Entrepreneurship

The Social Animal

April 20th, 2011 // 7:31 am @ Oliver DeMille

A review of the book The Social Animal: A Story of Love, Character and Achievement by David Brooks

There are at least three major types of writing. The first might be called Shakespeare’s method, which includes the telling of stories with deep symbolic and archetypal lessons. Many of the great world religious texts used this approach. The Greeks referred to this as poetry, though the meaning of “poetry” is much more limited in modern usage. In the contemporary world we often call this type of writing fiction, though this is a misnomer since the stories used are not actually untrue—they are, many of them, literally true, and nearly all of them are symbolically true. This could also be called the Inspirational style of writing.

A second kind of writing can be summarized as Tocqueville’s method, or the philosopher’s style. Called prose, non-fiction, or editorializing, this type of literature consists of the author sharing her views, thoughts, questions, analyses and conclusions. Writers in this style see no need to document or prove their points, but they do make a case for their ideas. This way of writing gave the world many of the great classics of human history—in many fields of thought spanning the arts, sciences, humanities and practical domains. This writing is Authoritative in style, meaning that the author is interested mostly in ideas (rather than proof or credibility) and writes as her own authority on what she is thinking.

The third sort of writing, what I’ll call Einstein’s method, attempts to prove its conclusions using professional language and appealing to reason, experts or other authority. Most scientific works, textbooks, and research-based books on a host of topics apply this method. The basis of such writing is to clearly show the reader the sources of assumptions, the progress of the author’s thinking, and the basis behind each conclusion. Following the scientific method, this modern “Objective” style of writing emphasizes the credibility of the conclusions—based on the duplicable nature of the research and the rigorous analysis and deduction. There are few leaps of logic in this kind of prose.

Each type of writing has its masters, and all offer valuable contributions to the great works of human literature. This is so obvious that it hardly needs to be said, but we live in a world where the third, Objective, style of writing is the norm and anything else is often considered inferior. Such a conclusion, ironically, is not a scientifically proven fact. Indeed, how can science prove that anything open to individual preference and taste is truly “best?” For example, such greats as Churchill, Solzhenitsyn and Allan Bloom (author of The Closing of the American Mind) have shown that “Tocqueville’s” style is still of great value in modern times—as do daily op eds in our leading newspapers and blogs. Likewise, our greatest plays, movies and television programs demonstrate that the Shakespearean method still has great power in our world.

That said, David Brooks’ new book The Social Animal: A Story of Love, Character and Achievement manages to combine all three styles in one truly moving work. I have long considered Brooks one of my favorite authors. I assigned his book Bobos in Paradaise: The New Upper Class and How They Got There as an undergraduate and graduate college text for several years, and I have recommended his book On Paradise Drive to many students and executives who wanted to understand American and modern culture. In one of the best descriptions of our society ever written, he outlined the new realities experienced by the “average” American citizen, who he called “Patio Man.” I have also enjoyed many of his editorials in The New York Times—and the ongoing, albeit unofficial and indirect, “debate” between his columns and those of Thomas L. Friedman, Paul Krugman, George Will and, occasionally, Peggy Noonan.

The Social Animal is, in my opinion, his best work to date. In fact, it is downright brilliant. I am not suggesting that it approaches Shakespeare, of course. But who does? Still, the stories in The Social Animal flow like Isaac Asimov meets Ayn Rand. It doesn’t boast deep scientific technical writing, as Brooks himself notes. Indeed, Brooks doesn’t even attempt to produce a great Shakespearean or scientific classic. But he does effectively weave the three great styles of writing together, and in the realm of philosophical writing this book is similar to Tocqueville’s Democracy in America. The content of the book, in fact, is as close as we may ever see to a 21^st century update to Tocqeville (1830s) and Bryce (1910s).

I know this is high praise, and in our modern era with its love of objective analysis, such strong language is suspect in “educated” circles. But my words are not hyperbole. This is an important book. It is one of the most important books we’ve seen in years—probably since Fareed Zakaria’s The Post-American World or Daniel Pink’s A Whole New Mind. This book is in the same class as Bloom’s The Closing of the American Mind, Huntington’s The Clash of Civilizations, Strauss and Howe’s The Fourth Turning, or Philip Bobbitt’s The Shield of Achilles. It is as significant as any article in Foreign Affairs since Richard Gardner’s writings. It reads like Steven Pinker channelling Alexis de Tocqueville. The language is, well, beautiful, but beautiful in the modern sense, like the writings of Laura Munson or Sandra Tsing Loh.

