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One Great Challenge Facing America Today

August 26th, 2017 // 4:51 am @

The Coming Fall

Only 15 percent of Americans are on target to fund 1 year or more of their retirement. One single year. Yet many will live twenty to thirty years after retiring. This one fact alone is a major blow against conservatism.

It may in fact kill conservative principles and ideals in the next two decades, and it could deeply hurt the American economy and our freedoms in the process. This is not an exaggeration. Put simply:

How can conservatives expect to win elections or, even if they are victorious at the ballot box, actually pass conservative laws and policies when more than 85 percent of the American people are going to be fully dependent on someone else’s money for housing, food and clothing, health care, and other expenses during retirement?

With the massive Baby Boom generation moving into retirement, many analysts ask: how can the United States implement anything short of collectivist socialism in the next thirty years?

To cut away the safety net, or to default on the promised Social Security and healthcare benefits workers paid into for decades, would be immoral and create widespread poverty for many of our most vulnerable. To buck up and pay for these obligations, and supplement them with what will be needed for millions of retirees to just get by, will require levels of taxation and regulation that will truly be nothing short of…well, socialism.

Bottom Dollar

Few people want to admit this reality—Republican politicians least of all. But over sixty years of government promises, spending money that should have been saved, inflating the currency, and putting numerous regulatory hurdles in the path of entrepreneurialism, innovation, and economic growth have taken their toll. A national debt north of $20 trillion dollars (more than $100 trillion when all the obligations and liabilities are met, and a lot more as these obligations and interest on the debt increase every month) leave us little wiggle room.

There are two realistic responses. First, we can go after major economic growth. This will require a systemic change in our economy—meaning mass deregulation and getting the government almost entirely out of the marketplace. Tax rates must come down drastically, and foreign-held corporate money must be encouraged to repatriate without penalty. Foreign direct investment must also be recruited (another reason tax rates must be significantly reduced).

The second option is to keep on the current path until we default, then allow an IMF bailout of the U.S. and the replacement of the dollar as the world reserve currency with International Monetary Fund SDR currency or some other (probably electronic) legal tender. This will result in a major reduction of the standard of living for most Americans and an explosion of additional government handouts. Most retirement and other savings that do exist will be wiped out, and nearly all Americans will go on the dole, with a few elites at the top, and both socialism and globalism will dominate.

The amazing thing, to me at least, is that many of our nation’s leaders right now—in both parties—actually prefer the second option. Moreover, a lot of them believe that this is the best course for our future. They deeply believe in globalism, collectivist economics, and the end of America’s attachment to free enterprise, gun rights, family values, and religion. They believe that government is the greatest power on earth, and deserves our universal allegiance and support. Even, ultimately, reverence. Anyone who disagrees, they believe, is small-minded or caught in the past—or both.

New or Old

Not only do many Democratic leaders hold this view, but a surprising number of Republican officials believe it as well, or at least they vote like they believe it (which brings the same results). This is a real battle, and the globalist elites are winning. The media, most of academia, and a majority of politicians are on their side. In their view, the future of the world is at stake—either a bright future of globalism (with elites in charge) or a return to dark-age tribalism, as they see it (where the regular people rule through small-minded, unenlightened democratic influence), will ensue. They are determined to ensure the globalist outcome.

They literally consider it a war–and one that is worth winning, whatever the cost. If academia, media, Hollywood and the lobbyist/D.C. bureaucracy/political party-apparatus can force the Trump administration to back down from anti-globalist policies and behaviors, so be it. That’s what the hubbub is about on the nightly news, investigations, etc.

But if not, they’ll take more drastic measures. A currency default might do it, causing bank holidays and massive layoffs. Or a serious shakeup in the White House—brought on by the Special Counsel, indictment of the President, or something else that circumvents the will of the voters and instead chases the goals of the elite. Something unexpected, of the same magnitude, could trigger a return of White House alignment to globalist goals. Today’s elites in government, media, finance, etc. can hardly remember a time when globalism wasn’t the clear agenda. Most of them are outraged at the very thought.

The rest of America has a serious problem. Remember the 85 percent of Americans who don’t (or won’t) have enough retirement savings to last more than a year? How are conservatives going to effectively promote smaller government and a return to genuine free enterprise in a nation strapped with the $20 trillion-plus national debt, $13 trillion in consumer debt, over $100 trillion owed in debt plus unfunded liabilities, and many millions (and growing) of retirees who will desperately need financial support?

The Next Step

I’m an optimist, because I believe the best days of America and the world are yet to come. Usually I infuse my writings with optimistic ideas on how we can really improve things in the days ahead. But right now I have to admit that I’m concerned. I’m not sure how we get past the economic hole we’ve dug for ourselves—not just politicians, but the regular people as well. We are culturally, if not actually, dependent on government spending and government growth.

Yes, a lot of people want the government to cut back, but they can’t agree on what to cut. Almost all Americans want the government to keep spending for things that benefit them directly. The ones that support cuts mostly only support cutting other people’s government benefits. Thus Congress doesn’t actually fix much.

