Economics

A U.S. GRAND POLICY

October 10th, 2011 // 10:54 am @ Oliver DeMille

The Jobs Plan We Need

In the furor over the national debt, deficits, stimulus programs, the Obama Administration’s proposed jobs plan and the Republican responses, we are missing a simple reality.

America right now is in desperate need of a clear, simple, overarching Grand Policy.

The Grand Policy would look something like this:

Every new proposal in government that in any way impacts business and/or the economy will be measured by its likelihood of incentivizing economic growth, increased investment, and higher levels of quality employment. Only proposals which effectively encourage these things will become law or policy. Period. No exceptions.

That’s Phase I. Phase II is to comb through all regulations that were adopted during the last ten years that affect business or the economy and apply the same standard. Any laws and policies that don’t incentivize economic growth, increased investment and higher private-sector hiring will be revoked.

Phase III will carefully analyze each of the cancelled policies and determine if any are validly good for the nation. Those that meet this test will be reconsidered by Congress.

Some might argue that such a re-evaluation of our economic and business policies would be unwieldy, costly and time-consuming.

But this line of reasoning actually supports the need for this Grand Policy.

The reason this re-evaluation would certainly be unwieldy, costly and time-consuming is that far too many regulations have been adopted during the past decade.

This fact is a major cause of our national economic problems.

To reiterate the point, implementing such a Grand Policy would definitely be unwieldy, costly and time-consuming, but not nearly as unwieldy, costly and time-consuming as leaving such policies in place and seeing increased economic downturn, continually high unemployment, lessened investment, and most likely an inflation problem in the near future.

As to the question of who will do this work, what could be a better use of Congress’s time than to reboot economic growth by encouraging investment, growth and the resulting jobs?

Until these things are addressed, do we really want Congress working on other things?

We’re going to pay their salaries and those of their staff anyway, so why not put them on productive projects like revitalizing the economy.

In short, we need a Grand Policy that incentivizes economic growth, increased investment and more private-sector hiring.

Every policy affecting business and the economy must encourage these things.

It really is that simple.

If government policy discourages growth, investment and hiring, the result is less growth, investment and hiring.

This is where we are right now.

America is at a fork in the road, so to speak. If we take the road that continues to de-incentivize growth, investment and hiring, we’ll get less growth, investment and hiring.

I apologize for using such repetitive and basic language, but for some reason Washington doesn’t seem to grasp this reality.

For example, increasing regulations and taxes on small businesses and small-business owners—America’s proven job creators—is going to discourage growth.

Obviously, the three phases listed above are too simplistic—there is more complexity to such a change than is outlined here.

But it’s a good place to start.

Whatever the intricacies and difficulties of change, we simply must take on a national project of incentivizing business growth, investment and private-sector hiring.

If not, our economic problems are just beginning.

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Oliver DeMille is the co-founder of the Center for Social Leadership, and a co-creator of Thomas Jefferson Education.

He is the co-author of New York Times, Wall Street Journal and USA Today bestseller LeaderShift, and author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, and The Coming Aristocracy: Education & the Future of Freedom.

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

Category : Business &Current Events &Economics &Featured &Government

Definitions That Matter, II

September 26th, 2011 // 10:49 am @ Oliver DeMille

As I have said before, one mark of ruling classes in society is the understanding of nuanced definitions. In American society, the original design was for the regular people to be the rulers.

Here are some words that need to be closely considered, understood and discussed by the regular people who care about freedom:

Administration
Aggression
Allegiance
Alliances
Amendments
Aristocracy
Authority
Balances
Banks
Borrowing
Business
Centralization
Character
Checks
Citizenship
Civil Rights
Classes
Common Law
Communism
Community
Consent
Constituent
Constitution
Contracts
Courts
Culture
Currency
Defense
Democracy
Diplomacy
Duty
Economy
Election
Empire
Equality
Ethics
Executive
Faction
Fallacy
Fallibility
Family
Farming
Federal
Feudalism
Fiscal Policy
Force
Foreign Policy
Forms of Government
Freedom
Good
Goods
Guilds
Human Nature
Independence
Independents
Individuality
Investment
Judgment
Judiciary
Jury
Jury of the Vicinage
Justice
Law
Leadership
Legislature
Leisure
Liberal Arts
Liberal Education
Liberty
Limited Government
Local Government
Loyal Opposition
Mercantilism
Mixed Government
Modernity
Monarchy
Monetary Policy
Natural Law
Oligarchy
Optimism
Ownership
Political Economy
Political Parties
Politics
Popular Sovereignty
Positive Law
Powers
Pragmatism
Precedent
Principle
Private Property
Profit
Progress
Propaganda
Prosperity
Providence
Public Office
Public Opinion
Public Policy
Public Virtue
Realism
Reason
Representation
Representatives
Republic
Rights
Savings
Separation of Powers
Slavery
Social Contract
Socialism
Society
Taxation
Tyranny
Utilitarianism
Wealth
Wisdom

Category : Aristocracy &Blog &Citizenship &Constitution &Culture &Economics &Education &Featured &Leadership &Liberty &Mini-Factories

Review of Don Peck’s “Can the Middle Class be Saved?”

