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America’s New Grand Strategy

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

The United States is currently experiencing a Grand Strategy Crisis — and the most powerful nation in the world since the Roman Empire better get it right.

Such a crisis typically comes along once a generation, when the nation drops its old grand strategy and selects a new one.

Unfortunately, this significant change, which has happened three times in U.S. history and will likely occur again in the next two decades, is hardly noticed by the large majority of the people.

It affects them in many ways, but most people don’t know about it until it’s too late to change.

For those who lead a nation, the grand strategy is more than a set of guidelines or even a list of goals or objectives.

The grand strategy is a vision of where a nation wants to go, of what it seeks to accomplish in the world — a vision shared by its decision-making elite.

A grand strategy is the guiding principle for foreign policy and nearly all international relations for a nation.

“How” to achieve the grand strategy is a subject of ongoing debate among the elites in any free nation, but “what” the strategy should be is only considered on those rare occasions when a nation decides to drastically shift gears.

In such times, big changes occur. In the United States we have shifted grand strategies three times:

  1. between 1776 and 1796, from the Revolutionary War through the ratification of the Constitution;
  2. between 1856 and 1876, from the rise of Lincoln through the Civil War and into Reconstruction;
  3. and again from 1929 to 1949 during the Great Depression and World War II.

Past Grand Strategies

In each case, once a grand strategy was adopted, national leaders pursued it until world events required significant changes.

The American Founding generation rejected the Royalist grand strategy of increasing the power, wealth and empire of the Crown, and instead adopted a grand strategy of Constitutionalism, also known as Republicanism or Manifest Destiny.

This grand strategy held two major themes: First, the founders expected the United States to expand naturally and spread the new American system of free, limited, representative government from the Atlantic states all the way to the Pacific Ocean.

Secondly, through example, they wanted the nations of the world to see the success of this free model and embrace it.

This grand strategy was not always implemented perfectly, but it guided American policy.

After the Civil War, U.S. leaders adopted a strategy of Nationalism: the focus shifted to increasing American national strength and status in the world.

Teddy Roosevelt, Woodrow Wilson and Franklin Delano Roosevelt were among those who helped pursue this strategic vision.

“America must take its place as a leader of nations,” became the sometimes spoken but always central focus of the U.S. policy elite.

At the end of two devastating world wars and a bleak depression, U.S. decision makers again adopted a new grand strategy — Internationalism.

The focus of this grand strategy was simple: use international organizations, treaties, international diplomacy, conferences and cooperative arrangements to make the world safe for democracy and capitalism.

The idea was to contain communism, keep it from spreading, and simultaneously support the spread of democracy and capitalism as far and wide as possible.

Hopefully, if the strategy worked, communism would not only stop growing but its support around the world would begin to diminish, to be replaced by democratic-capitalism.

In short, the foreign policy history of the United States might be summed up as Constitutionalism, then Nationalism, and finally Internationalism.

Internationalism became woefully outdated in the early 1990s — and the world found out just how outdated on September 11, 2001.

Proposed Grand Strategies

Amazingly, however, few have engaged the current vital discussion about America’s new 21st Century grand strategy.

This is partly because the grand strategy is considered and chosen by the intelligentsia — the average American doesn’t even know what the phrase means.

Another reason the grand strategy is little discussed now is that the electronic media has made any controversial policy a point of major political, partisan and societal conflict.

Few politicians today want to engage the firestorm of announcing a new grand American direction. Still, more of us need to be involved in the conversations that are occurring.

At least five proposals, some explicit and others more informal, have been made which purport to be new grand strategy proposals, but three of them are more tactical than strategic.

First, though it was informally introduced as a strategy, George Bush may have been outlining a grand strategy change in his “Axis of Evil” speech.

Certainly the full eradication of terror is a change in tactics, but to what end? What is the goal of the ongoing war on terror?

If it is to make the world safe for democracy and the spread of capitalism, it is a new tactic for the old strategy of Internationalism.

Besides, to truly end terrorism would require using U.S. might to restructure and redirect the leading terrorist-funding and supporting states in the world, including possibly Saudi Arabia and nuclear powers China and Russia.

Nothing in the “Axis of Evil” speech or since seems to advocate such a strategy. Just beating up on the smallest terrorist states, as much as they may deserve it, leaves terrorism healthy and growing.

Unless the Axis of Evil includes China, Saudi Arabia, former states of the USSR Turkmenistan and Uzbekistan, and over 20 other nations, a few attacks on weak opponents hardly amounts to a moving, visionary national grand strategy.

And in any case, the Obama Administration has shown little inclination to continue this overarching policy.

A second proposal was outlined by Ambassador Mark Palmer in his book Breaking the Real Axis of Evil (affiliate link). Ambassador Palmer goes well beyond the Bush Administration and suggests that America adopt as its national purpose the ousting of all dictators in the world by 2025.

He argues that dictatorship is the true evil in the world, and that democratic nations led by the United States and its President should strategize and implement a plan to get rid of all dictators everywhere.

He even lists the dictators by name, and gives a suggested tactical approach to ousting each — some peacefully, others by sanction and pressure, still others by force.

This proposal is not really a new strategy, but simply the tactical application of Cold-War Internationalism to a different enemy — dictators instead of communists.

A third strategy was suggested by former Secretary of State Colin Powell. He called it a “Strategy of Partnerships” and argued that the world should be kept basically the same as it is — the U.S. at the head with its allies, intervening “decisively to prevent regional conflicts,” and embracing Russia, China, and other powers in a world that increasingly adopts American values.

This would be accomplished by partnerships which put “us at odds with terrorists, tyrants, and others who wish us ill” and to whom “we will give no quarter.” At the same time, we will be “partners with all those who cherish freedom, human dignity, and peace.”

Powell’s “Foreign Affairs” article, published in January of 2004, leaves some glaring questions. The whole point of Internationalism was to encourage partnerships with those seeking freedom and peace.

But Powell said nothing about what the partnership would do, what their goals would be, except the same old Internationalism that we’ve been pursuing since 1945.

Powell’s argument, while claiming to explain the Bush strategy, was actually less of a change than Bush’s “Axis of Evil” or Palmer’s proposal to rid the world of dictators.

All three proposals have pros and cons. But none of them really proposed a new grand strategy for the United States—something at the level of change from Royalism to Constitutionalism, Constitutionalism to Nationalism, or Nationalism to Internationalism.

These first three proposals just redirect, rekindle and rehash (respectively) the grand strategy we’ve followed for 50 years — Internationalism.

Problems with Grand “Tactics”

Generals lose when they fail to learn the lessons of past wars; generals also lose when they attempt to fight new wars with old strategies. This adage applies even more to statesmen.

