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Entrepreneurship

Overcoming Hamilton’s Curse: Specific Solutions that Only Entrepreneurs can Provide

September 23rd, 2010 // 4:00 am @

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When America decided to follow Alexander Hamilton’s economic model instead of the Jeffersonian system, a number of changes occurred which now haunt our generation.

Jefferson envisioned a nation of small farm and shop owners that spread around leadership and prosperity, while Hamilton preferred a mercantile system with a few wealthy owners employing the large majority of the populace.

Hamilton felt that an increase in wealth among the leading families would make up for the reduced freedom and less-widespread prosperity under a mercantile economy.

After all, this was the model used by the most powerful nations in Europe.

Ironically, we have now reached a point where the greatest challenges we face are caused by the mercantile system and can likely only be solved by an entrepreneurial mindset.

Funny how history pulls these types of pranks.

Failed Solutions

Unfortunately, the two main sides emphasize government solutions (more government-provided jobs and stricter regulation against corporations and bonuses) versus big-business mercantilism (hire and fire as best fits company projections, and move operations abroad to less hostile regulatory environments with cheaper labor—or in other words, business as usual).

A third view comes from frustrated populists who want Washington to get its act together and fix the economy.

All three of these views miss the point.

Wall Street, Washington, and Main Street still seek Hamiltonian solutions: “Big institutions should fix things for us.”

The specific challenges we face, however, don’t lend themselves to institutional fixes. Our current problems need precisely entrepreneurial-type solutions.

This isn’t the old debate of whether public or private programs are best. The truth is, that debate nearly always promoted institutional fixes.

What we need now are patently non-institutional innovations.

Major Challenges

Consider the major problems we are facing.

Most are the natural results of too much reliance on institutional size and power and not enough initiative, innovation, and leadership from “little guys.”

Of course, the few who are entrepreneurs do an amazing job against increasing odds.

But a major shift to the Producer Mindset is needed to overcome our current challenges—and more such challenges will continue to arise as long as we stay addicted to big institutions.

Specifically, the major concerns we’re facing in the years and decades ahead include the following:

  • Running out of money for social security and many other entitlements.
  • The flight of many in the entrepreneurial class to Brazil, India and other places with less regulation of small business.
  • The wartime economy of China that is built to thrive in times of conflict (and struggles in times of peace).
  • The end of privacy as government is pressured to oversee everyone and all things in the name of security and protection from terrorism.
  • The end of America’s production base as industry continues to go abroad and we continue to train the world’s attorneys instead of more engineers and inventors.
  • The growing gap between rich and poor in the U.S. and globally.

Also consider the following items that will peak and commence declining in the years immediately ahead, as outlined in the book Peak Everything: Waking Up to a Century of Declines by energy expert Richard Heinburg:

  • Oil availability and cheap fossil fuels to drive the economy
  • Fresh water availability per capita
  • Easy, cheap, quick mobility
  • Available land in agricultural production
  • Political stability
  • Safe, inexpensive food

Only one of these looming challenges (security against possible Chinese aggression) can be effectively solved directly by government as it is now constituted.

And even this could be beyond the government’s scope if attacks are not military but cyberwar¹ on, say, America’s financial records or utility providers.²

A truly free government emphasizing a free enterprise economy would help against all of these, by empowering entrepreneurial action, wealth, and innovation to meet each challenge.

Heinburg’s solution to these problems is “fifty million farmers,” which he describes as a drastic increase in the number of small farmers.

Such people, Jefferson predicted long ago, own their own land and bring initiative and tenacity to producing food and also free citizens.

While the problems we face are clearly greater than a mere shift to locavorism will remedy, the heart and mind of the citizen farmer is a good start.

In addition to farmers, we need millions of producers of all kinds applying entrepreneurial talents and skills to overcoming our biggest challenges.

Habits & Complexes

There are at least two major roadblocks hindering this needed Freedom Shift.

The first is habit. Our society has become habituated, at times addicted, to certain lifestyles.

For example, when the recession hit, people spent more money, not less, at McDonald’s. We are habituated to eating out, and tightening our belts in hard times has come to include eating even more french fries.

Perhaps our most debilitating rut as a culture is a dependence on experts. Until we kick this dependency, how can we rise above the statistics and become a nation of entrepreneurs and leaders?

The answer, as challenging as it is, is for entrepreneurs to show us the way, and to keep at it until more of us start to heed.

The second huge roadblock is our complexity. Indeed, we have reached a level of complexity where simplicity itself is suspect.

For example, the simple reality is that jobs migrate to less difficult nations. It’s the old Rule of Capital: Capital goes where it is treated well.

In nations that have become too complex, taxes and regulation cause at least a doubling of the amount employers must spend on labor.

Many experts call this “progress,” but the natural result is that many companies respond by sending their operations and jobs to less costly nations.

When this happens, complex nations react in an amazing way: They villainize the companies (“greedy profiteers”) rather than reducing taxes and regulations to entice companies back home.

Then they take an incredible extra step: They increase taxes and regulations even more on the businesses that stayed!

The result? More money flees and recession inevitably comes.

At this point, when the need is obviously to lure businesses, capital, and jobs back home with decreased regulation and taxes, nations that are too complex actually compound the negative situation as angry workers cry out for more regulations and controls.

Freedom, prosperity and stability all suffer.

As Ken Kurson put it,

“Our bipartisan addiction to spending and borrowing pairs with a hostility toward employers that makes real recovery difficult.”³

Or, as the Governor of Minnesota said:

“I was talkin’ to people this morning who run small businesses. Where’s their bailout?”4

People who point out how ridiculous this is are often labeled extremists or radicals. Simple answers aren’t often very popular in complex nations.

Sadly, only major crisis is usually enough to get people to listen to simple solutions.

Poor Complexion

Another example is found in the issue of health care.

Health care costs consistently increase where voluminous regulations along with medical lawsuits cause huge malpractice insurance costs.

When government seeks to regulate and force the costs down, it must find a way to reduce litigation and payouts.

But in complex society, people want to have their cake and eat it too.

They want health care to cost less and also to leave doctors and insurance companies paying for incredibly expensive lawsuits.

How is it possible to get both? “The government should make it so,” is the answer of a complex society. But how? “The government should just fix it.”

This amazingly naïve view of things is the result of complexity. Far too many citizens don’t even expect to be able to understand the issue, so they leave it to the experts.

And once all is in the hands of experts, they are expected to solve everything without any pain or problem to the populace. After all, they’re the experts, right?

Those who benefit most from the costs of lower health care either need to forego the threat of so many lawsuits or be willing to pay higher prices.

But such simple answers don’t convince in complex societies.

One more example is interesting. Hamilton argued in The Federalist Papers that for society to be free the legal code would need to be long, detailed and difficult to understand.

He based this on the systems in Europe at the time. But these were the very systems the founders fought to abandon.