Unless this changes, Democrats will continue to be the party of bigger government and increased socialism while Republicans will talk about smaller government, limits, and Constitutional boundaries—but when the votes come to the Senate, truly conservative changes won’t have enough Republican support to pass, and when cases make their way to the Supreme Court, free enterprising systemic changes to the government-corporate-K Street nexus won’t have enough Justices behind them. Too many officials simply aren’t willing to do what needs to be done. It’s too hard, and too unpopular.

I’m not sure what can change this.

Of one thing I am certain, however. History is absolutely clear on this point. As goes entrepreneurship, so goes our nation. Ultimately, a major increase in effective entrepreneurship, innovation, and business ownership is going to make or break us. It will create growth if it happens, and that changes everything. Also, the future of entrepreneurship is something each of us can influence. Our next three decades will either bring massive economic growth or the rise of rampant socialism to America. To choose the path of growth, our government can help (by deregulation and choosing to be smaller)—but a lot more people engaging effective entrepreneurship is the indispensible. Period.

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“The Coming Tide”

July 25th, 2017 // 7:22 am @

A Prediction

For decades the Democrats proudly saw themselves as the party of the little guy and the working poor. Republicans were considered the party of Wall Street, white collar professionals, and big business. But these alignments have changed during the opening years of the 21st Century. The Democrats are now, as The Atlantic put it, “a coalition of Millennials, minorities, and white professionals.” The Republicans consist of whatever is left over, which amounts to a majority of people in the large majority of states.

Perhaps the most striking thing about this new political arrangement is that so many white-collar professionals are now Democrats. Moreover, a large number of them are genuinely liberal, even progressive. This is a major departure from historical trends.

The most obvious reason for this shift is something members of the professional class have in common: years of participation in and graduation from the modern American university system. To find success in today’s campus environment often corresponds with embracing academe’s general values, processes, and views. When such views emphasize diversity of thought and vigorous debate of different ideas, the result is a certain kind of learning—and a certain kind of graduate. This approach helped make American universities the best in the world.

But when such views and values include rejection of diverse ideas, religious values, and pressure to adopt one overarching political and cultural perspective (pervasively advanced by the Left), a different result is natural. A different kind of typical graduate is also inevitable. This is where we find ourselves today. As the American campus has moved increasingly Left, the culture experienced and accepted by a large number of its participants has followed suit.

College Flight

This leaves many conservative or religious families, and others who aren’t particularly conservative or religious but don’t want their college youth to be ridiculed for their views or indoctrinated with blatant liberalism, with a difficult choice. College, long considered a required rite of passage into adulthood by many families, is becoming less attractive to a lot of people. The rebuttal is that the financial rewards of a college degree make it unavoidable. This boils down to two widely accepted but currently weakening views:

  1. College leads to financial success
  2. Financial success requires college

Perception is never quite as accurate as reality. Belief #1 (college leads to financial success) is a partial truth. It turns out to be true for some people, not true for others. In the 2010s, it is false for more than half of college graduates. Belief #2 (financial success requires college), on the other hand, is patently false. There are many people with financial success and means who dropped out of college or never enrolled at all. Indeed, many business owners who never finished college find their company bombarded with resumes and applications of those who did.

Certainly college is an effective path to career for many people. However, a downside for parents who aren’t committed liberal ideologues is the worry that many of today’s universities will turn their children into exactly that. And the biggest losers in the current system—even in the few schools where religious or conservative values are acceptable—are students whose focus on career prep distracts them from getting a truly great education. Sadly, this describes a significant majority.

II.

To be clear, all of this is part of a much larger national context. The bigger trend is that Americans are increasingly rejecting the 1960s promise of a society of experts who wisely and efficiently fix everything. The golden era of the American university was an outgrowth of this post-World War II zeitgeist: that everyone could participate in a society of experts, and that expertise and institutions held the solutions to all our national, world, community, material, and even personal problems.

Increased medical expertise and technology would make us truly healthy; better law schools and lawyers would ensure true justice to everyone; advanced technology and training in journalism would bring a golden age of media full of light and truth; business advances and expertise would eradicate poverty and bring prosperity to all. And so on….

The promise of what experts would bring the world was exciting, even intoxicating. True political experts, we were assured, would bring lasting peace, end conflicts, and spread happiness to every city and town. The Fed would ensure a stable and growing economy at all times, using modern expertise and financial algorithms to save us from major financial challenges. The promises were endless.

Over fifty years later, none of these expectations have been realized. Not even one of them. The entire “experts will fix everything” project is a bust. Just look at the current state of our politics, from the Clinton era to the Bush years, from Obama to Trump. Problems are far from solved. Many of our great national institutions, both public and private, have declined or lost their way. The citizenry’s trust of our government, and of experts in general, is lower and lower each decade.

In truth, the era of the expert is insolvent. It’s well past bankrupt, to be precise. We’re still training more experts, but they still haven’t solved the problems that caused us to want more of them in the first place. A lot of things have gotten worse. In short, something else is needed…

And soon.