To put this in context, each time a new grand strategy was needed in American history, many of the leading members of the establishment held on to the past strategy, just as the Clinton and Bush Administrations still pursued the status quo — an international world where the U.S. is top dog and capitalism keeps spreading new markets for U.S. companies.

The bad news is that no nation in history has ever maintained the status quo, even though big powers like Egypt, Babylon, Greece, Rome, France, Spain and Britain all tried.

Nations become top powers by seeking either to change or to obtain something — not by trying to keep things the same.

Big powers only stay big powers when they remake themselves, when they adopt a new grand strategy as needed like Rome and later Britain did.

The U.S. has remade its strategy three times, and all of them came from dealing with the big challenges, not the minor nations.

Bush’s “Axis of Evil,” while there is some truth to its argument, doesn’t take nearly as much courage, grit or will as Reagan’s “evil empire,” FDR’s choice to beat Hitler, Wilson’s “world safe for democracy,” Lincoln’s decision to prove out the founder’s experiment with blood, or the Washington generation’s “lives, fortunes and sacred honor.”

In short, statesmen are needed in the next decade to formulate and implement a grand strategy which requires virtue, wisdom, diplomacy and courage at Churchillesque, Ghandi-like and Jeffersonian proportions.

Idealism

Two other proposals are more strategic, offering a truly new view of America’s future. Whether or not you like either of these strategies (and many people don’t) they are certainly a new take on things rather than the mere tactical changes of the first three proposals.

A fourth proposed new grand strategy came with the re-entry of Gary Hart into the elite dialogue. He suggested that the best way for America to impact the world, and to remain both free and prosperous, is for the United States to focus on its most primary foundation: being good and promoting the great ideals.

This argument has a long history among Democratic politicians, including perhaps most notably Wilson, Franklin Roosevelt and John F. Kennedy, but it hasn’t led the conversation for Democratic presidential candidates since Carter. And among recent Republican presidential nominees only Reagan pushed this theme.

In some ways, this idea rekindles a thesis pushed by the American founding era. If we are a great example of freedom, prosperity and success at home, other nations will want to learn from our model — history shows that this is so.

As they do, the paradigms of freedom, justice, checks and balances and other constitutional ideals, and a sense of unity and liberty will spread.

Simultaneously, our own nation will — by focusing on the basics that truly work — increase our levels of freedom, prosperity, opportunity and wise leadership. We benefit, and so does the world.

Hart is adamant, and I agree with him, that without a refocus on the intangibles that make freedom work — the great ideals of true liberty and justice for all — America will not continue to lead the world because it won’t really deserve to lead.

This is a grand strategy indeed: Make the hard and vital changes to America that would make it truly the best it has ever been. The rest will naturally occur.

Of course, this is not a simple process, but neither is any grand strategy. Some will agree and disagree, as I do, with certain specifics in Hart’s ideas, but as a grand strategy this one has real merit.

“Atlanticism”

A fifth, albeit informal, possible grand strategy seems to be gaining momentum in the Obama Administration. Such a strategy might be called the Atlantic strategy, because it entails making the United States more like the nations of the European Union.

Unlike NATO, which was built on the idea of American leadership with the U.S. and its allies guiding the world, the Atlantic strategy assumes that the parliamentary social-democracy system of Western Europe, especially France and Germany, is the model the United States and other allies of the EU should adopt.

In this view, our courts should build a common body of precedent with Europe and Canada, the focus should be on human rights rather than inalienable rights, and our constitution and institutions should evolve to be less rigidly separated, checked and balanced and more and more like the nations of Europe.

On economic matters, the government would abandon a free enterprise posture and become much more involved in regulating, running and owning businesses. Washington would adopt and run a nationwide industrial policy with the government in charge.

This would allow, the argument goes, the nations of Europe and North America to become more alike and increasingly cooperative.

Eventually, many elites hope, supra-national organizations might even take away some of the more “troubling” sovereign powers of individual nations.

Understandably, few politicians have come right out and suggested this direction. It would certainly cause a firestorm of political backlash.

Many Americans (myself included) would be strongly against this. But the policy and direction of the Obama Administration is definitely in line with such a course.

President Obama’s position on many issues — from health care and national security, the bailouts and stimulus, to financial and environmental policy — has toed this European line. At times it has seemed almost purposely designed to impress European sensibilities.

And, in terms of popularity, it has worked in Europe and much of the world. Indeed, this move toward Europeanism has been the inclination and open objective of many American elites for quite some time.

Unfortunately, in an economy desperately in need of innovation, initiative, leadership among the citizenry, and a burgeoning entrepreneurial spirit (since these are the things which promote real and lasting freedom and prosperity), this “Atlantic” grand strategy seems destined, if adopted, to cause a significant American decline.

Finally, the great international-legal thinker Philip Bobbitt has suggested that the future of nations will likely de-emphasize national governments and put more focus on smaller, and possibly even virtual, economically-oriented governments that replace the traditional nation state.

If this does occur, it will not likely be a grand strategy for a long time. Bobbitt sees it growing in influence toward the 2050s, and indeed this may compete to be a future grand strategy shift in a later generation.

Conclusion

More immediately, in the years just ahead the United States will adopt a new Grand Strategy.

The old model of Internationalism, with the U.S. fighting to become and then acting as the world’s sole superpower, supported by its group of allies, is past.

Europe has moved on, and the U.S. and Europe have in many ways moved apart. Simultaneously, a number of places have become growing competitors to U.S. economic dominance, including China, the EU, Canada, Brazil, India, Japan, and others. (We should be carefully studying and considering the grand strategy of these places — perhaps especially China.)

To top off the challenges to Internationalism, the American economy is struggling and the individual states and many businesses are barely hanging on.

If the U.S. is to maintain its prosperity, it must adopt a powerful new grand strategy and then pursue it effectively and courageously. And if it is to maintain and even regain its freedoms, it must simultaneously adopt a good grand strategy and the right one.

I am not at all convinced that any of these five options, or anything else I’ve read on the topic, are the entire answer. I do believe that Hart’s strategy must be part of it.

In any case, it is time for statesmen (including the regular citizen-statesmen of our society) to begin to discover, present and promote the pros and cons of proposed and other possible grand strategies for the 21st Century.

If the patterns of history hold, we have less than 20 years to get the right ideas into the debate and influence the huge choice ahead.

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

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 : Constitution &Current Events &Featured &Foreign Affairs &Government &History &Politics &Statesmanship

Why Societies Decline

November 2nd, 2010 // 2:00 am @

Edward Gibbon’s The History of the Decline and Fall of the Roman Empire is often cited by people trying to see where America is on the long path of her place in history.

