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Economics

Basic Tribal Culture

October 5th, 2010 // 4:00 am @

THERE ARE AT LEAST THREE MAJOR CULTURAL TRADITIONS of the world’s history, which can be described as Warriors, Farmers and Competitors.

 

Warriors

Warrior cultures believe in enemies, battles, winners and losers, us versus them, strength, courage, victory, personal skill, honor, resiliency, and a bias toward action—among other things.

They tend to see the world in terms of “our tribe” above all else. Many in history called themselves “the people,” or “the chosen.”

The tribes which became the nations of Norway (Norse), England (Anglos), France (Franks), etc. were from this tradition; other examples are found around the world.

Farmers

Farmer traditions valued security, hard work, frugality, sexual morality, responsibility, loyalty to community, savings and assets, land ownership, integrity, education, honesty, steadiness, family loyalty, neighborliness, and prosperity defined by abundance of food.

They built communities, simultaneously promoted individual freedom and conformity to community norms, and considered themselves successful when they produced bountiful harvests and saw their children married well (to spouses who embodied the values of the community).

Competitors

Competitor traditions saw the world as (usually) friendly competition between children at play, youth at courting and adults at work. Even the elderly competed to brag about the best lives, worst pain, most accomplished son, most neglectful daughter, most talented grandchildren, and whatever else came up.

For example: “I have two sons who are doctors and a daughter who is a lawyer,” versus “My grandson is a star quarterback who just won a state championship and his sister just got a scholarship from a national competition she won in Washington, D.C.”

People in such societies like competitive entertainment to escape from the pressures of their competitive schools and jobs.

A lot more could be said about these three major traditions, but the key point here is how they relate to tribes and freedom.

Warrior societies are tribal by nature, and they grow by conquering and colonizing other societies. They see life as a big battle, and raise their children and spend their days in battle mode.

They believe that life is about either conquering or being conquered. They see those with farmer and competitor traditions as victims.

Farmer societies are also tribal, but see the world as a big desert that needs to be turned into a garden. The more people who will adopt their values and join their quest to beautify and expand the garden, the better.

To them, the warriors and competitors are savages and wild outsiders who should be avoided and kept away from their society.

Pitfalls of National Culture

Competitor cultures are National (as opposed to tribal): interested in education for career, working moderate hours in order to enjoy daily entertainments, uninvolved with neighbors unless there is some other relationship to pull them together, and selfish with their free time.

They see the world as a big race, and individuals want to be the winners instead of the losers. In fact, they generally look down on “losers” and avoid them lest losing somehow “rub off” on them.

They see warrior and farmer cultures as quaint and backward, at best, and often with a more critical eye. Clearly, those cultures aren’t winning the race.

Competitor cultures divide their competitions into those that matter and those that don’t. They join tribes for the ones with little at stake, but stay individually focused on the ones that matter most.

Career and money are the competitions that matter more than any others in these cultures. Even family relationships have to take a back seat to most career considerations.

In other words, competitor cultures appear tribal by habit, but are nationalistic when they feel something is really important.

National cultures therefore desperately need the lessons taught by traditional tribal cultures.

But there are also pitfalls and negatives typical to tribal cultures, and we want to learn what they are and avoid them.

The American founders took on a deliberate process of statecraft, weighing the merits and failings of forms, models and ideals from societies throughout history.

I would assert that such a considered approach to our future as a nation and society is called for today. The goal is to adopt the best from national, tribal, warrior, farmer, competitive and other cultures, and at the same time reject their flaws and weaknesses.

With this in mind, let’s discuss what the tribal ideal really is.

With the assumption of local governance under the direction of concerned and involved citizens who were invested in one another’s success and security—basically a tribal council at the community level—the American founders established constitutional forms to create a cooperative and interactive union of states.

We have lost too much of the tribal foundation that was the animating spirit of American culture—the underlying weave of the fabric of freedom—and it is hard to overstate the case for recapturing it.

The Tribal Worldview

Just as there are religious worldviews, secular worldviews, materialistic worldviews, etc., there is an overarching tribal worldview.

Just like there are many views and differences within, say, the religious worldview, there are many different tribal perspectives.

And just as there is an overarching religious worldview (there is a higher power, and I should live in harmony with it/Him), there is also a profound and powerful tribal worldview.

One of the best ways to begin to understand any worldview is to ask, “What is the world, and what is the purpose of life and the universe?”

This is a complex question, of course, but it can be answered in simple terms and the early answers are often the most important. By understanding tribal culture at this basic level, we understand a great deal about ourselves.

The Universe

As I have studied tribal cultures from around the world and throughout history with these questions in mind (What is the world? What is the purpose of life and the universe?), I have categorized recurring themes, forces and societal roles; the labels used here are my own.