In contrast, Jefferson, Madison and many others taught that complex laws and legal codes were sure signs of oppression.

They agreed with Montesquieu, Locke and Hume and that laws must be simple, concise and brief, and indeed that the entire legal code must be simple enough that every citizen knows the entire law.

If a person doesn’t know the law, they argued, he shouldn’t be held liable for breaking it or freedom is greatly reduced.

In complex society, most attorneys don’t even know the whole law.

The Right Level of Complexity

The main criticism of simple societies is that they are often intolerant, controlling, and narrow-minded. This is an accurate and good criticism, and such simple societies are not the ideal.

Indeed, Madison shows the negatives of such societies in Federalist Papers eighteen through twenty.

He proposes that by establishing a large nation and a free constitution we can simultaneously establish both an open, modern, and progressive society and a free, prosperous, and happy nation.

Fortunately, we are not forced to choose between a stupidly simple nation and an overly complex one.

The ideal is a nation sufficiently complex to promote progress, toleration, cooperation, and growth and one with enough simple common sense to achieve freedom, prosperity, and opportunity.

This is the traditional entrepreneurial mix.

Whereas mercantilism values a few cosmopolitan elites employing a mass of less urbane managers and workers, in contrast the entrepreneurial challenge has always been to balance complex and intricate details with simple and effective systems and results.

In short, we need more entrepreneurs running more small, medium and large institutions in society.

Lifestyles of the Rich & Famous

The success of the next few decades will depend on certain types of people with certain skills and abilities.

The talents and habits of “The Company Man” came into vogue in the 1950s and helped create a society of professionals, experts and officials. This greatly benefited the final half-decade (1955-2005) of the Industrial Age surge.

But as the Information Age moved past infancy (1964-1991) and began its rebellious growth to adulthood (1992-2008), many became aware that change was ahead.

As the Information Age grasps maturity and takes over in the 2010s and 2020s, major alterations in society are inevitable.

The Company Man is now replaced by what David Brooks called Patio Man: Individualists who want personal freedom, enough income to pay the bills plus some extra spending money, a government that provides national security and keeps jobs plentiful, a nice house, a nice car each for him and her, a grill, a good movie tonight and friends over for the big game on Sunday.

At first, this was paid for by one working parent, then by both.

But unless something changes, this lifestyle is at an end for all but the wealthiest tenth of the population.

The thing which facilitated such a lifestyle in the first place was the prosperity generated by entrepreneurship, and the only thing that can maintain such a lifestyle and still pay off our society’s debts and obligations is a drastic increase in the number of entrepreneurs.

Period.

Specific Entrepreneurial Challenges

Let’s get specific. Either a generation of entrepreneurs will arise or the “Patio Man” lifestyle will end.

Very soon, the following must occur:

  1. Entrepreneurs must figure out how to cover their own retirement and that of their employees and many others so that when we run out of money for social security and other entitlements it just won’t matter.
  2. Entrepreneurs must figure out how to compete with the entrepreneurial classes of Brazil, India, and other places with less regulation of small business.
  3. Entrepreneurs must figure out how to rebuild a strong American industrial base to provide the basic foundational economic strengths of society.
  4. Entrepreneurs must figure out how to replace an oil-driven economy with cheaper and hopefully better and cleaner energy alternatives.
  5. Entrepreneurs must figure out how to provide inexpensive and quality fresh water, food, and mobility without cheap oil.

Researchers, experts, professionals, employees and governments do not have the ability to make these things happen. They will be needed to help accomplish these vital needs, but ultimately it will require the skills of entrepreneurs.

These types of changes are the arena of entrepreneurial talents and free enterprise innovations, not of legislative discussions, bureaucratic rules, or expert publications.

Legislatures, bureaucrats, and experts are important to society and are good at certain things, but initiative, innovation, taking major risks, and tenacious ingenuity are not their forte.

As significant as these challenges are, we need the best of the best solving them.

If entrepreneurs accomplish the goals listed above, we will naturally see increased political stability, a well-funded government that can protect against Chinese or other international aggression, and a narrowing gap between the rich and poor.

It will also take a widespread entrepreneurial mindset to figure out how to effectively thwart terrorism without turning the government into a secretive surveillance state, and also help the nation evolve into a less litigious and more productive society.

Government cannot wisely do either of these projects, since it is a central party to both.

And big corporations also have a conflict of interest; they would naturally use both projects to increase their own power at the cost of freedom.

Entrepreneurs are more suited to succeed in these projects than any other group, and to then share their views with the citizenry.

The most critical problems we now face are also our greatest opportunities.

We need more entrepreneurs, and we need entrepreneurs who engage more in social leadership.

Our future now, more than at any time since the founding and pioneering eras, depends on producers.

Hamilton’s ideas contributed much to American growth, but it is time for a renewal of the Jeffersonian spirit of independence and initiative—in all of us.

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Sources:

  1. From the article entitled, “Good for Some” in the 2/13/10 issue of The Economist: “In January Google suffered a serious attack on its infrastructure, originating in China. On February 2nd Dennis Blair, the White House director of national intelligence, went to a Senate committee to give an annual threat assessment. He used it to give a warning of a large and far-reaching threat. Sophisticated cyber-criminals are stealing sensitive government information every day, Mr. Blair explained, and state agencies often find shadowy presences on their networks—‘the hallmark of an unknown adversary intending to do far more than merely demonstrate skill or mock a vulnerability.’ An overarching concern is that in a time of crisis network infrastructure might be seriously compromised.”
  2. See James Fallows, “Cyber Warriors,” The Atlantic, March 2010. See Israel on its Internet Fighting Team in Harper’s Index, Harpers Magazine, November 2009.
  3. Ken Kurson, “A Hedge Fund for Little Guys,” Esquire, March 2010.
  4. Governor Tim Pawlenty, quoted by Mark Warren in “The Dark Horse,” Esquire, March 2010.

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

He is the 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 &Economics &Entrepreneurship &Government &Producers &Prosperity

Entrepreneurs of the World, Unite!

September 22nd, 2010 // 4:00 am @

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A revolution is needed.

Not just any revolution, mind you, but a specific kind of freedom shift that will make the critical difference.

In order to progress, we need a renaissance of the entrepreneurial mentality and many millions of entrepreneurs in our society.

The recession has already helped increase awareness of this need. The Information Age is naturally offering many improvements over the Industrial Age, but simple access to more information is not enough.

What we do with the increased power of widespread information is the key.

The great benefit of the Nomadic Age was family and community connection and a feeling of true belonging, while the Agrarian Age brought improved learning, science and art, and eventually democratic freedoms.

The Industrial Age allowed more widespread distribution of prosperity and social justice, and many improved lifestyle options through technological advances.

Unfortunately, during the Industrial Age many freedoms were decreased as free nations turned to big institutions and secretive agencies for governance.

The industrial belief in the conveyor belt impacted nearly every major aspect of life, from education and health care to agriculture, industry, business, law, media, family, elder care, groceries, clothing, and on and on.