Certainly the detail of Gibbon’s work is full of specifics and nuance. But another work may be even more helpful.

Although it is more general in treatment, Arnold Toynbee’s great A Study of History covers many civilizations through history as he tries to understand the overall patterns and principles of societal successes and failures.

Neither Will Durant’s The Story of Civilization nor Paul Kennedy’s research on the rise and fall of great powers gets to the crux of things as well as Toynbee.

Why Societies Grow and Succeed

Toynbee shows that through history, certain things have helped civilizations grow and succeed, while other things haven’t had such an impact.

For example, it is neither a society’s institutions nor an economic division of labor that are responsible for success (as some historians have suggested).

Even societies that don’t grow or succeed have their institutions and divisions of labor. Nor do race or environment cause success or failure, as some have erroneously argued. Neither are religion and beliefs the cause (more on this later).

The one thing all great civilizations in history have in common, the thing which has spurred them to greatness, is adversity.

Indeed, the challenges of the world are necessary, historically, for any people to become advanced.

Sometimes such challenges spring from environment, but in such cases it is the difficulty of the environment rather than its ease which incentivizes progress.

Likewise, religions which teach of a great battle between good and evil and elicit individual involvement in this battle serve as pacers of accomplishment.

Adversity may include the stimuli of hard countries, frontier, outside aggression, external pressures, and of weaknesses or failures. And, according to Toynbee, “the greater the challenge, the greater the stimulus.”

As long as adversity doesn’t actually destroy or cause a society to burn out, it is the major spur to growth, progress and success.

Three other things can cause a civilization to slow and eventually fail.

  1. First, strong slave, caste or class systems ineffectively harvest the leadership/creativity pool and lead to failure.
  2. Second, little success occurs where significant specialization creates a mass of focused workers and the managers of society are political and/or financial experts.
  3. Third, a major challenge or crisis just as a people is becoming powerful can at times be insuperable.

This third eventuality, however, can also be the catalyst of much greater success, wealth, growth and power.

For example, in U.S. history, the Civil War had the potential to end the American experiment or solidify the U.S. as a major world influence.

Clearly the latter occurred, positioning the New World as the greatest global power less than a century later.

Becoming Powerful

In short, societies become powerful when they avoid caste and too much specialization, and overcome the various challenges they face.

Peoples who do these things grow, and growth means that formerly disparate individuals, families and tribes become a self-determining group.

“[S]elf-determination means self-articulation,” for Toynbee, meaning that the people in a society share a common understanding of the past, unity against current challenges, and a vision of the future.

Moreover, they reform or establish their institutions to achieve the shared goals.

During the growth phase, societies go through various periods of “withdrawal and return,” sometimes focusing on themselves (like America’s isolationist periods of after the War of 1812 and World War I), and other times emphasizing major involvement with other nations (such as U.S. expansionary eras in the 1830s-40s and after World War II.)

During this long period of facing and overcoming challenges, sometimes turning inward and other times seeking broader interactions, the people grow, gain in power, and grow weary of the continual challenges.

A desire for utopia arises, and part of the shared societal vision for the future is a yearning
for a time of lasting peace, prosperity, kindness and ease.

Toynbee calls this the Second Coming motif.

Over time, a growing nation attempts to adopt many of the idealistic values of the utopian motif, and the society begins to see itself as a Great Society.

Eventually, it sees itself as the Great Society, and it starts to attempt to impose its views and models on the rest of the world.

The upside of this is that the society increasingly attempts to improve itself, adopting many positive practices and customs and serving more and more elements of society.

The downside is that during this phase people become arrogant.

If the first step of decline is arrogance, the second is “a time of troubles” where the actions of society and its institutions too often fall short of the people’s lofty ideals.

For example, consider the era when Americans saw themselves as the land of the free, the best place in the world — but they were besieged with problems like youth revolution, Vietnam, the struggles of minorities and women, Watergate and other political corruptions, and so on.

A third major step toward decline occurs when the “…creative minority degenerates into a dominant minority which attempts to retain by force a position that it has ceased to merit…”

Nurturing the Creative Minority

Societies achieve all the steps of self-determination, growth and power through a partnership of the masses and the “creative minority” — the group of leaders who envision, articulate and guide the civilization to progress and success.

In American history, for example, the creative minority included the American founders and framers, the educated class through most of the 19th century and the wealthy classes in much of the 20th century.

They are Jefferson’s “natural aristocracy.”

In times of societal growth, the creative class leads, overcomes challenges, builds institutions and
wealth, and helps pass on core values and ideals to the rising generations.

It succeeds because it is fundamentally creative, entrepreneurial, enterprising and innovative. It leads, and the masses partner with its creativity and help the nation grow.

Unfortunately, when arrogance and attachment to institutionalism set in, this leadership minority stops building through creativity and begins trying to maintain its status and dominance.

Solutions are less important than votes, and staying in power trumps overcoming our challenges.

Today this group is what Arthur Brooks has called the 30 percent elite class that rules the 70 percent in our nation.

Diagnosing the Decline

At this point in decline, the masses divide themselves into two groups: 1) those who don’t want anything to change, who want everything to go back to how it was in their youth, and 2) those who loudly and sometimes violently demand change and different leaders.

Toynbee calls this period “…the failure of administration and the ruin of the middle class.”

A next step comes when the people, masses and leaders alike, begin to “…ascribe their own failure to forces that are beyond their control.” This comforting (sort of) thought turns out to be false, but the people usually stick with it and accelerate the decline.

Despite the widespread feeling of despair a society feels at this point, Toynbee goes to great lengths to show, using numerous historical examples, that decline is not caused by Acts of God, environmental or natural disasters, failures of business or technology or even government, nor from foreign attack or dangers.

Stagnation

Decline is not a homicide, but always suicide from within the society itself, and it has two main causes.

First, the creative minority that leads the economy and government builds creative institutions which eventually become too big and unwieldy to achieve their original purposes.

Instead, they focus on bureaucratic survival and budgetary growth instead of their initial mission.

In this environment, leaders become so stifled by attachments to institutional policy, methods and personnel that they stop making effective, efficient, innovative or commonsensical decisions.

Toynbee:

“Indeed, the party that has distinguished itself in dealing with one challenge is apt to fail conspicuously in attempting to deal with the next.”

He says that leaders fail when they start to depend on the successes of past institutions and techniques. They stop being leaders and start just trying to keep their power.

As a result, problems remain unsolved even while new challenges continue to pile on.

