, Bush II, McCain and Romney differently (worse) than progressives like Clinton, Gore, Kerry, Hillary, and Obama. But in the Trump era the media has gone all in: it has largely lost its sense of objectivism or balance.
This isn’t limited to a few channels or outlets. Nearly every news organization that once claimed journalistic objectivism is clearly one-sided. Journalism is dead, for all practical purposes, as some political watchers have suggested.
Consider TIME magazine’s handling of its famous Person of the Year. In 2015 it refused to put Trump on the cover, even though by the end of that year he had clearly turned American politics on its head (for good or ill, depending on your viewpoint). When the magazine did choose Trump as the 2016 person of the year—even TIME couldn’t deny the surprising revolution he presided over—it did so in backhanded fashion. The cover announced: 2016 Person of the Year, Donald Trump, President of the Divided States of America.
Note the word “divided” in the last sentence.
This kind of bias is now the norm. Not that our nation isn’t divided. It clearly is, and no doubt Trump would gladly own responsibility for that in 2017. But it was deeply divided in the Obama era as well. Why would objective media attribute such divisions to Trump but not Obama? Indeed, this level of divisiveness is perhaps the major lasting feature of President Obama’s legacy. Much of the media simply ignored how many people were deeply alienated by Obama’s politics. Top media outlets literally fawned over Obama, and his heir-apparent, Hillary Clinton, during the past several years. It lauded them, praised them, discounted and downplayed failures—as if such things didn’t matter in the presence of such glowing leaders.
A commentary in The Atlantic noted that Trump voters tended to take his words seriously but not literally, while Hillary supporters took Trump’s words literally but not seriously. But progressives applied the same standard to Obama: they took him seriously but not literally, quickly dismissing broken promises about Syria, Guantanamo, keeping one’s healthcare provider, the cost of insurance going down, etc. They excoriate Trump on the details of his promises, while giving Obama a pass on a long string of failed promises.
Extremism in media is now the fashion. Extreme flattery of Obama and Clinton coupled with extreme vilification of Trump and anyone who voted for him. Even if you dislike Trump’s approach or politics, this development in our national media is alarming.
Moreover, we seem to be entering a new era of media behavior. During the Bush years the mainstream media was clearly liberal, but conservatives, centrists and even progressives could find some balance in media coverage by reading and watching both sides of the media: The New York Times and also The Wall Street Journal, MSNBC and also Fox, The Atlantic and also The Weekly Standard, The Huffington Post and also National Review.
For every mainstream liberal media outlet there were comparable conservative publications and networks. This is no longer the case. Conservative news is still available, but much of Fox is anti-Trump, and many traditionally conservative media outlets publish articles that read like The NY Times or Huffington Post in their attacks on Trump and his embryonic administration.
The reason for this is obvious. Many on the Right distrust Trump, considering him an authoritarian at best (which may or may not turn out to be true), and the old balance of Right versus Left is almost entirely gone in the media landscape. Where are the publications or channels that support the administration’s platform, viewpoint and interests? They are practically nonexistent.
Regardless of how you feel about Trump as president, this is a dangerous development. Americans have long decried Soviet-style media in nations where the government controlled journalistic outlets and the people only got one side of the story—the official line as approved by the dominating state. In the United States we are witnessing the rise of the opposite extreme: a one-sided media that only tells the American people one story: zealous anti-Trump rhetoric. The media that blasts Trump for his bombast also frequently surpasses him in pomposity (toward Obama and Clinton) and arrogant anger (toward Trump and Trump voters). They spin and inflate (and quite simply misreport) policies, utterances and choices he makes, without clarification or retraction.
Again, this is alarming, even if you dislike Trump. A one-sided media simply cannot be objective, and to aggressively set out shape public opinion in such a fashion is a reprehensible tact for a sector of society that has traditionally been a watchdog of democracy. If this continues, we won’t be getting the full story, or the real story, in the years ahead. And we won’t be able to balance mainstream views with strong media reporting from the other side—because pretty much no media anywhere cares about truthfully communicating both sides. Nearly the entire industry is committed to either passionately attacking the new administration, or misrepresenting its loyal opposition.
On a deeper societal level, part of this growing media problem is couched in the national antipathy toward the so-called experts. Our economy has become so specialized in many sectors that people are increasingly expected to rely on experts for major decisions in their lives (educational, financial, parental, healthcare, etc.), often without even seriously questioning the “accepted expert wisdom” or making their own choices. For the Establishment, Trump voters represent the opposite of this trend.
For example, a political cartoon from The New Yorker showed a middle-aged man, balding and portly, standing up in the aisle of an airplane and announcing to the passengers: “These smug pilots have lost touch with regular passengers like us. Who thinks I should fly the plane?”
