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The 8 Facets of Freedom

September 29th, 2010 // 4:00 am @

A new tribe is needed.

Actually, its constituents have been around for a long time. But they have functioned as individuals, sometimes as families, and more rarely as small groups of people.

But as a tribe or nation, it has never gained traction or achieved critical mass.

Such a tribe believes in freedom, real freedom, for all people in an ordered society that protects liberty for everyone.

This ideal has been proposed by many, and fully achieved by no nation in history. The American founders promoted it—but even they fell short.

Perhaps an isolated tribe or two have accomplished it; but such events are recorded as scripture, myth or legend rather than meticulously documented history.

For the rest, it remains an illusive utopian dream.

Three of the biggest challenges of our time—the need for a revolution of entrepreneurship, the need for more independent-thinking citizens, and the need for more leadership in the emerging e-tribes and other new-style tribal groups of the world—all unite in their call for the growth of a new tribe dedicated to freedom.

False Two’s

One of the major reasons the tribe of freedom has seldom achieved power in the world is that human beings naturally tend to break into competing groups—but without dividing on the true lines of difference.

Madison outlined the benefits of this tendency in Federalist 10, and there are many positives of factionalism that have contributed to American freedom.

But there is also a major downside.

Tocqueville taught in Democracy in America that every nation divides itself into two major parties, each competing with the other for ascendency.

He called these the party of aristocracy and the party of democracy—one seeking to divide the people according to class, and the other attempting to spread equality.

In America these became the party of agriculture versus industry, then North versus South, later the city versus the country, and most recently Democrats versus Republicans.

But dividing the nation into red and blue states (or liberal coasts versus conservative flyover states) misses the real division among us.

Ancient divisions between aristocrats and peasants, as well as medieval conflicts between feudal lords and neighboring states, made the same mistake.

When war arose in history, re-alignment into Hawks and Doves also missed the point. So did historical conflicts over the color of roses and violent arguments between religions.

Our historical and modern divisions are not the real divisions, and this means that the battles go on for all of history without conclusion or solution.

To end the conflicts, to fix the unending battling of sides, we need to clearly understand the two sides as they really are—the real parties.

The Real Divide

Unlike elementary or high school culture, and unlike college, career and even adult culture, the real divide takes us all the way back to kindergarten.

Indeed it is one of those key lessons that we all should have learned in early childhood. In some ways (as humorously recounted by author Robert Fulghum), the lessons of kindergarten are the most important of all.

The divide of all humankind can be understood in the most basic terms: Some people spend their lives angry and afraid, while others live in the attitudes of hopeful and helpful.

These are the basis of the real world schism.

Angry and Afraid

The Scarcity Party sees a world of battling, competition, scarcity, winning or losing, and always trying to get ahead. It is the party of predators and victims.

Its members see others as either potential mates or potential enemies. They quickly notice differences between people, and they seek to get themselves and those in their group (family, race, religion, faction, nation, etc.) ahead of everyone else.

They want others to lose more, and for their own to win more.

In their anger and fear, they avoid pain, push for whatever they think will benefit them, and are willing to step on others to get what they want.

The Angry & Afraid Scarcity Party (A²) has a long and sad history of causing, escalating and reliving most of the problems in world history.

Hopeful and Helpful

In contrast, the Helpful & Helpful members of the Abundance Party (H²) spend their lives trying to help people, improve themselves, and seek better lives and a better world.

Because they are not afraid, it is fine with them if others don’t support them or do something different. They are secure.

For the Abundance Party, life is not about themselves. Yes, it is about becoming better; but even this goal is a merely a means to helping the world improve.

If they were angry, they would expect everyone else to join them in fixing the world, and even try to use the force of government to require charity.

But they are content to do their own work of improving the world and helping others, inspiring and urging them to be and do their best through exemplary leadership, rather than expend angry energy trying to force others to change.

Pretty much every nation, organization, philosophy, political viewpoint, religion, community, company and family has both A²s and also H²s.

The H² Partiers do nearly all of the good in these groups, while the A²s cause nearly all the problems.

If the H²s from all groups would work together, the mischief of the A²s would soon be mitigated.

But as it is, the H²s constantly find themselves in superficially adversarial positions from each other (due to their institutional affiliations) even though such conflict is not their purpose or their nature.

Party Folly

Ironically, if you have strong Democratic ties it is tempting to call Democrats the Hopeful & Helpful and label Republicans the Angry & Afraid; those with loyal Republican connections assign the opposite labels.

But neither type of labeling is truly accurate. There are a lot of H²s and A²s in both major political parties.

The H²s and the A²s make up all the members of the Democrats, Republicans, independents, socialists, environmentalists, right-wingers, radical leftists and every other political group.

If you know what to look for, they are pretty easy to recognize. The A²s include those who are any of the following: Bush-haters, Obama-loathers, racists, bigoted about religious or secular beliefs, promoters of violence in modern America, etc.

Republicans like to point out the Angry & Afraid people in the Democratic Party and act as if they speak for the whole party, and the Democrats do the same thing when attacking Republicans.

A Self-Defeating Hybrid

An interesting hybrid also exists, which is likewise problematic. Historically, too many Democrats have combined Afraid and Helpful, while too often Republicans have been Angry and Hopeful.

Unfortunately, the internal conflict and the philosophical and operational inconsistencies of these amalgams basically cancel out the good they could do to truly promote freedom and make a difference for good.

The world needs more hopeful and helpful people, and the future of our freedom and prosperity depends on it.

The strong emotions of anger and fear too frequently block the path to progress.

However, before we can fully understand the differences between these two major Parties of the A²s and the H²s, and the application of this construct, we need to understand the eight meanings of freedom.

There are six great basic traditions of freedom, each enjoying differing levels of support from various political and social groups. These include the following:

  1. Political freedom
  2. Economic freedom
  3. Religious freedom
  4. Individual freedoms (often called privacy)
  5. Freedom of the press
  6. Academic freedom (sometimes called freedom of thought)

The seventh and eighth freedoms are actually forms of protection.

A seventh freedom, national security, consists of using power to defend these other freedoms from aggressors and attackers.

And social justice, an eighth freedom, is the process of ensuring that these other freedoms are truly available to all people—not just to a limited few from a certain class, race, or other group.

A few leftist radicals use “social justice” to mean the extreme redistribution of wealth from rich to poor in socialistic and even communistically controlling ways; just as fringe right wingers at times promote almost-fascist government powers in the name of “national security.”