Second, as a result of the first problem, the masses lose faith in the leadership minority and refuse to support them. The elites respond by trying even harder to maintain their power, and nearly all the energy is spent on being dominant rather than on leadership.

Of course, in this environment, the problems get worse and worse.

The next step is for the power minority to attempt to justify its own leadership existence by engaging multiple military conflicts abroad.

Since it has much greater power in military force than it does to solve its own internal challenges, the dominant minority (whatever political party it represents) energetically engages (and escalates) its international conflicts.

As the society becomes more militaristic, the government naturally begins to turn a wary eye toward its own citizens.

Internal freedom decreases, and the split increases between the dominant minority, the non-dominant minorities who wish they were in power, the masses who want to quietly leave things to the experts, and the masses who want to vocally and forcefully cause things to change.

If all this sounds familiar, remember that Toynbee outlined this scenario in the mid 1940s. It is not prophecy, scenario planning, or simply a summary of current events.

This outline is based on the patterns of history, and as Santayana famously said, if we don’t know this history we are bound to repeat it.

Six Choices For Citizens

The good news is that Toynbee’s book is widely available. We only need a citizenry that will read it, ponder, consider what does or doesn’t apply to our situation, and take appropriate action.

I don’t agree with everything in Toynbee, but there is much for our generation to learn. Specifically, Toynbee tells us that we must make six major choices if we want to turn our current challenges into a great future rather than a declining society.

Note that these are choices for the citizens—the regular people—not just for those in power.

These choices are brilliant. They really do offer a chance for us to turn our struggles into a solid foundation for a free, prosperous and happy America.

I could outline these six choices, share my views on them, and discuss how I think they apply to our world today.

Unfortunately, such commentary would probably be just one more opinion.

Next Steps

What we really need in our day is a citizenry which reads the originals, thinks about them, and applies them.

We need a new creative minority that engages wise study, deep thinking, innovation, initiative and creativity.

I am anxious to discuss the potential in Toynbee’s commentary with others who have also read the original.

His six choices are found in chapter 19, and in chapter 20 he shares several warnings that are relevant and vital in our day. The title of his great book is A Study of History. I hope you will read it.

Toynbee’s six choices offer real solutions to current challenges, and I hope that more and more regular citizens will read Toynbee and other great classics and apply their ideas to modern concerns.

Successful societies progress from strong foundations to challenging growth, and then they face a period of decline. They can come out of this decline—or not—depending on the choices of the citizens.

Note that the traditional leaders of society always stop really leading at some point during decline, and that it is then up to the citizens to restart the nation toward success.

I firmly believe we are that point.

If we, as regular citizens, choose wisely on all six decisions, or even most of them, we will help build a more free and prosperous future.

Otherwise, we are following all the historical patterns of serious national decline.

But, as Toynbee put it:

“The divine spark of creative power is still alive in us, and, if we have the grace to kindle it into flames, then the stars in their courses cannot defeat our efforts to attain the goal of human endeavor.”

The poet Shelley wrote:

The World’s great age begins anew,
The golden years return,
The Earth doth like a snake renew,

Her winter weeds outworn:
Heaven smiles, and faiths and empires gleam
Like wrecks of a dissolving dream…

To make another great and gleaming age, we need to make six important choices.

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

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 &Featured &Foreign Affairs &Generations &Government &History &Leadership &Liberty

The Reality Behind the 2010 Election: It’s the Economy

October 29th, 2010 // 4:00 am @

The economy is struggling, and it is driving the election. As so many have said since the Clinton campaign made it popular in the 1990s, “It’s the Economy, Stupid!”

And many Americans believe the economy will continue to decline. If it does, the Obama Administration has very few tools to respond.

The White House has based its entire economic policy on an ideological belief in government spending and intervention, but further economic downturn will require it to take serious action.

What can it do that it hasn’t already tried? How much more can it spend? And at what point will it accept that such spending isn’t delivering fixes to unemployment and the economy as promised?

If the government increases spending, promotes more stimulus, raises taxes or increases regulations (or all of the above — which is what it has done so far), it will run into major difficulty.

So far none of these have fixed the economy. The nation now ranks Democratic leaders at their lowest rating ever compared to Republicans (42 percent to 52 percent).

And the major issues fueling dislike of the Obama agenda are unemployment (now 9.6 percent), the healthcare law and other increased government regulation, and massive government spending.

Some economists, like Paul Krugman, say the problem is that the stimulus should have been much bigger in the first place — since now there is very little support for more government spending.

The White House seems to agree, and it is preparing to raise taxes on big business. The problem with this strategy is that very few small businesses have a lot of extra cash right now. Big business, in contrast, has a lot more extra cash than the whole of government stimulus.

Unfortunately, with the Obama Administration promising to end tax cuts to big business, these companies are unlikely to hire or spend their cash on hand. And if President Obama does raise taxes on big business, they are likely to simply hold their cash or spend it in other countries.

A lot of corporations are seriously considering moving more of their operations abroad to find more favorable environments for profit. Many have already made this move, taking jobs and money with them.

Some countries are aggressively advertising their low tax rates to lure international investors. For example, a full-page ad in The Economist reads:

“Fact: the Gulf’s lowest taxes are in Bahrain. As are the region’s lowest living and operation costs. Which leaves more of the cake for you and your business.”

A lot of nations are using similar campaigns to lure investment, while the U.S. is actively adopting policies which drive capital away.

Why would businesses that can afford to move stay in the U.S. to face more White House attacks and increasing taxes and regulations?

This not only won’t help our economy. It will increase unemployment, make credit harder to obtain for small businesses, and convince consumers to buy less. In short, it will significantly hurt the economy.

The Obama plan claims to help small business, but in fact its proposed policies will do the opposite. One Harvard economist points out that our debt load is now even worse than that of Greece, which has just experienced major economic collapse and is being bailed out by international banks.

Open For Business?

The impact on the elections is obvious. If a lot of Republicans win, they will have more influence to argue for more business-friendly policies. But there is no guarantee they will do so.

After all, the Bush Administration significantly out-spent the Clinton Administration before it. No matter what happens in the election, the Obama team needs to take a different route if they want to reboot the economy.

Two years into Ronald Reagan’s presidency, the economy was struggling and unemployment was above 10 percent. Reagan pushed to cut taxes, reduce government spending, and, perhaps most importantly, sent out the message — over and over — that government needed to be reduced and that private business was the hope of the economy.

In retrospect, spending actually increased under Reagan, but his consistent message of promoting business, support for business growth and free enterprise, and the need to cut government and spending made business feel safe.

He spoke optimistically of business on all levels, and lauded the opportunities provided by free enterprise and free markets.

