April 19th, 2017 // 8:05 am @ Ian Cox
by Ian A Cox
The Biggest Question
Wow! That’s deep.
The thought kept recurring as I read. The article, written by an innovator, filled me with numerous ideas—old and new—about Thoreau’s Civil Disobedience. The author showed how this classic work, and others like it, are relevant to national events right now, including the famous–not to mention great–maxim: “That government is best which governs least.”
The author showed how this applies to our current national challenges. The biggest question that came to me as I read was something we all need to consider:
“How can we increase our influence in a world that seems to be heading in the wrong direction?”
This isn’t just a rhetorical question. We have more power than we might realize. The struggle for freedom resets with every new generation.
We are always one generation away from potentially losing our liberty. Education is key, and understanding freedom is a must for those who hope to protect and spread freedom.
Moreover, the battle for freedom resets in certain predictable ways. In his book We Hold These Truths to Be Self-Evident, Oliver DeMille gives some perspective on this fateful struggle for freedom in the United States after we gained our independence.
Here’s a summary:
- The House of Representatives was the first to vie for power, as early as the 1790’s. But the executive branch flexed its muscles as well and managed to stop the over-reaching House.
- In the early 19th Century the Marshall Court pushed for widespread control, but the Presidents during the time were able to largely obstruct court expansion (checks and balances = obstruct).
- Next, the mid-19th Century saw a resurgence of local governments as prejudices ran rampant and public servants and jurors turned a blind eye to injustice. This was eventually curbed by the exodus of many oppressed groups and minorities to the west, which created new regions and states, increasing the federalizing power (the Electoral College).
- The States then pushed for dominance of power in the mid-to-late part of the 19th Century, but were beaten by the combined federal powers of the three branches of government.
- An Aristocratic Senate was the leading power center of the early 20th Century, but it only gained influence where the Court allowed.
- The Executive branch stole the baton from the Senate in the settling dust of the Second World War, and this continues today. In fact, its aggressive competitor for power is the Supreme Court—both take turns usurping influence.
A great strength of the United States Constitution is the multi-layered governmental system it created, including a network of intricate checks and balances, as outlined above. The price of human nature and usurping freedoms from others is that power doesn’t decrease; it only transfers to other branches that tend to increase their power in order to bring back a proper balance. In each of these eras a complete takeover was thwarted, but power was centralized and freedoms gradually slipped away.
Deciding Our Fate
This power pendulum persistently swings back and forth, from one group to another, until more individuals take up their true duties as citizens (real influence).
This can occur 1) peacefully, 2) when a violent reset happens (like the Civil War), or 3) when our society collapses and something new is established out of the ashes.
The peaceful option is clearly preferable.
These issues and problems are not merely something we need to think about for today and tomorrow. We must embrace these things with a generational perspective. Because they exist on a grander scale, we have to ask the important questions. Are we solving the problem, or are we stopping one problem by creating a new one?
For example, the Civil War was practically written into the original Constitution; it was a paradox in the fabric of the whole system. Either the joint founding ideals of “all men are created equal” and “life, liberty and the pursuit of happiness” had to be done away with, or slavery had to go. Both could not ultimately flourish together.
Likewise, the Mexican-American War (against Spain) was guaranteed as soon as the Monroe Doctrine was adopted. And, once we decided that extensive international relations via broad treaties were in our best interest, we accepted the wars of Europe as our own.
Phillip Bobbitt’s Shield of Achilles shows how we inadvertently embed the battles that future generations must fight into the chinks and weaknesses of the systems and programs we create today. The establishment of organizations like the Federal Reserve, Internal Revenue Service, and International Monetary Fund created the inevitable outcome of hyper-inflation, boom-bust cycles, and fiat currency, to name a few.
To a great extent, we are always creating our future crises.
Is this the society and government we want to fund with our taxes? Is this the group we want to endorse with our good name? To stand with confidence, with a clean conscience, and to fulfill each of our moral obligations, we must ask ourselves the hard questions. Here I reiterate the innovator’s call to action; we must not be the ostrich with our heads buried in the sand–but we also must avoid falling victim to a conquering Caesar (or a Byzantine bureaucracy).
