November 2nd, 2016 // 6:58 am @ Oliver DeMille
Washington’s Current Slump
(And the Solution)
Growing or Shrinking?
To pay for the national debt, including the unfunded mandates and entitlements ahead, “Uncle Sam needs more than $429,108.73 per person.”[i] To figure out how this directly impacts you, just write down how much you make a year—and multiply it by the number of years you plan to keep working. (Not a perfectly precise approach, but it will get us in the ballpark.) Then multiply $429,108 by the number of people in your family. Find the difference between the two numbers, and that’s how taxes will impact you in the years ahead.
For many Americans, the taxes in this reality are higher than the total amount of money they’ll make. Which is why politicians want to take most of it from the rich. But when they do, the wealthy find ways to move their businesses and savings abroad or into other financial vehicles—hurting jobs, investment, and making the economic struggles of average Americans even more difficult.
However we slice this, it’s a massive problem. It is already hurting almost all Americans (as seen in the Great Recession beginning in 2008, and growing ever since). Government stimulus, printing of inflationary money, and low gas prices have dampened how deeply we feel this problem right now—but these aren’t going to last forever. At some point the bubble will burst, and the economy is in for a tough time. All of us will be directly impacted.
But Washington hardly seems to notice. During elections most candidates promise real change, but it seldom materializes, at least not in positive ways. In fact, since 2008 we’ve seen a stubbornly sluggish economy. Washington puts out positive statistics each month, but most people aren’t feeling any kind of economic boom. And 90 days later Washington revises its past statistics—they are routinely much worse than originally announced.
Yet for some reason, the initial positive announcements make big headlines, while the revisions are usually buried in fine print. It’s almost as if the mainstream media is trying very hard to make the current Administration look as good as possible, and sway the election in their favor as well.
Safe and Secure
It may also be that Washington actually doesn’t notice how hard this economy is for most Americans. As “Phillip Longman recently noted in the Washington Monthly, the per capita income of Washington, D.C. in 1980 was 29 percent above the average for Americans as a whole; in 2013 that figure was 68 percent.”[ii] That’s 68 percent more! To put this in concrete terms, a person making $15 per hour would be compared to a person making $25 per hour. Or compare a person making $4000 per month to the 68% increase: $6720. Is it any wonder that Washington doesn’t feel the pinch quite so much as Joe American?
Compared to average Americans, Washington is doing a lot better. So why would they worry? For many in the nation’s capital, it must feel like time to fiddle, not worry that Rome is burning. Imagine how you’d be doing with 68 percent more money each month. (68% more of any amount seems fantastic. I’d be fiddling, too.)
Along with the struggling economy—largely a result of Washington’s increasing mountain of red tape that is choking American businesses—the U.S. is continuing to spend a lot of money on national security programs that aren’t working. “Since 9/11,” an investigation in The Atlantic reported, “the United States has spent $1 trillion to protect the homeland. The new security state is vast—and growing.” But “are we any safer?”[iii]
The experts answer that yes, we are a bit safer in some ways.[iv] But not even close to $1 trillion worth—and besides, we are less safe in a number of other ways.[v] Less safe, in fact, than we were when Bush won his second term or Obama was elected the first and second times. Specifically, Al-Qaeda and the Taliban are still around, Iraq is a mess, ISIS is growing, our privacy is dwindling (along with our spending power), and the threats from places like Russia, China, North Korea and Iran have actually increased, along with the growing dangers of cyber and other non-traditional attacks (chemical, biological, lone wolf, dirty bomb, etc.).
It seems the more we spend, the more vulnerable we are. Our lack of a coherent and widely-supported national grand strategy has made things significantly worse over the past decade.
As if this weren’t enough, we are also now facing a growing threat of serious economic conflict with China, which is buying up contracts and supply chains for natural resources around the world. Unlike U.S. firms that work largely on their own capital or that borrowed from banks or investors, all governed by boards and shareholders, Chinese firms are managed by a central government approach—even more controlling than British mercantilism in the 18th and 19th centuries.
We’re right not to follow the Chinese model, since central controls undermine freedom. But the differences between our system and theirs skew the way economic statistics are reported, meaning that few Americans realize how bad our economic outlook really is. For example, in the latest Fortune 100 rankings of the biggest businesses in the world, the U.S. has 38 companies on the list, all of which are private.[vi] In contrast, China has 18 companies on the list; 16 of these are owned by the government.[vii] Combine the totals of these 16 businesses, and the Chinese government owns by far the biggest business in the world.[viii] Nobody else is even close.
Here’s another way to look at this: of the biggest 5 businesses in the world, one (Walmart) is a U.S. company and the next three are Chinese—all owned by the government in Beijing.[ix] The combined revenues of these three Chinese businesses are double that of Walmart, and over three times the revenue of the fifth biggest company in the world, Royal Dutch Shell oil.[x]
In comparison, Europe is home to 29 of the biggest 100 businesses in the world, 28 of which are private, while 1 is owned by the government of France.[xi] Furthermore, Japan, South Korea, Taiwan and Singapore are home to a total of 11 of the 100, and all are privately owned.[xii] Together Russia, Brazil and Mexico are home to 4 of the world’s largest 100 businesses; 1 (in Russia) is private and the other 3 are government owned (one from each of these nations on the last list).[xiii]
In short, of the world’s biggest 100 businesses and largest producers of global wealth and prosperity, 20 are owned by a government, 16 of them by one single government: China. Yet Washington keeps hobbling American entrepreneurs and investors with increasing regulations that stifle our ability to compete. Yes, China’s economy has slowed a bit this year, but their growth is still way ahead of the United States—and their slowdown will likely mean they’re less willing to keep carrying our debt load (very bad news for our economy).