In generic tribal thought, the universe is made up of certain vital entities. For example, first come the Obeyers; these do their part in the universe unfailingly. They include suns, moons, planets, rocks, canyons, rivers, mountains, valleys, etc.

Many ancient religious temples and writings are full of these Obeyers. Obeyers set an example to all others, and they are the basic building blocks of everything. Many ancient stories center around references to and morals learned from valleys, rivers, mountains, etc.

Next are the Growers: the trees, grasses, plants, fruits, and so on. They build the universe by growing. Their growth feeds the others, bringing the power of the sun into assimilable form.

Many ancient religions and philosophies are built around the Growers and grower symbols.

The Movers include animals, fish and birds. They move around the world, spreading minerals and seeds from the Obeyers and Growers as they travel.

Many tribes consider some of the Movers, especially birds, to be messengers, teaching us as we interact with them in the world. They also provide food to others, and feed the Growers when they die.

The Movers are a key part of the universe, as are the Growers and Obeyers.

The Fishers are an interesting group. They change the environment by building dams to fish like beavers, or storing nuts like squirrels. Bees and others fit this category. They somehow raise and harvest food, not just wander and search for it.

In some traditions they are called farmers, and in others spiders (which weave webs to capture food). By their fishing, storing, farming, weaving, etc., they benefit the environment and all of life.

People are expected to learn from all of these parts of the universe, and to follow their good examples. Each type of entity is judged by how well it promotes and benefits life, which Obeyers, Growers, Movers and Fishers all do.

Next come the Lovers. Lovers benefit life to the extent that they love. When they don’t love, they hurt life and all the other entities.

The Lovers include all humans and also the spirits (or God, gods, and/or ancestors, depending on the tribe). Humans exist to love.

The Shadow Side

In addition to the good parts of the universe that benefit life, there are those that attack life. These include the Thieves, Murderers, Manipulators and Destroyers.

Thieves take one’s implements of life because they think it will benefit their life. They are mistaken, and cause pain for all by wrongly attacking life.

Murderers take life in order to promote their own life, and in so doing increase total pain. Murderers are seen as worse than Thieves.

Manipulators are an interesting category, often considered to be much worse than thieves and murderers. Manipulators set up systems that steal or kill, but in a way that the thieves and murderers aren’t directly blamed and in fact get away with it more often.

Such systems include anything that skews the natural way things should be, such as class and caste systems, manipulative and deceptive laws and governments, tricky lending and business deals, etc.

In this worldview, the only thing worse than Manipulators are Destroyers. Destroyers are those whose very nature has changed, who no longer are fallen Lovers, but are truly motivated only by hate and pride.

Note that while Movers, Fishers and Humans can be Thieves and Murderers, only humans can become Manipulators or Destroyers.

Since the very purpose of humans in the universe is to bring as much love as possible into the world, it is a colossal tragedy if a Lover becomes a Manipulator or a Destroyer.

By the way, in many traditions only Manipulators become Destroyers.

Now, with all this said, imagine how people in this culture feel about those who set up abusive, forced, corrupt and controlling governments, economies and laws: They are the worst of the worst.

Even those who support, condone or allow such manipulative governments, laws and economies are doing the work of the Destroyers and attacking life and all that is good.

This is one reason that tribal societies so adamantly mistrust most national cultures and people: It seems to many of them that the very basis of national culture is manipulations and exploitative systems.

It is also why it would be so valuable for them to learn the constitutional principles of freedom and how to apply them. But our purpose here is not to admonish the tribal cultures, but to learn from them.

Major Weaknesses of Tribalism

At this point, we should note that while traditional tribal culture does have much to teach us from its idyllic simplicity, it is far from perfect. Studying its pitfalls and common flaws is also instructive.

When tribes are run by small councils of all adult members, these weaknesses can be mitigated.

But when tribes don’t follow the leadership of councils of all adults, they turn against themselves; whatever other form of government they adopt, it becomes corrupt.

When this happens, various problems arise. The problems that follow are the normal for tribes that are not led by councils of all adults.

Economic Control

Tribal culture generally gives a great deal of economic power to tribal leaders.

Interestingly, most tribes distribute political power well between the executive (who gets power only in the face of external challenges and only for the duration of the challenge), the judicial (often a shaman and in many cultures left to families⎯both of which are usually independent of the executive and legislative), and run by the legislative (sometimes councils of elders, sometimes the combined adults of the tribe, sometimes both).

Of course, there are tribes that fail to follow these models, but the freest tribes use these basic systems.

Still, even with political freedoms, few historical tribes have economic freedoms.

The trust of the chief, the head elder (male or female) or the shaman is often absolute.