There are a few options that have historically worked in changing a society’s fate. Some of these alternatives are still very possible today, while others are becoming less and less available to most people. Here’s a breakdown of the top three from history:
You pack up and leave, in hopes of finding a better place to restart. This has happened successfully many times in many cultures, but it is risky. Today there are very limited options for this choice. We have different forms and styles of government to pick from, but there isn’t untamed land that can be cultivated and founded from the ground up.
This is probably the most common form of rebellion. A group raises up arms and fights, in hope of overthrowing or removing tyrants. This method usually fails—not that it doesn’t remove the tyrants from power, but it typically breeds revolution after revolution and more often than not, ends with some new tyrant. In most cases, little actually gets fixed.
3) Civil Influence
In the modern world, civil influence has become the regular, expected, and non-violent form of change. This was brought about in large part by the spread of more democratic forms in societies and governments. As the people’s standard of living, education, and access to information worldwide increases, so does their ability to get involved and flex their muscles as the first and foremost branch of any governmental form. This is the at times slowest method of change, but often the most successful in the long-term.
Where civil influence was once answered with the death sentence (if you weren’t in the ruling class), it is now a real and viable option for any member of society to initiate the spark of change. This requires us, as John Locke argued, to be tolerant. Like the original thirteen colonies, we have now reached a point where the regular people need each other in order to get the right things done. This means we need to work with people who don’t always perfectly agree with us in every detail—or even in many details.
Now, this doesn’t mean we don’t stand for what is right or shirk our moral duties, but rather that we pick our battles. If we are constantly coming out against everything that peeves us, nobody will listen when it really matters (e.g. “The Boy Who Cried Wolf”). Some things will absolutely happen in society that we dislike. But we can’t let disagreement make us disagreeable. It’s actually good that there are differing views on important issues. In fact, we should have a Hamilton and a Jefferson at each other’s throats in cabinet meetings, Congressional floor debates, and Supreme Court decisions–because it leads to more considered and effective solutions in the end.
More importantly, to really have influence, it is helpful not to be the guy who people hate at parties, always harping about the latest issue. Build friends, foster relationships, and focus your political influence when the time and topic are right. That said, be ready and watchful. The right time and topic will come.
Hope for a Better Future
A government by the people will largely be a reflection of the people. It could be a great government if a Moses, Marcus Aurelius, George Washington, Confucius, Muhammad, Cincinnatus, etc. is at its head; but as history has shown, it wouldn’t last. Maintaining a long-lived and successfully free society demands that a lot more citizens think and understand the principles of freedom (at the same level as, or better still, higher level than, our political leaders).
If you and I do this and we invite our communities to do the same, if “we the people” take on the responsibility to govern ourselves, we can and will have the best type of government—one that need only govern least. We must stop passing the buck on the hard things, or someone else will gladly take them up and decide for us. We the people, the first and original branch of government, have always had the most power to check and balance our government, and that hasn’t changed in today’s world.
An elite class can only rule when most of the citizens don’t have the same level of learning.
With persistence, civil influence really can provide proper checks and balances against the potential threats to freedom that naturally exist wherever power resides. In truth, it’s ultimately the only thing that does. It can be difficult. It takes patience, vigilance, study, understanding, and sacrifice.
But it does work.
 See, for example, the struggles of ancient Greece to unite city-states (unity vs. sovereignty), and the same issues in the nations of Europe and later the American colonies.
 A much more likely outcome in our situation.
 Consider the French Revolution, the Russian Revolution, the Chinese Revolution, etc.
 From the American Revolution to Brexit.
About the Author
Ian A Cox is an entrepreneur and consultant who mentors leadership and the Liberal Arts for students and business men and women of all ages and levels. Ian is a popular keynote speaker at educational and business events. He loves reading, basketball, and discussing deep ideas on history and political science. Ian and his wife Emma have two sons.
