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Aristocracy

A Tale of Two Economies

April 11th, 2011 // 5:56 am @

The United States currently houses two economies, and they are drastically different. The regular people have to deal with the following realities:

  • Energy costs are still going up, and may skyrocket in the wake of nuclear problems and the impact of the Arab uprisings on oil prices.
  • The price of crude oil is up 25% since the beginning of 2011, and it is still rising.
  • Food costs are rising accordingly.
  • Unemployment remains high and may increase again.
  • The real estate bubble is not yet over, and many experts are concerned about another major dip.
  • Many state governments are facing massive shortfalls and/or bankruptcy.

In contrast, millionaires increased their wealth approximately 16% during the Great Recession, and big business has likewise upped its wealth. Ken Kurson wrote in the April 2011 issue of Esquire:

“American corporations are sitting on an unholy pile of cash. About $2 trillion. It’s an all-time record, and as a percentage of total assets, it’s the highest in more than 50 years.”

These two economies do share one thing, however: a widespread fear of the future. Kurson continued:

“I would argue that this wad of dough actually greatly exceeds even the pile-up of the late 1950s, because of the reason it exists. Past cash hoardings were strategic in nature. They funded the expansion of product lines, plant building, technological innovation, and hiring that we witnessed in the mid-’60s, for example, after President Kennedy dramatically lowered the personal income tax. This time is different. The current stockpile isn’t strategic; it’s fearful. Companies are afraid to expand because of uncertainty about costs, and a lack of lending partners.”

Kurson suggests that this choice by the corporations is probably unwise—the government may use it as an excuse to find ways to take this money and spend it. More likely, corporations will invest it abroad.

Dante Chinni and James Gimpel point out that disparity between those with increasing wealth and the rest applies to both individuals and whole communities. In the April 2011 issue of The Atlantic these authors outline the twelve types of communities in the U.S.: Monied Suburbs, Minority Urban Centers, Campus Communities, Industrial Metropolises, Immigrant Communities, Service Worker Tourist Hubs and Midsize Cities, Emptying Nest Communities, Evangelical Epicenters, Mormon Outposts, Military Bastions, Tractor Country, and Boomtowns.

Of these, only four have annual median family incomes over $50,000 a year: Monied Burbs, Campus Communities, Boomtowns and Industrial Metropolises. Interestingly, these four and Military Bastions are the only communities where median family income is higher in 2010 than it was in 1980. As most people in the middle class have seen their standard of living stagnate since 1970 and significantly decrease since 2008, the top 7% of earners have greatly increased their wealth during the major global economic downturn.

Despite all the evidence, there are still those who consider many current government proposals “socialist.” This is at best a myth. At worst, it is a threat to our freedoms because if the regular people misunderstand the problem they are sure to fall short when they try to apply solutions. Yes, one symptom of socialism is massive government spending and taxation of the middle class to pay for state programs. But socialism is, as I have mentioned a number of times, a transfer of money from the middle and upper classes to the lower class. And we have not seen this in recent American administrations—Bush, Clinton, Bush or Obama.

What we have seen, in policy after policy, is a transfer of wealth from the middle classes to the upper class. Bailout money came from the middle class and was largely deposited in upper-class and big corporate bank accounts.
Unfortunately, we are living in a strange era of Orwellian doublethink. Liberals inaccurately call this great transfer of money from the middle to the upper class “conservative” while conservatives incorrectly label it “socialism.”

Let’s cut through the name calling and just call it what it is: Using government power to transfer money and wealth from the middle classes to the upper class is aristocracy, pure and simple. Aristocratic conservatives and aristocratic liberals have greatly benefitted from this trend, and they keep the rest of the nation from doing anything about it by arguing among themselves. Conservative and liberal aristocrats point fingers at each other, accuse and call names, and tell us to send more money to one side or the other.

The rest of the people, the non-elites, foot the bill because they get caught up in the arguments promoted by the two kinds of aristocrats. We are witnessing—and this is not an overstatement—a fundamental shift from our roots as a limited federal democratic republic to an aristocracy where the Commercial Aristocrats battle the Governmental Aristocrats for ascendency and the rest of the people see their freedoms and prosperity dwindle with each passing decade. Aristocrats make up one economy (one that is flourishing at record levels in both wealth and power), while the rest of the people make up the other economy (one that is deeply struggling).

Let’s call a spade a spade. We are moving toward aristocracy, and it is time to stop following or supporting aristocrats—regardless of which party they promote. We need America’s “second” economy, the regular people, to start increasing their leadership.

