Entrepreneurship

Who Will Stand For Freedom

May 21st, 2014 // 11:10 am @ Oliver DeMille

The Destiny of Freedom

In 1961 the great legal scholar Bruno Leoni wrote about freedom in modern times.

He said:

“It seems to be the destiny of individual freedom at the present time to be defended mainly be economists rather than by lawyers or political scientists.”

Why? Leoni’s answer was intriguing:

“As far as lawyers are concerned, perhaps the reason is that they are in some way forced to speak on the basis of their professional knowledge and therefore in terms of contemporary law.”

As a result, since modern law is too often in the business of reducing freedom rather than supporting it, most of today’s attorneys have become experts on the opposite of freedom.

How They Speak

As Lord Bacon would have said, “They speak as if they were bound.” Over fifty years later, the same is true of nearly all today’s economists, teachers and professors. Sad.

The modern intelligentsia has become a body of experts on force. Their expertise is usually focused on how to reduce freedom—though few use these specific words to describe their careers.

Leoni continued: “Political scientists, on the other hand, often to appear to be inclined to think of politics as a sort of technique, comparable, say, to engineering, which involves the idea that people should be dealt with by political scientists approximately in the same way as machines or factories are dealt with by engineers.

“The engineering idea of political science has, in fact, little, if anything, in common with the cause of individual freedom” just as “the contemporary legal systems to which [attorneys are now] bound seem to leave an ever-shrinking area to individual freedom.”

Leoni’s words cut right to the heart of the matter.

When I was in college in the late 1980s, I heard a speaker tell a group of young student leaders how to influence society. I don’t remember his exact words, but his meaning was clear.

He told us, “If you want to make the nation and world more committed to liberal ideals, become a journalist, professor, teacher, or attorney. If you want to promote conservative goals in society, go to business school and become an executive.”

It was a shallow, but prophetic, suggestion. In the three decades since, his recommendation has proven accurate for two whole generations, and today it is part of the rising generation’s culture.

Pushing the Wrong Direction

But what profession(s), if any, stand today for individual freedom? The economists have mostly gone the direction of law—bound too often by their profession’s expertise in how to reduce freedom.

The days when Leoni spoke on the same podium with Milton Friedman and Friedrich Hayek are long gone.

Likewise gone to the dustbin of history is the era when many business executives advanced the cause of liberty as one of their main goals. Now the drive is to survive in the global economy, usually by expanding one’s company outside of North America and Europe.

This is the overarching focus of most boards and executives.

The economy now rewards growth, not promotion of freedom—just like the professions tend to promote young people who support the push for more institutional controls and power, not more liberty for the masses.

As the divide between the rich and the rest widens, the pressure to impress the Establishment grows. Youthful ideals (such as freedom) are the last thing on today’s executive agenda.

The Factory Model

In the midst of the Charter School movement of the mid-1990s, I spoke on the same stage as a courageous woman who had founded a successful East Coast inner city Charter high school. In a moment together in the Green Room, I asked her how long she thought she could keep teaching the principles of freedom in her cutting-edge school.

She replied that, given the pace of intrusive government regulation over Charter schools (and schools in general), she thought she had 5-10 years before she would have to reject state funds and turn the school private.

Today, over 15 years later, the school has grown into a lucrative business, regulation has shut down the original curriculum and replaced it with one practically identical to the public schools in the same city, and this lady still runs her Charter school.

But where her school once stood for freedom against the mediocrity of the public conveyor belt, it has now joined the factory model.

And she is now “respectable,” not an educational reformer or freedom thought leader any more, but just another of the city’s high school principals—professionally reined in, committed to “the system.”

She has even stopped teaching the freedom classics that convinced her to start the Charter school in the first place.

This professional caving in to institutional pressure is what Leoni lamented in 1961 about his beloved profession of law. But today it is much more widespread.

The “civilizing decline and fall of the professions” is nearly complete. Now most (not all) lawyers, teachers, professors, economists, journalists and executives fight for the same side—big institutions, the Wall Street-White House nexus, the Ivy League-Federal Government connection, the Boston/New York City/Washington D.C. corridor, the big business/big government power elite. The Establishment.