The result? Businesses hired and entrepreneurs went to work. Commerce soared. Growth quickly soared to 8 percent (the Obama “recovery” was around 1 percent) and unemployment rates came down. The 1980s became an era of economic boom, which grew into the roaring 1990s.

Too often the opposite message is coming from Washington. The White House repeats its “unfriendly to business” message over and over, calling businessmen “fat cats” and telling young people to work for non-profits and not go into business.

It constantly promotes increased government spending and ever-expanded regulations which drastically increase the cost to start and build businesses. It has publicly attacked the Chamber of Commerce, the ultimate small-business advocate, and in general it has sounded angry and dangerous to business.

Now, in the name of “helping small business,” it is increasing taxes on big business and people who succeed in small business — many of those above the $200,000-$250,000 threshold are small entrepreneurs.

And, as I said above, many big businesses which hold a lot of cash are making plans to take it abroad. These realities are a serious problem.

Americans now believe Republicans (49 percent) “would do a better job of dealing with the economy than Democrats (38 percent).” But what exactly is the Republican plan? It is unclear.

Americans seem to believe that at least Republicans will stop increasing taxes and regulations on business, and perhaps be a lot more friendly and welcoming to business.

Whom Do Voters Support?

Perhaps the most significant reality is that Democrats and the Obama Administration now have a 60 percent disapproval rating among independents.

Of course a lot of Republicans support Republican politicians and a lot of Democrats support Democrats. But President Obama was swept into office by independents, and now most of them no longer support his policies.

Independents are mostly for fiscal responsibility, lower taxes and lower levels than the current government intervention in the economy. Indeed, many of them supported Candidate Obama because they disliked the Bush Administration’s high-spending, over-regulating policies.

It seemed to independents that Candidate Obama promised new leadership and a new direction for Washington. Many independents have been shocked and dismayed by the Obama Administration’s move to the left. But they could have supported this surprise if there wasn’t such a lack of new-era leadership.

For example, as an independent, I expected President Obama to be liberal. I closely read The Audacity of Hope (affiliate link) before the election and I was clear that he would govern from the left.

But I also thought he would bring a new brand of leadership — a fresh, charismatic, Generation-X-style emphasis on American growth and vibrancy rather than old-line Washington politics.

Unfortunately for all Americans (left, right and independent), that did not occur.

Many independents feel abandoned by President Obama less for his liberalism than for his return to “Washington politics as usual.” This shift occurred within days of inauguration, and his popularity among independents has consistently fallen ever since.

We live in an era where the key to winning elections is to combine support from your base (liberal or conservative) with the support of independents.

This is true nationally and in most locales as well. For Democrats, who will get the bulk of Democratic votes no matter what, the goal right now should be to bring in independents by pushing through many tax breaks and finding ways to deregulate business requirements.

When asked who they will vote for in the 2010 Congressional election, 62 percent of registered independents said they support Republicans; 30 percent plan to vote Democrats.

This is a huge split in American politics, where voting differences are usually 1-3 percentage points and a 6 percent split is a landslide.

As a result, many current Democratic candidates are frequently using the phrase “I’m independent.” As the election season kicked off right after Labor Day, the Obama Administration changed its message —apparently to attract independent voters.

President Obama said in his speech on September 8th that it is American business which drives the economy, and Timothy Geitner said the same day that American businesses are very innovative and able.

This change is a good move for the administration, but President Obama still managed to include disparaging remarks about privatization and Wall Street.

Despite the fact that there may be truth to what he says, it is the tone of anti-business that reverberates. He may get past this bias in the weeks and months ahead, but will it last after the election?

From an independent perspective, it doesn’t seem like it.

Business really does drive the economy, and we need to genuinely embrace and support this.

Independents are tired of the constant attacking between parties. Instead of Republicans attacking President Obama and the White House attacking Republicans, why can’t either just get serious about enacting policies that actually help small business?

It’s the Economy!

Our leaders must find ways to significantly help business.

Proposed tax cuts for small business, payroll tax holidays, and not taxing research and development are good starts with bipartisan support. The Obama Administration deserves praise for these proposals. But a lot more is needed.

If the government is going to spend money regardless of what the voters want, the current push to spend it on infrastructure is probably the best plan.

Still, spending $50 billion of taxpayer money is quite an expense. And nearly all infrastructure contracts will go to big firms, further excluding and in places even hurting many small businesses.

Unless private business is convinced to rebuild the economy, one business at a time, government spending will just make the problem worse.

Harvard economist Niall Ferguson responded to President Obama’s new plan by pointing out that the $50 billion of infrastructure expenditures will do little or nothing to boost the economy since the plan is built on faulty economic reasoning that is good for politics but bad for the economy.

In contrast, Ferguson argues, we should be studying how Reagan and Thatcher successfully battled and overcame major recession in both the U.S. and Britain in the 1980s. Even experts from left agree that the proposed Obama plan won’t do much to help the economy.

President Obama’s speech included numerous jabs against Republicans, which many independents agree with. But it didn’t include much that could really help the economy.

This has many independents frustrated. It feels too much like more politics, not better leadership.

For example, the proposal to put freezes on non-security spending is a good idea, but it rang hollow, sounding more like a political debating point than something the president really cares about.

If he gave it the same support as health care, and kept pushing it with tenacity and refusals to give up on the idea, many independents would be impressed.

Instead, it seemed to come across like the right thing to say in this election season, but prone to be ignored in favor of big government spending after the election.

If that isn’t true, if the Obama Administration really does follow through on this proposed freeze on the non-essentials, many independents will swing back to supporting President Obama.

But I think that most independents will wait until after the election to see if this happens.

The president’s speech was excellent in many ways, and independents should be glad that he is now saying some of the right things. It felt like the return of Candidate Obama.

But therein is the problem. Is it just campaign rhetoric? The contrast between Obama’s campaign persona and his Head Democrat persona is so dazzling that it’s more challenging than usual to hope that Mr. President will lead out.

And why did he say a lot of the right things about fiscal responsibility but only get passionate when he was criticizing Republicans or talking about increased government spending?

It’s the Economy, Really!

The Democratic narrative seems to be that without the stimulus the recession would have been much worse.

But many independents don’t buy it. They didn’t like many of President Bush’s policies, but they are just as frustrated with the current administration’s strategies.

They believe the stimulus was a flop and healthcare and other massive regulations have seriously hurt the economy. They blame both Obama and Bush for the current economic mess.

But since Bush is out of the discussion, their frustration is pointed at President Obama.

American independents aren’t the only ones who feel that the Obama Administration’s stimulus and massive spending/regulating strategy has worsened the economy.