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odemille 133x195 custom Egypt, Freedom, & the Cycles of HistoryOliver DeMille is a co-founder of the Center for Social Leadership, and a co-creator of Thomas Jefferson Education.

He is the co-author of the New York Times, Wall Street Journal and USA Today bestseller LeaderShift, and 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 &Blog &Culture &Economics &Prosperity

What type of government does America have today?

March 26th, 2011 // 10:17 am @

“It’s a Republic; if you can keep it…”

Property Rights

  • Free democracies protect the property of all.
  • Socialist nations protect the property of none.
  • Monarchies consider all property the estate of the king.
  • Aristocracies have one set of property and investment laws for the very rich and a different one for the rest.*

Taxation

  • Free democracies assess tax money fairly from all the people to cover vital, limited government roles.
  • Socialist societies take money from the rich and redistribute it to the poor.
  • Dictatorial monarchies take money from everyone and give it to the dictator.
  • Aristocracies take money from the middle and lower classes and give it to rich bankers, owners of big companies (“too big to fail”), and other powerful and wealthy special interests in bailouts and government contracts.*

Information

  • In free democracies it is legal for the people to withhold information from the government (e.g. U.S. Fifth Amendment, right to remain silent, etc.) but illegal for the government to withhold information from or lie to the people.
  • In socialist societies, dictatorial monarchies, and aristocracies, it is legal for the government and government agents to lie to the people but illegal for the people to lie to the same government agents.*

Success

  • In free democracies, the measure of success and the popular goal of the people is to be good and positively contribute to society.
  • In socialist societies, the measure of success and the popular goal of the people is to become government officials and receive the perks of office.
  • In dictatorial monarchies, the measure of success and the popular goal of the people is to please the monarch.
  • In aristocratic societies, the measure of success and the popular goal of the people is to obtain wealth and/or celebrity.*

Right to Bear Arms

  • In free democracies all the people hold the right to bear arms.
  • In socialist nations and monarchies, only government officials are allowed to have weapons.
  • In aristocratic societies only the wealthy and government officials are allowed to have many kinds of weapons.*

Immigration

  • Free democracies open their borders to all, especially immigrants in great need.
  • Socialist and dictatorial monarchies build fences to keep people in.
  • Aristocracies build fences to keep people out, especially immigrants in great need.*
*The current United States

Please share this with everyone you think should read it using the links below.

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odemille 133x195 custom Egypt, Freedom, & the Cycles of HistoryOliver DeMille is a co-founder of the Center for Social Leadership, and a co-creator of Thomas Jefferson Education.

He is the co-author of the New York Times, Wall Street Journal and USA Today bestseller LeaderShift, and 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 &Blog &Citizenship &Constitution &Culture &Economics &Foreign Affairs &Government &History &Liberty

Book Review: Rascal by Chris Brady

November 1st, 2010 // 2:00 am @

In his modern classic, Rascal: Making a Difference by Becoming an Original Character, bestselling author Chris Brady introduces two groups that are currently leading our nation and world.

Both groups can be found in Wall Street, Main Street, Las Vegas, Silicon Valley, Hollywood and in both of the major parties on Capitol Hill.

Both groups have great impact in the world, but the direction and focus of each group is significantly different. And unfortunately, members of one of these groups are far too rare.

The first group is what Brady calls:

“…the Council of They. They are the thought police, the guardians of political correctness, the masters of conformity, the keepers of the status quo. It is They who struggle to keep life always the way They say it should be, who fight change, who persecute creativity, and hurl criticism at anything that smacks of originality or authenticity.

“They try to say who is ‘in’ and who is ‘out.’ They seem to have so much power that good, creative people leave their lives on the shelf rather than face their wrath. They will try to influence how you live, what you do, whom you should marry, and how you should raise your children. They want control, obedience, and blind acquiescence…

“The only problem is, that herd of people following along in step aren’t going anywhere, and as long as anyone listens to them, he or she won’t go anywhere either.”

Like almost anything in our modern society, it is tempting for Republicans to point to this definition and say that the Council of They is Democrats, and for Democrats to say exactly the same about Republicans.

Many in the media, ironically, would think of the Tea Parties—who are clearly not following the path outlined by the experts.

Perhaps the reason this resonates on both sides of the political debate is that herd thinking has become too widespread across our society.