August 29th, 2011 // 2:00 pm @ Oliver DeMille

This article in The Atlantic by Don Peck is a must-read for those who are interested in the future of American freedom and prosperity. Highlights from the article include:

The United States is “now composed of two distinct groups: the rich and the rest. And for the purposes of investment decisions, the second group” doesn’t matter.
The new name for this state of society, coined by three analysts at Citigroup, is “plutonomy.”
“A 2010 Pew study showed that the typical middle-class family had lost 23 percent of its wealth since the recession began, versus just 12 percent in the upper class.”
The lifestyles of non-professional college graduates now more closely resemble those of high-school dropouts than of the professional class.
The meritocracy is increasingly only a meritocracy of the upper classes.
“Among the more pernicious aspects of the meritocracy is the equation of merit with test-taking success.”
“For the most part, these same forces have been a boon, so far, to Americans who have a good education and exceptional creative talents or analytic skills.”
Most Americans don’t want the middle class to disappear or continue to shrink, and such a development would certainly bring a drastic change to the people-based freedom that has characterized the historical successes of the United States.
These trends, and the growing divide between the rich and the rest, are increasing the longer the economy remains sluggish.

Peck gives a number of suggestions for improving this situation, including:

Increasing the funding for effective job training and education.
“Removing bureaucratic obstacles to innovation is as important as pushing more public funds toward it.”
Changing our public policy to accelerate innovation.
Significantly improving our schools.
Creating clear paths of training and skilled work for those who don’t go to college.
Altering current immigration policy to allow more “creative, highly skilled immigrants” to come to the U.S. more easily.

Whether or not you agree with Peck’s recommendations, one reality is clear: The success of these things ultimately depends on incentivizing entrepreneurship, innovation, creativity and economic growth.

By spurring significant economic growth, we will directly and indirectly address most of our national economic problems.

On the other hand, if government policies continue to thwart major innovation and growth, little can be done.

Peck makes a case for higher taxes, but hardly mentions that Washington has a serious spending problem.

Democrats typically argue for tax hikes, while Republicans now mostly champion spending cuts.

Most Independents, in contrast, would likely support both—as long as the tax hikes on the professional class were used not to increase or maintain federal spending but rather to directly help put America’s financial house back in order.

Whatever your view on this debate, it is a discussion desperately needed right now.

Too much of the rhetoric on this topic is just that—two sides deeply entrenched and firmly committed to one view only.

We need fresh ideas and inspiring leadership to move beyond this gridlock.

With all this said, Peck’s article is mandatory reading. Every American should think about its main points.

Most will find things to disagree with, perhaps, but the dialogue is needed.

If the middle class is to survive and thrive, it must increase its role of deeply considering, thinking about and making its views felt on important economic and other national issues.

Freedom only works when involved citizens of all socio-economic levels actively participate in such important national discussions.

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Oliver DeMille is the co-founder of the Center for Social Leadership, and a co-creator of Thomas Jefferson Education.

He is the co-author of New York Times, Wall Street Journal and USA Today bestseller LeaderShift, and author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, and The Coming Aristocracy: Education & the Future of Freedom.

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

Category : Aristocracy &Book Reviews &Community &Culture &Current Events &Economics &Family &Featured &Statesmanship