Whether the end product was goods or services, these all became systemized on assembly lines—from production to delivery and even post-purchase customer service.

At the same time, we widely adopted certain industrial views which became cultural, such as “Bigger is always better,” “It’s just business,” “Perception is reality,” and many others. In truth, all of these are usually more false than true, but they became the cultural norm in nearly all of modern life.

Perhaps the most pervasive and negative mantra promoted by modernism is that success in life is built on becoming an employee and its academic corollary that the purpose of education is to prepare for a job.

Certainly some people want to make a job the focus of their working life, but a truly free and prosperous society is built on a system where a large number of the adult population spends its working days producing as owners, entrepreneurs and social leaders.

Producer vs. Employee Society

A society of producers is more likely to promote freedom than a society of dependents. Indeed, only a society of producers can maintain freedom.

Most nations in history have suffered from a class system where the “haves” enjoyed more rights, opportunities and options than the “have nots.” This has always been a major threat to freedom.

The American framers overcame this by establishing a new system where every person was treated equally before the law.

This led to nearly two centuries of increasing freedoms for all social classes, both genders and all citizens—whatever their race, religion, health, etc.

During the Industrial Age this system changed in at least two major ways.

First, the U.S. commercial code was changed to put limits on who can invest in what.

Rather than simply protecting all investors (rich or poor) against fraud or other criminal activity, in the name of “protecting the unsophisticated,” laws were passed that only allow the highest level of the middle class and the upper classes to invest in the investments with the highest returns.

This created a European-style model where only the rich own the most profitable companies and get richer while the middle and lower classes are stuck where they are.

Second, the schools at all levels were reformed to emphasize job training rather than quality leadership education.

Today, great leadership education is still the staple at many elite private schools, but the middle and lower classes are expected to forego the “luxury” of opportunity-affording, deep leadership education and instead just seek the more “practical” and “relevant” one-size-fits-all job training.

This perpetuates the class system.

This is further exacerbated by the reality that public schools in middle-class zip codes typically perform much higher than lower-class neighborhood schools.

Private elite schools train most of our future upper class and leaders, middle-class public schools train our managerial class and most professionals, and lower-class public schools train our hourly wage workers.

Notable exceptions notwithstanding, the rule still is what it is.

Government reinforces the class system by the way it runs public education, and big business supports it through the investment legal code.

With these two biggest institutions in society promoting the class divide, lower and middle classes have limited power to change things.

The Power of Entrepreneurship

The wooden stake that overcomes the vampire of an inelastic class system is entrepreneurial success.

Becoming a producer and successfully creating new value in society helps the entrepreneur surpass the current class-system matrix, and also weakens the overall caste system itself.

In short, if America is to turn the Information Age into an era of increased freedom and widespread economic opportunity, we need more producers.

How do we accomplish this Freedom Shift?

First of all, we must get past the obvious wish that Congress should simply equalize investment laws and allow everyone to be equal before the law.

Neither government nor big business has a vested interest in this change, and neither, therefore, does either major political party.

Nor does either side see much reason to change the public education system to emphasize entrepreneurial over employee training.

Either of these changes, or both, would be nice, but neither is likely.

What is more realistic is a grassroots return to American initiative, innovation and independence.

Specifically, regular people of all classes need to become producers.

A renaissance of entrepreneurship (building businesses), social entrepreneurship (building private service institutions like schools and hospitals), intrapreneurship (acting like an entrepreneur within an established company), and social leadership (taking entrepreneurial leadership into society and promoting the growth of freedom and prosperity) is needed.

Along with this, parents need to emphasize personalized, individualized educational options for their youth and to prepare them for entrepreneurship and producership, rather than cultivating in them dependence on employeeship.

If these two changes occur, we will see a significant increase in freedom and prosperity.

The opposite is obviously true, as well: The long-anticipated “train wreck” in society and politics is not so difficult to imagine as it was twenty years ago.

The education of the rising generation in self-determination, crisis management, human nature, history, and indeed, the liberal arts and social leadership in general, is the historically-proven best hope for our future liberty and success.

If entrepreneurial and other producer endeavors flourish and grow, it will naturally lead to changes in the commercial code that level the playing field for people from all economic levels and backgrounds.

Until the producer class is growing, there is little incentive to deconstruct the class system.

More than 80 percent of America’s wealth comes from small businesses, and when these grow, so will our national prosperity.

Today there are numerous obstacles to starting and growing small businesses. There will be many who lament that the current climate is not friendly to new enterprises.

Frontiers have ever been thus, and our forebears plunged headlong into greater threats. What choice did they have? What choice do we have? What if they hadn’t? What if we don’t?

The hard reality is that until the producer class is growing there will be little power to change this situation.

As long as the huge majority is waiting for the government to provide more jobs, we will likely continue to see increased regulation on small business that decreases the number of new private-sector jobs and opportunities.

The only realistic solution is for Americans to engage their entrepreneurial initiative and build new value.

This has always been the fundamental source of American prosperity.

The Growing Popularity of Producer Education

Consider what leading thinkers on the needs of American education and business are saying.

In Revolutionary Wealth, renowned futurist Alvin Toffler says that schools must deemphasize outdated industrial-style education with its reliance on rote memorization, the skill of fitting in with class-oriented standards, and “getting the right answers,” and instead infuse schools with creativity, individualization, independent and original thinking skills, and entrepreneurial worldviews.

Harvard’s Howard Gardner argued in Five Minds for the Future that all American students must learn the following entrepreneurial skills: “the ability to integrate ideas from different disciplines or spheres,” and the “capacity to uncover and clarify new problems, questions and phenomena.”

John Naisbitt, bestselling author of Megatrends, wrote in Mind Set! that success in the new economy will require the right leadership mindset much more than Industrial-Age credentials or status.

Tony Wagner wrote in The Global Achievement Gap that the skills needed for success in the new economy include such producer abilities as: critical thinking, problem solving, collaboration, leading by influence, agility, adaptability, curiosity, imagination, effective communication, initiative and entrepreneurialism.

Former Al Gore speechwriter Daniel Pink writes in A Whole New Mind that the most useful and marketable skills in the decades ahead will be the entrepreneurial abilities of high-concept thinking and high-touch leading.

Seth Godin makes the same case for the growing need for entrepreneurial-style leaders in his business bestsellers Tribes and Linchpin.

Malcolm Gladwell arrives at similar conclusions in the bestselling book Outliers.

There are many more such offerings, all suggesting that the future of education needs to emphasize training the rising generations to think and act like entrepreneurs.

Indeed, without a producer generation, the Information Age will not be a period of freedom or spreading prosperity. Still, few schools are heeding this research.

CNN’s Fareed Zakaria has shown in The Post-American World that numerous nations around the world are now drastically increasing their influence and national prosperity.