The second group doesn’t really act like a group, because it is made up of independent individuals who do their own thing.

Indeed, perhaps because of this choice to act according to their own views (not as followers of the herd mentality), Brady calls these people “Rascals.”

“What Rascals do is get out of line. In fact, many Rascals have heard most of their lives that they are out of line in one way or another! Rascals don’t fall for the lure of going along or becoming someone else just to please others. Rascals follow their convictions and confidently head in the direction of their destiny, mindful of their Creator and not of the crowd.

“Non-conformity is not what we are talking about, but rather, authenticity….The first rule of becoming a Rascal is to slay the dragon of They. Rascals, quite frankly, don’t care what They say. Rascals don’t take their cue from the peanut gallery. Rascals are driven by their own sense of purpose and direction.”

Brady rejects the definition of the term “Rascal” as unprincipled or dangerous to society, and instead focuses on people like John Wycliffe, the American founders, Mark Twain, Harriet Tubman and Mother Teresa who see what is needed in the world and go against the norm in order to make the world better.

One of his heroic “rascals” is the freedom-loving Chinese man who stood in front of the tank in the famous video clip from the Tiananmen Square protests of 1989.

Some of the very most important Rascals in history are regular people who ignore the path of the masses and take action to make a positive difference in society.

For those who want to be such leaders, Brady includes an excellent test to help you find out how much of an independent-minded leader you are.

I highly recommend this book to everyone.

What America Needs

Modern America needs a generation of great leader-citizens. Many great leaders like Gandhi, Andrew Carnegie, Margaret Thatcher, Mother Teresa, Nelson Mandela and others have done things in ways outside the mainstream—ways that are creative and genuine.

Such people have been called by many names, including Outliers, Pioneers, Explorers, Beagles, Founders, Mavericks, Trailblazers, Disruptive Innovators, and Leaders.

I have referred to them as Statesmen and also Social Leaders. I have written about them, and how to join them in making a real difference, extensively in my books and articles.

Most recently I described the coming impact of their independent thinking on the political future of America in my book FreedomShift.

Centuries ago the great classical economist J.B. Say invented a name for people who go against the norm, change things for good even in the face of societal opposition, and turn unproductive commodities into productive resources for society. He called them Entrepreneurs.

More recently, Jonathan Fields called them “Career Renegades,” people who overcome the widely-promoted fears that unless we follow the “normal” paths outlined by society we’ll end up failing.

In the new post-meltdown economy, success at all levels and walks of society is more and more dependent on being this innovative type of person. In our time, perhaps the best name for such people is “supermen” and “superwomen.”

Whatever we call them, today they lead most small businesses and more of them are found in small business than anywhere else. America needs more of them.

We live in a society in desperate want of leadership from such people. The future of our national prosperity depends on how well they overcome the current challenges to the economy—including government overreach—and apply innovation, initiative, ingenuity, creativity, tenacity, and social leadership in our nation and world.

Such leadership is needed in business, family, neighborhoods, the arts and sciences, society and government. Each of us should consider in what ways we can improve ourselves and provide such leadership.

Our national future may well depend on how effectively we make and implement this choice. And it is time for Washington to decrease regulation, taxes, and get out of the way of the small businesspeople who can rebuild our economy.

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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 &Book Reviews &Entrepreneurship &Leadership &Mission

How to Destroy the Constitution

October 25th, 2010 // 4:00 am @

DEMOCRATS, REPUBLICANS, AND INDEPENDENTS don’t agree on much, but most of them do believe in the excellence and effectiveness of the U.S. Constitution.

A group this diverse will, of course, have some disagreements on the details, but it is amazing how nearly all involved Americans support the document.

All agree that the Constitution catalyzed America’s growth to freedom, prosperity and world hegemony.

Freedom works, it turns out; the Constitution codified and structured freedom at a level unparalleled in world history (affiliate link).

For at least fifty years, however, two major groups have disagreed about the fundamental direction of the nation as it relates to the Constitution.

Conservatives have seen the Constitution as an ideal to live up to, and operated on the premise that the country must be careful not to stray too far from the original intent of the founders.

They resonate with such things as strong national defense, separations of power, and protections of property.

Liberals, in contrast, have in general felt that this great document guaranteed basic rights and due process, but that it was meant as a starting point from which to continually amend and improve our society.

They tend to focus on individual rights, equalities, and the democratic attitudes of the document.

As a third, newer group, independents, tend to want the United States to value original intent, yet also make improvements where they are wise and practical.