What’s Next?

While national debts continue to skyrocket (more than doubling in the past 8 years), markets show increased volatility, and governmental credit ratings are downgraded, many of the experts assure us that things are getting better. But all they’ve shown is that they don’t really know what they’re doing. They know how to keep themselves well paid and in power, but beyond that, they haven’t fulfilled their purpose.

For example, imagine what would happen if we faced an economic depression like those the U.S. suffered in the 1930s, 1860s, or 1780s. When the Great Depression came, most Americans trusted the government, our leaders, and our national institutions. Today most citizens have very little trust in any of these; indeed, over sixty percent of Americas don’t trust the government to do the right thing most of the time. If crisis comes in this atmosphere of mistrust, few solutions from Washington will find enough traction to be successful.

This is a dominant characteristic of our times: We can’t seem to solve our national problems, big or small. We are mired in political squabbles, both between parties and within parties, and Washington accomplishes very little that actually helps the American people. It often causes harm, in fact.

As a people, we have largely lost trust not only in governmental officials and institutions but also in the media, Wall Street, Hollywood, the schools, big business…the list is long. Whom do we really trust as a people? Whom can we turn to in crisis—with real confidence they’ll fix things? In short, which experts do we really believe have our backs anymore?

If the promise of “experts will save us, and all our youth should become experts” doesn’t ring true anymore, what does? What is the answer? From the founding era through westward migration and the Industrial Revolution, the overarching goal of most Americans was to build a business and raise a family. This was our drive, our agenda. It was our national project, carried out by myriad individuals and families.

Then after World War II we turned our gaze in another direction: the career, a profession, education as job training, and daily life spent meeting the needs of the corporation or whatever organization employed us. In short, experts ruled and most people wanted to be experts. If they couldn’t swing it themselves, they at least tried to make it a reality for their children. Even family goals were expected to bend or give way to the interests of employers. Schools, likewise, were reorganized to separate, grade, sort, and point young people in the direction most likely to meet corporate needs. Experts oversaw the entire process, literally from cradle to grave and almost everything in between.

As the evidence of expert limitations grows, and as our national faith in the power of experts to solve our problems erodes and crumbles, what is left? Where will we turn? A whole generation of Millennials grapple with this situation in their work life, and more decide to opt out of the system than join it. Where are we headed?

III.

So far, nobody can definitively answer these questions. Time will tell, but in the meantime we must do our best to understand and prepare for the economy and world that is emerging in the post-faith-in-experts era. My opinion is that the most likely path forward is to reconnect with our American roots and turn our sights once again toward entrepreneurship. Business ownership is, in fact, the historical American pastime. The fact that many people abandoned it for half a century only worked because a few business owners did things on a big enough scale to employ the many.

But eventually, like any system where the many depend on the few for survival and progress, the few began taking more and more of the profits and power for themselves. In history this was called aristocracy, in more recent times it has been called socialism, and in our day it often gets away with calling itself capitalism. But whatever we call it, such a model is a far cry from the free enterprise system that turned America into a world leader—based firmly on freedom and the goal of most people to be independent owners and build their own businesses.

If and when this goal once again permeates our national mindset and our people’s choices, we’ll see the rise of a nation of problem-solvers. At that point, we won’t be dependent on politicians to fix things, and as a result, things will actually get fixed. In the process, we’ll naturally see a decreasing attachment to political parties and the rise of a non-political majority of business owners and family raisers.

There was once a name for just such goals: “The American Dream.” It’s time to bring it back.

To put it succinctly: Experts won’t save us. Politicians won’t fix what ails our nation. The solution will come, if at all, from a cultural change that marks the resurgence of a certain kind of person. At one point in history, people around the world had a word for such independent-thinking mavericks who took risks and then worked incredibly hard to make their businesses flourish and grow. They called them “Americans.” What qualified one for such a title? A burning drive to build and lead one’s own business, and to raise a family and community of young people with the same goal.

I think we’ll witness the rebirth of this same “tide in human affairs” very soon. In fact, I believe it’s already begun. But it faces strong headwinds blowing in the other direction, so we need to do better if we want the American Dream to succeed again. This is our key to the kind of future we want to pass down to our children and grandchildren.

Families, schools, communities and parents can either raise a nation of “independents” or a society of “dependents.” One will bring freedom and opportunity, the other won’t.

It’s our choice, and the decision won’t be made in Washington — or even at the ballot box.

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Chaos in Current Events!

June 21st, 2017 // 8:50 am @

History is Repeating Itself, But Do We Know Its Lesson?

Cycling Back Around

This is a chaotic time. Political scandals, media lies, shootings and violence based on political disagreements, terrorist attacks in formerly safe places. For the American people, it’s both frustrating and scary.

It helps to step back and take a deep breath, then turn to history for answers. Since patterns frequently repeat, they can tell us a lot about what’s actually happening—beyond the anger and intensity of nightly news reports. They can also tell us what’s coming.