In all this, who will stand against elite rule?

Who will stand for freedom?

Unheeded Messages

Leoni’s book, Freedom and the Law, a fantastic classic, was written in an attempt to convince the legal profession to take a stand for liberty, not slip into the easier current of seeking benefits from big government. Leoni predicted that his outcry would fail to convince enough people to turn down such lucrative promises, but he felt he had to try anyway.

Freedom was worth it.

Leoni made it clear that every loss of freedom is an increase in constraint, and constraint by government is always autocratic. No exceptions. Therefore, every minor decrease of freedom is an attack on the very roots of liberty.

In a sense, Leoni did the same thing Virgil tried to do centuries ago when he saw Rome falling. Virgil warned that a loss of individual freedom here and there would trigger a loss of freedom for everyone in the nation. But he was basically ignored.

In fact, his great work on this topic, entitled Georgics, is still hardly even read or studied today.

Sadly, the message of warning about losing freedom seems forever destined to go unheeded—until it is lost, at which point people get very interested in the topic.

Leoni’s view of freedom takes us back to the basics. He argued that freedom is ultimately nothing more than the Golden Rule, the idea that we should only do unto others what we would be happy having them do to us. To the extent that this is followed in a society, it is genuinely free.

To the level it is ignored, for whatever reason (private or governmental), freedom declines.

Important Questions

To understand freedom, using this definition, just ask yourself: “Who would I give the power to make all my decisions for me?”

Your answer tells where you stand for freedom. If you say, “nobody,” or “God, and nobody else,” you are adamantly a supporter of freedom. If you say “the government,” you are adamantly against freedom. If you say, “my employer, and government, and local committees and boards,” you are choosing socialism.

Note that the question was who would you give the power to make ALL your decisions, not some of them, or a few of them, or certain decisions, or even a lot of them. All of them. The answer tells you where you stand on the freedom question.

Leoni expands this one question into several:

1. How do you want to be treated?
2. Are you willing to treat others the way you want to be treated?
3. Are you willing to voluntarily sacrifice to create and maintain a society where everyone is treated this way?
4. Who will rule in such a society, who will choose these rulers, and how can these rulers be kept from using their power to treat people in wrong ways?
5. Why do you allow society and rulers to treat you and others in wrong ways?
6. What are you doing to ensure that everyone is treated the right way?

These are the questions of freedom.

What are your answers?

 The future belongs to innovation,
not conformity.

Oliver DeMille is the New York Times, Wall Street Journal and USA Today bestselling co-author of LeaderShift: A Call for Americans to Finally Stand Up and Lead, the co-founder of the Center for Social Leadership, and a co-creator of TJEd.

Among many other works, he is the author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, The Coming Aristocracy, and FreedomShift: 3 Choices to Reclaim America’s Destiny.

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

Category : Blog &Citizenship &Constitution &Current Events &Economics &Education &Entrepreneurship &Generations &Government &History &Leadership &Liberty &Mini-Factories

Corruption By Any Other Name – Oliver DeMille

April 25th, 2014 // 10:41 am @ Oliver DeMille

Another Domino Falling

JP Morgan recently settled a case brought by the government, agreeing to pay Washington $13 billion for its role in the mortgage bubble meltdown.

This creates a very dangerous standard. When something bad happens, Washington will naturally seek to find fault in a place that brings it a lot of extra cash—the most profitable businesses.

As Ken Kurson put it:

“This settlement sets a terrible precedent. Companies with strong balance sheets can expect to become targets of the government…”[i]

This is another domino in the decline of our freedoms, and it’s a big one. This new approach allows, even incentivizes, government corruption. Let’s review how this process works:

• The federal government passes laws that require or incentivize businesses to give loans or offer services/products to people who can’t actually afford them. Businesses that refuse are penalized.

• As a result of this kind of bad policy, many businesses fail. Businesses that comply, but only make middling profits, are left alone.

• Businesses that comply, and make big profits, are targeted by the federal government and end up paying huge sums of money to the government.