At first blush, few of us want some regular guy from our next flight to use democracy to take over the cockpit. But the cartoon hits an even deeper chord. While it is apparently meant to criticize many American voters, it actually does a lot to point out flaws in the expert-dependent Establishment.
First, nearly all passengers shown in the cartoon are raising their hands. Democracy is strongly against the expert-dependent Establishment right now. Most people are skeptical of experts, seeking a second or even third opinion even in arenas where expertise is most sacred.
Second, the word “smug” in the cartoon is poignant. Only smug experts would believe such a political cartoon would make their point; the truth is that most voters, unlike most airline passengers, aren’t seeking a political expert in the White House. They specifically prefer a non-expert, a non-politician. The Establishment can’t quite grasp why anyone would hold this view. They really are out of touch.
These people want a wise and effective leader, not a bureaucratic manager. They want a visionary and strong commander-in-chief, not another smug political specialist. (There is an excellent commentary on the same cartoon in USA Today, January 6, 2017.) Voters want an outsider. They want someone who doesn’t actually like the bureaucracy and the lobbyists. Most of the media realizes this on a logical level, but just can’t bring themselves to believe it in their gut. Mainstream media wants government by experts. A lot of voters don’t.
Of course there is an important place for expertise in society. But clearly elections should be up to the people, all the people across the U.S. – not just the population-dense regions on the right and left coasts. Our era of over-reliance on professional political experts and bureaucratic dominance has caused a lot of problems. Concerning journalism, we want experts in telling us the truth and letting us make our own decisions, not experts of spin who sway the populace to a certain political view—whatever it is. Unfortunately, for decades many in the media have been telling us that their opinion is the truth—to trust them—to follow them—because they know what is best for us. The people are calling their bluff.
At the highest level, the Establishment acts on the assumption that experts determine elections. For example, most elites are convinced that expert choices, not voters, really swayed the latest election, and other elections as well. This is broadcast in various ways, including the following Establishment beliefs:
- Obama’s social media gurus and ground game won 2008 and 2012, while Jared Krushner’s Silicon Valley-style analytics and online campaign won 2016 for Trump.
- Russian hackers were responsible for election outcomes, since clearly the American people wouldn’t have voted this way without some kind of sinister expert intervention.
- Media sway makes the biggest difference in presidential elections, and the mainstream media was clearly anti-Trump; therefore, Fox and talk radio are responsible for the “skewed” results on election night.
In reality, voters gather information in many ways, consider their options, and then select whom they want to lead (or vote against the candidate they least want to be in charge). It is ironic that the Establishment lauds democracy at every turn, but doesn’t actually believe in it. The Establishment believes, rather, that experts ultimately determine votes, one way or the other. And that they should.
Again, this arrogance is only expanding in the current media environment. I expect it to widen and deepen in the months and years ahead.
In all this, what are freedom-loving citizens to do? What about those who sincerely want to get both sides of the news and really compare what the White House is doing and thinking to what the mainstream media is reporting? Answer: such citizens are largely out of luck. They aren’t getting much help from institutional media.
They can try reading The Economist, which is certainly not a pro-Trump or even remotely conservative publication but is at least European and not quite so caught up in the anti-Trump venom of the American national media. This is a good option for some readers. Or they can read the business news, like Fortune and Forbes, for example, which focuses on commerce and addresses the news only tangentially—and with less extremism. Again, some readers can use this kind of sidebar-journalism to get a more objective read on the new.
But it’s hardly a solution. The real answer is for the media to self-regulate and deliver objective, quality journalism. Until this happens—if it ever does—citizens who want to know what is really happening are going to need to find quality sources of knowledge. Most sources of this kind will come not from big media outlets, but rather from deep thinkers who share important views online.
Find writers and thinkers—instead of relying on publications or channels—that spark your thinking and help you see things differently than the major media retailers and showrooms. Since the big media isn’t doing its job anymore, it’s up to us as individuals to more actively seek out ideas and knowledge.
The silver lining in this new era of media is real. In the current news environment, it is up to each of us to dig deeper and think more independently if we want to see through media spin and really keep an eye on the news. The mainstream media is taking much of the nation on a pied-piper-style spin, and only the vigilant will actually know what’s really going on in current events.
(Consider taking our Current Events Course, which helps participants learn to more effectively see through the media, whatever its agenda, and know what’s really happening. Once you’ve completed this course, try getting your news by reading a major publication from both sides of the aisle, such as The Atlantic and also The Wall Street Journal, and then adding one or more of the sources listed above to get a more objective view of things. We all need to read more closely in this new era of media, and keep our thinking caps on no matter what we’re reading.)
December 27th, 2016 // 7:50 am @ Oliver DeMille
Part II: The Central Issue of the Trump Era*
“The median [U.S.] family debt went from an average
of $25,000 per family in 1989 to over $70,000 in 2010.
It’s getting harder to make ends meet,
and harder to stay financially afloat.”