The book also manages to bridge political views—I think liberals will find it moving and conservatives will find it convincing. It is not exactly Centrist, but neither is it patently Right nor Left. It will appeal to independents and people from all political perspectives. If it has a political leaning, it is the party of Common Sense—backed by meticulous research.

Moreover, The Social Animal clouds typical publishing stereotypes. I’m not sure where big bookstores will shelve it. It is a book on culture, politics, education, and career. It is a book about entertainment, marriage and language. It is about the upper, middle and lower classes in modern American society, how they interrelate and what challenges are ahead as they clash. It is about current events and future challenges. It is, above all, a book about success. It goes well beyond books on Habits or The Secret or even “Acres of Diamonds.”

As Brooks himself put it:

“Over the centuries, zillions of books have been written about how to succeed. But these tales are usually told on the surface level of life. They describe the colleges people get into, the professional skills they acquire, the conscious decisions they make, and the tips and techniques they adopt to build connections and get ahead. These books often focus on an outer definition of success, having to do with IQ, wealth, prestige, and worldly accomplishments.

“This story [The Social Animal] is told one level down. This success story emphasizes the role of the inner mind—the unconscious realm of emotions, intuitions, biases, longings….

“…we are not primarily the products of our conscious thinking. We are primarily the products of thinking that happens below the level of awareness.”

Brooks argues:

“The research being done today reminds us of the relative importance of emotion over pure reason, social connections over individual choice, character over IQ, emergent, organic systems over linear, mechanistic ones, and the idea that we have multiple selves over the idea that we have a single self.”

The book deals with such intriguing topics as:

Modern dating and courtship
Today’s marriages and what makes them succeed—or not
The scientific versus popular views of child development
Cultural trends such as global-warming awareness assemblies in high schools
The scientific foundations of violence
The kind of decision-making that leads to success versus mediocrity and failure
A veritable manual for success in college
The powerful leadership techniques of priming, anchoring, framing, limerance, fractals, metis and multiparadigm teams, among others (it is worth reading the book just for this)
How to “ace” job interviews
The new phases of life progression
Effectively starting a new business—the steps, techniques, values and needed character traits
Leadership in the modern corporation
How to win a revolution by only making a call for small reforms
The effectiveness of a talent for oversimplification
The supreme power of a life’s viewpoint

The Social Animal struck a personal note with me because it brilliantly describes the true process of great mentoring that more of our teachers need to adopt and that I wrote about with Tiffany Earl in our book The Student Whisperer. I have seldom seen truly great teaching described better.

This book is primarily about success—specifically success in our complex modern world—but at a deeper level it is about happiness. Brooks writes:

We still have admissions committees that judge people by IQ measures and not by practical literacy. We still have academic fields that often treat human beings as rational utility-maximizing individuals. Modern society has created a giant apparatus for the cultivation of the hard skills, while failing to develop the moral and emotional faculties down below. Children are coached on how to jump through a thousand scholastic hoops. Yet by far the most important decisions they will make are about whom to marry and whom to befriend, what to love and what to despise, and how to control impulses. On these matters, they are almost entirely on their own. We are good at talking about material incentives, but bad about talking about emotions and intuitions. We are good at teaching technical skills, but when it comes to the most important things, like character, we have almost nothing to say.

The book, like any true “classic” (and I am convinced this will be one), is deep and broad. It includes such gems as:

“The food at their lunch was terrible, but the meal was wonderous.”
“For example, six-month-old babies can spot the different facial features of different monkeys, even though, to adults, they all look the same.”
In his high school, “…life was dominated by a universal struggle for admiration.”
“The students divided into the inevitable cliques, and each clique had its own individual pattern of behavior.”
“Fear of exclusion was his primary source of anxiety.”
“Erica decided that in these neighborhoods you could never show weakness. You could never back down or compromise.”
“In middle class country, children were raised to go to college. In poverty country they were not.”
Jim Collins “…found that many of the best CEOs were not flamboyant visionaries. They were humble, self-effacing, diligent, and resolute souls who found one thing they were really good at and did it over and over again. They did not spend a lot of time on internal motivational campaigns. They demanded discipline and efficiency.”
“Then a quiet voice could be heard from the other end of the table. ‘Leave her alone.’ It was her mother. The picnic table went silent.”
“Erica resolved that she would always try to stand at the junction between two mental spaces. In organizations, she would try to stand at the junction of two departments, or fill in the gaps between departments.”
“School asks students to be good at a range of subjects, but life asks people to find one passion that they will do forever.”
“His missions had been clearly marked: get good grades, make the starting team, make adults happy. Ms. Taylor had introduced a new wrinkle into his life—a love of big ideas.”
“…if Steve Jobs had come out with an iWife, they would have been married on launch day.”
“Epistemological modesty is the knowledge of how little we know and can know.”