Here’s how things work. Since the beginning of written history society has been split between three groups: 1) those in power, 2) those who have some power but are seeking more of it in order to be at the top of the power pyramid, and 3) other people who just want to live their lives. The good news is that in the United States today, a higher number of people are free to enjoy life and seek to live their dreams than perhaps any other society in known history. That’s worth smiling about, no matter what the news tells us.

On the other hand, a lot of people today have a sense that things are heading in the wrong direction. We have a lot of problems, both here and abroad, and it often feels as if some spark will soon set off some kind of powder keg that leads to real crisis. It’s a feeling like many Americans experienced in the late 1930s and early 1940s, or in the late 1850s and early 1860s. The American founding generation felt it at the beginning of the 1770s. In each of these cases, that sense of unease and anxiety was eventually followed by drastic challenges—Pearl Harbor, the Civil War, the Revolutionary War.

Indeed, according to the cycles of history, we’re in that same turn of the pattern right now. It’s unclear exactly what will happen to bring bigger national crisis, but a lot of people feel a foreboding sense that something momentous is about to come.

The Best of Times, The Worst of Times

To put this in clear perspective, the news right now is a tale of four nations.

One: the business news reports almost daily signs of an economic upturn, more financial opportunity, and budding growth in a rebooting economy.

Two: international news reports increasing terror attacks, alarming danger signs in North Korea, Iran and from ISIS, and a looming energy building for more conflicts ahead with Russia and China.

Three: the mainstream media portrays the Trump White House and the Republican Congress as ineffective, and throws out daily allegations of Administration corruptions, lies, conspiracies and hidden agendas to hurt the nation.

Four: conservative media debunks these mainstream reports and points instead to the kind of alleged corruption on the Left: Loretta Lynch, James Comey, the Clinton Foundation, illegal leaks, violent “Resisters”, DNC collusion with the mainstream media, Hillary Clinton’s emails, etc.

It is amazing how often these competing sources of media tell exactly the opposite story about a given event from the day’s news. Most people listening to all the reports are left deeply confused, or cynical. And those who only listen to one news source are frequently surprised by what friends tell them about the news. “But I listened to the total opposite on the morning news! You must be remembering that wrong.”

To make sense of all this, let’s put aside the noise and distraction. Let’s be as blunt and direct as possible: We are living in one of those historical periods where we face an existence-level conflict. We are literally in the midst of an existential war. Such wars are both cold and hot, violent and emotional. They are deeply rooted in the conflict between major ideas—with two cultures battling to survive, to win, and to thrive. But each side feels that it must fully defeat an opposing culture in order to survive.

Such intellectual wars have always existed, but they only reach a crisis-point like the one we are now experiencing when certain factors align. First, instead of a general conflict among ideas, the populace finds itself facing off in a dramatic disagreement between two major viewpoints, two overall paradigms that cannot peacefully coexist. Second, the stakes are high enough that almost everyone in the society firmly picks one of the two sides. Even people who are usually moderate, or generally centrist in their views, feel strongly enough about the current situation to put aside their typical willingness to see both good and bad on both sides. They now clearly see one side as right and the other as wrong. Many people go further—they see their side as Good, and the other as Evil.

Third, and this is where—according to historical patterns—the real danger sets in, more and more people find their emotions leading them, and they stop really thinking about current events. Symbols, which are always important in society, become the main thing in such eras. Symbols take over. For example, we now live in a nation where millions of people don’t even consider a certain policy if it is supported by the Trump Administration. They immediately think they “know” it is bad, wrong, hurtful—as soon as the name Trump is attached. In contrast, millions of other people have the exact same emotional reaction to anything attached to the name Obama, or Hillary Clinton. Rationality, consideration, and even empathy, are largely ignored. Millions basically turn off their brains and simply react to symbols—and their reactions are emotional, charged, and frequently downright angry. This turns violent more often than in less extreme eras of history.

Diverging Paths

In the current environment, winning has become the only goal for many in leadership, and for a majority of the population. And winning itself is defined as having certain people in power and in office, and/or other specific people out of power and out of office. Nothing but winning is acceptable to far too many in positions of influence and power—both public and in the private sector.

But there is an even worse situation, and it is the one we are now living. This occurs when one side believes that winning is the only important thing, and is willing to go to any length, any extreme, to win, while the other side still believes that some things are more important than winning.

When this happens, the side that only cares about winning becomes truly extreme, loses its moral sense and ethical compass, and goes entirely on the attack, using any means and justification it can muster. The other side, still convinced that morality is more important than winning, holds back, tries to show restraint, and attempts to use reason and appeals to decency to make its case. The result, in history, is mixed:

  • If an election is near, the anger gets channeled to the voting booth and a winning number of voters weigh in and throw their support behind the side arguing for decency, goodness, and wisdom.
  • If no election is imminent, the anger grows and is expressed mostly by the political class: those on the full attack win, while the side seeking reason and decency loses.