All of them are doing it in a simple way: by incentivizing entrepreneurial behavior and a growing class of producers.

Unlike aristocratic classes, successful entrepreneurs are mostly self-made (with the help of mentors and colleagues) and have a deep faith in free enterprise systems, which allow opportunity to all people regardless of their background or starting level of wealth.

Entrepreneurs and Freedom

History is full of anti-government fads, from the French and Russian revolutionists to tea-party patriots in Boston and anti-establishment protestors at Woodstock, among many others. Some revolutions work, and others fail.

The ones that succeed, the ones that build lasting change and create a better world, are led by entrepreneurial spirit and behavior. As more entrepreneurs succeed, the legal system naturally becomes more free.

As more people take charge of their own education, utilizing the experts as tutors and mentors but refusing to be dependent on the educational establishment, individualized education spreads and more leaders are prepared.

With more leaders, more people succeed as producers, and the cycle strengthens and repeats itself.

Freedom is the result of initiative, ingenuity and tenacity in the producer class. These are also the natural consequences of personalized leadership education and successful entrepreneurial ventures.

For anyone who cares about freedom and wants to pass the blessings of liberty on to our children and grandchildren, we need to get one thing very clear: A revolution of entrepreneurs is needed.

We need more of them, and those who are already entrepreneurs need to become even better social leaders. Without such a revolution, freedom will be lost.

Click Here to Download a PDF of This Article

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

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

He is the 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 : Education &Entrepreneurship &Featured &Government &History &Information Age &Liberty &Producers

The Chemistry of Genius?

September 17th, 2010 // 4:00 am @

New Science on What Makes Quality Education

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Harvard Business School recently emphasized that the major changes in the world tend to come from what they called “disruptive innovators.”

These are surprising innovations that usually come from out-of-the-mainstream sources and drastically change society, business, and other facets of life.

Disruptive innovators are disruptive precisely because they are totally unexpected by the mainstream.

Malcolm Gladwell wrote a best-selling book on the concept, showing that many and in fact most of the major societal initiators come from “outliers.”

Why are so many progresses initiated and led by unknown talent hotbeds, what Daniel Coyle called “chicken-wire Harvards”?

Indeed, Harvard, Yale, Stanford and their counterparts may lead the analysis about innovations, but “chicken-wire Harvards” produce many more innovative projects.

The Innovation “Gene”

Why is more entrepreneurial, innovative and leadership education flourishing in small, humble, usually under-funded environments than in the prestigious, elite halls of endowments and status?

And even when the mainstream and elite institutions take note and attempt to emulate such successes, why do they usually fall short of the smaller talent hotbeds?

The answer is simple. The breeding grounds of initiative and leadership believe in and implement the philosophy of individualized education.

Nearly everywhere else, the emphasis is on systemized models of learning that students must learn to navigate and “fit.”

To reinforce this point, there are many small, humble and under-funded educational models that are not talent hotbeds—almost invariably they are followers of the “systems model” rather than individualization.

Dead Poet’s Society

I well remember a visit years ago to a private school that had just received two major breakthroughs: an endowment from a wealthy parent, and a new president who promised to significantly grow the school.

As I talked to this president, however, I realized that he fully intended to turn this excellent, proven hotbed of talent into a systemized conveyor belt. He felt that this is what the wealthy donor wanted, and maybe it was.

But I could tell after a few minutes of visiting with him that he would ruin the depth, quality and excellent results the school had boasted for the past decade.

Five years later, my worst concerns were unfortunately the reality. The school was no longer a place of deep quality and excellence, but it was much bigger, more bureaucratic, and hardly distinguishable from the local public schools. Indeed, several charter schools in the area offered much higher quality.

The key to this change was teachers. In the public schools, teachers have been penalized for great teaching since 2002. As Harper’s noted:

“Under the No Child Left Behind Act of 2002…U.S. teachers are forced to choose between teaching general knowledge and ‘teaching to the test.’ The best teachers are thereby often disenfranchised by the improper use of education information systems.”

But in private schools, this system is not mandated. However, when such schools apply the systems approach to education, they usually obtain similar mediocre results.

In the old, under-funded days of this high school, the teachers had given their hearts and souls to provide personalized, individualized attention to every student.

As the school turned to industrial systems, these teachers were forced to move on or change their approach from individualized learning to factory-style academia.

Approaching each child with the assumption that she has genius inside, and that the teacher’s role is to help her find it, develop and polish it to improve herself and the world—this is called teaching. Anything else is something else.

Where true teaching occurs, excellence flourishes. This is applicable at all levels, from elementary to high school, undergraduate to graduate programs, and also adult learning.

Individualization of education is the first step to leadership education, and without it quality always decreases.

Seratonin, Adrenaline & Myelin

Science is now beginning to show the reasons why quality in education increases with individualization.

Studies have shown for a long time that students receiving personalized, caring and quality mentorship learn more effectively than those required to conform to a deeply structured and systemized model.

Elites have historically been successful in engaging tutors, mentors and individualizing private schools over less personal conveyor-belt schooling options.

Scientists are now discovering that the individualized method (personalized mentoring, deep practice, long hours of inspired and enthusiastic academic effort) results in drastically higher levels of the neural insulator myelin than the standardized system of education.

Students with higher levels of myelin learn more and remember it longer. It is especially valuable for gaining, maintaining and polishing skills.

As Daniel Coyle writes in The Talent Code:

“The talent code is built on revolutionary scientific discoveries involving a neural insulator called myelin, which some neurologists now consider to be the holy grail of acquiring skill. Here’s why. Every human skill…is created by chains of nerve fibers carrying a tiny electrical impulse—basically, a signal traveling through a circuit.

“Myelin’s vital role is to wrap those nerve fibers the same way that rubber insulation wraps a copper wire, making the signal stronger and faster…each new layer adding a bit more skill and speed.”

This research is in its infancy, but it is already helping us understand that there are neuro-chemical factors in our basic psycho-physiology that are impacted by our learning environment.

Montessori, Charlotte Mason and other great educators have taught this for many years.

Personalized educational models, with dedicated and caring mentors helping learners achieve depth and inspiration in their studies, achieve better results than assembly-line education.

Mentoring Matters

Quality mentors help students learn at least three key things:

  1. How to see their internal greatness and potential.
  2. How to study and practice in ways that greatly increase the flow of learning.
  3. How to repeat this kind of learning experience at will.

These are nearly always individualized lessons; and when they are applied, researchers are finding, the level of myelin and the resultant quality of learning increases.

To increase myelin levels and create talent hotbeds, Coyle says, mentors must create an environment of individualized coaching, be perceptive in seeing individual needs in their students, use shock or intensity to open student minds and then share valuable information, and find ways to really connect with each learner.