There are so many more gems of wisdom. For example, Brooks notes that in current culture there is a new phase of life. Most of today’s parents and grandparents grew up in a world with four life phases, including “childhood, adolescence, adulthood and old age.” Today’s young will experience at least six phases, Brooks suggests: childhood, adolescence, odyssey, adulthood, active retirement, and old age.

While many parents expect their 18- and 19-year-old children to go directly from adolescence to the adult life of leaving home and pursuing their own independent life and a marriage relationship, their children are surprising (and confusing) them by embracing their odyssey years: living at home, then wandering, then back home for a time, taking a long time to “play around” with their education before getting serious about preparing for a career, and in general enjoying their youthful freedom. Most parents are convinced they’re kids are wasting their lives when in fact this is the new normal.

The odyssey years actually make a lot of sense. The young “…want the security and stability adulthood brings, but they don’t want to settle into a daily grind. They don’t want to limit their spontaneity or put limits on their dreams.” Parents can support this slower pace with two thoughts: 1) the kids usually turn out better because they don’t force themselves to grow up too fast like earlier generations did, and 2) the parents get to enjoy a similar kind of relaxed state in the “active retirement phase.”

Most odysseys pursue life in what Brooks calls The Group—a small team of friends who help each other through this transition. Members of a Group talk a lot, play together, frequently engage entrepreneurial or work ventures with each other, and fill the role of traditional families during this time of transition. Even odysseys who live at home for a time usually spend much of their time with their Group.

This book is full of numerous other ideas, stories, studies, and commentaries. It is the kind of reading that you simply have to mark up with a highlighter on literally every page.

Whether you agree or disagree with the ideas in this book—or, hopefully, both—it is a great read. Not a good read, but a great one. Some social conservatives may dislike certain things such as the language used by some characters or the easy sexuality of some college students, and some liberals may question the realistic way characters refuse to accept every politically-correct viewpoint in society—but both are accurate portrayals of many people in our current culture.

The Social Animal may not remain on the classics list as long as Democracy in America, but it could. At the very least, it is as good a portrayal of modern society as Rousseau’s Emile was in its time. It provides a telling, accurate and profound snapshot of American life at the beginning of the 21^st Century. Reading it will help modern Americans know themselves at a much deeper level.

This is a book about many things, including success and happiness as mentioned above. But it is also a classic book on freedom, and on how our society defines freedom in our time. As such, it is an invaluable source to any who care about the future of freedom. Read this book to see where we are, where we are headed, and how we need to change. The Social Animal is required reading for leaders in all sectors and for people from all political persuasions who want to see freedom flourish in the 21^st century.

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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 : Blog &Book Reviews &Community &Culture &Current Events &Education &Entrepreneurship &Family &Generations &Leadership &Liberty &Mission &Postmodernism &Service &Statesmanship &Tribes

Quantity. Quality. Method.

April 12th, 2011 // 6:45 am @ Oliver DeMille

How much?

How well?

How?

These three aspects of success in any endeavor can teach us a lot about government, freedom and prosperity. Most importantly, they can teach us about government for freedom—since most governments in history have had different goals than liberty.

Good government—which maintains freedom and opportunity for all citizens—must meet the tests of quantity, quality and method. We naturally use all three in governmental analysis, often without noticing it. For example, terms such as democracy, aristocracy and monarchy emphasize the quantity of leaders—many, few or one. In contrast, we emphasize the method of governance in terms like communist, capitalist, commercial, and limited governments—these all describe the process which drives their respective societies. Words such as oligarchy, confederation, socialist, mercantile, militarist, federal, national and empire deal with the qualities of a nation’s governance, the attributes that make it what it is.