Godfather Over Again

This is a great racket. It’s akin to a mafia protection scheme: “You need protection from us. We’ll provide it, for a fee. The fee will be set by us, without appeal or negotiation. If you don’t pay it, we’ll hurt you and/or your business—thus proving that you really did need protection.”

An official term for this new precedent is “corruption.” Except that the Supreme Court gets to determine the actual definition of the word. And who gave the Court the power to do this?

The Supreme Court did, in a string of cases starting in 1803 through 1936.

Is this recurring pattern starting to make sense?

“Wait,” the critics say. “The crash was real! And JP Morgan and other companies that participated need to pay! Right?”

As Kurson wrote:

“Of course, most of JP Morgan’s wrongdoing—70 to 80 percent of the exposure—was committed by two companies, Bear Stearns and Washington Mutual, it acquired in 2008 at the request, to the point of command, of then-Treasury Secretary Henry Paulson. JPM acquired those companies as acts of mercy during a crisis.”[ii]

Let’s get this straight. The economy was tanking, so the government demanded that JP Morgan buy two flailing firms—to help save the economy. Then, when the fall came, the government targeted JP Morgan for the mistakes of these two firms and made it pay for them.

Godfather corruption indeed.

Who It Hurts

How are businesses responding to this emerging new economy? Many are closing. Others are going abroad, to China, India, Brazil, etc.  Those that make enough from the U.S. economy simply pay the fines, settlements, and fees—it’s the cost of doing business.

The real problem is for American workers and families. JP Morgan has increased its litigation reserve up to $23 billion (from $3 billion in 2010).[iii] Other companies are learning to do the same.

What happens when the extra billions are refocused this way? Money moves away from salaries and purchases, the economy is hurt, private sector jobs are cut or curtailed.

The government is currently seeking similar payoffs from a number of other big companies. As this precedent sends its ripples through the economy, it will harm a lot of families.

More firms will move operations and jobs abroad, and others will shift more money from jobs and put it to litigation and fees.

Old Pattern, New Cloth

Oh, and just re-read the government’s pattern outlined above for the mortgage bubble, but this time read it with Obamacare in mind:

• The federal government passes laws that require or incentivize businesses to offer services/products to people who can’t actually afford them. Businesses that refuse are penalized.

• As a result of these bad policies, many businesses fail. Businesses that comply, but only make middling profits, are left alone.

• Businesses that comply, but make big profits, are targeted by the federal government and end up paying huge sums of money to the government.

This really is as shocking as it sounds. Yes, this really is happening in the United States.

The worst news in all this is that most people will do nothing about it, because this kind of financial news is considered technical mumbo jumbo.

Citizens usually just ignore it. “What can I do, after all?” is the typical response.

This is how freedoms decline: slowly for a while–then all at once. The amazing part is that when the “all at once” crash comes, almost everyone acts surprised.

But what can a regular person do? Really? It’s not like you can stop government overspending, party bickering, or a growing culture of corruption with a call to your Congressman or a letter to the editor.

The answer to this major post-modern question (What can a regular person do?) is interesting: We can start with not being surprised.

Problems and Solutions

We can know what is coming. A government addicted to spending and borrowing, and constantly increasing its spending and borrowing, is going to cause problems for the economy and for its citizens.[iv]

A government addicted to increased regulations is going to cause problems.[v]

A government that demands official secrecy from its own people while increasing how it spies on its own citizens is going to cause problems.[vi]

A government that inflates its currency and borrows from its biggest enemies and competitors is going to cause problems.[vii]

A government whose top officials routinely make promises during elections or to pass big agendas and then break them once they win is going to cause problems.[viii]

A government that uses statistics it knows distort reality (just revising them a few months later once decisions have been made), in order to support its continued ideological course, is going to cause problems.[ix]

A citizenry that turns a collective blind eye to these realities is enabling the very problems it fears. Then the people claims surprise when the crash comes.

Anyone who is surprised by the next crash has been lying to themselves for a long time.