February 27th, 2017 // 7:44 am @ Oliver DeMille
(The Reality of Today’s Political Protestors)
Thought vs. Feeling
No doubt about it. Symbols matter. The flag. The national anthem. Stories about great heroes from history, such as Paul Revere or George Washington, Abraham Lincoln or Martin Luther King, Jr. In short, symbols move us. They take on a life of their own—above the historical facts, more important to peoples’ hearts and minds than mere reality. “Never let the truth stand in the way of a good story,” as Samuel Clemens put it.
Symbol has power. But not as much power as truth. The simple, genuine truth is even more formidable than symbol. Not always as influential, or persuasive, in the short term—but more important. Compare two views of the world:
Symbol over Substance: “Perception is reality.”
Substance over Symbol: “The truth shall set you free.”
The truth is that perception isn’t reality; reality is reality. Period. But perception, or symbol, does have great power. That’s why the arts are often more influential than science or logic: symbols make us feel, and feel deeply, and when our feelings are at high pitch our minds usually follow.
When politics is added to this mix, the results are interesting. Or, in more symbolic language: when our emotions take over politics, everything becomes larger than life–even overwhelming. The feelings are strong, tied to deeply emotional symbols: the White House, the media, election night agony or ecstasy. As a child I was always surprised at how much emotion adults exhibited when the names Nixon or Carter were mentioned. Immediate anger, or sadness, or a smile. Then came the name Ronald Reagan—a certain cause of sudden frowns or grins, depending on whom I was talking to at the time.
I wonder at today’s children. Say “Barack Obama” to them, or “Hillary Clinton,” and the immediate response is extreme. Happy or sad. Smiles or anger. Hardly ever anything in between. Say “Donald Trump” to our youth, and adults, and the response is pretty much never boring or uninterested. Anger, yes. Joy, yes. Sometimes mixed emotions. But seldom lukewarm.
Look Both Ways
But substance still matters. It is, in fact, vitally important. If we limit our understanding of politics to symbol, we’ve got a major national problem. Jon Stewart pointed this out very effectively when he noted that while many of his friends voted for Hillary Clinton, those who alternatively voted for Donald Trump didn’t do so because they support racism or calling people names, but because they tended to believe he’d be better for the economy.
In short, every top political figure is really two people: the symbol and the substance. To understand both is mature. To ignore both, thinking that the political leader is really only the symbol, or only the substance, is inaccurate and short-sighted.
The old adages “Focus on the issues” or “It’s the economy, stupid,” suggest that substance is king, that ultimately the voters choose based on the issues. But daily media spin and the words of celebrities, singers, actors (Oscars, Grammys, Music Awards, Hollywood, etc.) emphasize the other view—that symbolism is the real battle. One popular song says that we don’t want science, we want signs.
In the Information Age, the symbols frequently consume us. Wise citizens see through media spin that paints a leader as all symbol. But such citizens aren’t so fully swayed by substance that they think symbol doesn’t matter.
This is complex. It’s difficult for wise citizens, because they must weigh both the symbol and the substance of each political candidate, and decide which mix is best for the nation.
The two big political parties make it even more difficult, by constantly trying to put symbol above substance, trying to convince voters that their party is best and their candidate best—regardless of the details or the optics, how things really are, or how things look. “Just vote for us” the parties assure us. “We’re right; the other side is wrong. Always.”
Again, astute citizens see through the smokescreen. They identify each candidate’s substance, and symbols, and make the difficult choice. Wouldn’t it be nice if we had more candidates who were strong both on issues and symbols?
For some, President Obama met that standard. The symbols were strong: first black president in the United States. Wonderful! The American Dream is real, the symbol of Obama assures us. For those who like weaker national security, supporting Israel’s enemies, more government intervention in the economy, and further regulating peoples’ lives, Obama made sense. But for people who wanted to reduce governmental regulation and get the economy booming, while strengthening our national security, Obama’s tenure left much to be desired.