Vital Foundations of Freedom

In view of all this, there are a few things that are fundamentally vital to the success and maintenance of the U.S. Constitution.

If these vital things are lost or ignored, or even changed in any way, the system will break down and our freedoms will decrease. These vital foundations include:

  • Separations of power between the executive, legislative and judicial branches
  • The independence of each branch
  • Checks and balances
  • Guarantees of freedom like “no ex post facto laws,” “no bills of attainder,” and the freedoms outlined in the Bill of Rights
  • Separations of power between the federal and state governments

Over the years, some have argued that we are in danger of losing some of these vital foundations of constitutional freedom. Certainly there has been some weakening over time.

But for the most part, the vital facets of the Constitution have held strong.

Weakening the Constitution

Unfortunately, in just the past few years we have seen major affronts to these vital constitutional guarantees. And more amazingly, there has been little concern voiced in the media or among the American citizenry.

When we let our freedoms slip away without a fight or even without concern, we take freedom, prosperity and happiness away from our posterity.

What kind of people do that? Are we such people? These are questions each of us must face.

Moreover, the loss of these vital constitutional foundations are not issues of parties­­­­—most liberals, conservatives, greens, radicals, extremists, moderates, hawks, doves, independents and nearly everyone else is generally opposed to losing our freedoms.

So why do we sit by and let it just happen?

The answer is simple, although the reality is quite complex:

We tend to let our freedoms slip away because they are tucked away in documents and policies that we don’t ever deal with directly.

We either ignore current bills before Congress or, if we do get involved, we focus on the publicized issues instead of the many layers of complexity.

In short, we don’t read the fine print.

The Power of Fine Print

Many Americans ignore the fine print in job contracts and mortgage papers, blithely signing our signatures and trusting others to handle the details.

Consider how lax we are with proposed bills in Washington DC: They are written by someone we don’t know and voted on by people few of us will ever even meet.

What few people realize is that these things have direct and major impact on our lives!

The problem in modern America is not that an individual can’t make a difference, but that nearly all of us are too distracted to even consider trying.

It seems ridiculous, maybe, to think that regular people should read the fine print of proposed legislation and existing laws and try to improve them. It sounds extreme and even crazy to suggest that without such close scrutiny from the citizens our freedoms will be lost.

But it is still true. This is one of the things which makes the American founding generations so truly amazing! Yes, they sacrificed greatly in the Revolution.

But many nations have sacrificed mightily and still failed to be free. Yes, the founders wanted to protect themselves from the usurpation of Britain. But so has every other colony and group of people facing a dominating government.

Yes, the founders loved freedom and wanted to pass it on to their children and posterity. But who doesn’t?

Almost every human society has yearned deeply and sacrificed much to be free. However, the founding American generations did something that almost no others have ever done.

They read the fine print!

They taught their children to read bills, laws, court cases, legislative debates, executive decrees, and bureaucratic policies. They read them in schoolrooms and at home. They read them at picnics and by candlelight after a long day’s hard labor.

They said they would consider their children uneducated if they didn’t read such things.

Consider just one example, from a textbook read by all Vermont school children in 1794:

“All the children are trained up to this kind of knowledge: they are accustomed from their earliest years to read the Holy Scriptures, the periodical publications, newspapers, and political pamphlets…the laws of their country, the proceedings of the courts of justice, of the general assembly of the state, and of the Congress, etc.

“Such a kind of education is common and universal in every part of the state: and nothing would be more dishonorable to the parents, or to the children, than to be without it.”

Now, in fairness to most human societies who wanted to be free, the regular people through much of history couldn’t read at all.

The founders understood this, so the first federal law passed under the newly ratified U.S. Constitution required any territory seeking statehood to show that it had an effective educational offering for all children.

They considered it a great blessing of providence that they could read and had the opportunity to pass on education to nearly all Americans. They saw this as a fundamental requirement for freedom.

They mourned for the many generations of humans throughout history who had no chance at freedom because education was denied them or simply unavailable.

But what would the founders think of three generations of today’s Americans who can read, who live in relative affluence, have ample leisure time, but who choose to ignore government documents?

I think they would be shocked, and then angry.

After the painful price they paid to establish a free nation; the many sacrifices of their families and lives, imagine their frustration that today’s Americans won’t even read what the government is doing.

Eventually, after their anger wore off, I think they would resign themselves to this reality: Unless Americans start reading government documents again, we will lose our freedom—again.