Some international analysts, for example, say: “[The stimulus] has not worked. The whole thing has failed. And that is why America, of the big economies, is the one that is now teetering on the brink.”

Some say, “I think in Europe it’s very clear the direction the Europeans are going down, which is to basically start bringing public debts and deficits under control. Obama is still worried about the polls….Personally, I think the best thing they could do is probably just sit on their hands in the U.S. …”

If the plan is to spend more, tax more and increase regulations, then I agree — let the politicians sit on their hands and do nothing!

But what if, instead, they cut taxes, deregulated small business, changed the healthcare law to incentivize business investment, and extended an olive branch of friendship and thanks (yes, genuine gratitude) to entrepreneurs and business for their vital contributions to our prosperity?

Doing nothing, as good as it may sound to Tea Partiers and some independents, is not enough. Washington needs to reverse the bad-for-business policies accumulated since 1987 — or at least during the Bush/Obama growth of anti-business policy since 2001.

If this sounds impossible, we may be in for a very long period of economic struggles.

In Conclusion: It’s the Economy!

The future of the economy depends on the willingness of small business to take risks and the willingness of big business to hire, spend and invest.

Until our national leaders are willing to cut government spending, lower taxes, reduce government interventions in almost every sector of business, and show more genuine friendliness to business, our economic problems will continue.

Whatever the results of the 2010 election, Washington has got to make friends with business. We simply must make those who spend their lives in business feel safe and excited about building, hiring, investing, growing and spending. Otherwise, deepening economic troubles are ahead.

We desperately need real leadership in Washington, leadership which will actually incentivize, promote and reboot the economy.

The best-case scenario would be for the Obama Administration to lead out in this direction. After all, they’ll be in the White House for at least the next two years.

This pro-business outline (cut taxes, significantly reduce regulation on business, get government spending under control, and make friends with business) should be the guiding principle to every voter in every election across the nation this year.

We need to pay little or no attention to political party and instead elect leaders who will help kick-start, encourage, and stimulate the economy.

This is a true mandate, and our national future depends on it.

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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 : Business &Current Events &Economics &Government &Prosperity

O Canada: Lessons From Our Northern Neighbor

October 28th, 2010 // 4:00 am @

Two words that haven’t shown up together very much since the 2008 economic meltdown are “austerity” and “Canada.”

That’s quite an accomplishment for our neighbor to the North. Austerity has been paired with Greece, Portugal, Spain, Great Britain and France in just the past 18 months.

Austerity means having your economy controlled and run by international regulators, and right now the idea of austerity for the United States is growing.

Not only is the federal government in financial trouble, but so are many of the individual states. In addition to struggles in 2008, 2009 and 2010, 31 states project major budgetary shortfalls in 2011.

Prospects are getting worse in many states, rather than improving.

Unemployment numbers are knocking on double digits (which is to say that in some places they already exceed 10 percent), and the U.S. deficit and debt promise to be major issues in the 2010 election — to say nothing of their impact on America’s future for years and perhaps decades to come.

Canada’s Example

But Canada faces a much smaller challenge.

Ironically, for decades U.S. conservatives have pointed to Canada’s health care system as the example of what not to do — often referring to it as a failed icon of “socialized medicine.”

Many liberals have idealized the nations of Western Europe, looking past Canada and preferring Britain, France and Germany as examples.

The Great Recession has changed all this — mainly because Canada avoided the worst of the global financial meltdown.

As Ken Kurson put it:

“When the worldwide system collapsed…Canada didn’t have a single bank poisoned by toxic assets and not a penny of public money was used to bail out its financial institutions.”

Of course, many businesses and individuals suffered, but it would have been much worse if Canadian banks followed more European-U.S. policies.

Israel, India and China all fared pretty well in the meltdown — as did Canada — while the U.S. and Britain were hit very hard. Canada’s traditional liberalism and conservatism helped shield it from the worse financial collapse other nations faced.

Modern liberalism and conservatism are mostly focused on winning office and promoting partisan agendas, whereas the traditional strains of both conservatism and liberalism are more interested in ideas, values and ideals.

Traditional liberals in Canada used government to put caps and controls on the nation’s financial institutions, keeping them from simultaneously posing as both lending institutions and speculators in the Japanese style that most European and U.S. banks have adopted.

And traditional conservatism kept banks and business from leveraging their resources at the high levels which brought down so many institutions in other nations.

One can argue with either the underlying Canadian liberalism or conservatism, but the results were a traditional kind of system that is too often seen in many advanced (and broke) nations as outmoded, quaint and passé.

For example, most U.S. mortgages were intended for sale while nearly all mortgages in Canada are still held by the banks where they originated.

In other words, Canadian bankers only made loans to people they intended to have as long-term customers; the happy result is that when the housing bubble burst such banks remained solvent.

Of course, all nations were hurt by the global economic downturn. Certainly, Canada, Israel, and other nations have their share of problems, but simple financial frugality and common sense are never old-fashioned.

What We Can Learn

There are at least two important lessons America should learn from this.

First, the traditional models of either liberalism or conservatism seem better for America than the modern, partisan styles of liberals and conservatives.

The commonsensical use of government combined with a free and flourishing private sector is vital to the future of freedom and prosperity. And the ideal is found in earlier American history rather than modern Canada, India or China.

Still, when China incentives free enterprise more effectively than the United States, the results are predictable. Freedom works, and when America ignores its own legacy it loses its strength and economic resiliency.

Second, technology doesn’t trump wisdom.

We live in a world where checks can be deposited through cell phone cameras, current events are taught better on QRANK than the nightly news, and mobile phone applications like Avoidr “allow Foursquare users to select the ‘friends’ they want to avoid” (and their phones keep them abreast of where their friends are at any given moment).

Amazon sells more books on Kindle than in hardback, and online media is causing many newspapers and now book publishers to disappear.

On a macro level, nanotechnology makes surveillance, theoretically, ubiquitous — it is becoming ever-present, everywhere, always.

As Graeme Wood wrote in The Atlantic:

“If the past several years in the shadow of a war against terrorism have taught us anything, it is that, once available, surveillance technologies rarely go unused, or un-abused.”

And governments are pursuing increasingly deeper rings of secrecy even though technology makes transparency possible.

All of these are ultimately the tools of human values and decisions. Indeed, the more powerful the technology, the greater the need for wisdom, limits, checks and balances.

It matters whether we learn these lessons or not. When the global economy broke down in 2008-2009, many businesses, industries and even states were bailed out by the federal government.

