Culture

Review of Don Peck’s “Can the Middle Class be Saved?”

August 29th, 2011 // 2:00 pm @ Oliver DeMille

This article in The Atlantic by Don Peck is a must-read for those who are interested in the future of American freedom and prosperity. Highlights from the article include:

The United States is “now composed of two distinct groups: the rich and the rest. And for the purposes of investment decisions, the second group” doesn’t matter.
The new name for this state of society, coined by three analysts at Citigroup, is “plutonomy.”
“A 2010 Pew study showed that the typical middle-class family had lost 23 percent of its wealth since the recession began, versus just 12 percent in the upper class.”
The lifestyles of non-professional college graduates now more closely resemble those of high-school dropouts than of the professional class.
The meritocracy is increasingly only a meritocracy of the upper classes.
“Among the more pernicious aspects of the meritocracy is the equation of merit with test-taking success.”
“For the most part, these same forces have been a boon, so far, to Americans who have a good education and exceptional creative talents or analytic skills.”
Most Americans don’t want the middle class to disappear or continue to shrink, and such a development would certainly bring a drastic change to the people-based freedom that has characterized the historical successes of the United States.
These trends, and the growing divide between the rich and the rest, are increasing the longer the economy remains sluggish.

Peck gives a number of suggestions for improving this situation, including:

Increasing the funding for effective job training and education.
“Removing bureaucratic obstacles to innovation is as important as pushing more public funds toward it.”
Changing our public policy to accelerate innovation.
Significantly improving our schools.
Creating clear paths of training and skilled work for those who don’t go to college.
Altering current immigration policy to allow more “creative, highly skilled immigrants” to come to the U.S. more easily.

Whether or not you agree with Peck’s recommendations, one reality is clear: The success of these things ultimately depends on incentivizing entrepreneurship, innovation, creativity and economic growth.

By spurring significant economic growth, we will directly and indirectly address most of our national economic problems.

On the other hand, if government policies continue to thwart major innovation and growth, little can be done.

Peck makes a case for higher taxes, but hardly mentions that Washington has a serious spending problem.

Democrats typically argue for tax hikes, while Republicans now mostly champion spending cuts.

Most Independents, in contrast, would likely support both—as long as the tax hikes on the professional class were used not to increase or maintain federal spending but rather to directly help put America’s financial house back in order.

Whatever your view on this debate, it is a discussion desperately needed right now.

Too much of the rhetoric on this topic is just that—two sides deeply entrenched and firmly committed to one view only.

We need fresh ideas and inspiring leadership to move beyond this gridlock.

With all this said, Peck’s article is mandatory reading. Every American should think about its main points.

Most will find things to disagree with, perhaps, but the dialogue is needed.

If the middle class is to survive and thrive, it must increase its role of deeply considering, thinking about and making its views felt on important economic and other national issues.

Freedom only works when involved citizens of all socio-economic levels actively participate in such important national discussions.

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

He is the co-author of 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 &Book Reviews &Community &Culture &Current Events &Economics &Family &Featured &Statesmanship

19 Questions Answered in FreedomShift

August 13th, 2011 // 1:56 pm @ Oliver DeMille

Following historical cycles and trends, we have recently experienced a significant recession and major unemployment. According to the patterns of history, what is the third major economic challenge which is just ahead? (Learn what it is so you can prepare for it before it comes.)
Based on the lessons of past generations which faced major economic problems, what are the twelve things every family should do to deal with the economic challenges ahead?
What are the three major choices which American citizens need to make to overcome our nation’s economic problems and restore economic growth and increased freedom?
Where did Tocqueville say that the greatness of America lies? (The answer may surprise you.)
What exactly is a FreedomShift and how is one accomplished?
What is “the Law of the Vital Few?”
How is this law drastically changing America today?
What are the three top problems that are keeping America from fixing its problems right now?
What are six predictions of the Anti-Federalists from the founding generation that have come true today and are causing major problems in Washington D.C.’s ability to lead the nation?
Is our society being run by the cultures of our Elementary Schools, High Schools, Colleges & Corporations, Government Officials, or the Adults in our society?
How can we move back to adult culture, especially in Washington?
What are the three major groups in the Republican Party, the three major groups in the Democratic Party, and the other major groups running our nation politically?
(We are much more complex than the historical two-party system that dominated during the Cold War, and only those who understand these splits in the parties will know what is really going on in the nation.)
Who is the new group that is literally running the United States now? (Hint: it’s not the Tea Party, socialists, environmentalists, the religious right, liberals or even conservatives. The answer is surprising and deeply important.)
What are the nine types of people who run both of the two major political parties?
How will they impact the election of 2012?
What should we expect in the upcoming election?
What are the eight kinds of freedom, and which have we already lost in America?
Which of the eight are we now losing?
What does this loss mean directly for your family and the economy?