—The 5 S’s of Money (citing the Center for American Progress)
LET’S get straight to the point. The biggest battle in the Trump Era probably won’t be capitalism versus socialism. It will be free enterprise versus crony capitalism. For America’s future, free enterprise simply must win.
But crony capitalism is far ahead in this battle right now.
To understand this, we need to define some terms. There are two major types of economies: market economies and command economies. The first is based on freedom, the second on force.
Within these two branches there are a number of subtypes, including various kinds of command economies such as socialism, communism, fascism, collectivism and different applications of economic authoritarianism and totalitarianism.
The divisions of market-style economies are sometimes more confusing to people from free societies, because most of us have been trained to evaluate political and economic issues in binary mode where we narrow any debate down to only two sides—such as liberal vs. conservative, socialist vs. capitalist, democratic vs. totalitarian, good or evil, Allies or Axis, believers and atheists, idealists and realists, free or not free, and so on.
That said, we live in an era where the various types of market economics are now in conflict. During the Cold War the world was divided between two great camps, with market economies of all types firmly allied against the command economies–the NATO nations of the West versus the Soviet Bloc and world communism.
But after the Cold War (and especially in the post-9/11 world), this has dramatically changed. There are forces supporting each of the various types of market economies, and these are often pitted against each other in ways unthinkable before the fall of the Berlin Wall in 1989.
Differentiating between these sub-types is important for anyone who wants to accurately understand what is happening in today’s world. When people use the term “capitalism,” they may be referring to any of the following five types of market economies. And the truth is that each of these models has drastically different goals and processes:
- Mercantilism: A system where the law allows market forces but gives preference and special benefits to the sector of the economy owned (or directly controlled) by the government. Also known as “state capitalism.” This system was historically used by the British Empire. As Parag Khanna put it in 2016: “…all countries practice some form of ‘state capitalism’ today, whether subsidizing strategic industries, restricting investments in key sectors, or mandating financial institutions to invest more at home.” (Khanna, 2016, Connectography, 33)
- Corporatism: A system where the law encourages market forces and also gives preference and special benefits to the sector of the economy owned by big corporations within the nation, sometimes referred to often as “Big Business,” “The Military-Industrial Complex,” or simply “The Establishment.”
- Keynesianism: A system where the law allows market forces but gives preference and special benefits to companies and institutions that are so big that they tend to care more about their public image for societal responsibility and promoting social justice than about profit(s), market share or stock value. According to Keynes himself, Keynesianism seeks the goals of socialism through market means.
- Capitalism (crony capitalism): A system where the law encourages market forces and also gives preference and special benefits to the sector of the economy owned by big capital—including big corporations like in Corporatism, but also wealthy foreign and multinational corporations, and highly influential non-corporate institutions such as rich foundations, moneyed trusts, political parties, well-funded lobbies and special interest groups, affluent non-profit entities, wealthy families, moneyed foreign investors, and others with large amounts of capital. Under this system, the rich rule society, and they naturally influence government to maintain policies that benefit the rich more than others.
- Free Enterprise: A system where the law encourages market forces and gives no special preferences; it protects equal rights for all individuals and entities and leaves initiative and enterprise to private individuals, groups, businesses and organizations that are all treated equally and with minimal legislation by the legal code.
All five of these sub-types are market-based, and sometimes called “free market” or simply “market economy” systems. But please carefully re-read the differences between these five economic models, because, again – while they are all market systems, they differ drastically in theory and practice.
For the last three generations, these five types of market economics have frequently been lumped together under the label of “capitalism.” While this is technically inaccurate—because capitalism is a sub-type rather than the whole of market economics—this is the way the word “capitalism” has been used and understood by most people.
Under this popular definition, capitalism is synonymous with “market economics” and is a label for the entire free-market model. But even when people use this broader definition, it is important to distinguish which of the five types is being discussed—because the future of freedom under capitalism, corporatism or mercantilism will be a very different reality than it would be under true free enterprise.
So, to summarize, we have five definitions of “capitalism” in the current usage, and another definition which uses “capitalism” to refer to all the five types together. Naturally, these definitions are frequently confused in our contemporary language. Note that even the broader definition of “capitalism” includes every market approach from corporatism and Keynesianism to mercantilism and crony capitalism. In all of this, free enterprise is often forgotten.
Even worse, in the realm of modern politics all five of these systems are frequently lumped together and referred to as “democracy” or simply “freedom.” While this is a partially accurate definition, it confuses the fact that these five kinds of systems behave very differently and offer different results to society.
Madison Weighs In
Understanding the details and nuances of how these words are used is extremely important to maintain freedom. The American founders dealt with several similar language challenges, such as when Madison felt the need to write Federalist Papers 10 and 14 explaining the important differences between democracies and republics.