False Recovery

As Allan Greenspan wrote in November 2013:

“One can hope that in a future financial crisis—and there will surely be one…”[x]

Calomiris and Haber noted that banking crises should be expected:

“The banking system in the United States has been highly crisis-prone, suffering no fewer than 14 major crisis in the past 180 years.”[xi]

The question isn’t if, but when, the next one will come.

Or consider what J. Bradford DeLong wrote in a piece in Foreign Affairs titled “The Second Great Depression: Why the Economic Crisis is Worse Than You Think”:

“The U.S. economy has enjoyed a recovery [since 2009] only in the sense that conditions haven’t gotten worse…. But it is unlikely that the economic downturn will be over by 2017…”[xii]

Greenspan suggested the second thing people can do. He wrote:

“Financial firms could have protected themselves…if…they had prepared for a rainy day.”[xiii]

Though he addressed this belated counsel to companies, it certainly applies to regular people as well.

Time and Two Steps

To summarize, we have covered two things a regular person can do about our current problems. First, know about them. Pay attention. Keep a close eye on the government, the economy, and current events. Read the fine print and the technical mumbo jumbo put out by government.

The English word for this daily activity and focus is “citizenship.”

The second is to prepare. Look around, see what is really needed, and what is likely to be needed in the years ahead—and take action to help your community flourish.

Not just for you, but for others.

The word for this kind of initiative and foresight is “entrepreneurship.” It isn’t pessimistic, doomsayer, or extreme. In fact, effective entrepreneurialism is precisely the opposite.

It only works if it is optimistic, positive, and sustained.

Without such citizenship and entrepreneurialism, the decline of freedom is only going to accelerate. We’ve still got time for these two things to work, but time is running out.

Category : Blog &Business &Citizenship &Community &Current Events &Economics &Entrepreneurship &Leadership &Liberty &Mini-Factories &Mission &Politics &Uncategorized

Why Do We Keep Losing the Freedom Battle?

March 20th, 2014 // 3:00 pm @ Oliver DeMille

Two Avenues of Destruction

Why does government keep growing, no matter who we elect, no matter which party is in charge? Why do freedom lovers, those who truly want limited, Constitutional government, continue to lose the battle?

There are two answers. First, the freedom battle loses—year after year, election after election, decade after decade—because it is poorly funded. The political parties are well funded, mind you, but neither party truly stands for freedom. Freedom lovers lose because they are underfunded, pure and simple. More on this below.

Second, those who stand for freedom lose the battle to bigger government because the regular people can’t see what is happening. We don’t see armed troops in jackboots marching daily through our streets, entering our homes, and stealing our property and lives.

When the people can’t see this happening, it’s hard for them to get too excited about it. They don’t know what to fight against. They don’t know who the enemy is. They aren’t sure who to fight, or how to fight them.

The Paper Sword

We don’t realize that Soft Power attacks (certain licensing requirements, regulations, agency policies, commercial codes, revenue bills, statutory changes, executive orders, secret agency procedures, exemptions, ex post facto decisions, and court cases) are as dangerous to freedom as Hard Power attacks (invading armies, armed rebellions, political officials with their own armies, or government use of force against its own people).

In history, the regular people often respond to Hard Power attacks on freedom, but they seldom even notice Soft Power attacks until their freedoms are too far gone to recover.

Citizens of nations almost never realize it when Soft Power is attacking them. The biggest irony of this is that throughout human history Soft Power has taken away more freedom than Hard Power. In fact, Hard Power is seldom used until Soft Power has weakened a nation.

Today, we are witnessing a wholesale reduction of our freedoms—nearly all through Soft Power attacks that few people notice.

To See and Understand

As one insightful friend wrote to me in an email: “We don’t know who or what to fight against. I still believe the majority of Americans value freedom… We, as a culture, do not know how to defend freedom in this new age of information, nor do we know who or what to defend it from. All the average citizen sees—or is supposed to see—is things going a little darker, a little dirtier, a little more crowded, each day. There is, for most Westerners in any case, no force-of-state brutes-in-boots and uniforms…. We see only the results of class stratification and economic divergence…. The most dangerous enemy is the one you can’t see.”

Americans would stand up and vote to get their freedoms back, if only they understand how much they are under attack.