Quality, quantity and method are different ways to analyze any governmental institution, power, program or proposal. All three are important. Before we tackle how this applies to government, let’s learn a little about these three perspectives using a few examples. In the Great Books, for example, the discussion of quality centers on primary versus secondary qualities: attributes that cannot be separated from a thing are primary qualities, while attributes that can be changed without changing the thing—like color, taste, number or temperature, etc.—are secondary.

As for quantity, a big debate through written history has been the question of why mathematics doesn’t directly apply to the real world. Engineers, inventors and others who use math in the real world have to calculate for various non-mathematical realities in order to apply math to real things. This has caused many arguments among the great thinkers, from Aristotle to Buckminster Fuller. Newton invented calculus in order to bridge the gap between the mathematical and physical universes.

Perhaps the most interesting point about all this is that the discussion of method, as opposed to quality and quantity, runs through the Great Books and great conversation of history at nearly every turn. Almost every topic covered by the great thinkers and leaders from ancient, medieval and early modern (1800s) times deals extensively with competing ideas of method. Amazingly, this significantly slows in modern times, especially after 1900. Somehow the general acceptance of scientific experts as the true authorities on almost everything caused, or at least coincided with, a reduction of the common people asking questions about method.

Consider some examples that most moderns have experienced. Let’s say you decide to lose weight or get in shape. One diet approach, the most frequent in the United States, is to focus on “how much” food you eat. The formula is simple: Cut Calories + Exercise More = Lose Weight. This view attempts to change your body by decreasing how much food you eat and increasing the amount of exercise you get. Quantity is the focus.

Another viewpoint emphasizes the quality of what you eat (e.g. no sweets or fats, more raw vegetables, fewer carbohydrates, etc.). This perspective holds that if you eat the right kinds of foods and cut out the “bad” foods you’ll get your desired result. Likewise, it suggests effective exercise, like certain weight-training routines, interval cardio workouts, or changing your exercise to keep your body constantly adapting. The emphasis here is on “how well” you eat or exercise rather than how much.

A combined perspective emphasizes both how much and how well you eat, exercise, study, sell or whatever you are trying to do. Most modern “how to” literature combines these, and there are many thousands of management, sales, health and other books and programs in many fields of life.

Only a few programs exist from the third perspective: method. This viewpoint cares less about “how much” or “how well” than about “how”. For example, it might recommend eating whatever you want, as much as you want, but chewing each bite 20 times and fully enjoying each mouthful. The fact that those who do this tend to eat a lot less (you get full with less food) and better food (when you really taste them, many junk foods lose their appeal), isn’t the point. The focus is on process or method. Again, this is less common than the quality and quantity approaches.

Another example is provided by college sports. One team might focus on getting the most fans (quantity), and consider this the measure of a successful sports program. More fans often means more money for the school, more donations, better community relations, and so on. Another school might emphasize getting the best, most talented, coaches and players (quality). A third might focus on the process of great practices, training, conditioning and preparation—trusting that doing the right things will bring the desired outcomes (method).

The most successful programs—like the most effective sales techniques, educational systems, and governments, etc.—will encourage all three: quantity, quality and method. If a team becomes the best recruiter in the nation but puts very little work into conditioning or practice, it will likely not win very often. On the other extreme, teams which ignore recruiting probably won’t flourish either. All three perspectives are needed.

Two more quick examples: Imagine a school or church which focuses only on numbers without regard to knowledge or truth, or exclusively on truth while refusing to share it with anyone. Few modern institutions seem to focus on greatness—on the methods and processes of, say, being a great student, a great teacher, or a great believer. The scientific method lends itself to experts, and it seems that in the wake of accepting this reality our society has decided to leave most issues of method to the specialists.

There are many examples of all three perspectives in business, science, art and beyond, and method remains a small minority in most fields. Quality and quantity rule the day. As stated above, this is the opposite of nearly all recorded history.

Let’s consider how these concepts apply to government. One way to measure the effectiveness of a government is how big or small it is (quantity). If it is too small, it is naturally weak, and it if it is too big it is naturally tyrannical—so argue the authors of The Federalist. A second viewpoint asks how “good” our leaders are, or how “effective” a government program is (quality). Both of these are legitimate ways to analyze our government.

A third perspective is to analyze government by process (method). For example, does it have a written constitution? Does this constitution separate the legislative, executive and judicial powers in a way that all three are independent, generally equal with each other in power, and effectively checked and balanced? Does this constitution separate (or fit into a separation of) national, provincial and more local governments—with most sovereign powers left to the lower governments and the people? Was this constitution ratified by the people? Do the regular people deeply understand this constitution today? Does the government always follow the constitution?