However, the more reasonable and normal definition of social justice (and national security) is essential to freedom: to take constitutional freedoms to all.

True liberty requires all eight types of freedom. Anything less falls short (although any measure of freedom is certainly better than none).

Indeed, a society which increases one of these freedoms is nearly always headed in the right direction. And, in fact, each freedom tends to promote the adoption of the other seven.

For example, increased academic freedom or freedom of the press naturally encourages the spread of political and economic freedoms—and vice versa. Freedom promotes freedom, just as force encourages the increase of force.

Unfortunately, the historical reality is that the two major American political ideologies have tended to emphasize the following division:

Conservative

Liberal

Political Freedoms Individual Freedoms (Privacy)
Economic Freedoms Freedom of the Press
Religious Freedoms Academic Freedoms
National Security Social Justice

Fighting each other over which column is most important is misguided and dangerous. It has seldom brought anything but pain to our nation and its citizens.

This becomes even clearer when we consider the focus of the Scarcity Party from both the conservative and liberal camps: “Stop the extremists on the other side from taking away our freedoms in the name of their petty and radical pet projects.”

Such a view is highly inaccurate, and comes from fear, anger and a deep lack of trust.

While it is true that the Angry & Afraid types within the other Party will continue to cause negatives, it is more important to notice that the Helpful & Hopeful folks on the other side are truly trying to make the world better.

Whatever you may think about the “other” party, an important segment of both Republicans and Democrats are actually H².

Many independents and entrepreneurs are naturally inclined to the H² perspective.

As more people think about politics in a non-partisan and increasingly independent way, and as more people become entrepreneurs and develop leadership skills like greatly increased initiative and tenacity and so forth, the H² viewpoint will continue to spread.

Unfortunately, in politics, Republicans and Democrats often vehemently promote the four freedoms they value most and simultaneously discount or attack the other four.

Other parties and many independents make the same mistake. For example, some conservatives frequently denigrate the freedoms of privacy or the press in their attempts to promote religion, while some liberals too often trample economic or political freedoms in their zeal to increase social justice.

Likewise, conservatives sometimes deny social justice when political and economic freedoms are not really at stake, just like liberals at times refuse to allow religious freedom or incentivize the power of the private sector out of fear that social justice must be an exclusively government project.

Both sides engage battles for their pet types of freedom, and then don’t turn off the fight even when the other side suggests something truly positive.

All of this is the natural result of the Angry & Afraid worldview.

In reality, the Hopeful & Helpful people in both the Democratic and Republican Parties, as well as the H² independents and members of minor parties, really do care about all eight freedoms.

Some have been inclined to focus on certain freedoms above others, either by their upbringing, education or party affiliations, but those with an H² outlook are friends of all eight freedoms.

When we start to comprehend this more accurate view of the world, a new understanding of the real division emerges:

Scarcity Party

Abundance Party

political freedoms for me and mine political freedoms for all, everywhere
economic freedoms for me and mine economic freedoms for all, everywhere
religious freedoms for me and mine religious freedoms for all, everywhere
individual freedoms for me and mine individual freedoms for all, everywhere
freedom to say what I want freedoms of expression & the press
freedom to think what I want academic freedom for all, celebration of many views
national security national security for all nations
victory for me and mine social justice for all peoples

This chart is remarkably different than the one we saw earlier, and it illuminates the major difference between the fundamental values and attitudes of the two real parties—the A² and the H².

Their views of the past, current issues, and visions for the future could hardly be more divergent.

Both groups of course include pessimistic and also idealist people, and there are various different schools of thought in both.

But the most significant factor separating these two great Parties of humanity is their worldview.

The Hopeful & Helpfuls value their own ability to contribute to the world, while the Angry & Afraids see themselves as victims of a powerful “they” which is to be opposed, feared and hated.

The H2s see that all six of the basic freedoms are vital, that social justice spreads these six freedoms, and that national security protects and maintains them.

Together, all eight freedoms are essential for a healthy, free and prosperous society.

Our nation and world desperately needs a Party of Freedom.

Such a party would not be an official political party, since its goal would be to unite and build rather than to win or govern.

It would be made up of everyone who believes in all eight facets of freedom, and that we can work together to promote them, increase and spread them, and keep them protected and safe in a dangerous world.

It would be full of people who approach the world in an attitude of hope and help.

The idea of a freedom party is made realistic by the technology of the day, which allows people from all places and walks of life to connect and cooperate.

Such a party would have a higher-than-usual makeup of entrepreneurs, creeds and backgrounds.

The one thing they would share in common is a belief in the essential value of all eight meanings of freedom.

Certainly such a tribe would have its share of debates, factions, and disagreements, all of which are healthy to freedom.

The guiding value would be that any proposal, policy or plan they supported would be good for freedom overall—not just good for one type of freedom at the cost of another.

We need a freedom party in our day, an unofficial tribe of people working together on the shared vision of more freedom for all people in each nation of the world.

Of course, given the reality of our modern world, such a party does not need to be a single, organized entity with bylaws and officers.

In fact, freedom will benefit most if a host of people simply promote the eight types of freedom in the organizations and groups they already support.

For freedom to truly increase and flourish, it needs to become more of a value to all of us. We need the following:

  • An informal freedom party made up of many diverse people and tribes that share the philosophy of full freedom with all the other groups and peoples.
  • An understanding that when we promote one type of freedom at the expense of another we actually hurt us all.
  • A commitment to more openly look beyond our own limited opinions and cooperate with people of differing views who truly do care about freedom.

Without all of these, freedom will struggle and decline.

For those who love freedom, it is time to broaden and deepen our understanding of true freedom. It is time to use our influence to spread the values and ideas of freedom.

The technology is there, and it is time to use it. Real freedom has always been a bottom-up project led by the regular people in a society.

All eight facets of freedom are essential, and it is up to the regular people to promote them all.

This is the future of freedom, and it depends on each of us.

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

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

He is the author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, and The Coming Aristocracy: Education & the Future of Freedom.

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

 

Category : Aristocracy &Entrepreneurship &Independents &Liberty &Politics &Service &Tribes

The Anti-Federalists, Entrepreneurship, & the Future of Freedom

September 28th, 2010 // 4:00 am @

Click Here to Download a Printable Version of This Article

Like Gladstone, I believe the U.S. Constitution to be “the greatest work ever struck off by the mind and purpose of man.”

Even though it had its flaws—especially slavery—it actually provided for the fixing of these flaws.