If they could see their freedoms being stolen by Hard Power attacks at the level that they are truly under siege from Soft Power, they’d change things—and fast.

But the regular people don’t see, because Soft Power is used behind-the-scenes, on paper.

How to Win It

This is why only a nation of voracious readers can maintain its freedoms. This brings us back to the first reason freedom is losing: underfunding.

Not only do we need a nation of voracious readers, we need a lot of successful businessmen, professionals, entrepreneurs, and others of means to fund freedom—to fund those things that help the regular people see and understand the impact of Soft Power.

This is the current battle for the future of freedom.
1. Will people of means fund effective responses to Soft Power attacks on our freedom?
2. Enough to win the battle?
3. ill enough regular people take entrepreneurial action and become people of means?

On these three questions turn our future.

Which of these three battles are you helping fight?

Oliver DeMille is the New York Times, Wall Street Journal and USA Today bestselling co-author of LeaderShift: A Call for Americans to Finally Stand Up and Lead, the co-founder of the Center for Social Leadership, and a co-creator of TJEd.

Among many other works, he is the author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, The Coming Aristocracy, and FreedomShift: 3 Choices to Reclaim America’s Destiny.

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 &Citizenship &Community &Constitution &Current Events &Economics &Entrepreneurship &Government &Leadership &Liberty &Mini-Factories &Mission &Politics &Statesmanship

America’s Great Degeneration

March 5th, 2014 // 1:24 pm @ Oliver DeMille

Speaking of how the government runs its finances today, historian Niall Ferguson wrote:

“The present system is, to put it bluntly, fraudulent. There are no regular published and official balance sheets. Huge liabilities are simply hidden from view. Not even the current income and expenditure statements can be relied upon. No legitimate business could possibly carry on in this fashion. The last corporation to publish financial statements this misleading was Enron.”

This basically sums up the modern American problem. The government operates on one set of rules, hides it from the regular citizenry, and enforces a different set of rules on businesses and families.

No such system has ever remained free.

This is already extracting a terrible toll from our economy. As Ferguson put it:

“In a 2011 survey, [Michael] Porter and his colleagues asked [Harvard Business School] alumni about 607 instances of decisions on whether or not to offshore operations. The United States retained the business in just ninety-six cases (16 percent) and lost it in all the rest.

“Asked why they favored foreign locations, the respondents listed the areas where they saw the U.S. falling further behind the rest of the world. The top ten reasons included:

1. the effectiveness of the political system
2. the complexity of the tax code
3. regulation
4. the efficiency of the legal framework
5. flexibility in hiring and firing.”

In short, a number of other countries have more economic freedom than the U.S. We have more regulations, a more complex tax code, and other problems that make business abroad more attractive for about 84 percent of businesses deciding whether to stay in America or leave.

The average citizen isn’t aware of this reality, or the fact that corporation after corporation is moving to other countries because of Washington’s policies.

Our freedoms are being lost, as business leaders see every day. Yet it continues to happen, and most Americans simply don’t realize it. Nor do they realize how much this hurts our economy and the pocketbooks of U.S. families.

As regulations increase, making it harder and harder for businesses to make a profit, more jobs, capital, and corporations are leaving. The American Dream is declining day after day, right in front of our noses.

For most Americans, the only solution in mind is to elect better government officials. But this hasn’t fixed the problem yet — not by a long shot. The problem gets worse (government spending and regulations increase) whichever party inhabits the White House.

Some other solution is needed, and it will require a return to good, old-fashioned American initiative and innovation — from regular people, not government. Yes, the government makes this more difficult with nearly every passing regulation, but freedom is worth overcoming it anyway.

If we rekindle the American spirit of entrepreneurialism in the next few years, this is a battle we can win. Nothing else will fix the problem.

What are you doing to promote, spread, and teach entrepreneurialism?

Oliver DeMille is the New York Times, Wall Street Journal and USA Today bestselling co-author of LeaderShift: A Call for Americans to Finally Stand Up and Lead, the co-founder of the Center for Social Leadership, and a co-creator of TJEd.