Any nation that does not follow these methods will not long maintain widespread freedom or prosperity. Free citizens who expect to remain free must carefully analyze and lead their government utilizing all three of these perspectives.
Unfortunately, nearly all current discussion of government centers around one thing—debates about the quality of our elected leaders and the effectiveness (or not) of various government programs. The quantity and method questions are seldom mentioned by anyone.

There are many examples of how this drastically impacts our freedom and prosperity. Consider taxes. Following the modern trend, most current debate about taxes centers on quantity (e.g. How much is too much?, How can government tax the people more?, or, Don’t we need to raise taxes to pay down our deficit?) or quality (e.g. Should we tax the wealthy or everyone equally?, or, Are income, sales or other kinds of taxes best?).

In contrast, the American founding generation used a method approach to taxes: Many kinds (quality) and levels (quantity) of taxes were constitutional, but the federal government could only assess taxes from the state governments—never from individuals or households. When we changed the method, we saw the rise of government that is too big, too inefficient and increasingly out of control.

This same argument (that we are mostly ignoring the method approach to government and that all three approaches are important) can be applied to many of our most pressing current issues, from education or health care to energy policy, immigration, fiscal and monetary decisions, the national debt and deficits, etc.

Quality government matters, certainly, but the quantity and method questions (especially method) are ultimately more important to the freedom and prosperity of the people. If the regular people want to remain free, they must understand and act on this.

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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 : Aristocracy &Blog &Citizenship &Constitution &Culture &Economics &Education &Entrepreneurship &Government &Politics

Ten Important Trends

March 16th, 2011 // 10:42 am @ Oliver DeMille

The obvious big trend right now is that oil prices threaten to reverse economic recovery across the globe.[i] The recent problems with nuclear power in Japan only promise to exacerbate the oil crisis. And the concern about a second mortgage bubble lingers.[ii] Food and other retail prices are increasing at alarming levels while unemployment rates remain high. In addition, some trends and current affairs promise to significantly influence the years ahead despite receiving little coverage in the nightly news. Here are ten such trends that every American should know about:

“In the wake of the financial crisis, the United States is no longer the leader of the global economy, and no other nation has the political and economic leverage to replace it.”[iii] Increased international conflicts are ahead.
The new e-media is revolutionizing communication and fueling actual revolutions from the Middle East to North Korea.[iv]
The new media is also differentiated by both political views and class divisions,[v] meaning that people of different views hardly ever listen to each other. This is creating more divisiveness in society.
In response to the rise of the Tea Parties, some top leaders of American foreign policy feel that Washington must find ways to promote a “liberal and cosmopolitan world order” and simultaneously “find some way to satisfy their angry domestic constituencies…”[vi] The disconnect between the American citizenry and elites continues to increase. So does the wage disparity between American elites and everyone else.[vii]
The evidence suggests that “teams, not individuals, are the leading force behind entrepreneurial startups.”[viii] This has been a topic of debate for some time, and a new book (The Invention of Enterprise by Landes, Mokyr and Baumol[ix]) outlines the history of entrepreneurship from ancient to modern times.
As Leah Farrall put it, “Al Qaeda is stronger today than when it carried out the 9/11 attacks. Accounts that contend that it is on the decline treat the central al Qaeda organization separately from its subsidiaries and overlooks its success in expanding its power and influence through them.”[x]
One trend is outlined clearly by a new book title: Alone Together: Why We Expect More From Technology and Less From Each Other.[xi]
In contrast to popular wisdom, democracy and modernization are significantly increasing the influence of religion in many developing regions around the world.[xii]
More people are using Facebook to connect more with their children—in one survey this included 64% of those surveyed.[xiii]
While governments—at national, provincial/state and local levels—are increasingly strapped for cash and struggling to balance budgets and service looming debts, many multinational corporations “sit on enormous stockpiles of cash…”[xiv] This reality is giving strength to the argument in some circles that the future of governance should be put in the hands of corporations rather than outdated dependence on inefficient government.[xv]

[i] “The 2011 oil shock,” The Economist, March 5^th, 2011.

[ii] Consider the ideas in “Bricks and slaughter,” The Economist, March 5^th, 2011.