All of this is traditional leadership education, based on the same principles as the 7 Keys covered in my book A Thomas Jefferson Education:

  1. Classics, not Textbooks
  2. Mentors, not Professors
  3. Inspire, not Require
  4. Structure Time, not Content
  5. Quality, not Conformity
  6. Simplicity, not Complexity
  7. You, not Them (example)

It would be interesting to study the myelin levels of each. Say, for example, a study of myelin levels in students whose teachers emphasize the “inspire” approach versus those with more “requirement-oriented” methods. There could be many other examples.

Individualization Breeds Innovation

One thing is clear, if not yet scientifically studied: Most parents and teachers who apply the 7 Keys see significant, drastic and lasting increases in the quality of their students’ and their own learning.

Personalized education is more effective in helping students learn in their areas of interest, and it also outperforms generally in math, science and technology.

In the decades ahead, as in decades past, many of the most innovative ideas and projects are likely to come from talent hothouses outside the mainstream—places where dedicated and caring mentors help young people see their huge potential, start to discover their great inner genius, and feel inspired to do the hard and effective work of getting a great education.

Individualized, mentored, intensive learning has better results than standardized, rote and minimum-standards systems.

Click Here to Download a PDF of this Article

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

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

He is the 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 : Education &Entrepreneurship &Featured &Science

Mini-Factories: The Greatest Freedom Trend of Our Time

September 14th, 2010 // 4:00 am @

The following is an excerpt from Oliver’s recent book, The Coming Aristocracy: Education & the Future of Freedom.

If freedom is to reverse the onslaught of American and global aristocracy, it will likely do so through the greatest freedom trend of our time.

This trend is revolutionizing institutions, organizations, relationships, society and even nations around the world. It is still in its infancy, and many have yet to realize its potential.

The experts tend to overlook it because it seems small. It will likely always seem small because it is a “bottom-up” trend with no “top-down” organizations, alliances, or even affiliations.

Truthfully, it isn’t even a single trend at all–it is thousands of small trends, all following a similar pattern.

Malcolm Gladwell called part of this trend “outliers,” Harry S. Dent called it the “customization” explosion, Alvin Toffler said it is the wave of “revolutionary wealth” as led in large part by “prosumers,” John Naisbitt named it the “high touch” megatrend, Stephen Covey called it the 8th Habit of “greatness,” Daniel Pink coined the descriptor “free agent nation,” and Seth Godin refers to it as “tribes.”

Others have termed it “social entrepreneurship,” “the new leadership,” “a new age,” and even “the human singularity.”

All of these touch on facets of this freedom trend, but I think the best, most accurate and descriptive name for it is the “mini-factory” model.

Modernism came with the factory–the ability to mass produce. This revolutionized the world–economics, governments, how we spend our time each day, what we eat and wear, relationships, the size and functions of our homes and cities, etc.

Today the mini-factory is changing everything just as drastically.

In ancient times the wealthy set up estates or fiefdoms to cover all their needs, and the masses worked to provide the needs of their aristocratic “superiors.”

In modern times the factory provided mass goods and services.

Imagine the impact on everything in our lives if each family could provide all, or even many, of its needs for itself–and do it better than kings or politicians ruling over working peasants or even corporations employing workers to produce goods and services.

Such is the world of the mini-factory.

How Does a Mini-Factory World Function?

For example, what if parents could educate their children better than local school factories, with the best teachers, classes and resources of the world piped directly into their own home?

What if a sick person had more time and motivation to research the cases of her symptoms than the factory doctors, and the availability of all the latest medical journals right on her computer screen?

She would also have holistic works, original studies, alternative and collaborative experts, and the ability to email the experts and get answers in less time than it would take to wait in the hospital lobby.

Ten friends would likely send her their experiences with similar illness within days of her mentioning casually online that she was sick. If she chose a certain surgeon, a dozen people might share their experiences with this doctor.

What if a mother planning to travel for family vacation could just book flights and hotels herself, without calling the “expert” travel agent? Maybe she could even choose seats on the flight or see pictures of her hotel room–all in her own home between her projects and errands.

Welcome to the world of the mini-factory. I purposely used examples that are already a reality. But they were just a futuristic dream when writers like Alvin Toffler and John Naisbitt predicted them before 1990.

Technology has helped it, but the impetus of the mini-factory trend is freedom. People want to spend less time at the factory/corporation and more time at home. They want to be more involved in raising their children and improving their love life.

In an aristocracy, these luxuries are reserved for the upper class. In a free society, anyone can build a mini-factory.

What is a Mini-Factory?

A mini-factory is anything someone does alone or with partners or a team, that accomplishes what has historically (meaning the last 150 years of modernism) been done en masse or by big institutions.

If a charter school provides better education for some of the community, it’s a mini-factory. If it does it at less cost and/or in less time spent in the classroom, so much the better. A homeschool or private school can be a mini-factory.

Of course, if the charter, private, or home school does a worse job than the regular factory, it is a failed mini-factory.

If joining a multi-level company and building it into a source of real income serves you better than an employee position, it’s a mini-factory.

If downsizing from a lucrative professional job in Los Angeles to a private practice or job that pays much less but allows you twice as much time with your family and a more relaxed lifestyle in, say, Flagstaff or Durango and makes you happier, it’s a mini-factory.

Entrepreneurship, alternative education, the downshifter movement, environmental groups, alternative health, the growth of spirituality, community architecture, the explosion of network marketing, home doctor visits, the rebirth of active fathering, and so many other trends are mini-factories.

How do Mini-Factories Impact Freedom?

It all comes down to this: Big, institutional, non-transparent, bureaucratic organizations are natural supporters of aristocracy. Freedom flourishes when the people are independent, free, and as self-sufficient as possible.

I am not suggesting going backwards in any way.

Forward progress is most likely in a nation that is both well educated and highly trained, where big institutional solutions are offered wherever they are best and individuals and groups seek smaller solutions where they better serve their needs, where free government enterprise rules apply and there are no special benefits or perks of class (either conservative aristocracy or liberal meritocracy), and where government, business, family, academia, religion, media, and community all fulfill their distinct, equally-important roles.

Such a model is called freedom. It has been the best system for the most people in the history of the world, and it still is.

To adopt freedom in our time, either the aristocracy must give up its perks and voluntarily restructure society, or the masses must retake their freedoms bit by bit, day by day, by establishing mini-factories.

Mini-factories will be more successful if each person only does a few, and does them with true excellence.

Freedom will flourish best if there is no organization or even coordination of the mini-factories; if individuals, partners, families and teams identify what is needed in the world and in their own lives and set out to deliver it.

This is especially hard in a time like ours where the employee mindset wants someone to “fix” things (like the economy, health care, education, etc.), exactly when an entrepreneurial mindset is most needed to take risks and initiate the best and most lasting changes.

If real, positive, and effective change is to come, it will most likely be initiated by the people acting as individuals, small groups, and teams.

If it comes from the top, it will tend to only bring more aristocracy, and the day of freedom will be over for now.

Whatever your mini-factory contribution might be, consider that it will help determine the future of freedom.