It’s time for Washington to take note of our gloomy economic outlook, addiction to government overspending and growing debt, and a very expensive and bureaucratic national security apparatus that is more hat than cattle—as the saying goes in Texas. For this vitally important change to happen, we’ve got to stop expecting so much from the White House and demand a lot more from Congress. Until this occurs, we will keep declining in an “attack business, as usual” approach to the economy.
Forward or Back
All this that I have described here is a recipe for major American decline. And it is our current path.
With all that said, I’m an optimist. I believe the best years for America and the world are still ahead. But how soon we initiate those “better years” largely depends on the Congressional elections in 2016. We need a Congress that will finally stand up for the American people (against the executive and judicial branches) and get serious about creating a truly free, booming economy.
We haven’t had such a Congress for decades—and we’ve been in decline ever since that trend started. Such forces of decline are now snowballing, meaning that the actions of the next Congress will largely determine America’s trajectory for the 21st century.
[i] Harry S. Dent, Boom & Bust, July 2016
[ii] Cited in The Atlantic, September 2016, p. 102
[iii] Steven Brill, “Are We Any Safer?” The Atlantic, September 2016
[v] See ibid.
[vi] See Fortune, August 1, 2016, 110-119
October 26th, 2016 // 6:40 am @ Oliver DeMille
And the Real Need in the 2016 Election
Vital Point #1
While the mainstream media focuses on the presidential election, the real battle will be for Congress. Even some members of Congress argue that winning the White House for their party will make all the difference—but that’s only true if the next Congress remains weakly afraid to take on the Oval Office and use the power of the purse to put our economy back on track. The American framers set up the Constitution with exactly this in mind: a strong Congress that keeps the president in check.
Many people consider this election one of the most important of our generation. And it is, but not because of the presidential contest. Put simply:
Regardless of who wins the White House this year, the real issue will be whether we have a weak Congress who lets the executive branch keep increasing spending and decreasing freedoms—or a strong Congress that understands what the Framers intended and uses their Constitutional powers to get our economy back to true free enterprise.
The voters need to understand this, and keep their eye on the ball. This is extremely important.
The two things the next president will do that are near this level of importance are 1) to appoint new members of the Supreme Court, and, 2) heaven forbid, to deal with a major national security problem. So, obviously, the executive election matters as well. But without the right Congress, we’re in for major decline in the coming years—no matter who occupies the Oval Office.
Vital Point #2
The real battle isn’t what most people think. It is being waged in both subtle and open ways, but academia and media seldom mention it directly. Yet this battle will determine our future.
Many think the great battle of our times is one of the following:
- Socialism vs. Capitalism
- International Interventionism vs. America First
- China vs. the United States
- Conservatives vs. Liberals
- Globalism vs. Nationalism
None of these is even close to our biggest challenge. Today’s great war for our future is much larger, significantly deeper, and more impactful than any of these. The great battle of our times is:
Elitism vs. Enterprise
More specifically: Top-Down Elitism vs. Grassroots Free Enterprise. Note that elitism thrives when a few super-rich at the top dominate finance, politics, media, and culture in our society. Enterprise flourishes where the regular people—the masses—have great economic opportunity and as a group determine our economy, government, and social customs/values.
Elitism rules from a few top banks, governmental institutions, exclusive universities, elite media firms, and dominant corporations. Enterprise drives society from the basis of strong families, communities, churches, voluntary service organizations, and small businesses.
But there’s more: Elitism today dominates the top organizations promoting both socialism and capitalism, and it makes up the Establishment of both major political parties. Elitist banks and corporate leaders control the management of those seeking both globalism and national strength. The leading media and academic hawks and doves are nearly all elitists. Elites win by controlling both sides of things—wherever they can.
Elitist investment rules the corporate world, top media providers, and the most powerful special interest groups. Elitist philanthropy controls higher education, the most influential think tanks, and many of the most powerful foundations (most of which operate quietly behind the scenes).
In America, the word Enterprise is frequently coupled with its partner, freedom, in the phrase “Free Enterprise”; but “Free Elitism” is an oxymoron. If it’s truly free, it isn’t elitist.
Indeed, it is elitist influence in Congress and the media that circumvents the Constitution by convincing the House not to utilize its power of the purse to check the White House, the Court, or the Senate. So, yes, the real need in this election is to elect the right Congress—men and women who will use the Constitution as intended.
But the real war runs much deeper: Getting regular people to choose enterprise over elitism, in their votes for Congress and in their everyday education, career and cultural choices as well. This war—to awaken the people to the reality of top-down ruling elitism vs. grassroots free enterprise, and get them to take a stand for free enterprise—is the great battle of our times.
This starts with the most basic principles of learning and livelihood. On an educational level: If you’re not regularly reading the great books, great classics, and great ideas, you’re part of the problem. Concerning career: If you’re not engaging or strongly supporting entrepreneurial ventures, or (at the very barest minimum), encouraging entrepreneurialism among the youth, you’re part of the problem.
If you’re swayed by the education/career conveyor belt, or pushing your children and grandchildren into it, you’re part of the problem. If you’re swayed by the elitist Establishment that dominates both political parties, or their media partners, you’re part of the problem. And if you’re caught in the socialist vs. capitalist or national versus globalist debates (all of which are ultimately led by elitists), you’re part of the problem.