In case this sounds extreme, let me reiterate that the founding generations read government documents, in detail, from all three branches, including all levels from federal, to state, to local.

Then they raised their children to do the same. It was second nature to them because they wanted to remain free.

Free people read the fine print. Then they act on it. To put it simply: those who don’t, do not remain free.

This is the reality of history, from Ancient Israel to the Greeks, Saracens, Franks, Anglo-Saxons and every other free society in history.

I can find no exceptions.

In fact, in mixed societies with classes or castes of both freemen and subservients (like in Athens or the Roman Republic), only the upper classes read government documents; and only the upper classes were free citizens.

Three Tragedies

In just the past two years we have seen three of the major vital foundations of constitutional freedom ignored.

People who don’t read government documents, or at the very least printed media reports about government documents, aren’t even aware of these structural implosions in our constitutional system.

They have no idea of the tragedy ahead unless these things are reversed.

Moreover, people who don’t read government documents are often swayed by the anger of politicians or mass media so that they think violating the Constitution is okay if the nation is mad enough.

For example, the vital constitutional foundation of “no bills of attainder” was broken in the wake of national anger at Wall Street after the economic meltdown of 2008-2009. Even those who knew it was broken felt it was justified given Wall Street’s mistakes.

But when we let the government break the Constitution because we are really mad, we will soon watch it break the Constitution when somebody else is mad.

This reminds me of the old story of the so-called unaffected groups who ignored Hitler’s men while they took the Jews, then the foreigners, the gypsies, the handicap, and the white collar professionals, only to wonder why no one was there to help when Hitler’s men finally came to their house.

The moral of the story? Stand up for the Jews, or any other group unjustly attacked. That is the character of people who will remain free.

Because we were so angry at Wall Street after the economic crisis, we also ignored or just accepted the “ex post facto” laws unconstitutionally passed and applied in 2009.

That’s two strikes against the Constitution, and in less than a year!

The third strike came in the health care law.

Now, before I say more, let me be clear that I did not side with either the Democratic law as it was passed or with the argument from the Republicans that health care need not be reformed. Reform was necessary, but the way it was done is a major problem.

Some Democrats, some Republicans, and a lot of independents agreed with this. There is a lot more that could be said on this, point-by-point on every facet of the law. But that isn’t my purpose here.

My deepest concern is with the fact that public sentiment regarding such policies and issues as immigration, marriage, detainment/torture, health care, finance reform, foreign military campaigns, etc., is governed by the tidal forces of activism and apathy—neither of which is delving into the fine print details in the laws that strike a major blow to the most vital foundations of the Constitution.

Using the Health Care Reform law as a case in point: The Constitution separated the powers of the federal government from others that would be left to the states or lower levels, or the people.

This is as fundamental to our freedoms as separating the executive, judicial, and legislative branches, or outlining specific checks and balances.

Take away the provision of separating state and federal powers, and the whole Constitution is in danger of failing.

The founding generation felt so strongly about this that they insisted on adding the Ninth and Tenth Amendments to protect this separation and maintain states’ rights.

Later, the Supreme Court ruled that the federal government could take some actions within states under the commerce clause, but only the states had the right to require individual citizens to buy a good or service.

The Court also ruled in Gonzales v. Oregon that the federal government does not have the authority to “define general standards of medical practice in every locality.” It also “has recognized a right to medical self-determination, notably finding it within the Fifth Amendment’s due process clause.”

The health care law is the first federal law to break these, and it sets a dangerous precedent for the future.

In short, if this stands, future U.S Presidents and Congress can add one or two sentences in any bill at any time that requires Americans to do or buy anything—and pretty much nobody is likely to know until the law is passed.

Each new generation is acclimatized to the level of government overreach that they find themselves in, and it rarely occurs to them to object.

The Overseers of Freedom

Some might argue that our elected representatives should keep an eye on such things and take care of them for us.

True enough; except for one thing: Despite of all their good intentions and willingness to step up and lead, most of these representatives are ultimately just like “us”; they are not much more inclined than the general population to read the fine print!

Contributing to this brand of governance is the status quo climate that slaps an “extremist” label on those who do try to raise concerns about the process or consequence of our legislative and regulatory trends.

The bottom line is that our elected officials often fail to do anything about these fine-print additions to legislation.

Sometimes, even when such things are taken out of bills, the agencies which implement these laws simply write them back into their operating policies and enforce them anyway—even though they are not technically law.