Neither McCain nor Romney offered something clearly different. The overwhelming symbol of both was “more of the same,” “a repeat of the status quo,” “a continuation of the Bush Administration.” Both candidates actually offered significant differences in their policies—but the symbol most voters experienced was still “the same old thing.”
Hillary had a similar problem. Her policies and symbols offered voters “more years like the Obama era.” For many Americans, particularly among those who were hurting economically, the idea of more Hillary/Obama policies was appalling. They wanted something drastically different. They yearned for change. In fact, it is very possible that if Bernie Sanders had been the Democratic nominee, with his powerful symbols of change, he would have won the White House.
This is the complexity of voting. Sanders and Trump both owned the symbol of “massive change”, while by 2016 the leading Hillary/Obama symbol was “no change, bad economy.” For some, Hillary symbolized “first woman president,” but the larger public view for many was “more of the same”. She found this symbol too deeply ingrained in the populace to overcome.
In other words, voters don’t just have to choose who to vote for in presidential elections, they also need to choose their personal voting criteria: for specific policies, or for the symbols. It can be even more challenging than this, in fact. Voters also have to choose between every candidate’s good and bad symbols, and good and bad policy promises.
For example, Trump lost a lot of votes because he too often symbolized “acting like a jerk, attacking people who disagree with him, being insensitive to women, minorities, the disabled, etc.” But he gained votes with citizens who believed he symbolized “truly big change in Washington” or who focused on the issues of “booming economy and stronger national security.” Many voters hated the first set of symbols, but liked the second.
In earlier elections, Obama supporters had to choose between the motivating symbols of “yes we can” or “breaking the glass ceiling of race” and the divisive symbols of “Americans cling to their religion and their guns,” as if personal faith and individual freedoms are somehow suspect. This lost him votes, but it gained him votes as well. No candidate’s take on the issues is perfect for a majority of voters.
Hamilton and Madison started the Federalist Papers with a discussion of this same reality. Specifically, Federalist 1 notes that a number of wise and good people opposed the new constitution, while a lot of wise and good people supported it. With any important issue, Hamilton assures us, there are wise and good people on both sides. How can this be? The answer, Hamilton explains, is that only bad people do the wrong thing for the wrong reasons, but good people act in three ways:
- good people sometimes do the right thing for the right reason
- good people sometimes do the right thing for the wrong reason
- good people sometimes do the wrong thing for the right reason
In other words, in our day not everyone who voted for Hillary wanted the economy to get even worse or for public officials to be lax with national security emails, and not everyone who voted for Trump looks down on women and minorities or hates immigrants. The symbols and the substance aren’t in lock step. This makes attacking someone who wears a Trump hat or openly supports Hillary, for example, particularly disgusting kinds of physical abuse.
Indeed, while supporters of Hillary often downplay her use of emails as much less important than the media suggested, or note that her views on national security and trade were actually much stronger than Obama’s, even though the media refused to effectively show it, and Trump supporters will point out that he’s spoken widely of wanting more legal immigration (going against the Republican norm), symbols once ingrained in the public mind are hard to overcome. The reality is usually far deeper and more complex than the symbol.
Response and Responsibility
The truth is important: the symbols and the substance aren’t the same. The way the press portrayed Senator Clinton is only partially true, full of spin and falsehoods; same with President Trump. The reality has layers and levels. Wise citizens need to look deeper than party, media, and popular spin.
All this makes the violent protests of the Left even more ridiculous. Many on the Right hated President Obama’s policies and his perceived symbol of “bigger and bigger government” every bit as much as many on the Left now hate Trump’s approach. But instead of breaking windows, starting fires, looting, and violently assaulting those with a different view of things, they focused on working hard in their jobs, raising families, and serving in their communities.
They suffered under a president whose policies and perceived arrogance they deeply disliked, and with every Obama increase in regulation that made the Bush-era economy even worse. But they accepted the votes of those with a different view who put President Obama in office. They didn’t mob together to destroy property or physically assault people. Even the Tea Parties, as vocal as they were, didn’t make a national trend of out looting, burning, and assaulting. They focused instead of sharing ideas, seeking for a more favorable election outcome in the future.