Elitism wins as long as the masses play the elitist’s game. Indeed, many people are actually supporting elitism, either by giving up on their dreams and simply settling for whatever job pays the bills, or by trying to climb the elite ladder and become part of the elite themselves (and/or guiding their children toward the same).
The solution is enterprise. What is your mini-factory, your enterprising project (or projects) that fuels your passion and have the potential to greatly improve the world? If you don’t have such a mini-factory—or find yourself seldom working on it—you aren’t fighting the great battle of our time. And our side is losing.
This battle is real. Current. Dramatic.
It is happening right now.
We need to win it for freedom, for our children and grandchildren, for the future of families and morality and goodness. Which means this: We need your involvement.
(To learn more about creating your own personal mini-factory, and how this will win the battle of our times, read The Coming Aristocracy by Oliver DeMille. Available at the Leadership Education Store)
July 22nd, 2016 // 2:49 am @ Oliver DeMille
Loyalties and Addictions
Many nations, and the global market as a whole, are moving from the Loyal Economy to an On-Demand Economy. (See Klaus Schwab, The Fourth Industrial Revolution, 2016, 72) This is just what it sounds like. Our societal focus is increasingly on what we want–not what we need, should want, or have already agreed to.
This shift is impacting work, business, management, leadership, professions, and even families, churches and communities in massive ways. It has already taken a significant toll on relationships in our modern society. Indeed, almost no part of human life has remained untouched by this momentous change.
Just think of all the ways damage can be caused by a shift away from loyalty, and changed to whatever someone wants instead, and you’ve got a pretty good indication of the problem. For example, as a society we have historically been known for being loyal customers—we either love or hate the Yankees, Cowboys, Lakers, etc., and many people have traditionally been very passionate about Ford or Chevy, West Coast or East Coast, City or Farm, New York Times or Wall Street Journal, Prada or Gucci, and so on.
As for Republican and Democrat, these attachments were often multi-generational, and as zealously maintained as one’s religion. For a number of people, these labels (GOP or Democrat) defined “who they really were as people” more than any other feature.
But in the Digital Age we’re losing many of these connections. A lot of people now switch allegiance to sports team based on how the best clubs are playing this season, and we change “favorite” recording artists or television shows almost as often as we change our socks nowadays. We press “Like” one day, and don’t press it the next. Just follow the Twittersphere—changing loyalties is new a national hobby. Or addiction.
With the endless options of the Internet constantly streaming in front of us, it’s not surprising that many customers—most customers in fact—consistently try out new options. Why not? Maybe the next one will be better.
The same is true of many companies. It used to be that good employees were given numbered pins each year or decade—to show how long they’d been at the company. The ideal was once to work your whole life with one organization, move up the ranks a little or a lot, and retire in the same company and town where you started your first job. The whole company threw a party, and you were presented with a gold watch, an engraved silver pen, or another memento of your long-term loyalty.
Today few companies exhibit such loyalty. Some, in fact, routinely purge upper-level management in order to replace more expensive employees with cheaper, younger models who are decades from earning a pension. The laws have made it much easier to carry your retirement savings with you from company to company, and a lot of people are constantly on the lookout for a better job elsewhere. There are popular apps dedicated to this habit.
Given today’s technology, and the nimbleness big organizations must somehow try to exhibit in order to remain relevant, such changes aren’t surprising. In fact, they may simply be the new way of things, the new normal. The old is always being replaced with the new. This week. In fact, in the news cycle Monday’s “crises” and “tragedies” often go unmentioned by Thursday.
Thus it isn’t shocking that our political leanings are going through an era of upheaval as well. During modern periods of economic and cultural stability, a majority of voters stick with the parties. Whether you like this approach or not, it’s usually the reality. Such majorities may be “silent” most of the time, but on election day they vote like the experts knew they would. They toe the party line.
Parties or Menus
We have seen this kind of stability erode a great deal since 2006. The iconic memory of 9/11, followed by the failure to find weapons of mass destruction in Iraq or win the wars in Iraq or Afghanistan easily and quickly, threw the electorate for a loop, and the Great Recession that followed moved us decisively away from political stability—at least for a while. China, Russia, the Middle East, North Korea, fluctuating prices, an economy that never seems to recover, and so many other things contribute to a growing sense of chaos, and of things getting worse.
Indeed, elections seem to get crazier and crazier. Predictions by the top experts, and the masses of talking heads, are now routinely wrong.
This isn’t driven by a cycle, however, meaning that we can’t chalk it all up to “a phase” the nation is going through before it reverts back to its traditional, normal behaviors. Cycles and trends do sometimes explain things that happen, but this time something more is going on. The rise of nearly-ubiquitious digital mobility is still in its infancy, and it is quickly restructuring politics (along with marriage, family, community, education, career, business, the economy, etc.).
Voters are less and less likely to be Loyalty Voters, emotionally attached to one party that stands for their culture, their beliefs, their family traditions. Indeed, in a world where more and more people are routinely questioning their birth culture and family traditions, they’re not likely to let loyalties based on these things get in the way of change.
Specifically, we are entering a Pragmatic Era in politics, where people want on-demand government. They want a menu of options to choose from, not a political party and its bureaucracy. They don’t really want to choose between candidates. They want a little of what one candidate has, but without the rest of his ideas. They want some of what another candidate promotes, minus his personal views, or his stand on [fill in the blank…]. They like what they hear from one candidate on one day, but disagree with what she says the next.