We are now witnessing the latter scenario. And history is clear on this point: Nations are drastically hurt by this approach. It tore the United States apart in the 1960s, where we witnessed the assassination of a President and two other major national leaders, along with massive violence, cultural civil war, and the destruction of national trust and cooperation. Similar events tore nations apart during the French Revolution, the Russian Revolution, and Bismarck’s Wars. The French and Indian War, the War of the Roses, the 30 Years War, and a number of others followed the same pattern. World War I took Europe for a similar ride—or, more precisely, a similar culture war culminated in the muddy trenches full of blood and machine-gun casings that webbed the continent in World War I.

In each case, it came down to two great, competing ideas or cultures, large or powerful groups supporting each side, and, eventually, the rise of symbol to extreme levels that incited violence, irrationality, and all-out culture war. We are now witnessing the same stew. Any who aren’t alarmed, or at least deeply concerned, don’t understand the ebbs and flows of history.

The solution, as history teaches, is to clearly identify which idea is right—and reject the other. This finally ended the great conflicts listed above, whether the conflicting ideas were communism vs. democratic free enterprise, a divine right of kings vs. the inalienable rights of all, Nazism vs. parliamentary democracy, imperialism vs. self-determination, slavery vs. individual rights, etc.

Follow or Lead?

To make matters even more challenging, today we are engaged in two such wars at the same time. First, there is the battle of radical Islamic terrorism vs. democratic inalienable rights. The clear winner will be democratic inalienable rights, which is more popular than terrorism among Muslims and pretty much everyone else around the world. Only the terrorists themselves, a very small minority of the world’s population, think theirs is the right idea.

The second great war being fought right now for control of our future is more complex. More difficult. Indeed, it threatens to tear our modern societies apart. It consists of, to put it as directly as possible, the competing ideas of democracy vs. aristocracy.

Elites choose the latter. They think society should be run by a few, and that the rest of us should accept the rule of our “betters.” And be grateful.

This is the underlying battle of our times. It is the war being fought in Washington D.C. between the Establishment and the American voters, and in most of our schools (where young people are largely convinced that success consists of getting a job working for elites, showing gratitude to elites, and kowtowing to elites in return for the promised salaries, promotions, and employee benefits). It is the war being fought on our campuses, and in most of the television programs and movies we consume.

Sometimes the message from schools, campuses, and the entertainment media is blatant, while other times it is subtle. But the message is nearly always the same: “the values of elites are best”, and “the rule of elites in all walks of life is just the way things are—and the way things should be”. This viewpoint is repeated over and over: “The best we can do is fall in line and get the kind of education and careers elites want for us.” Few people are able to spend many years in this system without succumbing to its promises and threats.

Perhaps the very center of this war is the media. Nearly every mainstream media report today communicates the same message: elites are the answer, we all need to adopt and celebrate elite values, all other values are obsolete or inferior, the voters get it wrong when they don’t follow elite media guidance, and the best path for our children is to embrace elite values and get the kind of good jobs that are mostly available working for elites and furthering elite agendas. The message is clear, and it is repeated from many of our most venerated institutions: “Everyone who isn’t an elite, or working for elites, is a loser, an outsider, an inferior.”

The Choice Right Now

This is not an exaggeration. Step back, look at our society today, the culture wars that are brewing, the leaders and their battles, and the news media. We are the world described just above—run “of the elites, by the elites, and for the elites.” The United States is a society at war, and the war is democracy vs. aristocracy. Note that aristocracy is promoted by nearly all of our major societal institutions. We are a world where all men and women are created equal, to paraphrase Orwell, but some, the elites (and those who adopt elite values and work for their goals), are to be treated more equal than others.

When the voters put in presidents and other leaders approved by elites they are applauded by the same elites. Media, academia, television, movies and experts of all stripes laud such officials and those who voted for them. When voters elect anyone who threatens or challenges elite values or goals, these same institutions turn to full attack mode. It’s like a pack of jackals going after their worst enemy. It’s Lord of the Flies. The courts are brought to bear, the media is weaponized, schools and universities become arms of elite propaganda, and the bulk of professionals and experts turn their attention to reversing or amending electoral “mistakes.” The voters must be kept in their place. Their superiors must rule.

Again, to history—it has always been thus. In fact, this is what Burke and Santayana were talking about when they warned that those who don’t learn from the mistakes of history are bound to repeat them. Specifically: The aristocrats have always known how to respond when a bit of democracy raises its head in challenge. They lie, they attack, they use innuendo, they mischaracterize, they publish false reports—followed by more false reports. When they do tell the truth, they spin it to promote their narrative. Where possible, they employ character assassination. If these fail, they look for another way. Any way to bring back elite rule and control.

This can go two ways, history shows us. If the people are swayed by such elite manipulations and tactics, the elites quickly regain their power. If not, if the people hold strong against elitist lies, agendas, and domination, democracy spreads and free enterprise flourishes.

Make no mistake. No matter how it looks (and remember that elites almost single-handedly control how it looks), the battles we witness on the nightly news are not personality vs. personality or even political party vs. political party. Something deeper is afoot. Aristocracy and Democracy are at war. Rule by elites vs. rule by the regular people. This is a true fork in the road. We will either remain a democratic, free enterprise nation, or we will become a fully functioning aristocracy.