[iii] Ian Bremmer and Nouriel Roubini, “A G-Zero World,” Foreign Affairs, March/April 2011.

[iv] See James Fallows, “Learning to Love the New Media” and Robert S. Boynton, “North Korea’s Digital Underground,” The Atlantic, April 201.

[v] Op. cit., Fallows.

[vi] See Walter Russell Mead, “The Tea Party and American Foreign Policy,” Foreign Affairs, March/April 2011.

[vii] See “Gaponomics,” The Economist, March 12^th, 2011.

[viii] See Martin Ruef, The Entrepreneurial Group, 2011, Kauffman.

[ix] 2011, Kauffman.

[x] Leah Farrall, “How al Qaeda Works,” Foreign Affairs, March/April 2011.

[xi] By Sherry Turkle, 2011, Basic Books.

[xii] See book reviews, Foreign Affairs, March/April 2011.

[xiii] Redbook, April 2011.

[xiv] See op. cit., Bremmer and Roubini.

[xv] See the following: Shell Scenarios; “Tata sauce,” The Economist, March 5^th, 2011; Adam Segal, Advantage: How American Innovation Can Overcome the Asian Challenge, 2011, Council on Foreign Relations; and “Home truths,” The Economist, March 5^th, 2011.

Category : Blog &Current Events &Economics &Entrepreneurship &Family &Foreign Affairs &Government &Independents &Information Age &Politics &Science

Why are We Still in Recession?

February 10th, 2011 // 4:39 pm @ Oliver DeMille

Why was it that scientists were so excited to discover facts that farmers had known for generations and generations?” —Brandon Sanderson, The Way of Kings

The Wisdom of Crowds or Crowns?

There is a technical definition of economic “recession,” but many Americans don’t know exactly what it is. Nor do they accept the experts’ assurances that the Great Recession is really over.

Indeed, in the view of many, it was the experts who led us into recession while predicting something else.

The same experts promised that stimulus would fix things, and now they continue to confidently promise and predict as if their record should somehow bolter our trust.

In many ways, America’s elites consider regular Americans uninformed and ignorant. But there is another kind of wisdom, not based on expertise and therefore seldom understood by the elite class (most of whom were convinced some time before or during college that erudition is a matter of credentials, titles and peer consensus).

The “other” wisdom is based on an innate or experiential understanding of principles, of knowing things like these: Increased government size and spending is out of control; and like the housing bubble, the big-government bubble will have to burst at some point.

In the governmental model as erected by the American Founders, the wisdom of the masses is a critical and even central feature of republican government.

The American founders so trusted this type of wisdom above that of experts that they put the regular citizens in charge of elections and our direct representatives in charge of the nation’s purse strings.

They also gave the federal government only 20 specific powers and left the rest to the states and people.

Many, especially the upper classes of Europe, argued that such an arrangement could not succeed, that nations must be led by elites and their specialized agents.

History proved the Founders correct in this debate.

A Second Type of Recession

There is also another kind of “recession” not defined by economists but very real nonetheless — a recession where most people feel deep and overwhelming economic anxiety, where few families have as much money now as three years ago but more expenses, and where the majority feels deep down that things will get worse before they get better.

This kind of recession doesn’t move charts or graphs, but it does operate on a real logic: When the experts are wrong over and over, stop following them.

It should be noted that the people who use this type of reasoning generally have great respect for expertise and the experts, but not a blind faith.

Such wisdom holds that if individuals, households and businesses must tighten their belts, live within their means, and rise to a more self-reliant and entrepreneurial approach now that times are hard, the government needs to do the same.

If Washington refuses such common sense, it is deluding itself — and forcing us to pay the bill.

This “other” wisdom realizes that we have lived beyond our means for some time, and that we can only really build a new model if the old system is deeply changed.

The far Right and far Left argue that such progress can only come from the ashes or ruins of our broken system “after it falls,” while more moderate voices believe that a few fundamental shifts in worldview and policy can get us back on track.

We can move from nanny state to free enterprise, according to this view, from big government to smaller and more effective government, from a nation of dependents to a nation of innovators.

Such arguments sometimes sound untrained and unsophisticated to elite ears, partly because the privileged class wants America to look good to the European eye — but mainly because these type of arguments are often untrained and unsophisticated.

But we should not make the mistake of considering them naïve or ineffectual.