But the next round of major decline could easily force Washington to follow the majority of non-industrialized nations and even European countries like Greece, Spain, Portugal, and France in turning to international lenders for bailouts.

If this comes before 2012 or even 2020, as it certainly could, we will have to borrow from those who have money to lend — meaning banks in nations such as China, Israel or Canada.

Of all the possible candidates, we will most likely go hat in hand to Canada.

Revisionist History

The other option is simply to adopt fiscal responsibility on our own. A little common sense — both the conservative and liberal kinds — can go a long way.

Unfortunately, the opposite seems to be gaining momentum. After the end of the Cold War in 1989, the common wisdom seemed to be that capitalistic nations had overcome their communistic rivals.

But for many, the Great Recession has revised this conclusion. Now the theme seems to be that Soviet-style communism and Americanized capitalism are just the age-old battle between power and greed.

The emerging winner appears to be government-run industry, what The Economist called “Leviathan Inc.: The State Goes Back Into Business.” Indeed, these are the models followed by nations like China, Israel, Brazil, India and Canada that fared better than most in the recession.

Some leaders in Washington are taking note:

“[F]rom Berlin to Brussels, demand for industrial policy is back. Japan’s new government is responding to what it sees as the increasingly aggressive policies of foreign competitors by deepening the links between business and the state.

In America Barack Obama, the effective owner of General Motors and a chunk of Wall Street, has turned his back on the laissez-faire approach of the past: a strategic-industries initiative is under way.”

Unfortunately, the politicians are ignoring the rest of this report:

“Yet the overwhelming reason for China’s miracle is that the state released its stifling grip and opened the country to private enterprise and to the world…

India’s wildly successful software and business-process-outsourcing industries blossomed not because of help from the government, but precisely because its [government] did not understand these nascent fields well enough to choke them off…

In the rich world, meanwhile, the record shows, again and again, that industrial policy doesn’t work.”

The Real Need

I’ll take traditional liberalism or conservatism – either one – over the current modern Democratic or Republican models.

Commonsensical uses of government spurring a free economy, or a truly free-enterprise system with a limited government effectively taking care of the basics—either would be much better than the current reality.

Canada, Greece, Israel, China, Britain, France, Portugal, Spain, Germany, many other nations, and the United States — all could use a free-enterprise upgrade.

A constitutional, free enterprising, federal democratic republic which believes in freedom and applies its principles sounds like a utopian dream.

Or, it could just be a nation run by a truly educated, wise and active citizenry.

Without citizens who are effective overseers of the government, freedom doesn’t last anywhere. Because of this, even those nations which were less hurt by the Great Recession face difficult futures.

It remains to be seen what nation (or will it be a tribe, or something else?) in the world will become the new standard of freedom.

Such leadership will naturally flow to the society whose common citizens become a new generation of great citizens—like the American founding generations.

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

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 : Current Events &Economics &Foreign Affairs &Government &Leadership &Politics &Technology

How to Fix the Government

October 27th, 2010 // 2:06 pm @

In a recent article I asked “Is government broken??”

The simple answer is yes. Few people have confidence anymore in the likelihood of either political party fixing our nation’s problems. Nor does even a majority of our society believe that any of our major institutions–Congress, the White House, the Supreme Court–can really fix things. We’ve lost confidence in public leaders on all sides.

But the fundamental structural problem behind many of our problems is that America today is too big to be effectively governed by Washington.

One result of this is our inability to face and overcome our greatest challenges in timely and efficient ways. Ironically, this is likely the first thing the founding generation would notice about our government.

But today, a serious discussion about size is either entirely absent from the debate or, if brought up on occasion, quickly discounted as a quaint historical footnote.

Freedom requires certain structures and ingredients, just like any other result that can envisioned, planned and implemented.

The American founders understood freedom at levels rarely matched in all of history before or since: We should learn from the founding tutorials, and neither ignore nor discount their wisdom.

While new challenges often require new solutions, it is also true that little progress occurs without building on the successes of the past.

And even more importantly, the fundamental principles that govern freedom do not change.

Repairing Our Faults

Every nation faces major challenges. And, just like in individual human lives, such challenges are recurring.

The great genius of any nation is not its strengths (which can be easily lost), resources (which can be misused in myriad ways), or traditions (which can be ignored, changed or simply forgotten).

The great genius of a society–if it can be said that it has genius–is in its ability to quickly and effectively overcome the challenges that inevitably arise.

Speaking of the source of America’s greatness in Democracy in America, Tocqueville said this:

“…not in being more enlightened than any other nation, but rather in her ability to repair her faults.”[i]

We are broken to the exact extent that attempts to fix our problems are generally bogged down, ineffective, weak, or, as in so many cases, actually worsen the problems. Using this standard, our government is broken indeed.

Granted, it could be worse, and we are all thankful for the successes that are achieved (and there are more than the critics usually admit).

But there are still far too many failures, and the sense that things are broken and getting worse is increasing among many Americans.

Of course, the situation is complex and no simple answers can account for all our challenges.

But when basic principles are ignored or rejected, and when the very foundations of success in free society are not applied, it is vital to fix the big things first.

The Basics of Freedom

Nothing is more relevant right now than the fact that America is too big to govern from Washington. This is the elephant in the room, no matter how much today’s politicians want to discount it.

The founders considered America too big to be governed by Washington in 1789! In fact, one of the major anti-federalist arguments against adopting the Constitution was this very point.

There were roughly 3 million Americans at that point, and the founders worried that this was too many for Congress, the White House and the Supreme Court to effectively lead.

With around 300 million citizens today, why do we seem to think that Washington should be able to fix all our major problems? What is it the founders understood about freedom and government that we don’t seem to grasp?

James Madison answered the questions of the anti-federalists who thought America was too big for a federal government by telling the American founding generation simply that the Federal government wouldn’t be governing them.[ii]

But I’m getting ahead of myself…

Let’s back up and understand the principle of governance as it relates to geographical and population sizes.

First, regarding geography, Madison said in Federalist 14 that democracies and republics have natural limits to how large a territory they can govern.

This is one reason, he argued, that the founders established the United States as a republic instead of a pure democracy.

The size of any democracy is limited to a territory small enough that all the citizens can easily assemble together and conduct the business of society in person.

In contrast, in a republic the people send their representatives. The citizens maintain small democracies in their local areas, where all adults participate, and they send elected representatives to assemble and do the business that cannot be handled at the local level.

Because of this, republics can be much larger than democracies.

In our day, given the advantages of modern transportation and communication technologies, a republic large in geographical boundaries is certainly viable and can still follow the principles of freedom.

Population, however, presents an altogether different challenge.