This is our choice. Right now. And it boils down to whether we let the media sway our views, or not.

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PART TWO: Free Enterprise is Better than Capitalism

December 27th, 2016 // 7:50 am @

Part II: The Central Issue of the Trump Era*

“The median [U.S.] family debt went from an average
of $25,000 per family in 1989 to over $70,000 in 2010.
It’s getting harder to make ends meet,
and harder to stay financially afloat.”
—The 5 S’s of Money (citing the Center for American Progress)

A missing piece of entrepreneurship-Free enterprise rewardsLET’S get straight to the point. The biggest battle in the Trump Era probably won’t be capitalism versus socialism. It will be free enterprise versus crony capitalism. For America’s future, free enterprise simply must win.

But crony capitalism is far ahead in this battle right now.

To understand this, we need to define some terms. There are two major types of economies: market economies and command economies. The first is based on freedom, the second on force.

Within these two branches there are a number of subtypes, including various kinds of command economies such as socialism, communism, fascism, collectivism and different applications of economic authoritarianism and totalitarianism.

The divisions of market-style economies are sometimes more confusing to people from free societies, because most of us have been trained to evaluate political and economic issues in binary mode where we narrow any debate down to only two sides—such as liberal vs. conservative, socialist vs. capitalist, democratic vs. totalitarian, good or evil, Allies or Axis, believers and atheists, idealists and realists, free or not free, and so on.

That said, we live in an era where the various types of market economics are now in conflict. During the Cold War the world was divided between two great camps, with market economies of all types firmly allied against the command economies–the NATO nations of the West versus the Soviet Bloc and world communism.

But after the Cold War (and especially in the post-9/11 world), this has dramatically changed. There are forces supporting each of the various types of market economies, and these are often pitted against each other in ways unthinkable before the fall of the Berlin Wall in 1989.

Capitalism Deconstructed

Differentiating between these sub-types is important for anyone who wants to accurately understand what is happening in today’s world. When people use the term “capitalism,” they may be referring to any of the following five types of market economies. And the truth is that each of these models has drastically different goals and processes:

  • Mercantilism: A system where the law allows market forces but gives preference and special benefits to the sector of the economy owned (or directly controlled) by the government. Also known as “state capitalism.” This system was historically used by the British Empire. As Parag Khanna put it in 2016: “…all countries practice some form of ‘state capitalism’ today, whether subsidizing strategic industries, restricting investments in key sectors, or mandating financial institutions to invest more at home.” (Khanna, 2016, Connectography, 33)
  • Corporatism: A system where the law encourages market forces and also gives preference and special benefits to the sector of the economy owned by big corporations within the nation, sometimes referred to often as “Big Business,” “The Military-Industrial Complex,” or simply “The Establishment.”
  • Keynesianism: A system where the law allows market forces but gives preference and special benefits to companies and institutions that are so big that they tend to care more about their public image for societal responsibility and promoting social justice than about profit(s), market share or stock value. According to Keynes himself, Keynesianism seeks the goals of socialism through market means.
  • Capitalism (crony capitalism): A system where the law encourages market forces and also gives preference and special benefits to the sector of the economy owned by big capital—including big corporations like in Corporatism, but also wealthy foreign and multinational corporations, and highly influential non-corporate institutions such as rich foundations, moneyed trusts, political parties, well-funded lobbies and special interest groups, affluent non-profit entities, wealthy families, moneyed foreign investors, and others with large amounts of capital. Under this system, the rich rule society, and they naturally influence government to maintain policies that benefit the rich more than others.
  • Free Enterprise: A system where the law encourages market forces and gives no special preferences; it protects equal rights for all individuals and entities and leaves initiative and enterprise to private individuals, groups, businesses and organizations that are all treated equally and with minimal legislation by the legal code.

All five of these sub-types are market-based, and sometimes called “free market” or simply “market economy” systems. But please carefully re-read the differences between these five economic models, because, again – while they are all market systems, they differ drastically in theory and practice.

For the last three generations, these five types of market economics have frequently been lumped together under the label of “capitalism.” While this is technically inaccurate—because capitalism is a sub-type rather than the whole of market economics—this is the way the word “capitalism” has been used and understood by most people.

Under this popular definition, capitalism is synonymous with “market economics” and is a label for the entire free-market model. But even when people use this broader definition, it is important to distinguish which of the five types is being discussed—because the future of freedom under capitalism, corporatism or mercantilism will be a very different reality than it would be under true free enterprise.

So, to summarize, we have five definitions of “capitalism” in the current usage, and another definition which uses “capitalism” to refer to all the five types together. Naturally, these definitions are frequently confused in our contemporary language. Note that even the broader definition of “capitalism” includes every market approach from corporatism and Keynesianism to mercantilism and crony capitalism. In all of this, free enterprise is often forgotten.