It’s not so much a targeted electorate where the candidates try to win over the biggest special interests—like it has been for the past two decades. What’s emerging now is, to repeat, a growing clamor for on-demand politics. Voters want to unbundle government. They want to be able to select “yes” items and “no” items from every candidate running for high office.
In other words, they want Washington to live in the Digital Age. They want to directly email—or, better still, text—presidential candidates and have an on-going dialogue with them, and then continue the dialogue after the president is elected.
“I liked your speech yesterday at Georgetown, except for the part on naval upgrading. What actually needs to happen is…”
Moreover, they want the President to answer their email.
“Thanks, Amy. I see your point. I’m meeting with the Joint Chiefs later today and I’m going to tell them your recommendation—and order them to do it. They really need it. Good thing you’re on our side and sent me that email.”
Today’s voters want the government to respond the way Amazon does. Immediately. In fact, they want to be able to sign up for the President’s Prime service—free answers within the hour, and nearly-immediate government implementation of whatever you tell the Oval Office to do.
“Get your policy implemented by Tuesday at 8 p.m., if you order it in the next 8 hours and 41 minutes. To get it by Monday at 8 p.m., pay an extra $3.99 and click here…”
As a result of this shift in voter expectations from their government (and the fact that government is still stuck in the 60s–or maybe the 70s–ways of doing things), hardly anyone is truly happy with any election anymore. Presidents Bush and Obama may well be the last loyalty-backed presidents. Indeed, barring a major military threat that unites the nation against a common enemy and brings back a loyalistic approach, most future presidents may well be one-termers.
That’s worth repeating. We may be entering an epoch of one-term presidencies. We’ve already seen the voters moving this way with their seeming schizophrenia in presidential versus Congressional elections. They routinely put one party’s candidate in the White House and simultaneously fill the Congress with the opposing party.
Again, what the voters really want is a truly on-demand system, where they can elect national leaders and direct their actions issue by issue, “no” on this, “yes” on that—preferably with a click of their computer—er, smartphone. This is leading in the direction of more democracy, specifically a more democratic system built around online voting. And, honestly, most modern Americans see this idea as excellent, obvious, and overdue.
In response, I have two words:
If you have studied them in depth, you know exactly what I mean.
But most people haven’t.
And that means we’re in for a wild political ride just ahead. It might contain a series of one-termer presidents (the nation swinging pendulum-like to and fro, then back again, over and over), a serious party shakeup with a new dominant national political party (or two), or it might be something even more surprising.
Whatever is coming, there is a widespread sense that it’s big. And we don’t even have Steve Jobs to walk out on a black stage in his black t-shirt and announce the future. If he were still around, he’d tell us to hold on to our hats, because this flight into the Era of populism, globalism, voter pragmatism, and digital-age on-demand revolution is just beginning. And the only thing we know for sure is that it’s going to get bumpy.
(Solution: It’s more important than ever for regular people to deeply study the core principles of freedom! The politicians and “experts” aren’t going to fix this for us—they’re the ones piloting the current chaos. For a beginning reading list of core freedom principles—and audios to go with each— join Black Belt in Freedom)
July 6th, 2016 // 7:15 am @ Oliver DeMille
(Note: In the Internet Age, writing short blog posts usually wins the day.
“Nobody wants to read more than 1-2 pages,” the experts say. “Less is more.”
I usually try to follow this maxim. But today I’m making an exception.
So be forewarned: This article is quite a bit longer than usual, and I feel that
every word of it is worth reading! Enjoy…)
The truth is, freedom has a lot of problems. Still, humankind hasn’t come up with anything better than freedom as the guiding societal arrangement—and so far in history the many human attempts at creating lasting equality have brought disaster after disaster.
Here’s why: Life isn’t fair. And life isn’t just. There is unfairness and injustice in every era of history—in every nation and time period. A world that is entirely just and fair simply doesn’t exist—and has never existed—among humans.
Even in an ideal society, whenever that comes (and I believe it can and will come), there will still be unfairness. Just like there is unfairness in every family, every business, every friendship, every marriage, every relationship, every church, every group of humans anywhere.
To repeat it one more time: If it’s human society, then human nature is at play, and therefore there will be injustice and unfairness. Period.
Of course, people don’t like this reality, so all through history we’ve tried to change it. Some people attempt to fix this frustrating reality with more “freedom,” but it doesn’t work. Not perfectly. So they try to fix it with more “equality,” but that doesn’t work either.
They try to fix it with increased government regulation, intervention, and oversight, and guess what? There is still injustice and unfairness. In fact, such governmental attempts nearly always increase the amount of injustice and unfairness.
Here’s the reality:
- The problem with freedom is that it always ends the same. In a free society, an elite economic class eventually rises and dominates the regular people. Without government controls to keep those who succeed in the market from becoming too big and powerful, elite economic classes always take over.
- The quest for equality is also problematic. In a society seeking equality, an elite political class always rises and dominates the people. If there isn’t a level of economic openness that truly allows anyone to rise economically, and to rise as far and as big as they choose (as long they don’t violate anyone’s inalienable rights), a few elites always use government power to keep certain people from competing in the marketplace—and this results in even more inequality.
If you like the allure of “equality,” read Item #2 over and over until it makes sense. It is, literally, the history of almost all human societies.