He also used papers 18, 19 and 20 to clarify the differences between federations and confederations, as well as national and federal governments. Without such clarity, the Constitution would have been confusing to many Americans who were deciding whether or not to ratify it. The fact that today most Americans don’t understand these differences illustrates how far we have devolved from the level of education exemplified by the founding generation.
There are numerous similar examples, and part of being a free people is taking the time to understand the nuances of economic and political freedom and the language of liberty. No nation in history has long maintained freedom at a level deeper than that understood by the regular citizens in the society. And note that few things are more essential for free people than clearly understanding what type of economic system they want.
Based on the definitions above, consider the following three observations:
- All five types of market economies are better (meaning they have more freedom, opportunity and prosperity for more people) than all types of command economies.
Even the market approaches with the least freedom (Keynesianism and mercantilism) are significantly better than the command systems with the most freedom (collectivism and socialism).
- Still, when comparing the five subtypes of market economies, free enterprise is significantly better (with more freedom, opportunity and prosperity for more people) than mercantilism, corporatism, crony capitalism, and/or Keynesianism.
- The United States, Canada, Britain, France, Switzerland, Japan and other leading free nations of the world today have far too much mercantilism, corporatism, crony capitalism, and Keynesianism—and not enough free enterprise.
This is surprising to most citizens of America and the free world. For example, many conservatives in the United States argue that we are a “capitalist” nation or vote for the “capitalist” candidate and conclude that all is well, when in fact free enterprise is under attack from socialism but also just as strongly from mercantilists, corporatists, Keynesians and crony capitalists.
Voters and citizens must know what to look for when a policy or candidate claims to promote “capitalism.”
Real Life Differences
Some might argue that most of this is mere theory, and that the United States today is a free enterprise society rather than a crony capitalist system as outlined here. Such an assumption is incorrect. The U.S. commercial code has numerous laws which are written specifically to treat people differently based on their wealth—and extending special benefits to those with more capital.
For example, it is illegal for those with less than a certain amount of wealth to be offered many of the best investment opportunities. Only those with a high net worth (the amount is set by law) are able to invest in such offerings. This is capitalism, not free enterprise. Under free enterprise, the law would be the same for all people.
Also, in many cities employees of the wealthy are allowed special legal benefits—such as carrying firearms (personally or through body guards), operating under false names, or traveling with different security measures—that are withheld from the regular citizens. However a person feels about gun laws or financial policies, such laws specifically treat the rich and powerful differently than the rest. Crony capitalism gives them special benefits.
This bears repeating: The laws of the United States stipulate that if you have more money you can invest in business opportunities that people with less money cannot (to study this in more depth, see the terms “sophisticated investor,” “accredited investor,” and SEC regulations on private investment offerings). The specific amounts and details are changed by law over time, but we are absolutely a crony capitalist nation where the laws give higher benefits to the rich.
In fact, many of these laws, including all the examples above, specifically benefit the wealthy to the detriment of wage earners. Regular working people are excluded by law from the best investments and various other perks and benefits. This system is called capitalism, and it is a bad system—better than socialism or communism, to be sure, but not nearly as good as free enterprise.
With all this said, the amazing thing is that this reality is basically ignored by almost everyone, mainly because those who point out the flaws of capitalism tend to be promoting socialistic solutions rather than free enterprise.
As a result, people are accustomed to attacks on the rich by those who want bigger government. But almost nobody has experienced those who want more free enterprise and much smaller government pointing out that the rich have terribly unfair legal advantages in our society—and that this is a bad system.
In fact, this is so deeply ingrained in most people that when they hear anyone criticizing the unfair benefits enjoyed by the rich, they seldom believe that the speaker is making a case for smaller, limited government and less socialism. We are so conditioned, that this possibility just does not compute.
Some may say that I am overstating this point. “Of course the rich and powerful are treated differently than the rest. After all, they are rich and powerful!” While this may be true, such a view is itself a symptom of aristocratic society with preferential class divisions. And in nations where the laws and government treat the rich and powerful differently, freedom is always in decline.
In free enterprise systems, the law allows all people to take part in any investments. If there are laws about bodyguards, firearms, using false names, or anything else, they are the same for every single citizen in the nation. This is what free enterprise means, because such a system gives everyone truly equal opportunities. In a system where Congress creates one set of laws for some, and different laws for those with wealth, status, or position, free enterprise isn’t allowed to give people the full benefit it should.
Indeed, in our system, Congress goes so far as to exempt its own members from certain laws and guidelines; this is especially harmful when members of Congress are allowed special financial opportunities that other people are not. Thus it isn’t surprising to see people elected to Congress and within a few terms become extremely wealthy, even though their actual salary could never generate such prosperity. They are allowed (by their own votes in Congress) to make deals that are illegal for regular people. This is crony capitalism, not free enterprise.