19 Questions Answered in FreedomShift

August 13th, 2011 // 1:56 pm @ Oliver DeMille

Following historical cycles and trends, we have recently experienced a significant recession and major unemployment. According to the patterns of history, what is the third major economic challenge which is just ahead? (Learn what it is so you can prepare for it before it comes.)
Based on the lessons of past generations which faced major economic problems, what are the twelve things every family should do to deal with the economic challenges ahead?
What are the three major choices which American citizens need to make to overcome our nation’s economic problems and restore economic growth and increased freedom?
Where did Tocqueville say that the greatness of America lies? (The answer may surprise you.)
What exactly is a FreedomShift and how is one accomplished?
What is “the Law of the Vital Few?”
How is this law drastically changing America today?
What are the three top problems that are keeping America from fixing its problems right now?
What are six predictions of the Anti-Federalists from the founding generation that have come true today and are causing major problems in Washington D.C.’s ability to lead the nation?
Is our society being run by the cultures of our Elementary Schools, High Schools, Colleges & Corporations, Government Officials, or the Adults in our society?
How can we move back to adult culture, especially in Washington?
What are the three major groups in the Republican Party, the three major groups in the Democratic Party, and the other major groups running our nation politically?
(We are much more complex than the historical two-party system that dominated during the Cold War, and only those who understand these splits in the parties will know what is really going on in the nation.)
Who is the new group that is literally running the United States now? (Hint: it’s not the Tea Party, socialists, environmentalists, the religious right, liberals or even conservatives. The answer is surprising and deeply important.)
What are the nine types of people who run both of the two major political parties?
How will they impact the election of 2012?
What should we expect in the upcoming election?
What are the eight kinds of freedom, and which have we already lost in America?
Which of the eight are we now losing?
What does this loss mean directly for your family and the economy?

These challenges can be dealt with positively, but only if we know what is coming in the decade ahead.

For the answers to these questions and more on how “regular” people like you and me have all the power to refresh our liberties, read FreedomShift: 3 Choice to Reclaim America’s Destiny, available in paperback, pdf and Kindle editions. (Audiobook version, read by the author, coming soon!)

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Oliver DeMille is a co-founder of the Center for Social Leadership, and a co-creator of Thomas Jefferson Education.

He is the co-author of the New York Times, Wall Street Journal and USA Today bestseller LeaderShift, and author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, and The Coming Aristocracy: Education & the Future of Freedom.

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

Category : Aristocracy &Blog &Citizenship &Community &Culture &Current Events &Economics &Entrepreneurship &Featured &Government &Independents &Leadership &Liberty &Mini-Factories &Politics &Prosperity &Tribes

World Stats

August 5th, 2011 // 9:57 am @ Oliver DeMille

Sometimes a few statistics and quotes tell us a lot more than any commentary. Consider the following:

“…married couples, for the first time, now make up less than half (45%) of all households.”
(“For Richer, Smarter: The Decline of Marriage,” The Economist, June 25^th, 2011)

“Percentage by which a couple is likelier to divorce if one partner has a commute greater than 45 minutes: 40” (Harper’s, August 2011)

16,000 children starve every day. (Spirituality & Health, July/August 2011)

“Traditional marriage has evolved from a near universal rite to a luxury for the educated and affluent. There was barely a marriage gap in 1960: only four percentage points separated the wedded ways of college and high school graduates (76% versus 72%). The gap has since widened to 16 percentage points…” (“For Richer, Smarter: The Decline of Marriage,” The Economist, June 25^th, 2011)

“Estimated percentage of the U.S. college class of 2011 who are moving back home after graduation: 85” (Harper’s, August 2011)

The average 2011 college graduate has $22,000 in student loan debt, even though jobs are especially scarce for this group. (The Huffington Post, July 2011)

“On any given day, 1.6 million of us are blogging, 27 million are tweeting, and 1.5 billion are posting on Facebook. We’re emailing during meetings, texting during lectures, and talking on our cell phones as we tackle rush hour traffic.” (Spirituality & Health, July/August 2011)

“Last year China became the world’s biggest manufacturer, displacing America from a position it held for more than a century.” (“Rising Power, Anxious State,” The Economist, June 25^th, 2011)

Americans were asked in a poll who is the most trusted political journalist. The number one answer was, “Don’t Know,” and number two was, “None.” (Harper’s, August 2011)

“The fraction of the population now working (58.2%) is near a 25-year-low—lower than it was when the recession officially ended in June 2009.” (Robert Reich, The Wall Street Journal, July 15, 2011)

More than half of Americans do not know the recession is over. (Harper’s, August 2011) Part of this is rooted in the way economists define growth and recession. It takes 2.5% growth in the economy just to keep up with the natural growth of the working population, and we haven’t seen 2.5% economic growth for some time. So even though we haven’t technically been in “recession” for over a year, we are still falling further and further behind.

“By 2010, [federal entitlement] payments to individuals were 66% of the federal budget, up from 28% in 1965. We now spend $2.1 trillion a year on these redistribution programs, and the 75 million baby boomers are only starting to retire.” (Wall Street Journal editorial, July 29, 2001; cited on Meet the Press, July 31, 2011.)