And, indeed, such leaders often adopt a sort of royal mentality where they believe that what is good for the leader’s finances is good for the whole tribe. In this form, nobody sees undue control of everyone’s finances and ownership as a negative.

But often, it creates the loss of political freedom—including parental choices, like who should marry whom—and a strict caste system with no economic or social mobility.

Many tribes face long-term poverty for most members of the tribe. Such poverty never persists in a truly free-enterprise model, which includes both freedom and opportunity.

Often tribal leaders see this as a threat to their power and, by extension, the tribe’s security and viability.

Emerging tribes with a charismatic leader who seeks control over individuals’ and families’ finances are cultish, and history is littered with the tragedies that such arrangements can lead to.

If a tribe wants to sell things, that’s great. But trying to pool resources or give up control of personal property should of course be met with serious suspicion.

This discussion also exposes a national-culture flaw: the idea that in learning from other cultures we should not judge their systems, traditions and behaviors.

Perhaps this is true when the goal is to maintain purity and academic objectivity in anthropological studies, but it certainly not true when our purpose is to learn and apply the best of tribal (and national) cultures to the tribally-nationalistic-globally-connected societies of the future.

If some calamity changes the world drastically, the same lessons will need to be applied in the new local societies that will be forged.

We need to measure the parts of each culture by how well they promote and support an environment of freedom, prosperity and happiness for all.

Interpersonal Politics

In a small group, political power is often swayed by personalities, likes and dislikes, trysts and history, baggage and personal weaknesses. Nothing can keep this from happening, and in a free system and voluntary tribes it doesn’t matter much.

In a local or official tribal system where the government has actual power over life, death, imprisonment, finances, etc., systems should always be established that keep this from happening.

By “systems” I mean written constitutions with separation of powers, checks and balances well-structured.

Class Power

Most tribes are aristocracies. This is a problem, because the class system is usually established by those in power and dominated by certain families.

In a local structure, or any model where the tribe or community is non-voluntary and/or actually has government power, the solution to this is to establish a legislature of all adults in the tribe.

As the tribe grows in size and geographical scope, local councils representing perhaps no more than 150 households continue to govern themselves, and may send representatives to a regional council to manage affairs of mutual interest to the coalition of local councils.

Conformity

Tribes often flounder economically and fail to grow because the people become too socially conformist. When tribes demand sameness on many levels and in nearly every aspect of life, they shut down creativity, leadership, wisdom and progress.

This is natural to any group, and in national cultures it is often called “groupthink.”

It is important for any group to continue learning, thinking, risking and trying.

Of course, certain violent and anti-social behaviors from rape to murder and so on cannot be tolerated. But stopping criminal behavior is far different from scripting people’s lives and socially enforced hyper-conformity.

This also translates to a socially-enforced closed-mindedness with respect to new ideas and a lack of tolerance for diversity, which lead to a stagnation of creativity and a tendency toward thought-policing.

Lack of Diversity

These conspire to cause narrowness of thinking, along with many of the other problems listed above. On the one hand, the whole point of tribe is joining together based on commonalities.

But the thing which makes tribes flourish is truly caring about each other, connecting, bonding. And connections based on both commonality (such as the shared value of freedom of choice) and diversity (such as the shared value of freedom of conscience) weave a much stronger fabric than one based on sameness.

Conclusion

The New Tribes of the 21st Century would do well, of course, to avoid these pitfalls. As stated, nearly all of these go away when a tribal society is governed by small councils of all adults in the tribe. If the tribe is too large for everyone to have a voice, smaller sub-councils are needed.

Historical tribes do have their weaknesses, but these also have much to teach us. Our generation of citizens needs to understand the good and the bad from the great tribes, nations and societies of history.

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

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 : Community &Culture &Economics &Politics &Tribes

Beyond Liberal & Conservative: Independents, Postmodernism, & How to Really Understand the Issues

October 1st, 2010 // 4:00 am @

If you want to understand and profit from the political, economic and cultural forces at play in today’s world, you must understand two things:

  1. The evolution of pre-modernism, modernism and post-modernism.
  2. How independents view and are shaping the world.

Armed with this understanding you’ll be able to see through the superficial and misleading “liberal versus conservative” debate portrayed by the media. Furthermore, you’ll be able to harness our current societal transformations to your advantage.

The most fundamental question in the Great Debate of how society should be organized is “Who (or what) will save us?”

Pre-modernism, modernism, and post-modernism all have different answers.

Pre-Modernism & Modernism

Modernism is defined in many ways. One of the most enlightening is discovered by comparing modernism to the pre-modern and post-modern worlds.

In a nutshell, pre-modern societies believed that some supernatural being or at least super-powerful entity would save mankind. Man is flawed and weak (so the narrative went), and if we are to be saved it must come from something greater than man.