The Local Test
Another way to test the level of free enterprise in your society it to start a business in your local area. In fact, start two. Let the local zoning commissions, city council and other regulating agencies know that you are starting a business, that it will employ you and two additional employees, and then keep track of what fees you must pay and how many hoops you must jump through to gain the needed approvals.
At the same time, have your agent announce to the same government officials that a separate company, a big corporation, is bringing in a large enterprise that will employ 4,000 people—all of whom will pay taxes to the local area and bring growth and prestige. (Don’t really announce this—because if it’s untrue you might be breaking the law, unlike big corporations that are allowed to routinely float such trial balloons.)
Then simply sit back and watch how the two businesses are treated. In most towns, counties and cities in the United States, the small business will face an amazing amount of red tape, meetings, filings and obstacles—the big business will likely be courted and given waivers, benefits and government-funded publicity.
Add up the cost to government of both of your proposed businesses, and two things will likely surprise you: 1) how much you will have to do to set up a small business, and 2) how much the government will be willing to spend to recruit the large business.
This is the natural model in a crony capitalist system. Capital gets special benefits and a different level of treatment by the government. The result in such a system is that the rich get richer, the poor get poorer, entrepreneurialism is discouraged, and many jobs, innovation, investments and growth move to other nations.
In contrast, under free enterprise, everyone is treated the same by the law. Free enterprise is a better system than capitalism—it provides more freedom, opportunity and prosperity to many more people.
Bait and Switch
All of this is more than a mere philosophical or semantic argument about which word we should use. The truth is that many people, probably most people, who feel positively about capitalism actually mean free enterprise when they say “capitalism.” The things they admire about “capitalism” aren’t special benefits to the rich and different laws for the rich versus the poor or middle class, but rather a true free market where everyone is treated equally by the law and where each person has true and equal freedom of opportunity.
The problem is that this definition of capitalism seldom makes its way into official government policies or the law. People support free enterprise, which they call “capitalism,” and the government implements public policy that is certainly capitalism (because it favors those with more capital) but violates the principles of free enterprise. This “bait and switch” is one of the main problems with using the term capitalism.
If by capitalism we mean true economic freedom and laws that treat everyone the same, regardless of their level of wealth, and if this thing we call capitalism made it into our laws and became our operational policies, I would ardently support it. In fact, I would support such a system whether we called it free enterprise, capitalism, or even zebra- or giraffe-ism. The system, not the label, is the important thing.
The problem occurs when people support a thing called “capitalism” because they believe it is free economics for all, and then those in power take this popular support and use it to enforce something very different. This is the current reality, and it is hurting the middle and lower classes by decreasing their opportunities and abilities to prosper. Again, most people don’t even realize this is happening to them.
Freedom for All
In short, call it what you will, but we need a system of truly free economics with laws that treat everyone the same. Words mean things, and the word “capitalism” emphasizes special benefits to the wealthy with capital just as naturally as the phrase free enterprise promotes freedom and enterprise for all. Still, it is the actual system that matters, and all of us would do well to carefully observe political and economic details and nuances—regardless of how things are labeled.
When the laws are altered at all levels so that government entities treat all businesses and individuals the same, regardless of how much capital they have (or don’t have) in the bank or as assets, the natural result is the spread of more business, innovation, entrepreneurialism, jobs and economic growth. Free enterprise, not government favoritism of any sort, is the most effective economic model.
If we want to call the future of our society by the name capitalism, fine. But we must find ways to effectively change the current model to a system where the law treats everyone the same by maintaining true freedom and opportunity for everyone—without special government benefits for a few elites.
It is important to recognize that this is about more than quibbling over what word to use. As long as our society gives special legal and financial benefits to elites, while withholding them from the rest of the people, freedom will continue to decrease and the gap between the 1 percent, and even the .01 percent, and the rest will keep expanding. For the typical family, this means they will have to work longer and harder in increasingly scarce jobs in order to earn less and less. This is a bad economic model—bad economically, and bad for freedom and society.
Today’s Major Challenge
To put this all in perspective, the Trump Era is on target to emphasize mercantilism, corporatism, Keynesianism, and especially crony capitalism.
This needs to change. We need to focus on free enterprise.
But first, people need to realize that this is even an issue. The truth is, the battle between free enterprise and other types of capitalism isn’t just an issue right now—it is the central issue of the Trump Era.
We need to start acting like it.
*(Note to Reader: This post is part of an upcoming new book by Oliver DeMille, entitled Free Enterprise versus Capitalism: Battle for the Future of Freedom.)
December 14th, 2016 // 8:08 am @ Oliver DeMille
In light of the recent election, a deeper understanding of the real battle facing America in the year and decade ahead is incredibly important!
But surprise: It’s not what most people think.