Is it Worth the Challenge?

Mini-factories can be hard to establish and challenging to build. Many people fail once or several times before they learn to be effective.

But the type of learning that only comes from failing and then trying again is the most important in building leaders and citizens who are capable of maintaining freedom in a society.

Note that this very type of education is rejected in a training model of schooling, where failure is seen as unacceptable and students are taught to avoid it at all costs.

This mindset only works if an aristocracy is there to take care of the failures.

In a freedom model, citizens and leaders learn the vital lessons of challenges; failures and wise risk-taking are needed.

Starting and leading a mini-factory, and indeed all entrepreneurial work, is challenging.

Those who embraced this difficult path in history established and maintained freedom, while those who embraced the ease of past compromises sold themselves and their posterity into aristocracy.

In the long term, though, aristocracy is much harder on everyone than freedom.

What Will You Build?

As you consider what mini-factories you should support, start, and build, just ask what things could be done (or are being done) better by a small mini-factory than by the big organizations that try to control nearly everything in our world.

If it could be done just as well by a mini-factory, the change to the smaller entity can drastically promote freedom. If it can be done even better by a mini-factory, it is better for life itself!

The mini-factory is the new vehicle of freedom.

Take a mini-survey: What are your pet complaints? Government? Develop family government models. Health Care? Educate yourself on prevention and self-care. Education? Learn the principles of Leadership Education. Media? Start a blog. Entertainment? Develop a group of hobbyists who share your interests, whether it be Harley road trips, ice fishing, scrapbooking, etc.

You get the idea: Live deliberately, and do not wait for institutions to change to meet your needs.

Do not waste your energy or good humor on complaining.

Find a mini-factory that does it right and get behind it–or start one yourself. So many are needed, and they can bring the miracle of freedom!

The future remains unseen. It is the undiscovered country.

Many ancients felt that fate drove the future, but the idea of freedom taught humanity to look each to his/herself, to partner with others, and to take the risk to build community and take action now in order to pass on a better life to our children and our children’s children.

Today, that concept of freedom is waning–slowly and surely being replaced by a class culture.

Those who love freedom, whatever their stripe–be they green, red, blue, rainbow, or anything else–are needed. They need to see what is really happening, and they need to educate themselves adequately to make a difference.

The most powerful changes toward freedom will likely be made by mini-factories, in thousands and hopefully millions of varieties and iterations.

Aristocracy or freedom–the future of the globe–hangs in the balance…

Click here to learn more about the mini-factory trend and to purchase a paperback copy of The Coming Aristocracy. Click here to download two hour-long webinars with Oliver DeMille explaining mini-factories.

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

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

He is the 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 &Business &Culture &Economics &Entrepreneurship &Featured &Liberty &Mini-Factories &Mission &Producers

True Abundance: The 5 Types of Producers

September 9th, 2010 // 11:31 am @

In The Coming Aristocracy I speak of “mini-factories,” which are individuals, teams, partnerships, or small organizations doing things that have traditionally been handled by large institutions. Successful mini-factories are operated by “producers.”

This article describes all types of producers and why they are vital to a free, healthy, and prosperous society.

*Special thanks to Les McGuire for this series.

Prosperity and abundance in a society depend on a certain type of person: the producer. Societies with few producers stagnate and decay, while nations with a large number of producers vibrantly grow — in wealth, freedom, power, influence and the pursuit of happiness.

Producers think in abundance rather than scarcity, take initiative instead of waiting for someone else to provide them with opportunity, and faithfully take wise risks instead of fearfully believing that they can’t make a difference.

In contrast, non-producers provide very little leadership in society and cause more than a majority of the problems. In history, as Jefferson put it, producers are the most valuable citizens.

Of course, he was speaking directly of farmers, but the principle applies to all those who add significant value to society. Non-producers consume the value that is added to society, but they create little value.

But who are the producers? Fortune 500 executives include themselves in this category, and so do small business owners in their first month of operation. Successful investors call themselves producers, as do unsuccessful day traders who claim that they just “haven’t had their lucky break yet.”

Clearly, just calling yourself a producer doesn’t make you one.

In fact, there are at least five types of producers, and each type is vital to a successful civilization. Each of the five creates incredible value, though the currency of the value is not always identical. Without any of the five types, no society succeeds and grows. When all five are creating sufficient value, no society has ever failed.

Producers are needed — all five kinds of them. These are the following:

  1. Prophets, Sages, Philosophers
  2. Statesmen
  3. Investors
  4. Entrepreneurs
  5. Intrapreneurs

Prophets, Sages, & Philosophers

The highest level of value creation comes from prophets, sages, and philosophers.

This category of producers is not limited to the Biblical-type prophets who spoke directly with God, but also includes anyone who teaches true principles. This makes these producers the most important type, because without clearly understood principles all the other types of producers fail.

Indeed, the other producers succeed to the exact extent that they understand and apply true principles.

Prophet-producers include Moses and Paul, who share God’s wisdom with us, and also sages like Socrates or Confucius or Bastiat, gurus like Edward Deming or Peter Drucker, philosophers like Buckminster Fuller or Stephen R. Covey, and those who inspire us to serve like Billy Graham or Mother Teresa.

Whether you agree or disagree with these people, their wisdom causes you to think, ponder, consider, and ultimately understand truth. By applying these truths, a person is able to produce.

Even if you just sit and ponder, letting the truths come to your mind through deep thought or hard experience, true principles are still passed to you through spiritual or creative means.

God is the greatest producer in the Universe, and He shares true principles with us so we can also produce. For value to be created, true principles must be applied.

Ironically, because God, prophets, and other wise people often share their wisdom without asking for monetary compensation, sometimes other types of producers discount the value of their contribution.

But make no mistake: revealing and teaching true principles is the highest level of creating value.

Whether we learn principles through inspiration or intuition, or from the lessons gained through hard work and experience, without principles we cannot produce.

Parents and grandparents are among the most important producers, because they teach principles most effectively — or not. When they don’t, the whole society suffers.

Statesmen

The next type of creating value comes from statesmen.

Do not confuse statesmen with politicians and bureaucrats, who are often worse than non-producers because they actually engage in anti-producing.

In contrast, statesmen create the value of freedom in society. The level of freedom in any nation is a direct result of the actions of statesmen — past and present.

If great statesmen like Cato, Washington, Jefferson, or Gandhi are present, a nation will throw off its enslaved past and adopt new forms and structures which ensure freedom of religion, freedom of choice and action, freedom of property and commerce, and other freedoms.

Together the value created can be called life, liberty, and the pursuit of happiness. Take these freedoms away, and entrepreneurship and investment fade and disappear. There are no exceptions in history to this pattern.

Statesmen like Lincoln, Churchill, or Margaret Thatcher keep a nation from rejecting its freedoms and moving back into a cycle of tyranny and anarchy, where little production of any kind occurs.