Those on the Left who have chosen violence to protest the new president are entirely out of line. There violent acts are, in fact, illegal and immoral. Both the symbols and the substance of violent protest are wrong. Gandhi and Martin Luther King, Jr. stood loudly and effectively for peaceful protest, and left a powerful and noble legacy of standing up for change, for what they believed in, for what is right—the right way.
James Madison considered every election a “peaceful revolution”. There are ways to disagree in a civil society. Violence isn’t one of them.
In fact, the worst negative symbol of the Trump era is calling names and acting like a jerk to people who disagree with you. It’s often offensive, and sometimes extreme. Note that some of the talking heads on MSNBC and other networks have done the same thing for a long time. Still, two wrongs don’t make a right; both sides are to blame when they overstep the bounds of civil discourse.
But as bad as this is, at least it is done with words. The physical violence of those on the contemporary Left who loot and destroy in the name of political anger is a true tyranny in our time, a literal fascism in our midst—and the media who encourage this by portraying it as noble, or somehow blame it on the president or anyone else, or who refuse to condemn it in the strongest terms because the looters agree with their politics, are just as bad. This is precisely the wrong kind of symbol—and substance.
December 14th, 2016 // 8:08 am @ Oliver DeMille
In light of the recent election, a deeper understanding of the real battle facing America in the year and decade ahead is incredibly important!
But surprise: It’s not what most people think.
THERE is a hidden battle raging for the future of America. And, by extension, this battle impacts the prospects for freedom around the world. Indeed, if the great freedom system created by the Declaration of Independence and the U.S. Constitution is lost in the United States, it will likely take centuries before real freedom regains its current level of influence in the world.
This is the great struggle of this generation, but sadly the center-point of this contest is unclear to most people. Only a relative few understand what is actually going on behind the curtain. In fact, this battle for our future hinges on two main questions.
The first question is:
Will Socialism or Free Enterprise be the leading economic system of the 21st Century?
This conflict has been boiling for nearly two centuries, but it is now reaching its climax in the United States. If socialism wins the day, the future of freedom and economic opportunity in the decades to come will be bleak—in North America and around the world.
The decline of the free world will accelerate, China and other socialist-based nations will rise more quickly and gain global power (often by applying free enterprise principles), and the Founding Fathers’ experiment in constitutional self-government will end. Our standard of living will decrease in the decades ahead, the standard of living for our children will be much lower than ours, and their children will likely have a lower standard still.
If, on the other hand, free enterprise wins this battle, the future of American influence will be strengthened, freedom and economic opportunity will spread, and the free world will reboot and rekindle the philosophy of liberty for all humanity.
But the future of this battle is very much in doubt, mainly because the forces of free enterprise don’t actually know who they really are. Free enterprise is losing in both major American political parties, and in the media, academia, Hollywood, and among the political and financial elite. The combined supporters of socialism, though certainly not a unified team, are clear about their goals and strategies. In contrast, those who stand for free enterprise are fractured and unsure, because they are divided by a central confusion about what free enterprise really is. Even when they win elections, the divide remains.
In nearly all writings from the past five decades, when authors speak of socialism and its top competitor, the words used are socialism vs. capitalism. This brings us to the second great issue in the battle for our future:
The second question is:
If Socialism isn’t victorious in dominating the 21st Century, will the winner be Free Enterprise or Capitalism?
These two great questions (socialism vs. free enterprise on the one hand, and capitalism vs. free enterprise on the other) will be the guiding themes of the coming decades. If capitalism wins, the consequences won’t be as negative as socialistic dominance, but they will not be as positive as the results would be under free enterprise.
When a friend told me a while ago that he thinks socialism may be the only answer to our nation’s decline, I was surprised. It’s not what I’m accustomed to hearing from him over the years. But I think I understand what he was saying. Capitalism as we currently apply it too often wreaks havoc with our freedoms, our economy, and our future.