The U.S. Constitution, both directly and indirectly, is responsible for the freedom of more people than any other government document in the world’s history.

That said, the anti-Federalists had a point. In fact, they had several.

They were mistaken to oppose ratification of the Constitution, but we would be unwise not to listen to the concerns voiced through their loyal opposition.

They were right about some critical details. In fact, we are dealing with exactly these concerns today.

Entrepreneurs Change the Debate

The brilliance of both sides of the Constitution debate—the Federalists and the anti-Federalists—is an example of how the producer culture and entrepreneurial mindset accomplish the highest quality in citizen involvement—regardless of party politics.

Even in the midst of deeply divided partisan battles, the Federalists and anti-Federalists produced a level of depth, detail, nuance, and excellence in citizen debate that is perhaps unsurpassed either before their time or since.

Today’s citizen dialogue seldom measures up. This is a direct result of that generation’s lifestyle of entrepreneurship, producer-focused education, ownership, initiative, and enterprising mindset.

When a nation of entrepreneurs debates on topics of freedom and leadership, the quality is deeper and richer than when lower classes are uninvolved (as in 1780s Britain) or when most citizen-employees defer to the experts (today’s America).

Anti-Federalist Predictions

The anti-Federalists scrutinized the U.S. Constitution and the federalist papers, and, based on the structures of government, they looked ahead and warned of some of our biggest problems.

They also, in most cases, recommended solutions. We need to heed their words.

What are these challenges, and what can we do about them? To answer both questions, consider six issues the anti-Federalists warned of more than two hundred years ago:

  1. The executive branch will increase influence over the national budget.
  2. National expenditures will increase and eventually bankrupt the nation.
  3. Power will flow consistently away from the states.
  4. The courts will eventually have too much power.
  5. Justice will be lost as government grows.
  6. The treaty power will be abused.

Anti-Federalist Prediction #1: The Executive Branch Will Increase Influence Over National Budget

Prediction: The Executive Branch will increase its say over the national budget and then drastically increase debt, run harmful deficits, engage in unconstitutional military actions, and otherwise run the economy toward ruin.

Unfortunately, this has proven to be accurate. We have learned over time that the people don’t hold the White House accountable for this behavior because every president blames the last political party (in Congress and the Presidency) for the problem.

Both parties use the Executive Branch to commit funding for their projects, even as taxpayers are funding the projects of past administrations.

The Federalists responded to this anti-Federalist warning by correctly pointing out that the Constitution only gives the House of Representatives power over the purse strings.

The Federalists’ “solution” worked for more than a century, but unfortunately for us the Cold War brought secretive and expansive government, and the role of the presidency significantly increased.

Today we are dealing with a system where the House tinkers with and has the final say on national budgets, but the political environment has turned over to the presidency responsibility for proposing, gaining the votes for, and then administering federal budgets.

The House still holds the authority to slow or reject budgets and spending, but it has generally lost the will to use this power. The Executive Branch usually runs the budget.

The result is drastically out-of-control spending. Simple interest payments on the national debt are a huge expense to the taxpayer.

Social Security and other entitlement liabilities can never be fully met without continuing in debt and deficits, as well as drastic and progressive increases in taxes. International military involvement is a mounting problem.

Both political parties like to blame each other for recessions, unemployment, and other economic challenges, but U.S. budgets and spending beyond our means is the underlying problem.

As Larry Summers asked before he joined the Obama Administration, “How can the world’s biggest debtor nation remain its biggest power?”

Note that China, the second largest economy in the world, has huge savings (unlike the former Soviet Union or the current United States) and is a major buyer of U.S. debt.

China has three of the world’s four largest banks, the two largest insurance companies, and the second largest stock market. (See the article “Red Mist” in The Economist.

With all this, the Communist Party remains in control; it also remains firmly communistic in philosophy and is, if possible, increasingly totalitarian.

As for the United States, neither party seems serious about reducing spending. With the Executive Branch running the budgets, spending just keeps increasing.

The Reagan Administration greatly increased spending. Presidents Bush, Clinton, Bush and Obama all followed suit—just as predicted by the anti-Federalists.

 

Anti-Federalist Prediction #2: National Expenditures Will Increase

Prediction: Expenditures and taxes will generally increase over time until they bankrupt the nation. They will become massive, and never be significantly reduced.

This has not yet entirely occurred, but we certainly appear to be on track toward these results.

As mentioned, whichever party is in power finds ways to promote more expensive projects while we are still paying off past expenses.

Anti-Federalist Prediction #3: Power Will Flow Away From the States

Prediction: Power will flow consistently away from the states and increase the scope, size, and power of the federal government. Only major crisis, where the federal government falls, will ever send significant powers back to the states.

Again, we are perfectly on target for this even though it has not yet fully matured. Federal budgets now dwarf state costs, and many state programs are funded by federal money.

Indeed, this has become a major misunderstanding in modern America.

The media constantly pounds the populace with the message that government is broken—Washington is in gridlock and accomplishes little. In reality, however, this is highly inaccurate.

Each year Washington manages to drastically increase the budget, debt, and deficit. It is spending more and more annually, and each year Congress authorizes many new programs.

A lot is getting done—many would argue too much!

Perhaps we could learn from the British-published magazine The Economist, which wrote in February 2010:

“It is simply not true to say that nothing can get through Congress. Look at…TARP…The stimulus bill…The Democrats have also passed a long list of lesser bills, from investments in green technology to making it easier for women to sue for sexual discrimination…

“America’s political structure was designed to make legislation at the federal level difficult, not easy. Its founders believed that a country the size of America is best governed locally, not nationally…

“The Senate, much ridiculed for antique practices like the filibuster and the cloture vote, was expressly designed as a ‘cooling’ chamber where bills might indeed die unless they commanded broad support.

“Broad support from the voters is something that both the health bill and the cap-and-trade bill clearly lack.”

The Senate has killed bills from Republican and Democratic presidents through the years, but this should be seen as the success of our mixed democratic republic with checks and balances rather than as government not working.

If the Senate had killed more bills in the past century, the power of the states would not have diminished to such a weakened place.

Both major parties often make the ingenuous mistake of claiming to be carrying out the “democratic” will of the people when they have broad voter support, and then when such support is lacking of blaming the Senate and Congress for gridlock, partisanship, and a system that doesn’t work.

When there is widespread dislike of certain proposed policies, not being able to pass them isn’t gridlock, but good government.