If you love freedom, read Item #1 as well. It’s very important to understand this reality. (See, for example, Federalist Papers 1, 2, 10, 14, 15, 18, 19, 20, 51)
The American framers knew this history, and they tried to find a middle ground. They hoped that by separating powers and further checking and balancing the forces of government, they could keep the elite economic class working in the Senate and in the Executive branch, and the elite political class busy in the House of Representatives and the Court—all fighting each other. Fighting enough, in fact, to keep both elite groups too busy to dominate the regular people.
The framers’ plan worked and it failed. It worked because it improved the situation from what it had been before. The branches of government do attract much of the attention of the elite economic and elite political classes, and they do fight each other—a lot. Enough, in fact, that they dominate the regular people less than before the Constitutional system (for example, compare the English system from 1078 to 1894, and the Continental model from 1530 thru 1915).
But the Constitutional system failed too—because both elite classes still spend some of their time dominating the regular people. Result: we live in a society that isn’t fair, and is often unjust.
Did the founding model improve things a bit? Yes. Demonstrably so. Did it entirely fix the problems of unfairness and injustice? Not even close. But it did better than any of the societies aiming for equality—just look at Russia, China, Cuba, Nicaragua, all of Eastern Europe between 1945 and 1989, and nearly all of Western Europe after the 1960s.
The elite economic class and the elite political class are still growing, and still inflicting their various agendas on the rest of the people. Thus our modern world: Not fair, not just. Also: not particularly free, and not very equal.
To understand this more deeply, compare the two groups as they currently operate in the United States. The elite economic class (largely Republican) is trying to convince everyone to support it by calling for “freedom,” “liberty,” “capitalism,” and “free markets.” It uses these phrases and slogans as catchwords for its real agenda: “Let’s use economics to increase our power over the elite political class.”
The elite political class (mostly Democrats) does the same thing. It uses terms like “equality,” “social justice,” “democracy,” “fairness,” “higher minimum wage,” “free college for everyone,” and so on to promote its actual agenda: “Let’s use government to increase our power over the elite economic class.”
In all this, here’s the thing that everyone who wants to avoid being swayed or manipulated by the spin machines of either side needs to understand:
Both groups—the political elite class and the economic elite class—win when they keep their message complex. They both lose when the regular people understand very, very basic principles of freedom and fairness.
As a result, they both put a lot of money and resources into influencing academia, the media, the professions, and the entire upper middle class.
Let’s get specific. When anyone argues for “equality,” you have to move it out of the realm of complex, academic, deep, intellectual, and expert, and into the realm of very, very simple. The same is true when anyone argues for “freedom” or “free” markets, etc.
If you’re in a place of complex, the elites are winning. If you get to very simple, extremely basic, the regular people might win.
So how do we take complex “equality” and complex “freedom” and make them truly simple? The answer is easy. Just know the following two definitions of “equality”:
- Equality of Opportunity. Everyone has the same opportunity before the law, meaning they can do whatever they want as long as they don’t violate the inalienable rights of any other person. And this has to be simple, not complex! Meaning: people can do anything, as long as they don’t violate someone’s inalienable rights. This might sound like too much freedom to the intellectual crowd, but the regular people get it. It works.
- Equality of Result. The government tries to make sure everyone has the same results—a generally similar level of income, similar levels of ownership, similar levels of wealth (or poverty). Or, failing to obtain this, they settle for enforcing limits on how much any business, person, or family can own or grow—to try to keep everyone at least somewhere near the same level.
Anyone who argues for Equality of Opportunity is likely on the side of the regular people. They want things to be simple: A government that protects us from foreign invasion and local murderers, rapists, and thieves—and does nothing else at all.
That’s simple: nothing else at all. Protecting inalienable rights, period. And doing nothing else.
Go beyond this, and you’re into complex. Seriously: Any fudging of this moves society into complex, where the elite classes can step in with their experts and intellectuals and take charge.
Again: The simple approach wants government to allow people to do whatever they want, and own whatever they choose to earn, as long as they don’t violate anybody’s inalienable rights. Period.
In contrast, the forces promoting Equality of Results usually want either the elite political class to win, or the elite economic class to win. The political elite class dominates the regular people by using government to regulate, intervene, and keep down the power of the wealthy elite—or so they say. But in all of history this has never once actually happened.
What happens in real life is that elites promising “equality” and “fairness” get elected or appointed to power, and then they and their friends use their position and influence to rig the system so they end up keeping more of the money and power for themselves. This is what has happened every single time. No exceptions.
Literally—there are no exceptions in history. No matter how good the theory of equality and fairness may sound, nobody has ever done it in a lasting way. Some have gotten close—but within a few years it broke down. Always.
But that’s not all. If the economic elite class dominates, it does the same kind of thing. It promises the people that it will keep the political elites from dominating, and then once it is in power it works to rig the system so it can dominate the regular people. Again, this is how it always works.
This bears repeating: There are no lasting exceptions in all of recorded history. It always ultimately turns this way, as long as either of the elite groups (political [Left] or economic [Right]) have the power.
The only time it doesn’t happen this way is when the regular people maintain the majority of the power—by keeping the government protecting inalienable rights, and doing absolutely nothing else. This creates a true Equality of Opportunity. But this is a very rare situation indeed.
It happened briefly—for some of the citizens—in ancient Athens (the Solonic era), for two short periods during the ascendance of Rome (see the Gracchi and the Aurelian eras), during the Saracen golden age and later in the Swiss Vales period, during the Frank and Anglo-Saxon golden ages, after the implementation of the Magna Carta and again after the English Bill of Rights (but only for aristos), and after the American Founding (but only in the North and West, and only for some of the population).