Even worse, in the realm of modern politics all five of these systems are frequently lumped together and referred to as “democracy” or simply “freedom.” While this is a partially accurate definition, it confuses the fact that these five kinds of systems behave very differently and offer different results to society.

Madison Weighs In

Understanding the details and nuances of how these words are used is extremely important to maintain freedom. The American founders dealt with several similar language challenges, such as when Madison felt the need to write Federalist Papers 10 and 14 explaining the important differences between democracies and republics.

He also used papers 18, 19 and 20 to clarify the differences between federations and confederations, as well as national and federal governments. Without such clarity, the Constitution would have been confusing to many Americans who were deciding whether or not to ratify it. The fact that today most Americans don’t understand these differences illustrates how far we have devolved from the level of education exemplified by the founding generation.

There are numerous similar examples, and part of being a free people is taking the time to understand the nuances of economic and political freedom and the language of liberty. No nation in history has long maintained freedom at a level deeper than that understood by the regular citizens in the society. And note that few things are more essential for free people than clearly understanding what type of economic system they want.

Based on the definitions above, consider the following three observations:

  1. All five types of market economies are better (meaning they have more freedom, opportunity and prosperity for more people) than all types of command economies.

Even the market approaches with the least freedom (Keynesianism and mercantilism) are significantly better than the command systems with the most freedom (collectivism and socialism).

  1. Still, when comparing the five subtypes of market economies, free enterprise is significantly better (with more freedom, opportunity and prosperity for more people) than mercantilism, corporatism, crony capitalism, and/or Keynesianism.
  1. The United States, Canada, Britain, France, Switzerland, Japan and other leading free nations of the world today have far too much mercantilism, corporatism, crony capitalism, and Keynesianism—and not enough free enterprise.

This is surprising to most citizens of America and the free world. For example, many conservatives in the United States argue that we are a “capitalist” nation or vote for the “capitalist” candidate and conclude that all is well, when in fact free enterprise is under attack from socialism but also just as strongly from mercantilists, corporatists, Keynesians and crony capitalists.

Voters and citizens must know what to look for when a policy or candidate claims to promote “capitalism.”

Real Life Differences

Some might argue that most of this is mere theory, and that the United States today is a free enterprise society rather than a crony capitalist system as outlined here. Such an assumption is incorrect. The U.S. commercial code has numerous laws which are written specifically to treat people differently based on their wealth—and extending special benefits to those with more capital.

For example, it is illegal for those with less than a certain amount of wealth to be offered many of the best investment opportunities. Only those with a high net worth (the amount is set by law) are able to invest in such offerings. This is capitalism, not free enterprise. Under free enterprise, the law would be the same for all people.

Also, in many cities employees of the wealthy are allowed special legal benefits—such as carrying firearms (personally or through body guards), operating under false names, or traveling with different security measures—that are withheld from the regular citizens. However a person feels about gun laws or financial policies, such laws specifically treat the rich and powerful differently than the rest. Crony capitalism gives them special benefits.

This bears repeating: The laws of the United States stipulate that if you have more money you can invest in business opportunities that people with less money cannot (to study this in more depth, see the terms “sophisticated investor,” “accredited investor,” and SEC regulations on private investment offerings). The specific amounts and details are changed by law over time, but we are absolutely a crony capitalist nation where the laws give higher benefits to the rich.

In fact, many of these laws, including all the examples above, specifically benefit the wealthy to the detriment of wage earners. Regular working people are excluded by law from the best investments and various other perks and benefits. This system is called capitalism, and it is a bad system—better than socialism or communism, to be sure, but not nearly as good as free enterprise.

With all this said, the amazing thing is that this reality is basically ignored by almost everyone, mainly because those who point out the flaws of capitalism tend to be promoting socialistic solutions rather than free enterprise.

As a result, people are accustomed to attacks on the rich by those who want bigger government. But almost nobody has experienced those who want more free enterprise and much smaller government pointing out that the rich have terribly unfair legal advantages in our society—and that this is a bad system.

In fact, this is so deeply ingrained in most people that when they hear anyone criticizing the unfair benefits enjoyed by the rich, they seldom believe that the speaker is making a case for smaller, limited government and less socialism. We are so conditioned, that this possibility just does not compute.

Some may say that I am overstating this point. “Of course the rich and powerful are treated differently than the rest. After all, they are rich and powerful!” While this may be true, such a view is itself a symptom of aristocratic society with preferential class divisions. And in nations where the laws and government treat the rich and powerful differently, freedom is always in decline.

In free enterprise systems, the law allows all people to take part in any investments. If there are laws about bodyguards, firearms, using false names, or anything else, they are the same for every single citizen in the nation. This is what free enterprise means, because such a system gives everyone truly equal opportunities. In a system where Congress creates one set of laws for some, and different laws for those with wealth, status, or position, free enterprise isn’t allowed to give people the full benefit it should.