The Senate was designed specifically by the founders to protect the states, to leave most things to the state level and only allow issues to receive federal support when they were wanted by a large majority of Americans and needed to be accomplished at the national level.

Indeed, the system works more often than the modern media gives it credit.

Anti-Federalist Prediction #4: The Courts Will Eventually Have Too Much Power

Prediction: The courts will not only be independent but will eventually have too much power because there are really no effective checks on their decisions.

This has happened and is still increasing in its impact. Without checks on the Supreme Court, states have little recourse against growing federal controls over powers previously (and constitutionally) held by the states.

Our freedoms consistently decrease as the Court expands its interpretation of the role of the federal government in our lives.

Anti-Federalist Prediction #5: Justice Will Be Lost as Government Grows

Prediction: Governments will become so big and impersonal that even juries won’t know or care about the accused; enforcing the rules will be more important than true justice. Freedom will significantly decrease as a result.

This has occurred and is still happening.

Before 1896, a jury of peers was not some nominal, demographical designation. The “peers” often actually knew the accused and even the victim personally.

As a result, they not only were quick to put away those who were truly dangerous to society, but they also used their power to oversee the laws and protect citizens from government.

Not only could juries declare someone innocent, they could also nullify laws they considered bad or against freedom.

This system was altered at least partly because it was frequently used in a horrible miscarriage of justice as racist juries ignored the law and both freed white criminals and jailed innocent people from minorities.

It is unfortunate that in response to such abuses we threw out not only racist dominance of juries, but also the concept of juries of known peers.

In fact, the best remedy for discrimination by the justice system could have been juries of true peers, who not only could have protected those falsely accused, but with such empowerment would have been the most motivated to hold accountable the true criminals among them.

When all are equal before the law and are subject to the admonishment and reprisal of true peers, racism is more readily weeded out.

This would have been a great support to abused races, and could have greatly advanced the cause of civil rights in America.

We have never found a way to re-balance this loss of freedom or for the people to quickly overturn the effects of bad laws.

California responded within a few years of the 1896 change in jury power by adopting Recalls and Initiatives, but these still left the people with less power than before.

Anti-Federalist Prediction #6: The Treaty Power Will Be Abused

Prediction: The treaty power will be used to change the Constitution in ways the people don’t even know about and that benefit the rich at the cost of the people’s freedom.

This has happened and still does. In fact, it may soon be a major concern.

For example, when banks fold and endanger entire nations, government can bail them out. The same is true for huge businesses and even state-level governments.

But what happens when nations fail financially?

The old answer was that they became open to attack like Western Europe during the Great Depression. The result was devastating.

To prevent such a disaster from being repeated, the Allies met in 1944 and crafted the Bretton Woods organizations, including the International Monetary Fund (IMF) and the World Bank.

Since then, nations who couldn’t pay their debts have been bailed out by the IMF.

In return for such benefits, the borrowing nation submits to “Austerity Measures,” under which the IMF closely watches national policy and government institutions to ensure that the nation does nothing to jeopardize its ability to pay back its loans.

This system has certainly had its share of successes.

But Austerity also amounts to a virtual transfer of sovereignty from national government to IMF regulators—well beyond the power of the citizenry to require accountability or to effect remedies.

So far the United States and most Western European nations have been lenders to the IMF, not debtors.

But if the U.S. ever needed to become a debtor nation, Austerity Measures would prove the anti-Federalist prediction devastatingly true.

For example, when Greece defaulted on its debt payments in early 2010 and Spain threatened to do the same, the European Union came to the rescue.

The IMF was called in to advise the EU, and Austerity was established over the Greek government.

Many citizens (including a huge number of professionals and managers) took to the streets in protest.

But instead of protesting a drastic loss of freedom to Austerity, they were upset because of wage freezes.

There are three ways the U.S. can avoid Austerity at some point in the future.

First, we can tighten our belts, reduce government expenditures, and deregulate and lower taxes on small businesses, which historically make up 80 percent of our economy’s growth.

This would convince many employers to hire and consumers to spend.

Second, we could borrow from other nations. China has a huge surplus of government and also private savings, and it wants to invest in the United States. Indeed it is our largest creditor now.

Other nations may also be persuaded to keep supporting our spending habits. But one has to wonder why our philosophical opponent (communist China) wants to invest so much.

Are its motives pure? What if they’re not? Is it a simple profit motive? What if it’s something more?

As Peggy Noonan wrote in The Wall Street Journal:

“People are freshly aware of the real-world implications of a $1.6 trillion deficit, of a $14 trillion debt. It will rob American of its economic power, and eventually even of its ability to defend itself. Militaries cost money. And if other countries own our debt, don’t they in some new way own us? If China holds enough of your paper, does it also own some of your foreign policy? Do we want to find out?”

A third possible method of solving our debt problem is to borrow from huge international corporations. This carries the same problems as borrowing from nations.

Note that if we do eventually take IMF loans, they will only pay the interest on the debts. We will have to pay back the original loans, and an international team of regulators will run our national economic policy and make our economic decisions.

If Americans are frustrated with Congress, imagine their frustration with a group of international bank officials running our economy—bankers who may not have as their motive either to see us out of debt to them or to strengthen our economy, society, international influence, or other elements of our way of life.

The rule of international borrowing is simple: The lenders make the rules.

Method one of facing our economic reality—returning to an incentivizing free enterprise system and living within our means—is hard.

Neither political party wants to promote it, and whoever does implement it will probably be blamed for higher short-term unemployment, stock market losses, and a worsened recession.

In the long term, however, this course will revitalize America’s economy and free lifestyle.

The other two options keep America in economic decline and will eventually result in reduced political power, weaker national security, and fallen status.

They will also, most importantly, lead to a significant decrease in our freedoms and the prosperity of our children and grandchildren.

This is our choice: Make the tough decisions now, or lose freedoms and prosperity for generations. So far we have passed on making the right choice.

No wonder independents, tea partyists, and the far left are so frustrated with both Republicans and Democrats.

Moreover, economic downturns are three-headed dragons; and to this point we have only faced recession and high unemployment.

Inflation is likely to be the next crisis, and it may very well rekindle and worsen the first two.

Whatever we decide to do economically, we should, like the Federalists and anti-Federalists, clearly understand one thing: Economics and freedom are directly linked.

A debtor nation is less free than when it was solvent.