With a system like this, the people are the only true overseers of freedom. If we don’t do it, freedom will be lost.

The founding generations read resolutions, bills, laws, policies, executive orders, ordinances, court cases and judicial commentaries on cases.

They wanted to be free, so they did what free people always do: They read the documents of government. They studied the fine print.

Where they saw dangers to freedom, they took action.

Unfortunately, too often any criticism of a political party’s policy is interpreted by people as an attack on that party. In this case, it is not my purpose to criticize President Obama’s push for health care reform.

I am simply concerned with the way this law treats the U.S. Constitution.

Presidents Nixon, Ford, Carter, Reagan, Bush, Clinton, and Bush also promoted policies that could have threatened constitutional principles.

It is the role of politicians to promote policies and changes they feel are needed, and at times these push the envelope of the Constitution.

Congress and the Court must do their constitutional role of analyzing and responding to such proposals, but ultimately it is up to the people to be the Overseers—to protect freedom.

Societies where the regular people aren’t allowed to read or comment on the laws are Totalitarian, Authoritarian, Dictatorial or Communistic.

Societies where the regular people are allowed to read and comment on the government and law, but instead decide to leave it to others, most often adopt aristocracy or socialism.

In contrast, if we want to be free, we must read the fine print.

Freedom only lasts in societies where regular citizens:

  • read government documents, think about and discuss them
  • do something to change them when needed
  • teach their children to do the same.

If we become such people, the future of freedom is bright. If not…

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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 &Citizenship &Constitution &Culture &Education &Government &Independents &Leadership &Politics

Robin Hood, or Prince John: Overcoming a Problem Worse than Socialism

October 20th, 2010 // 4:00 am @

Click Here to Download a Printable Version of This Article

When the government takes middle-class tax money and bails out big bankers, automobile manufacturers and other big businesses paying out huge multi-million dollar bonuses, that’s not socialism.

Socialism, like Robin Hood, proposes to take money from the middle and upper classes and redistribute it to the poor.

But during the Great Recession, the lower and lower-middle classes found it much harder to make ends meet. Many lost their jobs, and even their homes.

Where is Robin Hood when they need him? Where is their socialist bailout?

Whether or not you subscribe to the socialist ideal (and I decidedly do not), a careful consideration of the social and economic climate of the U.S. is warranted.

What is really happening? Talk radio and conservative television hosts have railed about the “rise of socialism,” but in reality something else is going on here.

When socialistic programs are introduced, the lower classes benefit and the upper-middle and upper classes pay the bill.

But in our time, precisely the opposite has happened.

In addition to increasing woes for the lower and lower-middle classes, the upper classes actually benefited from the economic downturn.

The number of millionaires grew 16 percent during the Great Recession; and those with a net worth over $5 million grew 17 percent.

So why are conservatives and Tea Partyists bantying about the s-word so much?

And after all is said and done, what difference does it make what we call it?

While the “socialism” furor may be linked to the Health Care debate and other left-of-center proposals of the Obama Administration, a deeper look shows that socialism is not the real culprit.

It is critical to understand that this distinction is not just a talking point for politicians and pundits to discuss on Sunday morning talk shows, or for academics and intellectuals to publish in scholarly journals.

By misdiagnosing the problem, we are also applying the wrong remedies and can never hope for improvement.

We are all the day vigilant against the small-time con of Robin Hood, and Prince John plunders us while we sleep.

What is Socialism?

The technical definition of socialism is government ownership of the major means of production in a society.

American Liberalism, in contrast, believes that there should be both a private and a government sector, and that the government should highly tax and regulate the private sector.

While both of these are anti-conservative, they are not one and the same, and the difference is critical.

American Liberalism does believe in limits, checks and balances; it believes in a separate private sector.

Socialism believes in none of these; it believes that the government should run the entire economy.

Obama Administration involvement in bailing out banks and auto companies certainly had liberal and even socialist overtones, but the top banks quickly paid back government loans and went back to private ownership.

In this sense, to label this as socialistic is not accurate.

Again: this is not question of semantics, but speaks to the very heart of the issue and how we should respond. (More on this later.)

In the wake of the economic meltdown, the government drastically increased regulations on large and small businesses. This regulatory activity is a basic value and tool of liberalism.

While liberalism seeks to ever increase regulation on private businesses, socialism seeks to own most and eventually all the companies in a nation.

Polls showed the Obama Administration to be left of the American populace in regard to fiscal and other types of regulations, but all within liberal rather than socialistic definitions.