These challenges can be dealt with positively, but only if we know what is coming in the decade ahead.

For the answers to these questions and more on how “regular” people like you and me have all the power to refresh our liberties, read FreedomShift: 3 Choice to Reclaim America’s Destiny, available in paperback, pdf and Kindle editions. (Audiobook version, read by the author, coming soon!)

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Oliver 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 &Community &Culture &Current Events &Economics &Entrepreneurship &Featured &Government &Independents &Leadership &Liberty &Mini-Factories &Politics &Prosperity &Tribes

The Party System’s Newest Flaw

August 6th, 2011 // 10:08 am @ Oliver DeMille

Ungovernable

I recently watched a televised debate on whether America’s two-party system is making our nation ungovernable.

During the debate, New York Times columnist David Brooks said something fascinating.

He mentioned that political scientists keep track of how much cooperation there is between the two parties in Congress, and that while there have been periods of major party fighting such as the 1860s and 1960s, we are at an all-time low in partisan cooperation to get deals done.

Then he noted that the major difference in our current party system is that always before each party included a wide variety of viewpoints.

Within the same tent of the Democratic Party, for instance, many views and policies were suggested, debated and decided.

The same diversity existed within the Republican Party.

Today, however, this is not the case—at least not when it comes to policy proposals.

“The problem is that each party has become more rigid in my own lifetime of covering this,” he said. “When I came to Washington in the early 1980s, I could go to back ventures like Jack Kemp or Newt Gingrich on the Republican side. They had all these weird ideas they were trying to push on leadership. That doesn’t happen [anymore]—the leaders control everything now. The nature of the parties has changed.”

In their drive to win, the party leaders have organized around single, central themes and strongly demanded that congressmen stay within the accepted partisan bounds on nearly all topics.

Most of our elected officials are reasonable and dedicated, and if we put a group of them in a room without party labels and the goal of solving a given issue—say debt, deficits, immigration, or health care—they would almost certainly be able to propose sensible and plausible solutions in a relatively short time.

But attach a party label to each person in the room, especially with the historical baggage now attached to the parties, and the cost, timeline and likelihood of success would suddenly and permanently change.

This is a serious problem for modern America.

Racism of Red and Blue

Calling someone a Democrat or a Republican today is fraught with danger—they may well take offense.

I once watched a man stand at a public meeting and make a suggestion on how to solve the problem before the group.

The officials at the front of the room asked him several questions, and he answered them with common sense and a clear understanding of the situation.

A few members of the audience stood to add their support and small suggestions to improve his idea.

The room was moving toward consensus, when another participant asked if the speaker was a Republican.

When he answered that he was a registered Democrat, the mood in the room changed.

A few argued with him (making the point that they were Republicans, which literally had nothing to do with the topic at hand).

This fueled anger among Democrats and within minutes the room was deeply divided.

The official running the meeting took the floor and pointed out to everyone that the man’s idea had been almost universally supported before his political affiliation was mentioned, and tried to get the group back to discussing the merits of the idea.

But it was too late: the Republicans in the room now disliked his idea and the Democrats supported it.

Many had to change their minds to get to this point, but it seems that was easy once they knew which party he belonged to.

This kind of divisiveness is all too common.

Even online, many, perhaps most, American citizens who engage in political conversation limit themselves to groups where the other people agree with their views.

Few discussions on political topics are inclusive or open to learning from diverse perspectives.

Squabbles and Solutions

Fortunately, the solution to this starts at the ground level.

Each of us can listen to the views of people who disagree with us on politics.

I don’t know when the idea that discussing politics is impolite came into vogue, but it has only hurt our freedom and prosperity.

Right now, today, we can learn from other political views, not to debunk them immediately and angrily like most people do, but rather to really understand their point.

This is not the same as forgetting one’s beliefs—it is in fact the opposite process of strengthening one’s most important beliefs by increasing your understanding of the world.

A move to a European-style multiparty system is not the answer, since this would create a structure where the winner still runs the whole government but is usually a lot more extreme than moderate.

Ideally, America could adopt a non-partisan model like that suggested by many of the American framers.