In short, without principles there is little freedom, and without freedom all other kinds of production shut down, are regulated out of existence, and cease to be viable options.

No matter how entrepreneurial your spirit, you would not have created much value in the economy of Nero’s Rome, Russia under Stalin, or even Boston under the Stamp Act.

Without freedom, only prophets survive as producers — all other types of producers need both principles and freedom to flourish. The greater the understanding of principles and the freedom of the society, the greater the opportunities for producers.

Indeed, almost nothing creates more value than increasing freedom.

Only when freedom is widespread would the other types of producers have the peace to think that statesmen don’t add value. And frankly, when freedom is widespread is the very moment that it is in the most danger of being lost — it is at such times that statesmen are the most valuable producers.

Of course, the well-known statesmen like Lincoln or Jefferson only appear on the scene when there are a lot of lesser known individuals studying, writing about, talking about, and promoting statesmanship. Only generations with lots of statesmen produce true freedom that allows widespread educational and economic opportunity.

Most of the history of the world shows the absence of such statesmanship, so most of the population of the world were serfs, peasants, slaves, and other non-producers. Yet it is the true nature of all mankind to be producers, leaders, nobles.

Jefferson called this the “natural aristocracy,” and it happens only in those rare pockets of history where statesmen create and perpetuate freedom. Next to true principles taught by prophets, sages, and philosophers, freedom is the highest value that one can add to any society.

Investors & Entrepreneurs

The third type of producer is the investor, and the fourth type is the entrepreneur.

This needs little commentary among producers, who nearly all realize that entrepreneurship is necessary to create new economic value and that even the best entrepreneurial ideas and leaders can fail without adequate capitalization.

Robert Kiyosaki lists investors as the highest of his cash flow quadrants and business owners, or entrepreneurs, next. He is right on. Without investors, many, if not most, entrepreneurs would fail. Without both “I’s” and “B’s,” to use Kiyosaki’s language, no society can make significant or sustained progress.

Moreover, without investment and entrepreneurship many of the principles taught by prophets and most of the freedoms vouchsafed by statesmen would go unused — and eventually be lost.

Prophets, sages, philosophers, and statesmen are dependent on investors and entrepreneurs, and vice versa. As I said, no society is really successful unless all five types of producers effectively create value in their unique but interconnected ways.

Part of the value created by investors and entrepreneurs is obvious: They provide capital and establish institutions which build society. Every family and every individual benefits from their services.

Perhaps less known, but just as important, investors add the vital value of experience. Kiyosaki and Buffet both affirm that without personal knowledge and significant experience in a business, almost everyone who tries their hand at investing fails.

A society without adequate investment and entrepreneurship will see little, if any, progress.

An American, a Frenchman, & a Russian

The old joke is told of an American, a Frenchman, and a Russian, lost in the wilderness, who find a lamp and rub it. Out comes a genie. He offers them each one wish, for a total of three.

The American pictures the large ranch owned by the richest people in the valley where he grew up, and wishes for a ranch ten times its size, with flowing streams and meadows full of horses and cattle. His wish is granted and he is transported home to his new life.

The Frenchman pictures the farm and cattle of the largest estate from his home province, and pictures one just like it. Again, his wish is granted.

Finally, the Russian pictures the land and herds of the rich family in the steppes where he grew up, and wishes that a drought kill the cattle, dry up the grass, and bankrupt the aristocratic family.

The joke isn’t really very funny, though it brings big laughs with audiences of producers. They get it.

The Frenchman, thinking like an entrepreneur, wants the good things that life provides, and is willing to go to work to produce them. The American, who thinks like an entrepreneur and an investor, is willing to go to work also, but wants to see his assets create more value. The Frenchman wants value, the American plans for value, increased market share and perpetual growth.

In contrast, the Russian in this parable can only think of one thing — getting even with those who seem to have more than him.

This is the same as Steve Farber’s lament about the sad state of our modern employee mentality — where “burn your boss” is a slogan of millions of workers who see their employer as the enemy.

The Employee v. Owner Mindsets

Initiative, vision, effective planning, the wise use of risk, quality execution — all are the contributions of entrepreneurs and investors. Without them, any society will decline and fall.

Yet the non-producer mentality is often deeply ingrained in most people. For example, a visiting speaker once told the student body of how challenging it was to get his employees out of their “serf” mentality.

As the founder of a growing manufacturing technology company, he pulled in all his two dozen employees and offered them liberal stock options. He explained that if the company met its projections, they would all be very wealthy — and he abundantly wanted to share the prosperity.

Yet only a few of them would take the options. They only wanted cash salary, and mistrusted the whole concept of stock ownership.

At first he just offered it, thinking they’d all jump on board. But when only a few did, he pulled them in one by one and tried to make the case for stock. Still, only a few more took the stock.

The company grew, expanded, and then its value soared. Suddenly, one month a half dozen of the company’s employees were independently wealthy. They met, made plans, some stayed with the company and others moved on.

But the real story happened with the eighteen who had refused the stock. They were still paycheck-to-paycheck employees. And they were very angry! Most of them met with the founder in his office, and many of the meetings ended with yelling, names called, and doors slammed.

The entrepreneur couldn’t believe it. NOW these employees wanted their millions. But it just doesn’t work that way. “I begged you to take the stock,” the owner told them. “Now, I can’t help you. Why didn’t you take it when I offered?” he asked.

They had no answer. Only that: “I worked as hard as Jim and Lori, so why can’t I get the same payment?”

Entrepreneurs and investors understand that work is very, very important, but that high levels of compensation come to those who create value. Like the Russian in the joke above, this man’s employees felt they had been “ill-used.”

Consider the impact of this scarcity mentality on any society that adopts it. Freedom is naturally lost, and prosperity slows down and eventually becomes poverty. Entrepreneurs and investors are essential to societal success.

Intrapreneurs

The fifth type of producer is the intrapreneur.

In a free society, investment capital is plentiful — but only effective entrepreneurs and intrapreneurs can turn capital into increased value. This takes initiative, wise risk and leadership, just like the other types of producing.

While entrepreneurs found or own businesses, intrapreneurs work for and lead established businesses — but unlike traditional employees, intrapreneurs lead with the Producer mindset. They run their department, team, or company with an abundance mentality, an attachment to true principles, and a fearless faith in people and quality.

Intrapreneurs don’t really have jobs even though they are usually W-2 employees. Like entrepreneurs, intrapreneurs consider themselves on a mission to help society, to give it what it needs and wants, to truly serve others.

Like all producers, they believe in a deep accountability, refuse to assign blame, don’t believe in failure, and give their heart and soul to serve the customer. They add huge value in financial terms, leadership, and relationships — sometimes with people they’ve never met.

They pour quality into everything they do, and thereby deeply serve all who benefit from their product or service.

Great entrepreneurs and intrapreneurs have a deep faith in the market, as long as it doesn’t go against true principles or subvert freedom.