THERE is a hidden battle raging for the future of America. And, by extension, this battle impacts the prospects for freedom around the world. Indeed, if the great freedom system created by the Declaration of Independence and the U.S. Constitution is lost in the United States, it will likely take centuries before real freedom regains its current level of influence in the world.
This is the great struggle of this generation, but sadly the center-point of this contest is unclear to most people. Only a relative few understand what is actually going on behind the curtain. In fact, this battle for our future hinges on two main questions.
The first question is:
Will Socialism or Free Enterprise be the leading economic system of the 21st Century?
This conflict has been boiling for nearly two centuries, but it is now reaching its climax in the United States. If socialism wins the day, the future of freedom and economic opportunity in the decades to come will be bleak—in North America and around the world.
The decline of the free world will accelerate, China and other socialist-based nations will rise more quickly and gain global power (often by applying free enterprise principles), and the Founding Fathers’ experiment in constitutional self-government will end. Our standard of living will decrease in the decades ahead, the standard of living for our children will be much lower than ours, and their children will likely have a lower standard still.
If, on the other hand, free enterprise wins this battle, the future of American influence will be strengthened, freedom and economic opportunity will spread, and the free world will reboot and rekindle the philosophy of liberty for all humanity.
But the future of this battle is very much in doubt, mainly because the forces of free enterprise don’t actually know who they really are. Free enterprise is losing in both major American political parties, and in the media, academia, Hollywood, and among the political and financial elite. The combined supporters of socialism, though certainly not a unified team, are clear about their goals and strategies. In contrast, those who stand for free enterprise are fractured and unsure, because they are divided by a central confusion about what free enterprise really is. Even when they win elections, the divide remains.
In nearly all writings from the past five decades, when authors speak of socialism and its top competitor, the words used are socialism vs. capitalism. This brings us to the second great issue in the battle for our future:
The second question is:
If Socialism isn’t victorious in dominating the 21st Century, will the winner be Free Enterprise or Capitalism?
These two great questions (socialism vs. free enterprise on the one hand, and capitalism vs. free enterprise on the other) will be the guiding themes of the coming decades. If capitalism wins, the consequences won’t be as negative as socialistic dominance, but they will not be as positive as the results would be under free enterprise.
When a friend told me a while ago that he thinks socialism may be the only answer to our nation’s decline, I was surprised. It’s not what I’m accustomed to hearing from him over the years. But I think I understand what he was saying. Capitalism as we currently apply it too often wreaks havoc with our freedoms, our economy, and our future.
I don’t like the word “socialism” because it has too much baggage (totalitarianism, Marxism/Leninism, a string of failed nations that destroyed their society by attempting to adopt it, etc.) and because there is a better answer. But I do see the desperate need to deal with what modern society calls “capitalism” has done to us. When some people say “socialism”, they mean that capitalism is broken and we need a real solution—soon. And they’re right.
I’m not sure if this is what my friend meant or not, but a lot of people feel this way. It’s a common bond of many who are tired of the “politics as usual” options provided by the Establishment. The desire for something different cuts across the political divide, and its ranks are growing. It has won some surprising elections, but frequently such elections were followed by disappointment as those elected failed to bring true solutions that work.
What does this all mean? What’s behind it all? What is really happening?
Let’s start with the basics. Put simply, free enterprise and today’s system of capitalism aren’t the same thing. Free enterprise is strongly supportive of freedom for all people, while what usually passes for modern capitalism isn’t free enterprise at all, but actually crony capitalism. And crony capitalism deeply undermines freedom.
The problem is straightforward. Both socialism and crony capitalism are steeped in class divisions. Neither treats everyone the same before the law—whether they’re upper class, middle class, or lower class. Socialism claims to do this, but it has never created a society that actually delivered on its promises. In fact, socialist nations have some of the widest divides between the super-rich and poor in the world. And the underclasses in socialist systems are widely neglected, terrorized, and abused.
Crony capitalism is also a disaster. There is a different set of laws for the wealthy than for everyone else, laws that help the rich get richer and the powerful gain more power—while the under classes are routinely treated differently by officers of the government, regardless of what the laws say on paper. To repeat: Under a crony capitalist model, the elite classes have numerous special benefits in the law that allow them to increase their wealth and power at the expense of the rest of us. The law is written to help them, and to keep others from effectively competing with them.
The truth is, crony capitalism is a terrible system. Terrible for freedom, and terrible for prosperity. It lasts because a few elites at the top obtain huge wealth and inordinate power—and they like it that way. Likewise, socialism is terrible model. It almost never gets implemented in a way that even remotely resembles what its proponents idealize and promise. It nearly always becomes an Orwellian caricature of equality, freedom, and “prosperity for all.” Both systems are deeply flawed.
Crony capitalism gives too much power to the money elites, who frequently use it to influence government; socialism gives too much power to government elites, who nearly always use it enrich themselves and give special benefits to their families and colleagues. Both socialism and crony capitalism have proven repeatedly and consistently harmful for the regular people, the masses.