The Constitution is actually designed for a nonparty system.

In the absence of a major shift to a nonpartisan model, the best reform to our system would be for more American citizens to ignore party spin and think independently—and openly listen to and learn from others who do the same, even if they disagree with your ideas.

We all have more to learn, and in fact significant political learning is more likely when we are listening to those whose views differ from the thoughts we’ve already had.

New ideas spark increased thinking, even when you disagree with the details.

Of course, people shouldn’t simply accept ideas they find problematic or wrong, but free citizens need to be good listeners and open-minded thinkers.

Such maturity is needed in any free society, and especially in one where ideological political parties dominate the discussion.

Our leaders, deeply mired in partisan squabbles, are unlikely to make this change, so it is up to regular Americans to take the lead in discussing and promoting needed solutions for many of our biggest challenges.

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

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

Category : Blog &Citizenship &Constitution &Culture &Featured &Government &Leadership &Liberty &Politics

World Stats

August 5th, 2011 // 9:57 am @ Oliver DeMille

Sometimes a few statistics and quotes tell us a lot more than any commentary. Consider the following:

“…married couples, for the first time, now make up less than half (45%) of all households.”
(“For Richer, Smarter: The Decline of Marriage,” The Economist, June 25^th, 2011)

“Percentage by which a couple is likelier to divorce if one partner has a commute greater than 45 minutes: 40” (Harper’s, August 2011)

16,000 children starve every day. (Spirituality & Health, July/August 2011)

“Traditional marriage has evolved from a near universal rite to a luxury for the educated and affluent. There was barely a marriage gap in 1960: only four percentage points separated the wedded ways of college and high school graduates (76% versus 72%). The gap has since widened to 16 percentage points…” (“For Richer, Smarter: The Decline of Marriage,” The Economist, June 25^th, 2011)

“Estimated percentage of the U.S. college class of 2011 who are moving back home after graduation: 85” (Harper’s, August 2011)

The average 2011 college graduate has $22,000 in student loan debt, even though jobs are especially scarce for this group. (The Huffington Post, July 2011)

“On any given day, 1.6 million of us are blogging, 27 million are tweeting, and 1.5 billion are posting on Facebook. We’re emailing during meetings, texting during lectures, and talking on our cell phones as we tackle rush hour traffic.” (Spirituality & Health, July/August 2011)

“Last year China became the world’s biggest manufacturer, displacing America from a position it held for more than a century.” (“Rising Power, Anxious State,” The Economist, June 25^th, 2011)

Americans were asked in a poll who is the most trusted political journalist. The number one answer was, “Don’t Know,” and number two was, “None.” (Harper’s, August 2011)

“The fraction of the population now working (58.2%) is near a 25-year-low—lower than it was when the recession officially ended in June 2009.” (Robert Reich, The Wall Street Journal, July 15, 2011)

More than half of Americans do not know the recession is over. (Harper’s, August 2011) Part of this is rooted in the way economists define growth and recession. It takes 2.5% growth in the economy just to keep up with the natural growth of the working population, and we haven’t seen 2.5% economic growth for some time. So even though we haven’t technically been in “recession” for over a year, we are still falling further and further behind.

“By 2010, [federal entitlement] payments to individuals were 66% of the federal budget, up from 28% in 1965. We now spend $2.1 trillion a year on these redistribution programs, and the 75 million baby boomers are only starting to retire.” (Wall Street Journal editorial, July 29, 2001; cited on Meet the Press, July 31, 2011.)

The real unemployment rate in July 2011 is over 20%, including those unemployed and underemployed. (The Huffington Post, July 2011)

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

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

Category : Blog &Citizenship &Community &Culture &Economics &Family &Featured &Leadership

A New Definition of Success

August 3rd, 2011 // 10:46 am @ Oliver DeMille

The Religion of Prosperity

The lasting legacy of the twentieth century may be its materialistic definition of success.

Indeed, the “religion” of prosperity has grown to dominate politics, philosophy, religious debate, family and community culture and even education (people sent their children to school with patently career/financial goals).

Even the enemies of prosperity have learned to argue in blatantly materialistic language: Marx believed in a world dominated by conflict between poor and wealthy classes, Hitler argued for economic supremacy of one nation (based on his horrific view of racist supremacy), and Stalin, Mao and a host of dictators amassed power and wealth to themselves and those who served them.

Altruistic movements from various religions and important philosophies (such as feminism, tolerance, environmentalism, etc.) struggled to gain support until they learned to make their case in terms of profitability.