Again, it is rare.
We don’t live under such a system today. We are firmly dominated by the economic and political elites, and their battles with each other. They both claim to want to put the power in the hands of the regular people—but they never do.
Those calling for equality and freedom mostly want Equality of Results—either led by political elites (Democrats) or economic elites (Republicans). Neither of these ultimately promote the interests of the regular people. If they call mainly for “equality,” “fairness,” and “social justice,” they are nearly always political elites vying for ascendancy over their Republican enemies. On the other hand, if they call for “freedom,” “capitalism,” and “America first,” they are nearly always economic elites seeking to beat their Democratic foes.
People who are convinced by their slogans, catchwords, well-compensated intellectuals, and candidates are routinely disappointed, year after year after year.
Again: focus on the most basic principles. What we want is Equality of Opportunity—which is what government was created for in the first place. Jefferson outlined this very clearly in the Declaration.
This means simply that we want our government to protect Equality of Opportunity for everyone (strong protection against invasion, and violations of our inalienable rights—period), and do nothing else. Nada. Zero. Zilch.
A government that does anything else—whether in the name of “equality” or “freedom”—always ends up working for one of the dominant elite classes, or both.
So the next time someone tells you that we need more “equality” or “freedom,” find out what they mean. If they mean Equality of Opportunity, great. If they mean something else…one of the elite groups, intellectuals, writers, experts, or apologists have been bending their ear. This may seem too simplistic to some intellectuals—but it is true nonetheless. (For example, very closely scrutinize Federalist Papers 1,15,31,47-49,62 and 70.)
When government protects everyone from foreign attacks and domestic infringements on our inalienable rights—and does nothing else—we’re in the freedom zone.
Everything else done by government is an assignment from either the political elites or the economic elites, and their agenda is to keep the regular people in submission. Fact: they’re good at this game, and they’re still winning it.
One more thing. Understanding the historical roots of the idea of equality is very important. The word equality came from the ancient Greeks, and they meant something precise. Something specific. “Equality” was holding the same status before the law. But what does this phrase actually mean?
Well, for example, small landowners were “equal” with wealthy landowners, even if the wealthy owner had 100 or even 1,000 times the amount of land and wealth. (See Victor Davis Hanson, The Other Greeks) How could they be considered “equal” in such circumstances? Answer: on their land, their own private property, they had the final say. They couldn’t do something to somebody that took away that person’s universal rights, but they could kick that person off their land simply by choosing to do so.
It was their land. They actually owned it. Entirely. If the wealthy landowner with many thousands of acres came on the property of the subsistence owner with just ½ an acre—the small owner was in charge. Period.
They were equal—because on land one person owned, he had the power. And they both had this power, each on his own land. The law backed the owner up on this, even if the person losing a dispute was the very wealthy owner. If he was on the small owner’s land, the small owner was the boss.
And vice versa, if the small owner, or anyone else, went on the big owner’s land.
This is where the concept began. “A man is the king of his own home.” All men are thus equal.
Note that there is no forced equality here. Only enforced equality. The difference is important. Jefferson put this exact concept in eloquent terms: “endowed by their Creator…” In other words, the big and small owners were equal because “Nature and Nature’s God” made it so.
They didn’t become equal because of some act of government, and they weren’t granted equality by some government decree. Instead, they were born equal, regardless of government. The government didn’t force equality—it had no right to do so in this worldview.
It could only enforce the equality that was already there, put there by “Nature and Nature’s God.” Put there by an endowment of the Creator, to cite the Declaration of Independence.
Furthermore, “equality” in this sense was inalienable. It was given to all men equally by birth, by the Creator. It was to be enforced by government, never forced by government.
In contrast, the type of equality we usually talk about today—always on the political Left, and even frequently on the Right—is the kind of equality that government forces. Government wants people to be equal, so it sets out to legislate it, or decree it, or adjudicate it so. This is force, pure and simple.
Any time we see real Equality of Opportunity, we’re ultimately just talking about two owners each being the boss on his or her own land or home. When government tries to force equality, in contrast, it nearly always aims for a totally different kind of “equality”—not the kind that came from ancient Greece, but the kind that came from Assyria. In the Assyrian model, the King divided land “equally” among his subjects. They were “equal” in the sense that the King gave each subject what they had. Their ownership came “equally” from the same place—the government.
But this kind of equality is a poor counterfeit of the Greek version. Indeed, in the Assyrian approach, the King kept most of the land for himself and his relatives (royals). He typically maintained another big portion for his close friends and allies (aristos). Honored soldiers received the next level of “equality,” and the rest of his subjects got what was left over—according to the whims of the King.
Call this “equality” if you want, but it’s actually a totally different thing. It’s not even equality at all, even though it still passes for it in most intellectual circles today.
When Marx and Lenin promoted modern socialism and communism, they gave great wordplay to the Greek type of equality—and yet every system set up based on their template implemented the Assyrian structure. No exceptions.
Indeed, the early Greek meaning of “equality” developed during the pre-polis era. (Ibid.) When a lot of people left the farms and built up the early city-states (city = polis), this model changed. While the small landowner and the large, wealthier land baron still followed the traditions of equality (“If I am on your land, you are the boss, and on my land, I am the boss, regardless of how much land each of us owns—thus we are equal…”), the new aristocratic management class in the polis soon saw itself as superior to the farming “hicks” of the countryside.