I don’t like the word “socialism” because it has too much baggage (totalitarianism, Marxism/Leninism, a string of failed nations that destroyed their society by attempting to adopt it, etc.) and because there is a better answer. But I do see the desperate need to deal with what modern society calls “capitalism” has done to us. When some people say “socialism”, they mean that capitalism is broken and we need a real solution—soon. And they’re right.
I’m not sure if this is what my friend meant or not, but a lot of people feel this way. It’s a common bond of many who are tired of the “politics as usual” options provided by the Establishment. The desire for something different cuts across the political divide, and its ranks are growing. It has won some surprising elections, but frequently such elections were followed by disappointment as those elected failed to bring true solutions that work.
What does this all mean? What’s behind it all? What is really happening?
Let’s start with the basics. Put simply, free enterprise and today’s system of capitalism aren’t the same thing. Free enterprise is strongly supportive of freedom for all people, while what usually passes for modern capitalism isn’t free enterprise at all, but actually crony capitalism. And crony capitalism deeply undermines freedom.
The problem is straightforward. Both socialism and crony capitalism are steeped in class divisions. Neither treats everyone the same before the law—whether they’re upper class, middle class, or lower class. Socialism claims to do this, but it has never created a society that actually delivered on its promises. In fact, socialist nations have some of the widest divides between the super-rich and poor in the world. And the underclasses in socialist systems are widely neglected, terrorized, and abused.
Crony capitalism is also a disaster. There is a different set of laws for the wealthy than for everyone else, laws that help the rich get richer and the powerful gain more power—while the under classes are routinely treated differently by officers of the government, regardless of what the laws say on paper. To repeat: Under a crony capitalist model, the elite classes have numerous special benefits in the law that allow them to increase their wealth and power at the expense of the rest of us. The law is written to help them, and to keep others from effectively competing with them.
The truth is, crony capitalism is a terrible system. Terrible for freedom, and terrible for prosperity. It lasts because a few elites at the top obtain huge wealth and inordinate power—and they like it that way. Likewise, socialism is terrible model. It almost never gets implemented in a way that even remotely resembles what its proponents idealize and promise. It nearly always becomes an Orwellian caricature of equality, freedom, and “prosperity for all.” Both systems are deeply flawed.
Crony capitalism gives too much power to the money elites, who frequently use it to influence government; socialism gives too much power to government elites, who nearly always use it enrich themselves and give special benefits to their families and colleagues. Both socialism and crony capitalism have proven repeatedly and consistently harmful for the regular people, the masses.
Part of the problem is the binary way in which most moderns see this struggle. Meaning: Many people think that if socialism increases in a nation, capitalism must be decreasing, while if capitalism declines then socialism is on the rise. The truth is that socialism and crony capitalism are natural partners. When the crony capitalists give great power to wealthy elites, the people naturally begin demanding socialistic programs from their government.
Likewise, when socialists increase the amount of money government takes from the wealthy to offer programs for the poor, they make the government bigger and bigger—and the elites who inevitably control such governments from behind the scenes naturally absorb this increased power. The bigger the government—even in the name of social benefits for the citizens—the bigger the power of the aristocratic elite class.
These processes happen simultaneously in most modern nations of the “free world.” Centralized governments get bigger, they control more things in the lives of regular citizens, and a small number of elites enjoy a rapidly increasing share of the money and power.
Best of all, for the elites–when the regular people get upset with an arrangement that is making life harder and worse for most of them, the elites use investment (in businesses, banks, lobbying firms, special interest groups, media, etc.) and donations (to academia, think tanks, hugely powerful private foundations, and political campaigns, etc.) to increase their own influence. It works, year after year, decade after decade. Elites get more powerful and own a bigger share of the wealth.
At the same time, the regular citizen finds it harder and harder to make ends meet, and has less and less influence. Many of the elite-owned and elite-funded media organizations, academic institutions, producers of entertainment, and other top influencers fuel the “socialism vs. capitalism” debate, often using other labels (such as conservative vs. liberal, Republican vs. Democrat, etc.).