Sometimes the simple solution is best — especially when one of the most daunting problems is how complex our government and economy have become.

Expecting any single expert or government official to have a full grasp of it all is truly unrealistic, and depending on large teams of specialized experts doesn’t work without leadership from those who grasp the entire reality and envision something better.

Citizen Leadership

Grassroots wisdom from the people as a mass accomplishes this more effectively than any party, politician or intellectual class. This is the linchpin of freedom. The citizens must truly lead, or freedom does not last.

In times of crisis, wisdom is more important than expertise. Both are essential, but wisdom is most vital.

The American people, however uninformed they may appear to elite tastes, have wisdom in spades. They make mistakes, as Jefferson and later Tocqueville put it, but they always correct them.

In the governmental model as erected by the American Founders, the wisdom of the masses is a critical and even central feature of republican government.

One central reality stands out right now: People are struggling a lot more than the experts admit or the numbers show.

The economy may be in a slow recovery, but the American people are stuck in recession. And they know it.

Families and communities are experiencing more hurt than gets reported, and many people feel that things are getting worse. The middle-class standard of living is collapsing, and the worst of the housing bubble appears to still be ahead. Moreover, the government bubble is real and eventually it will burst.

Unemployment is worse than the numbers show. For example, many of the job losses are in middle- and high-paying jobs while most new jobs are low-paying. With the real unemployment rate (which includes those who have given up even trying to find a job) over 12 percent and the underemployed rate above 18 percent, we are more than halfway to a depression (traditionally defined by 25 percent unemployment).

Yet our leaders spend, borrow, and spend. The Chinese have continued to lend us more, as we figuratively hung ourselves and our posterity with an unyielding cord of debt.

Washington regulates more roadblocks to business growth, and tells us that 10 percent unemployment is the new normal. Then politicians pile on more regulations that hinder global investment in the U.S. and send it to friendlier markets.

American firms go abroad and find lower taxes, reduced regulatory environments, and more plentiful capital.

As unemployment lingers in the wake of these policies, we are assured that more government programs will care for those without jobs.

Most Americans find this more alarming than comforting. Consumers don’t spend. Businesses close. A drive down Main Street, Anywhere, USA is a museum tour of boarded-up windows.

We elect one party’s leaders with high hopes, then we try the other party—back and forth, without lasting success. Things worsen. Inflation may follow, as the Fed prints more money and further devalues our currency.

Many Americans feel the afterglow right after a major election, but the anxiety returns when the bills keep coming and they try to balance their checkbooks and plan for the years ahead. Call this recovery if you want, but the American people aren’t convinced.

Next Steps

The good news is that when pushed the American people take note and take a stand. The great American entrepreneurial spirit is rising, and it is our only real hope.

Elections come and go, but cultivating the values and skills of free enterprise in ourselves and others builds for the long term. It creates a solid foundation that works.

The election of 2010 is over, and the elections of 2012, 2014, 2016 and beyond will not have near as much impact on America’s future as the entrepreneurial spirit (or the lack of it) among the mass of regular citizens.

To the extent that elections help free the economy for growth, they can greatly benefit our prosperity and freedom.

But ultimately America’s success and affluence will depend upon the initiative, innovation, creativity, tenacity, resiliency, ingenuity, enterprise and entrepreneurial spirit of the regular people.

This is the true wisdom of crowds, and only the regular people can make this happen.

China may rise in prominence and even to superpower status in the decades ahead. If so, it will do so by applying these very entrepreneurial traits. The same is true of India, Brazil, Europe, other places, and the United States.

Our future depends on the rise of these entrepreneurial values and characteristics. The adoption of these will signal a true economic Recovery and put a real end to the Great Recession.

Whatever the politicians, parties and experts say, the world of 2020, 2030 and 2040 will be a world of our making, and the nations which rise in prosperity, freedom and power will be those where the entrepreneurial spirit flourishes.

With this in mind, I am convinced of at least two things: Our future is bright, and there is a lot of work ahead for all of us.

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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 : Business &Economics &Entrepreneurship &Featured &Government

The Declining American Dream

January 31st, 2011 // 9:55 am @ Oliver DeMille

We still hear about the American Dream. But more and more it seems we’re in a Matrix-like dream state where our perceptions are being manipulated. It’s actually a pretty common plot in cinema: The Minority Report, The Sixth Day, Total Recall, Inception, The Adjustment Bureau and others riff on this theme. We’re living in a reality out-of-synch with some truth we’ve lost, and we don’t even realize it. Somehow our collective memory and our assumptions of “normal” are slowly morphing, and our definition of the American Dream at present is so far removed from the original concept as to be a pretty fair Doublespeak[i] idiom.