The three main branches of this view ⎯ one God, many gods, and shamanic energy powers ⎯ all agreed on the basics.

For example: man needs saving, he can’t save himself, a higher power must save us, and we should therefore live in a way that pleases or avails us of the benefits of the higher power.

That’s a simple version of pre-modernism.

Modernism began when societies changed these assumptions. The modern era adopted the following beliefs: man needs saving, he can’t save himself and it seems no godlike power is inclined to step up (for whatever reason), so man must build institutions which can save him.

In short, modernism rests on the belief that man-made institutions can and should save us.

The early modernists built on their pre-modern religious roots and turned to churches as the institutions most likely to fix the world’s problems. Those who were dissatisfied or impatient with this solution turned to governments as the answer.

If there are any problems in the world, according to this view, government should fix them. If a government won’t fix a problem or allows any suffering, it is bad and should be reformed or replaced. If a government tries but can’t fix problems, it is too weak and must be given more power.

After all, we humans like our higher powers incredibly strong and always benevolent.

Government v. Markets

A third major branch of modernism arose when governments repeatedly failed to solve the world’s problems. This school of thought believed that big business was the answer.

Huge, powerful businesses, as Keynes argued, reach a size where they care less about profit and more about taking care of their employees and society in general.

This view has business provide insurance, benefits and other perks to help the people live happily. It tends to ignore small business and even large “greedy” businesses, and instead promote more power to the biggest corporations.

In recent years we’ve witnessed the debates between all three branches of modernism, from faith-based initiatives (church as central institution) to health care reform (government as central institution) to executive bonuses (corporation as central institution).

But since the media usually couches all these and many other issues in “Conservative versus Liberal” terms, few people realize what is actually going on in these controversies.

The church-as-savior belief lost most of its influence in the last century, leaving governments and businesses to jockey for first place in this race to be the central institution helping mankind.

Many participated in this debate: Marx, Darwin, Bastiat, Nietszche, Freud, C.S. Lewis, Andrew Carnegie, Ayn Rand, Solzhenitsyn, Keynes, Kinsey, Milton Friedman, Mao, Reagan, Clinton, Bush, Obama, several Popes, Bill Gates, Warren Buffett and others.

Most recently, Ralph Nader has argued that the only solution to our current problems is for the super-rich to use their influence and power to reduce corporate power in the world and let governments save us.

Government offers the most hope to mankind, this view argues, and corporations are the problem. Greedy corporations caused the economic downturn, according to this view.

In contrast, the famous Shell Oil Global Scenarios have made a case that government cannot and will not solve truly global problems like energy, environment, transportation, economic ups and downs, communication and education.

Their solution is for corporations with experience planning across borders to be given the power to make and follow a “blueprint” for global success.

Leaving it to governments would cause a mad “scramble” toward more war, poverty, depression and suffering, according to this view.

After all, the corporations say, when the economy fell it hurt most companies and nearly all governments. Only the biggest corporations remained strong ⎯ so they should govern us!

Both sides (“Government Should Fix It” and “Big Business as Savior”) see the other as a dangerous utopian scheme.

Consider, for example, the issue of health care (or energy policy, unemployment, boosting the economy, or any other national issue). Most officials and media personnel see the debates as political, between conservatives and liberals.

To a certain extent ⎯ votes in Congress ⎯ this is true. But the real debate is much deeper and broader than politics.

It is about who we are as human beings and where we’re headed as a society. While there are still some supporters of pre-modern or modern views, governments and businesses have so far failed to deliver heaven on earth or even ideal society.

The End of Conservative versus Liberal

For most people today, neither of these institutions are the answer.

When conservatives talk about faith-based initiatives or Republicans tout trickle-down economics, most people are skeptical. Likewise when liberals emphasize anti-corporate measures or Democrats roll out the latest government program.

The result of this growing skepticism characterizes the rise of the independents.

A few independents are anti-government and a few are anti-corporation, but the large majority just want government to do its job, do it well, and stop trying to do everything else.

While there is heated debate over what, exactly, is the government’s job, most independents would settle for good national security, good schools, fiscal responsibility, social equity, and a high-opportunity economy.

While the Left hopes to create a good economy through government programs and the Right through big business initiatives, most independents want both ⎯ along with less regulation on small business.

But this tectonic shift in American society is much bigger than politics. Most Americans, and indeed many around the world, have lost faith in modernism itself, in the promise that big, powerful, man-made institutions⎯be they church, government or corporation⎯can solve our problems.

Indeed, there is a growing sentiment than most big institutions tend to increase the world’s problems.

Business, church and government all have a place in society, the independents say, but none are the “higher” powers we once hoped for.