This debate makes many of the regular people think that someone is on their side; and it also gives them someone to see as “the enemy.” But both sides, many in both major political parties, and the Establishment wings of both conservatism and liberalism, are funded largely by the same small class of elites.
Again: These elites win most elections, because they fund both sides. They win most policy battles, because they fund the opposing groups. They win at the bank too, because they manage each major political, media, and cultural conflict in a way that brings more of the regular people’s money into elite-owned business services, products, and corporate bank accounts.
The solution to such behind-the-scenes elite domination is a system that treats everyone equally before the law. Everyone. Rich, poor, elite, non-elite, fat, skinny, tall, short, smart, dull. Yes, there should be a separate set of laws for minors—as a protection. But all adults in a truly free system are treated equally by the laws and government officials. This is not the case under crony capitalism. Elites get special benefits.
The Moral Law and Economy
Moreover, truly free government doesn’t have any laws that are immoral. This may seem a strange concept when we are discussing economics, but it is in fact a central truth. As Bastiat explained, the people can only morally delegate to government authority to do something the people have the authority to do. You can’t morally delegate an authority you don’t actually have. Specifically, the force of government is moral only if it is used to defend inalienable rights. Any other use of force or government is immoral.
Together these two foundational principles are the key to free society:
- Laws and government actions can only protect inalienable rights.
- The government must treat everyone equally before such laws.
Socialism doesn’t do this. It recommends using government force to do myriad things beyond protecting inalienable rights. And, historically, socialist societies don’t treat everyone equally before the law—government officials are treated according to a different set of standards. What we call capitalism today has similar problems. It purposely sets out to give special benefits before the law to those with great wealth, with lots of capital.
Both socialism and crony capitalism operate like the Queen of Hearts in Lewis Carroll’s classic book Alice in Wonderland. When the Queen plays croquet with people from her realm, she must win every shot. Not just every game, but each and every swing of the mallet. Everybody lets her win, knowing that if she is bested in even one shot the person who bested her will hear the words: “Off with his head.”
What kind of system is that?
Actually, people who live in socialist nations or crony capitalist societies are used to it. They don’t usually lose their heads, but they know that the whole system is stacked against them and their children. An elite class rules things—regardless of how proponents of socialism or capitalism claim things are supposed to work—and the elites get their way, either by law or by the actions of government officials (despite the so-called law).
In our modern “capitalist” nation, there are a number of laws on the books that treat elites very differently from everyone else, and long-standing practices and policies that treat the underclasses even worse. That’s not socialism, it’s crony capitalism. And it’s a tragedy.
Still, the answer isn’t socialism. Marx’s model is just another flawed and broken system. The answer is true free enterprise—where the government only protects inalienable rights, and actually does protect everyone’s inalienable rights (no matter their social status).
It’s hard for many moderns to grasp just how effective such a model can be. We simply have very little experience with it. But with true freedom, everyone has opportunity. If the upper class wants to dominate, it can’t. The law won’t let it. (Which is precisely what the “pure socialists” are looking for.) If the government wants to dominate beyond it’s proper role, it can’t. (Which is precisely what free enterprisers seek.) When this is the system, as Tocqueville put it in Democracy in America, everyone belongs to the same class—all are treated equally and appropriately before the law.
The only ones who are let down by free enterprise are the crony capitalists or elites, who truly want to dominate. Their motto, as described by an article in The Atlantic on the culture of Wall Street investment bankers, is telling: “It is not enough to succeed. Others must fail.” No win-win is good enough for them. Control is the only acceptable outcome. That’s the driving mantra of elite rule, both in applied socialism and crony capitalism.
If the word “socialism” meant stopping such elite domination and spreading a system of true freedom, I’d be all for it. But the thing is, it already has a name: Free Enterprise. And it works, as long as we don’t let crony capitalism, elitism, or socialism creep in.