Solutions Old and New

The anti-Federalist solutions for these problems may well have helped. They proposed that the people amend the Constitution, specifically in the following ways:

  1. The Bill of Rights would include the requirement that juries consist of local peers who know the accused and can protect citizens from government.
  2. Treaties would require full debate in and passage by Congress—just like laws.
  3. Any decision by the Supreme Court could be overridden by a majority of the States.

How effective these amendments would have been is debatable.

But the answer may be found in another proposed anti-Federalist amendment which actually did get passed.

To counter the danger of huge expenditures and taxes by the Executive Branch, loss of power from the House to the Presidency, and transfer of powers from the States to the federal government, the anti-Federalists wanted an amendment clearly stating that all power not specifically given by the Constitution to the federal government would be retained by the states.

The anti-Federalists got their way in the ratification of the Tenth Amendment:

“The powers not delegated to the United States by the Constitution, nor prohibited to it by the states, are reserved to the states respectively, or to the people.”

Unfortunately, these were weakened by Court cases between 1803 and 1820, and later by treaties adopted between 1944 and 2001.

We the People

It turns out that Constitutional limits and language are only guaranteed to last as long as the people are vigilantly involved.

No matter what the Constitution says, it won’t endure if the people don’t closely read it and demand that it be followed.

In this sense they are the fourth branch of government: The Overseers.

When the people stop requiring officials and experts to adhere to the Constitution, those in power alter the Constitution, redefine its precepts, and sometimes mutually agree upon a revisionist and opportunistic definition of its language.

The people are left out of the decision, and their freedoms decrease.

At times, as designed, constitutional checks and balances keep one branch from usurping power even if the people aren’t involved.

But the greater danger occurs when a collusion of branches agree in taking away power from the states or the people (this happens too often, especially since Butler v. the United States in 1936).

Arguably the most important document for freedom ever created by mankind was established and ratified by those who supported the U.S. Constitution.

The second deepest freedom analysis of government was provided by their opponents, the anti-Federalists.

This second group saw that whatever a Constitution says, as important as it certainly is, the people simply must stay actively involved or they will inevitably see their freedoms decline.

The Producer Perspective

The fact that both groups came from a society of owners and producers is neither surprising nor insignificant.

Owners value freedom over security, see the most decorated experts and celebrities as merely other citizens, and see their own role as citizen as vital to society.

Producers think in terms of protecting society’s freedoms, and they simply don’t believe this responsibility can ever be delegated or ignored.

Successful ownership, farming, and entrepreneurship are all about keeping track of all the details; taking action whenever it is needed to achieve the desired results; listening to the counsel of experts and authorities—and then leading by making the best decisions even if they goes against expert advice; and building effective teams that work together without depending too much on those at the top.

People trained and experienced in such skills are truly competent in handling and preserving freedom.

What we need in our day is not necessarily more specific proposals from the Federalists or anti-Federalists.

Rather, we need a return to the producer-entrepreneurial style of thinking and expertise that founded and built the freest nation in history.

If we want a society of freedom that lasts and prospers, we must as citizens become talented and practiced in the arts of freedom.

America was created on the basis of freedom, and until we choose to become a citizenry steeped in freedom principles and actively involved in their promotion, freedom will not likely increase.

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

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

He is the author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, and The Coming Aristocracy: Education & the Future of Freedom.

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

 

Category : Constitution &Entrepreneurship &Government &Liberty &Producers

The Entrepreneurial Foundations of Free Society

September 27th, 2010 // 4:00 am @

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Howard Gardner’s research suggests that there are fundamentally seven basic intelligences: literary, mathematical, artistic, musical, spatial, interpersonal and intrapersonal.

Modern education tends to emphasize basic knowledge in three of these (literary, mathematical and interpersonal) fields followed by career specialization in one.

During the American founding era that produced a generation of citizen-farmers and citizen-entrepreneurs who established the freest society in history, a different sort of education-career path dominated.

Today’s professionals and experts tend to be trained in problem solving under structured guidelines, whereas successful entrepreneurs seldom have the luxury of easily knowing what the problems are.

They have to figure out what the real issues are and define the problems, and only then find ways to solve problems and overcome roadblocks.

This requires high levels of initiative and resiliency, independent and analytical thinking, ingenuity and creative thinking, tenacity and self-analysis.

These entrepreneurial skills and talents are precisely those needed to establish and maintain freedom.

Intelligences

To prepare youth for success in entrepreneurial (and free) cultures, education tends to emphasize originality, creativity, breadth, depth and leadership skills rather than rote memorization, standardized curricula or socialization.

The latter skill set is vital in societies with strong upper classes employing the lower castes, but the former is essential to free democratic nations.

Where class societies tend to educate for general knowledge in literary, mathematical and interpersonal skills, entrepreneurial nations educate for depth in literary, mathematical, interpersonal, artistic, musical, spatial and intrapersonal (self-understanding, self-discipline, and self-starting) excellence.

Then entrepreneurial societies go a step further by educating to the hyphens.

This means using personalized and mentored learning in the greatest classics and works of mankind along with current original sources to establish skills and train experts in multi-intelligence categories.

Examples include many who used two or more intelligences to significantly impact societies, cultures, paradigms, governments, policies and worldviews:

  • Interpersonal-musicians like Mozart and John Lennon
  • Literary-artists such as Goya, Cecil B. DeMille, and M. Night Shyamalan
  • Interpersonal-literati like Shakespeare, Jane Austen, and John Steinbeck
  • Spatial-artistry like gladiators, NASCAR, and the Louvre
  • Mathematical-artists like Michelangelo and Picasso
  • Literary-mathematicians like Newton, Einstein, and Hawking
  • Literary-intrapersonalists such as Tolstoy, Harriet Beecher Stowe, William Goulding and Ayn Rand
  • Intrapersonal-mathematical thinkers like Montesquieu, Hume, Madison, Mises, Keynes, C.S. Lewis, and Buckminster Fuller

To make sense of this, consider a society where the youth become proficient in reading biographies of great leaders from Socrates to Washington and Andrew Carnegie to Ray Kroc and of effectively applying the lessons learned to their own lives.

Or where every young person knows both the formulas in calculus and also how to build and implement a business plan, including detailed financials, to turn “thin air” into great institutions of profit and non-profit value in society.

Skills

The lessons of such expertise naturally impact the prosperity and freedom of a society.

And such lessons come from depth in many of the intelligences instead of general education in only three and a specialty in just one.