Postmodernism & Independents

Enter post-modernism. While nearly every person who writes about postmodernism defines it differently, one thing is clear: The fastest growing worldview is not modernism.

That is, postmodernists are of many stripes, but they don’t believe that government or business will save us. Period. And they are the new majority.

Independents are likely to read and champion ideas from both Milton Friedman and Ralph Nader, vote for both Barack Obama and Arnold Schwarzenegger, and quote both Ted Kennedy and Ronald Reagan.

Neither liberals nor conservatives understand them.

What is the cause of this social/cultural/political earthquake?

At least part of it is that independents no longer have a basic faith in the infallibility or fundamental goodness of government or the market. They see a role for both, and feel that both must be limited.

But the biggest shift of all may be that postmodernists and independents have a new faith: “We must save ourselves, at least as far as this world is concerned.”

On one extreme, this means becoming truly self-made, like an Ayn Rand hero, building yourself and your family at the expense of all others.

At another extreme, it includes those who still believe God will save us, but feel that we must live in a way that we deserve to be saved — or at least become worthy to live in a God-made world.

Most postmodernists adopt neither of these — believing instead that we should become our best selves and help the people around us in the process.

“Humanity needs saving, so do your part,” is the growing mantra. If you are in government, do your part and do it well. If you are in business, likewise.

Be a great parent, grandparent, doctor, coach, teacher, policeman, nurse, business owner, fireman, mayor, friend. Whatever your role, do it better.

Some postmodern thinkers, like James Redfield (author of The Celestine Prophecy), promote teams of spiritually-awakened people praying down power from the universe to improve the world.

Others, such as intellectual Ken Wilber, suggest learning the truths found in all fields of knowledge and from all cultures and philosophies⎯ and then integrating them together.

Marianne Williamson says to trust our inner greatness and also in miracles, and many recommend manifesting our personal power to build entrepreneurial wealth and use it to help others.

Nearly every nation and industry has its prophets of manifesting success, from Miguel Ruiz and Carlos Castaneda to Anthony Robbins, Brian Tracy, Peter Senge, Ken Blanchard, Paulo Coelho, Guy Kawasaki, Seth Godin or Steve Jobs.

In retrospect, it probably shouldn’t surprise anyone that the “self-help,” “how to,” “new age,” “success,” “skeptic,” “green” and “secularist” genres would eventually impact the philosophy of modernism. All of them share a faith in self over institutions.

After all, an unproven belief in government or big business is referred to in both “success” and “skeptic” literature as “the victim mentality.”

Even atheistic secularism is now turning its back on blind faith in big government and big corporations, replacing it with a “get ahead together” ethic.

And the debate between national sovereignty and globalism is being replaced with the growing concept of glocalism ⎯ local sovereignty with widespread economic ties.

The Issue Behind the Issues

Where liberals and conservatives are talking about things like health care reform, insurance companies and needy patients, independents are talking a lot about living healthier lifestyles, improved community structures, organic foods, and fresh water.

They want reform, and they want to make healthier choices in their personal lives as well.

Of course, not all independents are postmodernists or “success literature” readers. But few independents now believe that the way to get ahead ⎯ personally or nationally ⎯ is to turn to government, corporate or other institutional answers.

To say it another way: Many independents are postmodernists and don’t even know it yet.

Perhaps surprisingly, most independents want to simultaneously:

  • Succeed economically
  • Help others
  • Heal and protect the environment
  • Keep their nation strong
  • Build friendlier relationships with other nations
  • Expand the freedoms of the marketplace
  • Take care of the needy and the sick
  • Greatly improve schools

They want government to do its part in this, and corporations too, and they believe that they personally can have a significant positive impact on their little corner of making the world much better.

The media will probably continue to describe health care and other issues in modernist “conservative versus liberal” terms. After all, media is a big institution too.

But the reality is incredibly powerful: In the 21st century, faith in big institutions is beginning to wane.

Conservatives routinely label independents as “leftists,” and liberals call them “right wing.” The truth is that most independents are centrists, postmodernists and pragmatists.

More to the point, while almost everyone else is pointing fingers or turning to government or corporations for leadership, independents are quietly and consistently increasing their personal education, holdings and influence.

How to See What is Really Happening

It remains to be seen how all this will play out, but for years to come the real issue behind the issues will be the rising power of independents, most of whom do not have much faith in big institutions.

When they side with a government program, liberals will claim they won with the support of the American people. When independents prefer a market approach, conservatives will claim victory.

In reality, however, winning policies will be those that gain the support of independents.

If you want to know the future of any issue, find out how independents view it. And if it appears that a big-institution issue is winning, find out why independents support it ⎯ they usually support a certain reform, not the institution behind the reform.