Sadly, few people understand the difference between free enterprise and crony capitalism. Yet the differences are largely driving our current decline. It is time for anyone who truly cares about freedom in our modern world to clearly understand this battle, its roots, and the future it is creating for us even as we speak. Moreover, it is time to remedy this situation before it entirely restructures our society. Freedom hangs in the balance.
This is about freedom, success and progress, and how all three are served better by free enterprise than either socialism or crony capitalism. It is about who we really are as people, Americans and members of the free world, and why the differences between these two ways of life—capitalism and free enterprise—are at the root of our future.
For far too long free enterprise has been held back and watered down by the tenets of capitalism. In fact, perhaps the most significant reason socialism has been able to capture the support of so many people in modern times is a direct result of confusing free enterprise with capitalism.
When the differences between capitalism and free enterprise are clearly understood, and the flaws of capitalism are removed from our opinions of free enterprise, socialism will have little or no chance of winning this great battle for the hearts and minds of the people.
Before World War II many Americans combined their view of Stalin’s communism and Hitler’s Nazism into one group considered an axis of evil, and during the Cold War many people mistakenly saw communist China, Russia, North Korea, Vietnam, Cuba and others as one cohesive entity. This caused numerous flawed policies—and cost far too much in blood, sacrifice and treasure—because national leaders took action based on faulty assumptions.
Likewise, today many people erroneously lump capitalism, democracy, and free enterprise into one indistinguishable whole. But free enterprise is a system of true freedom, and while democracy is clearly better than totalitarianism and capitalism is in some ways superior to socialism, free enterprise is significantly better than all these alternatives.
Free enterprise deserves to be understood on its own merits, without the baggage of capitalism weighing it down. Nearly all of the legitimate criticisms levied against free enterprise are actually attacks on the flaws of crony capitalism. As a result, free enterprise has seldom received a full consideration on its own merits. Indeed, if the battle for the 21st Century comes down to capitalism vs. socialism, socialism may very likely carry the day.
True free enterprise, in contrast, is the best economic and political system known to mankind, and if it is understood as it truly is, free from the stains and blemishes of crony capitalism, few will see socialism as the right choice for humanity. Ideas have consequences, as the great Richard Weaver assured us, because all human actions aim at some goal, some ideal. What we hold up as our standard impacts our most important choices as a nation. As long as our ultimate objective is capitalism, socialism will always have its coffers full and its meetings packed. Capitalism is flawed; so is socialism.
In contrast, free enterprise is a very different model indeed. It is time to truly understand free enterprise, to decide as a generation if free enterprise or it’s de facto modern opponent, capitalism, deserves our support against socialism, and which model we want to pass on to our children and grandchildren.
Again, if the battle is between socialism and crony capitalism, as we have seen for generations, the victor is still unclear. But if free enterprise has a real opportunity in the full light of day, if every citizen in the free world has the chance to understand it for what it really is and choose to support or reject it, the days of socialism are numbered.
And free enterprise is not some idealistic dream. It alone is the proven system of widespread freedom and economic opportunity in mankind’s history. Free enterprise is the basis of most real and lasting freedom everywhere, whether people have recognized it as such or not. Even where capitalism has gotten credit for freedom and prosperity, the truth is that free enterprise was the actual source of success.
As free enterprise goes, so goes freedom—in every nation of the globe, and through every epoch of human history. It has seldom received its due, but it has been at work wherever freedom existed, spreading opportunity from behind the scenes.
It is now time to give free enterprise a bigger chance, to at the very least see what it stands for on its own, how it differs from capitalism, and what it promises for those who implement it in their society. This is a book about freedom, and the reality that the actual principles and processes underpinning all human freedom are found in free enterprise.
One thing the new leadership in Washington, and the people, need to clearly remember is this:
To the exact extent that free enterprise (not crony capitalism) flourishes in the 21st Century, we will see real freedom expanding its blessings in America and in the world.
(Note to Reader: This post is part of an upcoming new book by Oliver DeMille, entitled: Free Enterprise versus Capitalism: Battle for the Future of Freedom. Look for Part Two of this report, which will provide more details on this great hidden battle of our time, in another post coming soon.)
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)