It may be well argued that this distinction is simply a question of degrees.

But even in that paradigm the differences demand a greater understanding of and tailored responses to the liberal and socialist encroachments on freedom and prosperity.

If It Quacks Like A Duck…

Another reason many called Great Recession policies “socialist” is that government actions caused private businesses to shed employees at the same time that the government was hiring.

When the media shared the numbers showing that average private salaries are less than the average government employees make, the “socialism” name-calling was a natural angry response.

The Economist predicted growing political battles between taxpayers and government employees in nearly all nations.

We need to get serious about incentivizing small and mid-size businesses.

For example, a recent version of the health care bill would have required businesses with twenty employees and a $1 million/year budget would have to add $300,000 to its annual costs or pay $40,000 in fines.

Result: at least two employees would be let go and twenty people would still not have health insurance.

To say nothing of the fact that these individual employees will still have to buy their own insurance or pay additional fines.

It’s anybody’s guess how it will all shake out as the health care law undergoes endless tinkering over the next who-knows-how-long, but it’s worth asking the question: How, exactly, does this help unemployment?

In fact, it dis-incentivizes entrepreneurship and hiring, and encourages people to go on government programs. This certainly feels like socialism.

And big business is facing similar challenges. For example, Intel’s chief executive Paul Otellini said that the U.S. is driving away businesses and employers:

The things that are not conducive to investments here are taxes and capital investment credits. A new semiconductor factory at world scale built from scratch is about $4.5 billion–in the United States. If I build that factory in almost any other country in the world, where they have significant incentive programs, I could save $1 billion.”

How many jobs are we sending to other countries because of our high taxes?

This was clearly not a hypothetical situation; Intel built its latest factory in China. Said Otellini:

And it wasn’t because of the labor costs either. Yeah, the construction costs were a little bit lower, but the cost of operating when you look at it after tax was substantially lower…”

What does it mean when China’s communist business environment is more inviting to U.S. companies, more conducive to their growth, than the United States?

When did regulations and taxes in the U.S. make doing business in China attractive?

The U.S. now ranks #40 out of forty industrialized nations in appeal to business.

It’s almost as if the U.S. government doesn’t want business to succeed or grow, and only thinks that government spending and government jobs are the solutions to economic challenges.

This is easy prey for conspiracy hunters, but I don’t think Washington is capable either of such ubiquitous cleverness or cooperation.

I think it is much more likely when it comes to preserving freedom, they are simply not minding the store.

Other pressing needs have our leaders distracted, and the expedient responses they recur to also happen to militate against our future freedom and prosperity–and specifically, against free enterprise.

No wonder so many people are angry at recent presidential administrations. No wonder so many are crying “socialism.”

How can we defend against the allegation that our government purposely wants private businesses to fail or flee the U.S.?

Instead of promoting incentives that bring more business and jobs, the government is promoting higher taxes and regulations like health care that make business success more difficult.

More government regulation, increased government hiring and increased government social programs demanding ever higher taxes: these are features not only of liberal policies, but of a growing aristocracy.

Socialism Versus Aristocracy

Predictably, most Americans today who actually have an opinion on the matter readily conjure the twentieth-century enemy of free enterprise, socialism, rather than the older, forgotten eighteenth- and nineteenth-century evil of aristocratic rule.

But the fact that lower classes are struggling more than ever while the upper classes are increasing their wealth during economic downturns is a clear sign that aristocracy is the issue.

Consider this: in socialist cultures celebrity and fame are denigrated; in aristocratic societies they are esteemed and celebrated.

We clearly love celebrity at levels far beyond socialistic, conservative or even liberal societies.

Aristocracies and monarchies are the domain of such infatuation with fame, get-rich-quick schemes and the lottery mentality.

Like Shakespeare’s Antonio, we just know our ship is about to come in.

Conservatives traditionally invest in building businesses and like-minded community, liberals in educational degrees, professional excellence and credibility, and socialists in government positions.

Like characters in an Austen novel, in aristocracies like our modern America those in the lower classes fantasize about some punctuated leap in their “prospects”–from marrying rich to the modern equivalent of winning on Survivor, American Idol, The Amazing Race, The Bachelor or some other concocted scenario where the fate of the aspirants largely lies with those in power.

Note that in pyramid schemes there are a few winners at the top but thousands of hopeful and willing enablers the rest of the way down.