Through all the politics and media reports, if current trends continue, faith in and deep support for big institutions will slowly dwindle.

It is unclear exactly what will replace it, but that replacement will be the biggest story of the 21st Century.

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

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 : Economics &Featured &Government &Independents &Politics &Postmodernism

Beyond the Vote

September 30th, 2010 // 4:00 am @

Imagine what would happen if a huge chunk of citizens stopped accepting what they are told by one of the parties, stopped just aligning themselves with candidates from one of the monopoly parties, and started deeply studying, analyzing and thinking about the issues of government independently.

Imagine if they shared their thoughts openly with many others, instead of just letting the news be defined by the big media responses to the big parties.

Imagine the revolution that would occur in the voting citizenry.

This is exactly what happened in the decade the Internet went mainstream. It is valuable to know the profound history that led to this freedom revolution.

Keynesianism

Karl Marx agreed with Hegel that history is created by the dialectical conflict between upper classes and the masses; Lenin transferred the attention from class warfare to the conflict between rich and poor nations.

Most Americans and Europeans adopted this view during the Cold War. Indeed, the Cold War was the “inevitable” result of class conflict leading to conflicts between the governments of the “greedy” nations and the collectivized socialist states.

Keynes, like Lenin before him, shifted the debate by arguing that since many nations were not willing to adopt socialistic government ownership of all business, the only solution was for big businesses to give people privatized “socialism” such as health insurance, savings programs (like the current 40lk), retirement programs and other employee benefits.

Keynes further predicted that if government did things right, then small businesses would be increasingly less able to offer such benefits over time and that eventually big business would run the entire economy in partnership with highly-regulating governments.

Together, Keynes thought, big government and big business would phase out the disruptive, nonconformist and anti-social element of independent small business power and replace it with big corporations offering all the benefits envisioned by socialism.

Simultaneously, governments would keep mavericks, entrepreneurs and innovators from rocking the boat. Socialist goals, albeit through private corporate means, would be implemented into all capitalistic nations.

The result would be the end of warfare between owners and labor and the solution to most world problems.

Keynes said that once companies become so big that they are less focused on profits than appearing caring, helpful and socially responsible to the public, they will make decisions based on public relations and therefore socialistic values rather than making money.

If enough big companies could be coaxed to this point, and if increased government barriers to small-business success could effectively squelch entrepreneurial initiative, even the most capitalistic nations would provide privatized “socialist” safety nets for the whole society.

This is aristocracy, pure and simple.

In such a system, big corporations would work together with big governments to continually increase the delivery of socialistic goals such as:

  • Free education for all
  • Free health insurance for all
  • Free health care for all
  • A society of employees
  • Jobs for everyone
  • A meritocracy of experts ruling society
  • A docile and obedient populace

This system was adopted slowly but consistently so that Richard Nixon could announce by the mid-1970s that “we are all Keynesians now.”

In short, Keynesianism promotes big government with high levels of regulation along with big business promoting various private offerings of socialist goals.

This social safety net has proven popular in all the Western nations, and has offered a number of short-term and positive lifestyle benefits.

It has also proven a better solution than government-only socialist equivalents in one-party states like the USSR, Eastern European nations and modern Russia, China and Cuba.

In multi-party nations like France and Germany some parties promote big business and others big government, and still others emphasize their pet areas of focus.

In the United States the maintenance of Keynesianism requires a major party supporting the government, a major party supporting big business, and a system of swinging back and forth between the leadership of each.

When the big-government party is in power, the Government-Industrial-Complex grows, and when the big-business party is in power the Industrial-Government-Complex expands.

When Keynesianism is flourishing, both parties use power to increase entitlements, foreign involvements and government spending.

Taxpayers and small businesses suffer.

The End of History

Francis Fukayama predicted in the 1990s that with the fall of the Berlin Wall and end of the Cold War this conflict between the rich and poor nations was over; he called this “the end of history,” citing both Hegel and Marx.

In the ensuing model of the 1990s, where everybody was a “capitalist,” economies flourished.

With a united Germany, declining Soviet power, and the dot.com and real estate booms, everybody seemed to have forgotten Keynesianism in the Roaring 90s.

Everybody, that is, except the two big parties.

Entitlements, debts and deficits grew during the Bush, Clinton, Bush and Obama Administrations.

When 9/11 struck, everyone realized that history was far from over and that major challenges were still ahead. If the end of history had come, Keynes won.

Ironically, the fact that Keynesianism uses capitalistic means to accomplish socialistic ends allowed both liberals and conservatives to claim victory.

Conservatives rejoiced that socialism had lost to markets, and liberals celebrated that the era of big, irresponsible capitalism was over.

Unfortunately, what they brought us was far from the utopian ideal envisioned by socialism’s iconic philosophers or the freedom statesmen in history.