Among many other works, he is the author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, The Coming Aristocracy, and FreedomShift: 3 Choices to Reclaim America’s Destiny.

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 &Business &Citizenship &Economics &Entrepreneurship &Government

Are You Really an American

February 3rd, 2014 // 2:02 pm @ Oliver DeMille

The more I watch the news, the more I wish we had more farmers in modern America. I grew up in a small town, and when I was a boy there were lots of farmers still left in the county.

The town was small enough that I knew, at least by face and name, pretty much every man and woman — and I noticed something different about farmers. They didn’t accept the “official line” on anything, and they never tried to impress or fit in. They seemed secure in who they were, not worried about whether they were popular or not. This gave them immense strength.

For example, one day while walking to school, I noticed water spouting high into the air from a broken fire hydrant. A local grocer I knew pulled over, watched it with me and a few other kids, and then said, “I’ll call the city office and tell them to come fix it.”

We all kept walking to school — crisis averted. Later in life, while traveling in a big U.S. city, I noticed a similar spouting hydrant. This time people just walked around it and kept going, as if they had never really noticed it. “No calls to city hall here,” I remember thinking.

But the really amazing thing happened back in my hometown the same day I saw the leak. I’m not sure whether the grocer ever called the city office, but on my way home from school the hydrant was still spraying water. It was hot, so my friends and I cooled off in the free entertainment provided by the leak. In a town this small, this provided high adventure.

While we were there, an old farmer pulled up in an old pickup truck. He got out, looked over the leak, then went and puttered around in the back of his truck. He returned with several tools, and twenty minutes later the leak was fixed. The man walked back to his truck, and I asked him if the city sent him.

I’ll never forget the truly shocked look on his face. “No,” he said. “I was just driving by. The hydrant was broke, so I fixed it.” Then he got in his truck and drove away.

I hauled hay a few times for this farmer, earning some spending money during high school. Neither of us ever mentioned the incident again. It was as normal as sunrise. The hydrant was broken, so the man fixed it. He didn’t work for the city. But he lived there — and a broken hydrant needs fixing.

At least, that’s the logic for a farmer. In many modern cities today, he’d probably be issued a ticket and have to pay a fine.

That’s modern America. When we don’t encourage initiative and innovation, we naturally get less of them. When we punish self-starting entrepreneurialism, jobs go overseas. When we reward “leaving solutions to the government,” we get fewer solutions. No wonder we’re in decline while China and Brazil, among other places, are on the rise.

I once told this story to a group of students, and two of them later served as interns at a state legislature. On the last day of the session, they sat in the seats high above the legislative chamber, reading through the session program and circling the names of the legislators who had become their heroes.

They said something like, “These were the leaders who never, ever caved in on principle, who always stood firm for what they believed — never playing politics or trying to fit in, just doing their level best to serve the people who had elected them.”

After they finished, they noticed something very interesting. Next to the picture and name of every legislator was their profession — teacher, accountant, attorney, businessman, etc. Every single one of the legislators they had circled was a farmer.

The two young interns were duly impressed. They remembered my story about farmers and fire hydrants, and they shared their experience.

Not every American can be a farmer. But every citizen can be an American — one who thinks independently, takes action when it is needed, and always takes a stand for the right.

Washington will get some things right and some wrong in the years ahead, but the future of America doesn’t depend on Washington. It depends on regular people: will they think independently, will they spend their lives trying to fit in, or in standing up for what is right?

Standing up for the right things isn’t always popular. But people who do it anyway are the only ones who keep a nation free. So, sometimes I ask myself a very important question: Are you really an American? Really?

That old farmer was. If you are too, prove it.

Oliver DeMille is the New York Times, Wall Street Journal and USA Today bestselling co-author of LeaderShift: A Call for Americans to Finally Stand Up and Lead, the co-founder of the Center for Social Leadership, and a co-creator of TJEd.

Among many other works, he is the author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, The Coming Aristocracy, and FreedomShift: 3 Choices to Reclaim America’s Destiny.

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

Category : Blog &Citizenship &Community &Entrepreneurship &Leadership &Liberty &Mission &Producers &Prosperity &Service &Statesmanship