Such widespread competency in reading, writing, persuading, leading, calculating, comparing, analyzing, thinking, creating, beautifying, composing, building, interacting, initiating, overcoming, enduring, changing, improving, motivating, self-starting, self-disciplining, self-guiding, teamwork, leading and serving are what the American founders idealized as quality education.

These are the necessary skills of successful entrepreneurship and also of societal freedom.

This level of education and expertise is developed by what Ken Wilber calls the Big Three of Buddhism: Buddha, Sangha and Dharma.

“Buddha” in this sense means combining one’s purpose or mission in life with developing oneself into a true and great servant of society.

The Greeks called this Fate and the American founders called it Providence.

By seeking to be guided by higher powers and higher purposes, a person becomes her best and as such greatly improves society through her efforts and contributions.

Buddha is credited with saying that “Our purpose in life is to find our purpose in life and then give our whole heart and soul to it.”

Sangha is one’s community, gathering, group or team. Working together with the right people, “we” do more than “I” ever could.

Good teams are diverse, individualistic, cooperative and united toward the same goals. They achieve most when they operate at peak levels.

Dharma is the truth, the true, the ideal. Dharma helps us know why we are here, what we are about, and therefore who we really are.

But Dharma is not about “I” or “We.” Rather it is about what we accomplish: the goal, the objective, the positive change we bring to the world through our best efforts and service.

In Christianity this is the Christian walk, the anointed purpose, the path.

Christianity’s equivalent of Sangha is the Church, and “Buddha” is the submission to Christ and His will.

Plato and secularists call these big three the good, the beautiful and the true, and psychology calls them the “I, We and It”—Buddha, Sangha and Dharma respectively.

In American politics these are citizen, the Constitution and freedom.

The lesson for education is that great learning is:

  1. Individualized
  2. Best achieved in interactive groups with mentors, peers, discussions, feedback and group projects
  3. Mission-driven

Again, the very skills and abilities created by this model are exactly those most needed in free society. Without them, entrepreneurial prosperity and political freedom decline.

Personality

Add personality types to the intelligences and skills, and our realization of the need for widespread entrepreneurial talent and experience intensifies.

Where the Greeks and moderns tend to break human personality into four dominant groups, symbolized by animals or colors or other models, the Old Testament emphasized twelve types and the New Testament adopted thirteen.

One of the most unique and profound systems of personality typing is the Enneagram.

The Enneagram was created by Muslims from the Sufi tradition, and is now popular in many multi-level and network marking circles.

Its nine types of people are distinct, deep and tend to resonate with nearly all readers. The nine types are essentially as follows:

  1. Reformer: principled, purposeful, self-controlled and perfectionistic
  2. Helper: demonstrative, generous, people-pleasing, and possessive
  3. Achiever: adaptive, excelling, driven, and image-conscious
  4. Individualist: expressive, dramatic, self-absorbed, and temperamental
  5. Investigator: perceptive, innovative, secretive, and isolated
  6. Loyalist: engaging, responsible, anxious, and suspicious
  7. Enthusiast: spontaneous, versatile, distractible, and scattered
  8. Challenger: self-confident, decisive, willful, and confrontational
  9. Peacemaker: receptive, reassuring, agreeable, and complacent

Of course, there is a lot more depth to this in the many volumes which describe it.

Interestingly, in traditional business the typical use of the Enneagram and other personality types like the Myers-Briggs is to help managers interact more effectively with their employees — and vice versa.

Teachers often use it to better understand and work with their students.

In entrepreneurial environments, however, the focus is quite different.

This can be understood in the following three steps:

  1. Understand your own top strengths so you can give them a lot more energy and greatly improve them.
  2. Identify those types on which you score at the mid levels, so you can develop them into strengths.
  3. Clarify where you are weak and team up with people who are extremely strong in these areas.

This flies directly in the face of much educational/career theory from the past half century, where the system has generally been satisfied with grade-level performance in a given subject, and focused special attention on the students’ weaknesses.

By contrast, teachers governed by entrepreneurial values in the classroom would have children spend much more time on their strengths than their weaknesses.

Those scoring high in math, for example, would take a lot more math than other students and in fact study math at the highest levels in special courses designed just for such students. The same would occur in all fields.

Teachers would also divide students learning to read, for example, not by levels but into teams where each team would include students from low, medium and high reading levels.

Corporate architecture would combine mail carriers, board members and everyone in between in adjacent offices and co-mingle everyone on all floors.

The Third-Turning value of efficiency would give way to the Fourth-Turning focus on growth as a community through individual excellence and synergistic cooperation.

This, by the way, is how nearly all entrepreneurial ventures and small businesses actually do things.

The consequences in society and governance are huge. Indeed, this is exactly the model of citizens and voters that America’s founders had in mind—all types of people mingled together, each equal as a citizen and before the law.

Freedom is the natural result.

And on the skills of applying such a model, small business leaders and entrepreneurs are years ahead of the rest of society.

The point is not, as most entrepreneurs will tell you, to turn things over to entrepreneurs or any other group of citizens. Such a plan would only create another style of class system.

The real solution is to have a lot more entrepreneurs in society. In the long term, this is achieved by giving America’s youth a true Leadership Education and naturally letting our society benefit as more entrepreneurs arise.

A quicker solution would be set in motion by simply de-regulating small businesses.

IQ vs. EQ

For a long time America used IQ as the measure of intelligence as well as a predictor of academic and career success.

IQ tests measured literary, mathematical and spatial intelligence, but little else. They basically ignored the other intelligences.

Daniel Goleman’s best-seller, Emotional Intelligence, showed how managers could become better leaders by also developing interpersonal, intrapersonal, and more artistic skills. He argued that EQ (emotional intelligence) is just as important as IQ.

Pop culture tends to summarize these two as right brain (EQ) and left brain (IQ).

In this view, left-brain experts, professionals and executives have significantly different skill sets than right-brain artists, creative types and motivators.

It is all about the intellect versus the emotions, in society and in each of our personal lives.

The IQ monopoly resulted in many business authors writing that being too intelligent is not good for business, since many with a very high IQ were hired by mid-IQ bosses.

EQ shed some light on the situation, showing that successful entrepreneurship and innovation tend to blossom where analytical and creative skills are balanced.

High IQ with significantly lower EQ, or vice versa, tend a person toward specialized employment. Where right and left brain are generally equal, be it high or middle or even relatively low, initiative, risk, tenacity and leadership often flourish.

In short, many jobs require certain levels of IQ or EQ, but successful entrepreneurs either naturally have a balance of both or must develop one.