In fact, it was not so much socialism—where the state provides for all—as aristocracy, where the masses provide for the elite.

But back to our narrative: Keynesianism requires both political parties constantly and vocally doing battle. Neither can fully win or destroy the other; and when one wins an election the other is needed to play a minority role until it can win back the majority.

Whichever party is in power, the scope of government and big business must both increase during their tenure.

Of course, the result is that the far right hates Democrats when they are in power, and then turns on Republicans when they win and grow government. The far left does the opposite, hating the Republicans when they rule and then turning on Democrats in power for not doing enough.

Mainstream members of both parties simply support their party and dislike the opposition.

The key action in all this, the thing which makes Keynesianism work, the linchpin of the whole model, is for the citizenry to do nothing but vote.

Of course, they can live their lives, work at their jobs, send their kids to school and volunteer in their community. If they do these things, plus vote, they are good citizens. No more is asked, or wanted, from them.

“Just shut up and vote,” is the subtle message from both parties.

Of course, if one is an expert in politics, if it is their job, they are expected to do more than vote. They are required to study government, the issues and impact public opinion.

The same applies to professional journalists, attorneys, professors, etc. But this only applies to professors of political science, law, public policy or a related field.

Professors of literature or chemistry, for example, like postal workers and soccer coaches, are encouraged to leave governance mostly to the experts.

This cynical view is, unfortunately, widespread. Keynesianism depends on a society of experts where nearly everyone leaves governance to the political professionals.

Citizens are subtly taught that voting is the role of citizenship, along with serving on a jury if called up, and to otherwise leave governance to the experts.

After all, their party is watching their back for them and keeping the other “evil” party from doing too much damage.

Or, if the other party becomes dangerous, their own party leadership and the media will let them know.

Responses to Being Patronized

When a few citizens realize that they are being “handled” by the professionals of their party, the first response is naturally to want to elect better party leaders.

When time shows that this doesn’t work — that in fact it is the nature of party leadership to spin the truth and patronize the party rank-and-file — the disillusioned party loyalist often looks to some extreme group within the party—such as the radical right or the fringe left.

Alas, honest citizens find that faction leaders are usually as prone as major party heads to spin the issues and handle party members.

At this point, many party members just give up.

“The other party is bad,” they rationalize, “and my own party leaders are just too political. But at least candidates from my party are better than those from the other party.”

Some sincere seekers actually ignore tradition and years of brainwashing and seek for a better situation in the other party.

At first, party switchers may find a few things they really like better about the new party—especially if they attend in-person events and get to know some of the people in the other party.

“Republicans /or/ Democrats aren’t so bad,” they realize.

The longer they stay with the new party, however, the more they see that both parties are run in virtually the same way, like a formula primetime program, with the same character-types inhabiting the various roles.

Eventually they see most of the same problems that caused them to question their original party.

The idea that both parties are a problem is like the end of history for many voters. Most have seen politics itself as a war to put the “good” party in power and kick out the “bad” party.

So when a voter realizes that both parties have serious problems, and even worse—that neither party is likely to really solve America’s problems—there is a major paradigm shift.

Some give up in utter frustration, while others get really mad at their own party. Others get even more angry at the “other” party and refocus their support for their original party.

But one reality remains in the minds of most people arriving at this understanding: Neither party has the answers, and neither party is likely to really fix our problems.

More, the system is basically designed so that the party of big government and the party of big business take turns being in charge.

When regular citizens understand the goals of Keynesianism, it is a major shock.

At this point, what is a caring, sincere and committed citizen to do? When you learn that parties are parties are parties, how do you stay involved in governance? And how do you stay positive and optimistic about the future?

The Big Decision

The answer to these questions is for citizens to begin to study and think a lot more about government and to stop ignoring freedom by leaving it to the political professionals.

Unless regular people realize that freedom is up to them, not the experts, and that they need to learn more and take more action to make a real difference, they are unlikely to become true citizens.

When a person does make these realizations, however, he or she drastically changes. He becomes excited about impacting freedom.

There are three major ways to do this, and the three are drastically different:

  1. Populism
  2. Activism
  3. Independence

This is “the big decision” for free citizens who really want to maintain and even increase freedom.

Whether your political views are generally liberal, conservative, libertarian, progressive, green, or centrist, the big decision is a powerful way to start making a real difference.

Here are more thoughts on the three paths of the big decision:

1. Populism

This means openly and vocally fighting the system, pointing out its flaws, and actively participating in influencing change.

Populism has a long history in America, from the People’s Party movement of the 1880s and 1890s which arose because many people felt that neither of the two major parties would listen to them, to the Progressives of the early 1900s, the Labor movement of the 1920s and 1930s, or the counter-Culture revolution of the 1960s and the counter-Populism of the 1970s.