Without the initiative and risk of entrepreneurship, few intrapreneurs would have a place to work and serve; likewise, without intrapreneurs there would be few successful companies. Indeed, it is hard to imagine that there would be any.

The Synergy of Created Value

For any company to succeed, all five types of producers must fulfill their unique roles. This is even more true for any nation.

Producer Type Currency
Prophet Principles
Statesman Freedom
Investor Capital
Entrepreneur Prosperity
Intrapreneur Quality

To see how vital all five types of producers are, consider the past. Major world powers in history have failed in the same way.

First, the people stop giving heed to the wisdom of the prophets.

Second, voters or those in power replace statesmen with politicians, whereupon freedom steadily decreases.

Third, the natural result is increased regulations and taxation, ridiculous lawsuits and judicial decrees, and governmental policies that discourage and then attack producers, initiative, and the abundance mentality in general.

Fourth, investment capital flees the nation to follow the Rule of Capital — it goes where it is treated well.

Finally, the people have a scarcity mentality, refuse to listen to the prophets or elect statesmen, and entrepreneurs go where investment gives them opportunity. The nation stagnates and declines.

Egypt, Israel, Greece, Rome, Spain, Italy, Bismark’s Germany, and Han China all followed this pattern. Each was a major center of world power, influence and prosperity, and each declined into a third world nation. France copied this pattern in the 1800s, Britain followed it in the 1900s, and the United States is on an identical track today.

Specifically, the U.S. is at the point where it is increasing its regulation, experiencing absurd lawsuits and court decisions, and increasingly adopting policies that discourage entrepreneurship. The next step is to openly attack investment and entrepreneurship.

And when investors find higher profits in other nations, while facing decreasing returns along with public hostility and rising taxes at home, U.S. investment will dry up. History is clear on this point. There are no exceptions.

The only hope is for a new generation of producers to effectively promote freedom. In fact, the U.S. has been at this point twice before — in 1860 and again in 1939. Both times enough statesmen arose, most of them unknown to all except avid readers of history, to push aside the politicians and save our freedoms. Britain saw the same thing happen in 1216, 1620, 1815 and 1937.

Other nations have followed a similar pattern. When the people listen to the prophets, statesmen promote freedom, and investors and entrepreneurs/intrepreneurs build the nation.

When the sages are ignored and statesmanship is seen as abstract and worthless, investors go elsewhere — capital flees to other nations, and the home country declines. With such decline comes moral decay, the loss of political and economic freedom, and the end of opportunity.

Abundance is a true principle, yet through history most governments have made it their major goal to crush abundance and prosperity in the masses and give it to the aristocracy or royalty.

Anyone who thinks this can’t happen in America hasn’t closely studied history.

Overcoming 3 Crucial Mistakes

Many producers make three predictable mistakes. Any producer who knows these mistakes and avoids them will be a better producer and create more lasting value in society.

Producer Mistake #1: The Generation Gap

First, producers seldom encourage their own children to follow the producer path. Many young producers will disavow this, arguing that they’ll do all within their power to teach the abundance mindset to their children.

And most of them do, until the children start to get close to adulthood. At this point, many producers realize just how hard the producer role is in life and seek to help their children avoid the pain and challenge of this path.

Many producers recommend that their children become professionals — doctors, lawyers, accountants, engineers. It is ironic how many very successful college-drop-out producers make sure that all of their children attend the most prestigious colleges available and major in the normal career fields.

Even the producers who train their oldest child to follow in their path often send the younger children in other directions. And hardly any producers pass along the producer mindset to their grandchildren.

Of course, if children or grandchildren choose to take a different path in life, it is usually wise to support their decisions and love them unconditionally. But training them in social leadership, abundance, creating value, serving society, and the producer mindset is good for them no matter what path they take in life.

The historically effective solution for this is for producers to put real time, thought, planning and execution into their grandparenting role — long before they are grandparents. Quality grandparenting is a way for all producers to engage the prophet role for their family, to help pass on their wisdom and understanding of true principles to future generations.

Great parenting fulfills this same function, and is part of propheting — the highest level of production.

Producer Mistake #2: The Blinders

The second mistake many producers make is to think that their particular brand of producing is the only one that creates real value.

Like the old parable of the carpenter who believes that all of the world’s ills can be fixed with a hammer, sometimes producers get so focused on their type of producing that they narrowly discount the value of the others. Focus is good, but narrow thinking usually limits one’s effectiveness.

For example, a statesman who believes that changing government is the only real answer to society and that freedom will fix all problems, will likely reject the moral teachings of prophets and consider them mere “philosophy.” Such a person limits his statesmanship because he just doesn’t get it.

So does the statesman who thinks freedom is the only goal, and that entrepreneurs are just in love with money — he will likely try to use law against entrepreneurship, which is the opposite of statesmanship.

A true statesman sees that all five types of producers are vital to society. Similarly, when prophets undervalue statesmen, freedom of religion and independent thinking are often lost.

Likewise, an entrepreneur who discounts the teachings of prophets may feel successful because he’s made a fortune selling pornography. “After all, I just gave the market what it wanted,” he says.

No abundance-minded entrepreneur would think this, because value is only created when principles and freedom aren’t attacked. If economic value reduces moral or freedom values, total value is actually decreased.

Or, consider the entrepreneur who thinks building profitable businesses is the only way to create value and therefore does little to promote statesmanship — in his older and wiser years he will likely regret the regulated and declining world which he sees his grandchildren inheriting.

When entrepreneurs undervalue statesmen, politicians and bureaucrats win the day and capital is discouraged and eventually attacked. The wise entrepreneur or investor will see the great value added by prophets and statesmen, and he will create more value in his life because his broader view will help him make better decisions.

The examples could go on, but suffice it to say that significant problems occur when any of the five devalue any of the others. However, when all five types of producers understand, highly value, and actively support each other, all types of producers experience synergy — and the value created is exponentially increased.

Producer Mistake #3: Arrogance

Finally, the third common mistake made by producers is to look down on non-producers.

One of the true principles taught by prophets is that every person is inherently as valuable as any other. True abundance means that we respect people, whatever their chosen path — as long as it is good and honorable.

Producers, all five types, are truly vital to society, but that doesn’t make producers any better than anyone else. In fact, true abundance producers know that every person is a genius. Every single person. Some decide not to develop it much, but everyone is a genius. And producing is really just about getting people to develop that genius.

Producers who understand this point are the most effective, because they do it all for the right reasons — a true love of and desire to serve others. This is what abundance really means. Everything else falls short.

This is true abundance, so abundant that you spend your life voluntarily serving others (in contrast, true scarcity would be to spend your life on yourself). Real value means people value — and creating value really means helping people choose better lives.

This is what all five types of producing are all about.

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

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

He is the 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 : Culture &Entrepreneurship &Featured &Government &History &Leadership &Liberty &Mini-Factories &Statesmanship

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