Indeed, in our system, Congress goes so far as to exempt its own members from certain laws and guidelines; this is especially harmful when members of Congress are allowed special financial opportunities that other people are not. Thus it isn’t surprising to see people elected to Congress and within a few terms become extremely wealthy, even though their actual salary could never generate such prosperity. They are allowed (by their own votes in Congress) to make deals that are illegal for regular people. This is crony capitalism, not free enterprise.

The Local Test

Another way to test the level of free enterprise in your society it to start a business in your local area. In fact, start two. Let the local zoning commissions, city council and other regulating agencies know that you are starting a business, that it will employ you and two additional employees, and then keep track of what fees you must pay and how many hoops you must jump through to gain the needed approvals.

At the same time, have your agent announce to the same government officials that a separate company, a big corporation, is bringing in a large enterprise that will employ 4,000 people—all of whom will pay taxes to the local area and bring growth and prestige. (Don’t really announce this—because if it’s untrue you might be breaking the law, unlike big corporations that are allowed to routinely float such trial balloons.)

Then simply sit back and watch how the two businesses are treated. In most towns, counties and cities in the United States, the small business will face an amazing amount of red tape, meetings, filings and obstacles—the big business will likely be courted and given waivers, benefits and government-funded publicity.

Add up the cost to government of both of your proposed businesses, and two things will likely surprise you: 1) how much you will have to do to set up a small business, and 2) how much the government will be willing to spend to recruit the large business.

This is the natural model in a crony capitalist system. Capital gets special benefits and a different level of treatment by the government. The result in such a system is that the rich get richer, the poor get poorer, entrepreneurialism is discouraged, and many jobs, innovation, investments and growth move to other nations.

In contrast, under free enterprise, everyone is treated the same by the law. Free enterprise is a better system than capitalism—it provides more freedom, opportunity and prosperity to many more people.

Bait and Switch

All of this is more than a mere philosophical or semantic argument about which word we should use. The truth is that many people, probably most people, who feel positively about capitalism actually mean free enterprise when they say “capitalism.” The things they admire about “capitalism” aren’t special benefits to the rich and different laws for the rich versus the poor or middle class, but rather a true free market where everyone is treated equally by the law and where each person has true and equal freedom of opportunity.

The problem is that this definition of capitalism seldom makes its way into official government policies or the law. People support free enterprise, which they call “capitalism,” and the government implements public policy that is certainly capitalism (because it favors those with more capital) but violates the principles of free enterprise. This “bait and switch” is one of the main problems with using the term capitalism.

If by capitalism we mean true economic freedom and laws that treat everyone the same, regardless of their level of wealth, and if this thing we call capitalism made it into our laws and became our operational policies, I would ardently support it. In fact, I would support such a system whether we called it free enterprise, capitalism, or even zebra- or giraffe-ism. The system, not the label, is the important thing.

The problem occurs when people support a thing called “capitalism” because they believe it is free economics for all, and then those in power take this popular support and use it to enforce something very different. This is the current reality, and it is hurting the middle and lower classes by decreasing their opportunities and abilities to prosper. Again, most people don’t even realize this is happening to them.

Freedom for All

In short, call it what you will, but we need a system of truly free economics with laws that treat everyone the same. Words mean things, and the word “capitalism” emphasizes special benefits to the wealthy with capital just as naturally as the phrase free enterprise promotes freedom and enterprise for all. Still, it is the actual system that matters, and all of us would do well to carefully observe political and economic details and nuances—regardless of how things are labeled.

When the laws are altered at all levels so that government entities treat all businesses and individuals the same, regardless of how much capital they have (or don’t have) in the bank or as assets, the natural result is the spread of more business, innovation, entrepreneurialism, jobs and economic growth. Free enterprise, not government favoritism of any sort, is the most effective economic model.

If we want to call the future of our society by the name capitalism, fine. But we must find ways to effectively change the current model to a system where the law treats everyone the same by maintaining true freedom and opportunity for everyone—without special government benefits for a few elites.

It is important to recognize that this is about more than quibbling over what word to use. As long as our society gives special legal and financial benefits to elites, while withholding them from the rest of the people, freedom will continue to decrease and the gap between the 1 percent, and even the .01 percent, and the rest will keep expanding. For the typical family, this means they will have to work longer and harder in increasingly scarce jobs in order to earn less and less. This is a bad economic model—bad economically, and bad for freedom and society.

Today’s Major Challenge

To put this all in perspective, the Trump Era is on target to emphasize mercantilism, corporatism, Keynesianism, and especially crony capitalism.

This needs to change. We need to focus on free enterprise.

But first, people need to realize that this is even an issue. The truth is, the battle between free enterprise and other types of capitalism isn’t just an issue right now—it is the central issue of the Trump Era.

We need to start acting like it.

*(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.)

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Free Enterprise is Better than Socialism or Capitalism

December 14th, 2016 // 8:08 am @

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.

A huge surprise-Freedom WorksTHERE 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?

Basic Training

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.

Binary Code

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:

  1. Laws and government actions can only protect inalienable rights.
  2. 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).

Class Divides

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.

Semantic Power

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.)

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