The cosmopolitan bureaucrats owned no land, in most cases. So what was their status? They saw themselves as above the rural farm-based regular citizens of their society, and they began demanding special tribute to themselves. They didn’t ask to be treated as equals, but as superiors. The small and large landowners still believed in equality, but they found themselves dealing with an Assyrian-based urban aristocracy/bureaucracy that demanded taxes and titles—above that of all the landowners.
The polis-era landowners responded by arguing for equality—for everyone, including small landowners, big landowners, and the new class of urban managers. The urban elite, of course, rejected this idea—it would have made them equal in title and status with the nation’s “hicks.”
The urban aristos, however, had a problem when they adopted this new model. Sadly for them, they depended on these very “hicks” for all their food and sustenance. What to do?
Answer: They went with the Oriental approach, the Assyrian/Indian/Chinese model. They adopted monarchy. They argued that Kings and Queens would protect the whole nation better, and since the urban aristos ran most city-state governments, they were able to win the support of the urban working masses. They used “democracy” to support kings and queens who they promised would take better care of everyone.
The people who lived under the older system of pre-polis “equality” soon lost both their freedom and their equality. When they complained, they were informed by the urban aristocratic class that freedom meant having the honor of serving the King in whatever way he demanded, and equality meant accepting whatever station and ownership (if any) the King deigned to hand out to you. This pattern repeated across the Middle East, Near East, and West. (See Plutarch, Parallel Lives…; Will and Ariel Durant, The Story of Civilization; Arnold Toynbee, A Study of History; Hugh Nibley. Ancient State.)
Of course, the old crowd disliked this new approach. But the new, self-proclaimed “civilized” states had a name for the old landowners and their widespread freedoms and equality. They called them “barbarians.” In England the term was “boors,” and in America it was “hicks” or “clods,” as Victor Davis Hansen reminds us. (Op cit., Hansen) President Obama exemplified this attitude when he mentioned that too many Americans cling to their guns and religion. He might as well have openly used the word “hicks.”
The connotation (from ancient times to Obama) was that those in the big cities were smarter, better educated, wealthier, and in positions of power—while those in the “sticks” were less intelligent, less educated, less prosperous, and boasted few official titles of nobility.
Remember what the word “nobility” meant: “One who receives his position, status, title, lands, ownership, and assignments from the King.” For their part, the landowners (big and small) rejected nobility. They hated the idea. They wanted ownership: which for them translated to equality and freedom.
Fast forward roughly two thousand years. Today, the two major models of equality have the following characteristics:
Note that both national parties—Democrat and Republican—are dominated by majorities who largely ascribe to the Assyrian values. Those who prefer the Greek principles are in a minority in both parties. They have higher numbers among independents than in either party, however; mainly because independent status by its very nature appeals to people who value standing out and emphasizing their individuality.
Again, original roots of both freedom and equality come from the same place—the pre-polis view of ownership, and of equal status and inalienable rights given to us by “Nature and Nature’s God.” This is the model the American founders adopted—Greek, not Assyrian.
The Assyrian approach has the King or other government—whatever it is—doling things (and rights) out to the people, telling them what they can and can’t do. The Greek approach is different. It maintains that “Governments are instituted among men, deriving their just powers from the consent of the governed.”
These exact words by Jefferson are perhaps the best summary of Greek equality (pre-polis) ever written. Specifically: the people are equal with each other, and they are, together, above the government. Unconvinced? Try this: “That whenever any Form of Government becomes destructive to these ends [What ends? The ends of: “Governments are instituted among men, deriving their just powers from the consent of the governed.”], it is the Right of the People to alter or abolish it, and to institute a new Government…”
The Declaration goes on and on—spouting one pre-polis Greek equality/Greek freedom viewpoint after another. Remember, this all started with: “…all men are created equal…”
“Equality” as it is used in the Declaration means pre-polis Greek equality, not aristocratic/bureaucratic-rule equality. They are very different.
Finally, to repeat: the American founders got their views of both equality and freedom from the pre-polis Greeks (who got it from the Hebrews—but that’s another article). It was the same culture. Same values. Today we usually just call it the culture outlined in the Declaration of Independence.
Because that’s exactly what it is. Including:
- Equality of Opportunity.
- Freedom of the regular people.
- Government only protecting inalienable rights—and doing nothing else.
- Not a society run by either the economic elite or political elite classes.
The Declaration had it right: real equality means pre-polis, “Nature and Nature’s God” equality—which also means freedom.
The truth is, we should give it a try sometime…
June 8th, 2016 // 12:08 am @ Oliver DeMille
Washington’s “Grin and Bear It” Message About an Economy that’s Still Struggling
The Need/Desire Question
In a 1927 issue of Harvard Business Review Paul Mazur of Lehman Brothers wrote the following prescription for the nation: “We must shift America from a needs to a desires culture.” How? “People must be trained to desire, to want new things, even before the old have been entirely consumed. We must shape a new mentality in America. Man’s desires must overshadow his needs.” (Cited in The Happiness Equation by Neil Pasricha, p. 78.)
What a thing to say! And it has happened, just as Mazur recommended. But in the process, something else happened as well. Not only were people convinced to want more and newer things, but government got caught up in the same quest. And people began desiring many more and new things from government as well. This changed our entire culture.