The typical approach to materialism by intellectuals has usually been either to denigrate mankind’s natural materialism and its excesses as “unfettered greed,” or, less frequently, to side with the “virtue of prosperity” perspective.

This debate between the so-called “virtuous poor” and the “virtuous wealthy” made its rounds through politics, academia, media, religion and art.

Science tried to arrive at conclusions based on various studies of socio-economic behavior.

Economists even got into the mix—for example, John Maynard Keynes said that as societies become more and more prosperous, they begin to seek success in things beyond financial increase.

A New Consensus

In the twenty-first century, it appears that a new consensus is emerging—and it’s not what you might think.

In fact, like the earlier materialistic debate (Success 1.0), there are two main perspectives on the new definition of success (Success 2.0).

The first is the “meaning” view, which has become well-known through our modern entertainment.

In this worldview, depression and poverty are bad, financial prosperity is good, and financial prosperity along with a life of real meaning is success.

Steve Jobs popularized this view when he told a graduating class that we should all spend our work lives doing things we really care about and enjoy.

Popular courses at Harvard, Stanford and other prestigious schools on Happiness in Life, or How to Be Happy, have received a great deal of media coverage—and more students than typical science, history or even finance classes.

And why not?

After all, happiness is a concrete feeling that brings its own rewards.

Positive Psychology

A whole new academic field, Positive Psychology, has risen in just the past two decades with a focus on happiness as the real measure of success.

The findings of Positive Psychology are interesting: people typically have more power over their immediate happiness than their immediate wealth or attractiveness, our thoughts have great impact on our happiness, and focusing effectively on happiness brings instant results that are often more pleasant than the noticeable rewards of food, alcohol, sex or even exercise, for example.

Moreover, the growing Success 2.0 movement has adopted some of the assumptions from both sides of the twentieth century debate on materialism: it argues that some material success is needed to maintain long-term happiness and also that at some point enough is enough and people will find more happiness by enjoying family, fun and giving to those in need than by seeking more money.

This view rejects the extremes of both the “unfettered greed” and “virtuous poor” arguments, while adopting the moderate views of both: meaningful work and a liberal flow of money helps one’s happiness, as does working to live (rather than living to work), spending time with family and friends, and giving needed service and monetary donations to help others.

In short, the new definition of success argues that financial prosperity is good and that those who attain it will find more happiness by seeking lives and work with real meaning including service to others.

As a review of Martin Seligman’s book Flourish put it:

“These days, we are hungry for a new definition of the ‘good life.’ Fractured relationships, crumbling economies, environmental crises, and a continuous state of war all have played their part in chipping away at what was once thought to be the basis for happiness…

“Dr. Seligman introduces the ‘New Prosperity,’ a concept based in optimism, and he shows how it affects everything from the health of a marriage, to recovery from illness, to the fluctuations of the stock market. Rather than focusing on gross domestic product, his new vision of prosperity, combines wealth with well-being…” (Spirituality & Health, July-August 2011).

But not everyone is buying the new definition of success.

For example, while men are three times more likely to find a happy woman more attractive than a proud woman, women are five times more likely to find a proud man more attractive than a happy one (Harper’s, August 2011).

And as the Tiger Mom debate shows, a lot of parents are still convinced that success for their children means prosperity through an Ivy League degree and a highly-compensated profession.

The fact that such a life is likely to be less about leadership or deep meaning than “high class drone work” is usually ignored by proponents of old-style success (Sandra Tsing Loh, “My Chinese American Problem—and Ours,” The Atlantic, April 2011).

Likewise, there is a second, darker, side of the Success 2.0 movement.

The Glory Years

Instead of a moderate combination of the following mantras 1) “work hard to build financial success,” and 2) “don’t lose your life in work, but use work as a support to a great life with family, friends and meaningful service,” some are taking the de-emphasis on career success as permission to avoid work and accomplishment altogether.

“Have fun, hang out with friends, party, live with your parents to avoid expenses, and forget about anything that takes hard work,” is gaining popularity.

This view is not lost on marketers who see college as the “glory years” of partying rather than the hard work of study to obtain an excellent education or prepare for one’s career.

For example, I recently purchased notebooks and pens at Wal-Mart’s “Back to School” sale.

A number of shelves were dedicated to supplies parents, kids and teachers will need for school—calculators, binders, pencils, backpacks, filler paper, markers, and more.

On an adjacent display, several large signs announced: “Back to College Sale!”