The old view that IQ can’t be increased is being replaced as we see many people who clearly break old barriers and disprove the experts.

Entrepreneurial success usually requires deep understanding of and skills in many of the basic intelligences.

General education courses in three of them and specialization in only one simply doesn’t work in the challenging real world of entrepreneurial competition.

Nor, for that matter, is it adequate to maintain freedom.

Eco vs. Ego

For years American politics has been dominated by two parties, one emphasizing success and the other nurture.

This battle of Ego versus Eco still drives most national debates.

Where one party is driven toward wealth, fame and progress, the other prefers to promote caring, service and acceptance.

One is self-centered and the other is inclusive. One sees private life as the highest good and the other wants government to solve all problems in society.

One prioritizes national security above all else and the other idealizes social justice.

More Americans now consider themselves independents, rather than loyal to either major political party, in part because we have reached a point where the majority of the nation’s citizens consider both Ego and Eco to be vital.

This has been the norm for entrepreneurs for many years. Indeed, entrepreneurs who try to put one above the other seldom succeed for long.

Small and entrepreneurial business leaders learn that both caring and drive are necessary.

The same is true of citizens who want to remain free. Indeed, the most important entrepreneurial skills and lessons are those most needed to promote free society.

Freedom is best supported by excellence and compassion, self-improvement and service, building wealth and taking care of other people and the earth.

Freedom requires a balance of analysis and creativity, intellect and emotion, wisdom and intuition, reflection and action.

Free societies are intelligent societies, because the broad citizenry must understand and protect its freedoms or it will lose them.

But a society cannot remain free by following a few geniuses at the top — this always destroys liberty.

The most prosperous and free civilizations are those where the majority of people develop and share their best personal genius.

Everyone has genius inside, and it is the purpose of Leadership Education to reveal it and help people develop it.

Career is the place where genius is then shared to benefit and improve the world. Finally, it is the purpose of free society to allow all to fully achieve and share their genius.

Entrepreneurial activity naturally seeks these peaks and balances. This isn’t new; it was the reality during the American founding and has been ever since.

The future will be no different. We all need to learn and apply this truism: However small business goes, so goes the nation.

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

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

He is the author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, and The Coming Aristocracy: Education & the Future of Freedom.

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

 

Category : Arts &Education &Entrepreneurship &Leadership &Producers

How to Become a Producer

September 24th, 2010 // 4:00 am @

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Producers are the most important citizens, as Thomas Jefferson put it.

Actually, the word he used was farmers—specifically, “tillers of the soil.” By producing food, farmers obviously had an important role in successful society.

But Jefferson meant more than this.

Because farmers lived close to the land, they were self-reliant with respect to their own survival and received an income from providing indispensable basic needs for others.

This made them more independent than people of other occupations.

If hard times came, they tightened their belts and lived off their farms. In contrast, during the same challenges, most city dwellers and even shop owners were more likely to turn to the government or upper classes for help.

The founding generation was sensitive to the level of dependency of the European populace.

The small but incredibly powerful upper class was the only group that could live off their assets and make it through hard times like war, economic depression, or pandemic.

Because of this, the upper class was independent while everyone else was dependent on the upper classes and government.

Since the first focus of human societies is to survive, the power to survive independently was seen as true independence. Indeed, the War of Independence had this deeper meaning to founding Americans: They were finally independent of the European upper class.

Dependents versus Independents

In our day, nearly all citizens are dependent on an employer or the government.

One way to rate one’s level of independence might be to measure how long you can survive, feed your family, and live in your home after your employer stops paying you anything.

Some people are two-year independents, while others are three-year independents or two-month independents, and so on.

It is not unlikely that most Americans are absolute dependents, living paycheck to paycheck or on government support.

The triple entendre here is interesting.

At a time where the growth of political independents is helping lessen the dangers of a two-party monopoly on American politics, there is a need for more people to become true economic independents (people who can survive indefinitely without a paycheck). As both of these grow, the level of American independence will increase.

Any level of economic independence is good, including everything from two months to twenty years of non-employer-dependent financial security.

But the future of freedom may well depend on those with permanent economic independence.

3 Types of Independents

There are three groups with long-term independence whose members are permanently free from dependence on a paycheck.

The first two are made up of people supported by trust funds or equivalent, covered financially for life by wealth earned or passed down to them.

Group one lives off these funds, often spending their lives in play and leisure.

The second group spends their lives dedicated to making a difference in society through service, career, investment, entrepreneurship, or whatever path they choose to use to improve themselves and the world.

The third group has no trust fund or equivalent wealth to rely upon, but has the skill set and worldview of entrepreneurial enterprise.

This group doesn’t start with full bank accounts, but rather with emotional accounts full of faith and determination, grit and initiative, and an undying belief in the principles of abundance, hard work, and enterprise.

Whatever happens, members of this third group have an almost unshakable belief that there is opportunity everywhere.

They believe in themselves, and they believe that if they put their minds and hands to work they can build value out of opportunity and create prosperity through their energy and effort.

Together, the second and third groups are society’s Producers.

They start, build, invest in and grow businesses and organizations that create a nation’s assets, advancements, and top achievements. They employ the workers of the world.

And when hard times come, they don’t ask government or employers to provide for them. Rather, they look around, assess the situation, see opportunities amidst the problems, and get to work building value for the future.

They do, however, ask government and the big established businesses to get out of the way, to allow them the freedom to turn their initiative and work into growing profits and success.

When government increases obstacles and regulations on small business, it directly attacks freedom and prosperity.

When this occurs, entrepreneurs naturally look for nations and markets that are friendly to business. As a result, nations with free enterprise systems attract more producers and are blessed with greater wealth and prosperity.

Non-Producer Attempts to Create Producers

Nations naturally benefit from a large producer class, but how are producers created? The common answers fall short.

The liberal view is that those with credentials and advanced education—the experts—must set up a system that allows enterprise but also fairly distributes the rewards of economic success.

The conservative view is to allow big investors to get huge rewards and therefore be willing to take big risks.

The blue-collar populist approach is to make sure management treats labor fairly and humanely.

The bureaucratic view is that rules make the society and economy work.

While each of these has a place, within limits, none of them really get to the heart of what makes producers tick.

The problem is that these views are nearly always promoted and managed by employees with an employee background and an employee mentality.

Non-producers grudgingly admit the great need for more producers, and then set out to build conveyor belts which will produce more producers.