More recently, President Obama has assured the nation that a slow growth economy is the new normal. But is this good news? Or very bad news masked by a smile? Truth: it’s certainly not good news. (See the new report: “The World is Flat: Surviving Slow Growth” in the March/April issue of Foreign Affairs)
But before we address this, let’s take a little quiz. Just for fun.
Messages and Meanings
The following quote is about what nation?
(1) “_____________ will not be able to grow its economy…without…privatizing state-owned companies, [and] loosening regulations…”
Or consider this:
(2) “It may have…an undervalued currency, a debt-to-GDP ratio of 250 percent, and an average annual GDP growth rate over the last decade of less than 1 percent…. [but] Life expectancy is among the highest in the world; crime rates are among the lowest. The…people enjoy excellent health care and education.”
(3) “Middle-class wages stopped rising more than 30 years ago, but…low interest rates…and easy credit obscured the problem, allowing people to bridge the gap between their stagnant incomes and their spending.” How? By going into massive debt.
What is most interesting to me about all three of these quotes is how applicable they are to the United States today. Just re-read item 1 above. It could be a very realistic (and important) “To Do” list for Washington in 2016. Yet it was written about today’s Russia under Putin. (Foreign Affairs, May/June 2016, p. 20)
Still, Washington does need to heed its message:
- privatize state-owned companies that are a drain on taxpayers and gum up the free market
- loosen regulations that are killing small business and sending investment capital to other nations
Item 2 above could also seem to be about the United States, but in fact it describes today’s Japan: “It may have…an undervalued currency, a debt-to-GDP ratio of 250 percent, and an average annual GDP growth rate over the last decade of less than 1 percent…. [but] Life expectancy is among the highest in the world; crime rates are among the lowest. The…people enjoy excellent health care and education.” (Foreign Affairs, March/April 2016, p. 50)
The intended message here is clear: “If the people have good health care, education, and a stable economy, everything is good. A growth economy isn’t necessary.”
Starts and Stops
In fact, in the United States, “Middle-class wages stopped rising more than 30 years ago, but…low interest rates…and easy credit obscured the problem, allowing people to bridge the gap between their stagnant incomes and their spending.” (Ibid., pp. 50-51)
But how have Americans masked falling wages? The answer is illuminating:
- By going into massive mortgage debt (eventually leading to the housing bubble crash and the Great Recession).
- By using credit cards, car loans, student loans and building up major consumer debt. The average U.S. household has over 97 thousand dollars of debt and growing. (The Motley Fool, January 2015)
- By more than doubling the amount of work they do, with both parents typically now in the full-time workforce, instead of just one breadwinner.
- By working longer hours. The average workweek in the United States is now 46.7 hours, not the 1950s model of 40 hours and a crisp 9-5 workday. (USA Today: Modern Woman, Fall/Winter 2015) Over the course of a month, that’s an extra 29 hours—almost an extra workday every week compared to American workers of the 1950s.
- By depending on increasing amounts of government support, including “free” public school education, “free” health care for those who qualify, and a number of even more direct government programs and assistance.
In all this, according to Gallup, less than 20 percent of U.S. workers love their job. Around 80 percent are in jobs they hate, dislike, or feel less than passionate about. Moreover, most Americans don’t believe that their current job will ever get them ahead financially. They’re just barely paying the bills—if that.
Still, the current message from Washington and labor experts is that things are fine, that the economy has improved under president Obama’s leadership, and that we should be grateful. Most people won’t see financial increases anytime soon, “but don’t sweat it.” Like people in Japan, we are assured that we should just be happy for general stability and get used to a stagnant economy.
Fewer jobs, more college-grads who are unemployed or (underemployed) and living with their parents, more three-generation households, falling home values, rising costs of food and necessities—these are the new normal. “And it’s okay,” Washington assures us. “If things get really bad, there are more government programs than ever to help you make ends meet.”
Don’t worry, be happy.
Regulations or Solutions
“Don’t desire so much anymore,” we’re told. “Make do with less. Except when it comes to big government. We’ll give you more of that!”
But how does this message from today’s Washington jive with the reality? Truth: “An economy that grows at one percent doubles its average income approximately every 70 years, whereas an economy that grows at three percent doubles its average income about every 23 years—which, over time, makes a big difference in people’s lives.” (Foreign Affairs, March/April 2016, p. 42)
Factor inflation into these numbers—on the basics like food, housing, education, and transportation—and one percent growth means the average household falls further behind each and every month. At three to four percent growth, in contrast, like the overall average from 1945-2005 in the United States, families can improve their standard of living over time—and even help their kids do better than themselves.
Right now this level of growth is found mostly in Asia, certainly not in North America or Europe. Thus the increasing American realization that our children and grandchildren are likely to be worse off than we are, while their Chinese counterparts will probably experience upgraded lifestyles and standards of living in the decades ahead.
But this isn’t a static reality. It is based on the current policies and agendas of Washington. These can be changed. For starters, just adopt the suggestions Westerners often give to Russia, as outlined above:
- reduce/remove numerous government regulations that are killing small businesses and driving investment capital and high-growth corporations—and jobs—to other nations
- stop federal overspending in so many government agencies by simply cutting their budgets—significantly—to spark increased investment and business growth
Just these two changes would significantly reboot the U.S. economy.
Americans can become a more frugal and a resilient people once again, no doubt. But they would rather be a more innovative and entrepreneurial people—and they have proven that they are incredibly good at it—if government will just cut away the red tape and let free enterprise thrive again.