More recent populism includes anti-incumbency, Tea Parties, Coffee Parties, and the Green movement, among others.

2. Activism

Activism consists of committing to one of the major political parties and really having a powerful influence on it.

While I strongly emphasize the rise of independents, it should not be understated how valuable truly independent-thinking citizens can be if they choose to maintain strong party ties.

This is not only a legitimate but a highly-needed role of promoting freedom in our society. Both major parties need more members who really study, analyze, independently think and participate in improving party communication, leadership and impact on society.

3. Independence

This means becoming your own, personal political party—a party of one citizen.

Today there are more independents in the United States than either Democrats or Republicans. Independents don’t depend on any party but independently study, analyze, think, spread their influence and then vote for candidates and issues they feel will most help the nation.

Whatever your decision—whether you choose to help improve society through populism, activism or independence—note that is it vital to do certain things.

Those who simply depend on party experts leave these things to others, and the result is a loss of freedom. These things include:

  • Making a deep study of the principles of freedom and the U.S. Constitution.
  • Studying the history of freedom in order to truly understand current and future events within their context.
  • Studying and analyzing current issues in depth and from many different perspectives.
  • Considering the views of those who disagree with you and really understanding the points of merit (and not just your points of contention) in their ideas.
  • Drawing your own independent conclusions about proposals and policies after deep study.
  • Articulating and sharing your ideas with others.
  • Using your influence to impact the direction of the nation on specific issues and in general.

Populists are often criticized for not doing these things, but those who do can make a real, positive difference in populist circles.

Activists who commit to these things can greatly support party choices, and independents need to do these in order to have a meaningful impact.

The American founders wanted citizens to do these things, and predicted that the loss of such behaviors by the citizens would be the end of the republic.

If we want our freedoms to remain and even increase, we must be the kind of citizens who deserve such freedoms.

If we leave our future to the current power of Keynesianism, we will see more of the same: on-going crises, angry and ineffective politics, increased government spending and debt, increased taxes and regulations, continuing foreign conflicts and the loss of American lives, and an inability of government to solve our major problems.

The more the parties fight and the louder the conflict, the greater the power of Keynesianism. Keynesianism depends on heated arguments that drive the citizens to demand bigger government programs.

As long as the party of big business and the party of big government hold a joint monopoly on our society, voters will vote and little will change—except that debts, economic crises and problems will increase.

If this is the future we want for our country, we just need to leave politics to the politicians.

In contrast, the future of freedom depends on citizens who do a lot more than just vote and serve on jury duty. It depends on citizens who do the things which bring freedom—as populists, activists or independents, but all studying and thinking independently.

The American system was designed with the people as overseers of government. We all need to fulfill this role better.

We need a party of small business, a party of family, a party of entrepreneurial leadership, a party of the regular citizens, a party of freedom.

The American founders had a name for such a party: Citizens. Such a party naturally occurs and grows in free society when we do our true part as citizens.

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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 &Business &Economics &Government &History &Independents &Liberty &Politics

How to Become a Producer

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

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

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

But Jefferson meant more than this.

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

This made them more independent than people of other occupations.

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

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

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

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

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

Dependents versus Independents

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

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

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

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

The triple entendre here is interesting.

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

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

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

3 Types of Independents

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Non-Producer Attempts to Create Producers

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

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

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

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

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

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

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

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

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

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

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

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

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

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

This is all employee thinking.

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

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

Entrepreneurs are the natural competitors to all these.

The Answer

How do we create more producers?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

3 Steps

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

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

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

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

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

Here are three suggestions:

1. Study successful producers.

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

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

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

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

2. Study what the great producers study.

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

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

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

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

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

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

Our society desperately needs more producers.

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

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

Click Here to Download a Printable Version of This Article

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

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

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

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

 

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

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

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

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

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

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

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

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

Funny how history pulls these types of pranks.

Failed Solutions

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

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

All three of these views miss the point.

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

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

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

What we need now are patently non-institutional innovations.

Major Challenges

Consider the major problems we are facing.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Habits & Complexes

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

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

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

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

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

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

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

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

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

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

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

The result? More money flees and recession inevitably comes.

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

Freedom, prosperity and stability all suffer.

As Ken Kurson put it,

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

Or, as the Governor of Minnesota said:

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

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

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

Poor Complexion

Another example is found in the issue of health care.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Right Level of Complexity

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

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

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

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

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

This is the traditional entrepreneurial mix.

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

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

Lifestyles of the Rich & Famous

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

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

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

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

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

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

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

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

Period.

Specific Entrepreneurial Challenges

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

Very soon, the following must occur:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Sources:

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

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

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

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

 

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

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