This only works insofar as a born entrepreneur sometimes breaks out of the conveyor belt and overcomes the obstacles to his or her success.

David Brooks has referred to Washington’s party politics as the PhD’s (liberals) versus the MBA’s (conservatives).

Both give lip service to small business; but their modus operandi belies a different governing worldview.

The PhD’s want government to run the economy and provide jobs, and to be the Great State Entrepreneur so that regular citizens don’t need to take risks.

The MBA’s want to appeal to big investment, and are loathe to consider small business significant or meaningful.

The average citizen-employee wants managers to treat employees better.

This is all employee thinking.

Government programs will not create many entrepreneurs, nor will most corporate ventures, bureaucratic agencies, or labor unions.

And most MBA programs emphasize employee training and measure their effectiveness by citing job placement statistics.

Entrepreneurs are the natural competitors to all these.

The Answer

How do we create more producers?

The answer, as frustrating as it is to the experts, is this: We don’t.

That is, institutionalized and standardized programs do not of themselves yield producers, except by happenstance (as noted above).

The very act of systemizing the training of initiative and innovation tends to shut down initiative and innovation.

What can be done, what actually works, is to help young people realize the importance of producers in society and reward their inclinations toward being anomalies, outliers, and disruptive innovators.

The first one is easier said than done; the second one is nearly impossible for most parents and teachers to either conceive of or accomplish.

To support the development of the entrepreneurial spirit in the rising generation, youth need to be:

  1. Exposed to those who highly value entrepreneurialism
  2. Given opportunities to earn and receive personalized mentoring from successful producers.

In short, as we elevate the honor and accessibility of being producers, we will tend to increase the number of them.

While the example may have its limitations, it is interesting to study the most successful network marketing, multi-level and other like organizations that in recent times have emphasized entrepreneurship among “regular” people.

For instance, Amway and its affiliates created more millionaires than most of the top 100 corporations combined, with each millionaire being an independent entrepreneur.

In such organizations, interested people are introduced to many who highly value entrepreneurial producers, and new affiliates work directly with a producer mentor.

Hundreds of non-traditional companies have accomplished similar results. Ironically, one criticism of such organizations by mainstream (employee) experts is that they are “pyramid schemes.”

From another perspective, the true pyramid companies are those where most of the work hours are done by lesser-paid employees while the highest salaries and bonuses go to the executives at the top.

Hands-on business schools like Acton MBA have similarly helped educate entrepreneurs by a combination of inspiring people to be producers and also providing producer mentors.

And the many bestselling books promoting this same model, from the “One Minute” series to the writings of Steve Farber and many others, show that this system is appealing to many people.

Highly successful coaching services have followed this pattern as well, including such notable businesses as those established by John Assaraf, Leslie Householder, Dennis Deaton and many of those mentioned in The Secret.

Nearly the entire self-help industry is built on this model: Promote the honor and value of successful entrepreneurialism and help would-be producers get direct mentoring from successful producers.

Thinkers like Andrew Carnegie and writers like Dale Carnegie outlined this model a long time ago.

The mainstream PhD/MBA ambivalence toward the “Success” and “Self-Help” community stems from their reliance on and loyalty to the doctrine of employeeship.

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

These anomalous individuals produce surprising novelties from out-of-the-mainstream sources and dramatically change society, business, and other facets of life.

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

The government and big corporations spend a lot of resources trying to predict the future.

And invariably entrepreneurial producers come along every few years and change everything. Reams of articles and books are written trying to predict where the next such innovations will come from and prescribing how to help train future innovators.

But the network marketing companies and other non-traditional entities drastically out-produce government and big corporate attempts to build entrepreneurs.

3 Steps

But all of this commentary falls short of the real point. Only the individual can truly become an entrepreneur.

If there is to be a much-needed revolution that brings many more entrepreneurs to society, individuals, and families must take action and lead out.

If what we want is more independence, then we must have more independents—more producers.

If you want society to be leavened by a greater proportion of individuals with producer mojo, then you need to consider whether you should be a producer yourself, and how to become one.

To be a producer, it is up to you to make it happen.

Here are three suggestions:

1. Study successful producers.

The most important part of this is to see the power of focus, integrity, and faith in abundance that producers exemplify.

Where the media often tries to paint producers as greedy and immoral, the truth is usually very different.

Pay special attention to what great producers believe, and learn to think like them.

The habit of truly believing in abundance and principles makes one a true independent, permanently free of dependence on others and able to build, create and lead.

2. Study what the great producers study.

The material most studied by the greatest producers and leaders has been the great classics.

Producers are voracious readers, going far beyond any prescribed lists. Leaders are readers.

Read the greatest works of mankind and everything else you can get your hands on. Keep reading, studying and learning throughout your life.

3. Find and work with mentors who are successful producers.

The unwritten lessons gained from this kind of experience are invaluable, real and profound.

Coming face-to-face with greatness by working with successful producers is essential to becoming a successful producer yourself.

Our society desperately needs more producers.

We need more people who think like entrepreneurs and more people who take initiative and fulfill the needs of society without waiting for government or the people of wealth and privilege to “fix it for us.”

The future of freedom is directly and literally tied to the future of producers in our society.

Click Here to Download a Printable Version of This Article

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

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

He is the author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, and The Coming Aristocracy: Education & the Future of Freedom.

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

 

Category : Culture &Economics &Education &Entrepreneurship &Featured &Mini-Factories &Producers

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

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

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

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

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

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

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

Funny how history pulls these types of pranks.

Failed Solutions

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

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

All three of these views miss the point.

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

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

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

What we need now are patently non-institutional innovations.

Major Challenges

Consider the major problems we are facing.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Habits & Complexes

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

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

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

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

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

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

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

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

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

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

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

The result? More money flees and recession inevitably comes.

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

Freedom, prosperity and stability all suffer.

As Ken Kurson put it,

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

Or, as the Governor of Minnesota said:

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

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

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

Poor Complexion

Another example is found in the issue of health care.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Right Level of Complexity

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

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

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

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

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

This is the traditional entrepreneurial mix.

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

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

Lifestyles of the Rich & Famous

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

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

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

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

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

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

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

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

Period.

Specific Entrepreneurial Challenges

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

Very soon, the following must occur:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Sources:

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

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

He is the author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, and The Coming Aristocracy: Education & the Future of Freedom.

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

 

Category : Aristocracy &Economics &Entrepreneurship &Government &Producers &Prosperity

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