Interested, I walked over to see what the college sale had to offer different from the elementary/high school displays.

Imagine my surprise when the entire “Back to Colllege” sale, which took up a lot of floor and shelf space, consisted of toothpaste, deodorant, mouthwash and shampoo.

I suppose these are important for college students as much as anyone else, but why was there absolutely nothing related to academics?

I think this is rather poignant.

The tools of college “success,” at least for the Wal-Mart marketers (and I think they have a pretty good sense about the views of their target audience), centered around social acceptability and having fun.

CAKE!

Of course, any university campus probably includes students seeking a fun social life, a quality education, and preparation for a meaningful and rewarding career.

The point is that in the twenty-first century students are more likely to want all three, while last century these three groups were more frequently divided into distinct cliques.

Even where past students combined two of these goals (e.g. a fun social life and career preparation), they tended to clearly prioritize one over the other. Most of today’s students seem to want all three—at the same level of priority.

In short, the old formula of Success = Financial Prosperity is being replaced with a new view that Success = Real Happiness (Financial Prosperity + Meaningful Work + Flourishing Relationships + Significant Service).

With this new math, keeping score may be more complex and more accurate.

Daniel Pink pointed out that the theme of people giving up relationships for their work has been replaced in Hollywood and television productions with people putting relationships above career but finding ways to make them both work.

They want to have their cake and eat it too—or, on the “dark” side, to just enjoy cake.

There is probably little need to worry about those who have decided, for now, to loaf through life.

It almost certainly won’t last.

Success, both the 1.0 and 2.0 varieties, is a kind of widespread de-facto American religion.

As one author wrote of Americans:

“What a curious people. Their mania for self-improvement encompassed everything that touched them, and they resented the cost of every change. They were proudly self-reliant and quick to assign blame to others for their disappointments.

“They were certain theirs was the most enlightened and envied society on earth, that human history was mostly a chronicle of their achievements, and were convinced, too, that their country was constantly in need of repair. Everything they had was better than what any other people had, including their form of government, and nothing was good enough. They believed in themselves…

“For all its power and influence, its abundance and enterprise, [America] was still an immature society: impatient, demanding, not comfortable with introspection, frivolous and audacious” (O, anonymous).

But when it comes time to do the big things, America has repeatedly risen to the occasion.

It has sometimes taken crisis to bring Americans to the table, but once they come they sway everything in their path.

I am convinced that the current generation will do the same.

Churchill quipped that Americans can be counted on to do the right thing after they have exhausted the other possibilities.

Seligman suggests that there are ways to do important things that are not rooted in crisis.

For example, he “presents a rather startling idea, given the current state of affairs: that if history were to repeat itself, such a focus might result in a new Renaissance, appropriate for the twenty-first century but similar to the one that occurred when mid-fifteenth century Florence—rich, well-fed, and at peace—decided to invest its wealth in beauty rather than in conquest” (Spirituality & Health, July/August 2011).

We need to overcome a few challenges before we fully engage the idealism we are capable of.

An estimated 85% of 2011 college graduates are moving back home after graduation (Harper’s, August 2011), an alarming reality for their Boomer generation (born 1946-64) parents.

Likewise, the X generation (born 1965-1985) has reluctantly avoided taking on the responsibilities of past generations.

Up and At It

But when the times require, these generations will grow up and lead out.

Like Shakespeare’s Henry V, generations X and Y (born 1985-2005) grew up being told that world crisis was ahead and that they would have to sacrifice and lead to improve the world.

They subsequently attempted to prolong and enjoy their youth as long as they could.

But like young Henry, when they are called upon by world events, they will be up to the task.

Many members of Gen X and Gen Y worried that 9/11 was such a call, then relaxed as things seemed to normalize.

They worried that the Great Recession was their call, and they are still keeping one eye on this possibility, even while they cling to disappearing hopes for lives of perpetual youth.

Despite their fears, history makes it clear that their time will come, and current trends indicate that they will approach it with a new view of what success means.

In the 1980s and 1990s, a lot of people wanted to “get rich and get out.”

Today, many Americans are restructuring their careers or engaging entrepreneurial and other non-traditional enterprises specifically to combine their hard work with more money, more time with family and hobbies, and more service and charitable contributions.

Success 2.0 is a good change for America, and it broadens the opportunity for everyone in a free society to truly succeed.

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

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

Category : Blog &Citizenship &Culture &Economics &Education &Entrepreneurship &Family &Featured &Generations &Leadership