Part of the problem is the binary way in which most moderns see this struggle. Meaning: Many people think that if socialism increases in a nation, capitalism must be decreasing, while if capitalism declines then socialism is on the rise. The truth is that socialism and crony capitalism are natural partners. When the crony capitalists give great power to wealthy elites, the people naturally begin demanding socialistic programs from their government.
Likewise, when socialists increase the amount of money government takes from the wealthy to offer programs for the poor, they make the government bigger and bigger—and the elites who inevitably control such governments from behind the scenes naturally absorb this increased power. The bigger the government—even in the name of social benefits for the citizens—the bigger the power of the aristocratic elite class.
These processes happen simultaneously in most modern nations of the “free world.” Centralized governments get bigger, they control more things in the lives of regular citizens, and a small number of elites enjoy a rapidly increasing share of the money and power.
Best of all, for the elites–when the regular people get upset with an arrangement that is making life harder and worse for most of them, the elites use investment (in businesses, banks, lobbying firms, special interest groups, media, etc.) and donations (to academia, think tanks, hugely powerful private foundations, and political campaigns, etc.) to increase their own influence. It works, year after year, decade after decade. Elites get more powerful and own a bigger share of the wealth.
At the same time, the regular citizen finds it harder and harder to make ends meet, and has less and less influence. Many of the elite-owned and elite-funded media organizations, academic institutions, producers of entertainment, and other top influencers fuel the “socialism vs. capitalism” debate, often using other labels (such as conservative vs. liberal, Republican vs. Democrat, etc.).
This debate makes many of the regular people think that someone is on their side; and it also gives them someone to see as “the enemy.” But both sides, many in both major political parties, and the Establishment wings of both conservatism and liberalism, are funded largely by the same small class of elites.
Again: These elites win most elections, because they fund both sides. They win most policy battles, because they fund the opposing groups. They win at the bank too, because they manage each major political, media, and cultural conflict in a way that brings more of the regular people’s money into elite-owned business services, products, and corporate bank accounts.
The solution to such behind-the-scenes elite domination is a system that treats everyone equally before the law. Everyone. Rich, poor, elite, non-elite, fat, skinny, tall, short, smart, dull. Yes, there should be a separate set of laws for minors—as a protection. But all adults in a truly free system are treated equally by the laws and government officials. This is not the case under crony capitalism. Elites get special benefits.
The Moral Law and Economy
Moreover, truly free government doesn’t have any laws that are immoral. This may seem a strange concept when we are discussing economics, but it is in fact a central truth. As Bastiat explained, the people can only morally delegate to government authority to do something the people have the authority to do. You can’t morally delegate an authority you don’t actually have. Specifically, the force of government is moral only if it is used to defend inalienable rights. Any other use of force or government is immoral.
Together these two foundational principles are the key to free society:
- Laws and government actions can only protect inalienable rights.
- The government must treat everyone equally before such laws.
Socialism doesn’t do this. It recommends using government force to do myriad things beyond protecting inalienable rights. And, historically, socialist societies don’t treat everyone equally before the law—government officials are treated according to a different set of standards. What we call capitalism today has similar problems. It purposely sets out to give special benefits before the law to those with great wealth, with lots of capital.
Both socialism and crony capitalism operate like the Queen of Hearts in Lewis Carroll’s classic book Alice in Wonderland. When the Queen plays croquet with people from her realm, she must win every shot. Not just every game, but each and every swing of the mallet. Everybody lets her win, knowing that if she is bested in even one shot the person who bested her will hear the words: “Off with his head.”
What kind of system is that?
Actually, people who live in socialist nations or crony capitalist societies are used to it. They don’t usually lose their heads, but they know that the whole system is stacked against them and their children. An elite class rules things—regardless of how proponents of socialism or capitalism claim things are supposed to work—and the elites get their way, either by law or by the actions of government officials (despite the so-called law).
In our modern “capitalist” nation, there are a number of laws on the books that treat elites very differently from everyone else, and long-standing practices and policies that treat the underclasses even worse. That’s not socialism, it’s crony capitalism. And it’s a tragedy.
Still, the answer isn’t socialism. Marx’s model is just another flawed and broken system. The answer is true free enterprise—where the government only protects inalienable rights, and actually does protect everyone’s inalienable rights (no matter their social status).
It’s hard for many moderns to grasp just how effective such a model can be. We simply have very little experience with it. But with true freedom, everyone has opportunity. If the upper class wants to dominate, it can’t. The law won’t let it. (Which is precisely what the “pure socialists” are looking for.) If the government wants to dominate beyond it’s proper role, it can’t. (Which is precisely what free enterprisers seek.) When this is the system, as Tocqueville put it in Democracy in America, everyone belongs to the same class—all are treated equally and appropriately before the law.