Back when the Cleavers[ii] and even the Bradys[iii] were the icons of American families, what was the definition of “The American Dream”? What did it mean to be “middle class”? There are some features of it that were fairly well accepted once upon a time:

1. Home Ownership I

Perhaps the most traditional measure of middle class and the American Dream is the ability for every man to be the king of his own castle. In this the U.S. was a beacon to the world, and other countries even began to adopt the value that every person might aspire to own his own dwelling. The historical and sociological significance of home ownership includes the moral and political empowerment of being “landed,” and affiliation with the natural aristocracy. Homeowners were believed to have a deeper sense of responsibility to invest in their property improvement, an elevated pride in and loyalty to their neighborhoods and communities, and a higher commitment to the good of society in general.

2. Home Ownership II

Now we have to dig a little deeper into our genetic memory. Home ownership a generation or three ago meant not only that you weren’t renting from somebody else, but after a maximum of thirty years in your home you weren’t renting it from the bank, either. A 30-year mortgage left the likes of Ward and June Cleaver without a house payment right about when the grandkids started showing up, and they were able to be a boon to their young married children as they were starting out. If the idea of Home Ownership I as a definition of “The American Dream” is still generally accepted (and I believe it is), the Home Ownership II definition has been deleted from our collective memory. Not only do we have a 30-year mortgage that gets refinanced ad infinitum, but we have seconds on our vanishing equity—and our seniors are living on the funds derived from reverse mortgages.

3. One Income

For the Cleavers and the Bradys, Home Ownership I and II were accomplished on one income. Dad had evenings and weekends for leisure; mom could volunteer with the PTA and community service organizations. Both could participate in book clubs, bowling leagues, gardening and other vocations. The Women’s Lib movement sent the modern woman into the workforce by choice; now Home Ownership II is entirely out of reach for the middle class, and Home Ownership I requires a minimum of two incomes—and often multiple jobs for an individual worker—in order to be a reality.

4. Two Cars

The family had a car—and later two. They were American made with pride, and they were built to last. Paid with cash from savings, or with a little help from the local bank, they were paid off long before they were sent to the salvage yard. Some families even scandalized the neighbors by giving each of their teens a car as soon as they were legal to drive.

5. College for Kids

Part of the understanding for middle class families was that they would be able to pay for their kids to get a college education. Now all that’s left of that understanding is the guilt for failing to live up to it. No one seriously expects one-income families to be able to pay off the house and cars and simultaneously send several kids to the University. Scholarships, loans, grants and lingering debt into the career years are now the means for those who want a college education.

6. Discretionary Income

With all of the above, it was still an expectation that a married couple could live within their means and have savings, investment, yearly vacations with the whole family at some destination spot, and still have a few dimes to rub together at the end of the month.

7. Retirement

Ah, and after all this came the golden years. The Cleavers could now spend their expanded leisure time, afforded by an empty nest and the retirement from the company (complete with gold watch honors), in community service and nurturing the rising generation. They had savings, investments and retirement income to fall back on, a house and car paid free and clear, and the greatest resource: Leisure Time. They were elders in their community, and relied upon for wisdom.

The percentage of families enjoying these luxuries shrinks every year. Where did our American Dream go? Somehow, point by point, it has slipped away from us, and taken with it our definition of “middle class.” Would that we could wake up and reclaim the best of that dream; instead, we’ve awakened to a reality where our elusive American Dream is just out of reach; and these seven points that were once considered the legacy of any hard-working family are being deleted from our list of aspirations. If they are middle class expectations, the majority of America is no longer middle class.

[For a follow-up article on the how and why the middle class is shrinking, and how to reverse the trend, read Oliver’s article, “The Rule of Leisure,” featured in the February 2011 monthly newsletter for The Center for Social Leadership.

[i] See Orwell, Nineteen Eighty-four.
[ii] From the 1950 – 60s classic sitcom about the traditional nuclear family of Ward and June Cleaver, “Leave it to Beaver”.
[iii] From the classic 1970s sitcom about the non-traditional nuclear family of Mike and Carol Brady, “The Brady Bunch”.

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