Why the Difference Matters

The debate between socialism and aristocracy is more than just semantical.

The technically inaccurate label of socialism allows the educated media and the elite establishment to patronize and condescend to the “uneducated” who push for change.

It allows government officials to dismiss the “uncouth dissenters” while maintaining their conviction that “they” (the “educated,” the most “talented,” most “intelligent” ones) know what the nation needs and those whose opinion really matters (the “educated,” the most “talented,” most “intelligent” ones) are completely in favor of their proposals.

Unfortunately, those citizens who put aside apathy and stand up to make a difference find themselves always frustrated because they fight the wrong battle.

If socialism is our problem, the perpetrator is the political leaders promoting socialist policies, and the philosophical left is to blame.

But if aristocracy is the challenge, then the two parties are both culprits in the promotion of a privileged class.

If aristocracy is the challenge, the citizen is his own worst enemy as he does not pay the price to rise above the mediocre education of our schools or to see beyond a complicit, dumbed-down media designed more for entertainment than positive impact on freedom and prosperity.

If we think socialism is the enemy, we will put our effort into electing different leaders, only to discover that Washington’s problems continue and increase no matter whom we elect.

By misdiagnosing the problem, we are using the wrong treatments and failing to get better.

No matter how active and engaged voters are, from the left or the right or the middle, if we continue to think that socialism or capitalism is our problem then all our efforts will continue to be impotent.

Very little will change in Washington and our problems will continue to grow.

Virile & Viral

If we realize, in contrast, that aristocracy is the real problem and that electing an upper class from either party will only worsen the problem, we can shift focus and consider what is really needed.

And the answer, the real solution, will become clear: As long as we live in a society of upper and lower classes, our freedoms and prosperity will continue to decline.

The solution is not to just elect a different leader, but for all American citizens to once again obtain the kind of education that allowed regular farmers and shopkeepers to study the federalist papers and listen to and consider eight-hour debates during the Lincoln-Douglass era.

If we think the problem is socialism, we will consider great education benign and ineffectual.

But if we know the real problem–that people in both parties and in all social strata are enabling a growing aristocratic power over our society–then we will realize that simply electing a better senator or president is not nearly enough of a solution.

True: Socialism and aristocracy share many symptoms, so electing the best leaders is still vitally important to stem big government.

But the real, unseen, issue is aristocracy. And until the American people realize this and more of us get the same quality of education as the CEOs, judges and presidents, the problems will continue to grow.

Above all, it is education that determines class levels.

Entrepreneurship is another path to leadership. This doesn’t mean that we need all enroll in the Ivy League.

In truth, the greatest classics of history are still the true library of freedom, wealth and leadership.

Virtually every town library has the great texts of liberty and success available.

The question is, do Americans value our freedom enough to end the rise of aristocratic rule by becoming greatly educated ourselves?

Will we step up to our responsibilities as citizens and qualify ourselves for our role as the overseers of government by learning about freedom, leadership, economics, human nature and the other great ideas of mankind?

As our society is on track for disaster from numerous threats (to our food supply, availability of fuel, decaying infrastructure, dependency on programs that have poor prospects for future funding, terrorism, failing economy) we all know that somebody needs to “Do something!”

We have been caught in the binary trap of either expecting someone else to “fix it” or expecting that we can make a difference just by making our voices heard.

But our moral authority and our ability to impact our society’s direction will come not from complaining about the ideas or performance of those who have stepped up to lead, but from actually having the answers to society’s ills.

We can’t just protest that the world simply must turn back the clock two hundred years.

New leadership is needed by today’s American citizens.

If we truly revere the American founders and idealize their accomplishments, we must move beyond hero worship and actually do as the founders did: We must apply a profound understanding of sound principles to the establishment of policies and forms that directly apply to our complex and critical situation today.

This we can do, just as the American founders did in their day.

As I have said elsewhere: Getting a world-class education and running successful businesses is “doing something.”

That is precisely the “something” that is called for today, and that any other solution which does not include a better educated populace has a different outcome than liberty and justice for all.

It is time for an entrepreneurial approach to getting an individualized, superb, great, innovative leadership education in the classics.

Each of us can do it, and the future of our freedoms depends upon it.

If the current growth of American aristocracy is allowed to continue, our future is destined to be less free and more harshly lacking in opportunity than any socialistic society.

The criticism of “socialism” is certainly negative; but unless we change course, the aristocracy that our grandchildren and their children inherit will be something far worse.

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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.

 

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