The only ones who are let down by free enterprise are the crony capitalists or elites, who truly want to dominate. Their motto, as described by an article in The Atlantic on the culture of Wall Street investment bankers, is telling: “It is not enough to succeed. Others must fail.” No win-win is good enough for them. Control is the only acceptable outcome. That’s the driving mantra of elite rule, both in applied socialism and crony capitalism.
If the word “socialism” meant stopping such elite domination and spreading a system of true freedom, I’d be all for it. But the thing is, it already has a name: Free Enterprise. And it works, as long as we don’t let crony capitalism, elitism, or socialism creep in.
Sadly, few people understand the difference between free enterprise and crony capitalism. Yet the differences are largely driving our current decline. It is time for anyone who truly cares about freedom in our modern world to clearly understand this battle, its roots, and the future it is creating for us even as we speak. Moreover, it is time to remedy this situation before it entirely restructures our society. Freedom hangs in the balance.
This is about freedom, success and progress, and how all three are served better by free enterprise than either socialism or crony capitalism. It is about who we really are as people, Americans and members of the free world, and why the differences between these two ways of life—capitalism and free enterprise—are at the root of our future.
For far too long free enterprise has been held back and watered down by the tenets of capitalism. In fact, perhaps the most significant reason socialism has been able to capture the support of so many people in modern times is a direct result of confusing free enterprise with capitalism.
When the differences between capitalism and free enterprise are clearly understood, and the flaws of capitalism are removed from our opinions of free enterprise, socialism will have little or no chance of winning this great battle for the hearts and minds of the people.
Before World War II many Americans combined their view of Stalin’s communism and Hitler’s Nazism into one group considered an axis of evil, and during the Cold War many people mistakenly saw communist China, Russia, North Korea, Vietnam, Cuba and others as one cohesive entity. This caused numerous flawed policies—and cost far too much in blood, sacrifice and treasure—because national leaders took action based on faulty assumptions.
Likewise, today many people erroneously lump capitalism, democracy, and free enterprise into one indistinguishable whole. But free enterprise is a system of true freedom, and while democracy is clearly better than totalitarianism and capitalism is in some ways superior to socialism, free enterprise is significantly better than all these alternatives.
Free enterprise deserves to be understood on its own merits, without the baggage of capitalism weighing it down. Nearly all of the legitimate criticisms levied against free enterprise are actually attacks on the flaws of crony capitalism. As a result, free enterprise has seldom received a full consideration on its own merits. Indeed, if the battle for the 21st Century comes down to capitalism vs. socialism, socialism may very likely carry the day.
True free enterprise, in contrast, is the best economic and political system known to mankind, and if it is understood as it truly is, free from the stains and blemishes of crony capitalism, few will see socialism as the right choice for humanity. Ideas have consequences, as the great Richard Weaver assured us, because all human actions aim at some goal, some ideal. What we hold up as our standard impacts our most important choices as a nation. As long as our ultimate objective is capitalism, socialism will always have its coffers full and its meetings packed. Capitalism is flawed; so is socialism.
In contrast, free enterprise is a very different model indeed. It is time to truly understand free enterprise, to decide as a generation if free enterprise or it’s de facto modern opponent, capitalism, deserves our support against socialism, and which model we want to pass on to our children and grandchildren.
Again, if the battle is between socialism and crony capitalism, as we have seen for generations, the victor is still unclear. But if free enterprise has a real opportunity in the full light of day, if every citizen in the free world has the chance to understand it for what it really is and choose to support or reject it, the days of socialism are numbered.
And free enterprise is not some idealistic dream. It alone is the proven system of widespread freedom and economic opportunity in mankind’s history. Free enterprise is the basis of most real and lasting freedom everywhere, whether people have recognized it as such or not. Even where capitalism has gotten credit for freedom and prosperity, the truth is that free enterprise was the actual source of success.
As free enterprise goes, so goes freedom—in every nation of the globe, and through every epoch of human history. It has seldom received its due, but it has been at work wherever freedom existed, spreading opportunity from behind the scenes.
It is now time to give free enterprise a bigger chance, to at the very least see what it stands for on its own, how it differs from capitalism, and what it promises for those who implement it in their society. This is a book about freedom, and the reality that the actual principles and processes underpinning all human freedom are found in free enterprise.
One thing the new leadership in Washington, and the people, need to clearly remember is this:
To the exact extent that free enterprise (not crony capitalism) flourishes in the 21st Century, we will see real freedom expanding its blessings in America and in the world.
(Note to Reader: This post is part of an upcoming new book by Oliver DeMille, entitled: Free Enterprise versus Capitalism: Battle for the Future of Freedom. Look for Part Two of this report, which will provide more details on this great hidden battle of our time, in another post coming soon.)