Regarding the ideal numerical size of a nation, the founders adopted Montesquieu’s view. Baron de Montesquieu was frequently quoted during the founding–in fact only the Bible was quoted more often.[iii]

And, indeed, Montesquieu was quoted more than any other source, including the Bible, at the Constitutional Convention of 1787.[iv]

In fact, it was Montesquieu who suggested the concepts of three branches of government, each separate and independent, and of checks and balances between each. He taught the founders the most important constitutional forms.

But there is a principle of freedom that is even more basic than three branches, separations of power, and checks and balances. Montesquieu wrote:

“If a republic is small, it is destroyed by a foreign force; if it is large, it is destroyed by internal vice.”[v]

By size here he is referring to population, and by internal vice he means not crime but rather corrupt political leaders, conflicting political parties, and a political system that is unable to overcome major challenges due to internal strife.

This concept is one of the most basic foundations of the American republic: Small republics are destroyed by foreign forces, while large republics are destroyed by internal political corruption.

In republics with only a few people, the population is neither collectively strong nor wealthy enough to protect itself from foreign aggression. And where the population is very numerous, there are more who will engage in corrupt practices.

At the same time, in a more populous nation, those who corruptly exert power and manipulate influence find it easier to hide their agendas from the regular citizens.

Constitution Writing 101

The American framers set out to establish a government that would overcome both of these problems.

They didn’t want to be destroyed by foreign forces, so they didn’t want a small republic. Neither did they want to be destroyed by internal vice, so they didn’t want a large republic.

What to do? The answer is perhaps the single most basic principle of structuring American freedom. They did what Montesquieu suggested:

“…it is very likely that ultimately men would have been obliged to live forever under the government of one alone [either weak small government or large corrupt government] if they had not devised a kind of constitution that has all the internal advantages of republican government [e.g. small, uncorrupt, free] and the external force of monarchy [strong, secure]. I speak of the federal republic.”[vi]

The founders thus set up two governments working together, a federal government and the state level of government. This is a basic principle of American history and is taught in nearly any elementary course on government.

Unfortunately, this is so basic that we have for the most part become arrogant about it. We have discounted and forgotten how central this is to freedom. We think of it (if at all) in elementary terms rather in the deep way discussed in Federalist Papers 10, 14, and 18 through 20.

Here’s the kicker, the thing which gets lost in our complex and modernized world, the vital key which holds a real answer for our modern challenges: The federal government was set up for one thing: to keep us from being destroyed by a foreign force. Period. And the states were set up to do pretty much everything else we needed government to do.

In fact, the major purpose of the states was to remain small enough and close enough to the people that their governments could not become internally corrupt.

To summarize: the primary role of the federal government is to keep us safe from foreign attacks and the primary role of the state level of government is to protect us from federal government encroachments on our lives.

When the federal government does more than this basic role, we are living in a large republic and the nature of government will always be corrupt, ineffective and dangerous to freedom.

When this happens, the most primary role of state government is to stop the federal government. No other duty of state government is nearly this important.

This is why our government is broken today–inefficient, gluttonous in spending, over-reaching in many facets of our lives, big, bloated, bureaucratic, divided by angrily opposed parties which block important progress, non-transparent, secretive, and unable to change seemingly regardless of who gets elected.

When challenges arise, solutions are weak, ineffective and costly. They often magnify rather than solve problems.

This all goes back to the most basic principles of freedom:

  • Rule One of freedom is that the people must be active, involved and wise overseers of all government.
  • Rule Two is that small nations are weak and easily destroyed by foreign aggression so they should combine into a federal republic that keeps them safe.
  • Rule Three is that large nations are destroyed by internal vice and political corruption, so any federal republic must be divided into smaller state-level republics which handle nearly all of the governance (except national security).
  • The Fourth, Fifth and Sixth Rules deal with three branches of government, separations of power, and checks and balances.

We have utterly forgotten rules one and three. And to a large extent, the federal government has become distracted from rule two by its many other areas of focus.

Twenty Specific Powers

Let me be clear, however, that the point is not that government isn’t needed.

The founding model is not at all anti-government. It strongly advocates a powerful, strong, well-funded, effective federal government whose almost sole purpose is national security. It also encourages powerful, strong, well-funded, effective state governments which take care of all the legitimate needs of society that are best accomplished by the government sector.

To all this, the principles of freedom add this warning: if the federal government ever becomes widely involved in much more than national security, it will create an inefficient, corrupt, unwieldy government and freedom will decrease.

Likewise if the state governments ever lose their strength and become mere appendages of the federal government.

If this sounds too extreme, remember that Montesquieu’s word was “destroy.” As he said, large republics are “destroyed by internal vice.”

At our peril do we assume that he was careless in his choice of words. And as Madison wrote, the solution to all this is for the federal government to be limited to only the specific, numbered powers clearly outlined in the Constitution.[vii]

These twenty powers are listed in Article I, and as long as the federal government remains limited in scope to these powers we will all be living under small (state) republics with a strong (national) defense.

This is exactly what the founders wanted, and it is the freest of all the options for government.

Some might argue that this all breaks down since the states today are much bigger in population than the entire nation at the time of the founding.

But this misses the point that there is more to the definitions of “small” and “large” than just numbers.

At the state levels, there are many more representatives per capita than at the federal level, to the point that nearly every citizen has easy access to a state representative.

Beyond that, if the scope of the federal government were limited to the twenty powers given by the Constitution — if it were indeed fundamentally dedicated to national security and little beyond that — then citizens would have limited need to contact their national representatives.

The number of needed and even desired contacts would shrink to the point that every citizen seeking direct access to his federal representative would usually be granted. And as the number of contacts with state representatives increased accordingly, the number of districts would naturally be augmented.

The people would be closer to all their representatives on all levels. This is the essence of what Montesquieu, Madison and the other founders called “small” government. This was Madison’s response to the worries of the anti-federalists.

At the same time, the focus on only the 20 constitutional powers at the federal level would increase the ability of federal officials to deal with truly national problems. This is the essence of “large” government.

The more mundane issues of society would be handled at the state and local levels, with increased numbers of representatives as required to effectively cover the needs (and increased connection to the people, as stated above).

The founders felt so strongly about this that when they outlined the Bill of Rights they wrote in the Tenth Amendment:

“The powers not delegated to the United States [federal government] by the Constitution, nor prohibited to it by the states, are reserved to the states respectively, or to the people.”

In short, government is broken because it isn’t following the Constitution. This shouldn’t be surprising to anyone.

Repairing Freedom

Some might feel that all this has been decided long ago, that we have moved beyond the era of original intent in applying the Constitution and that the federal government now does thousands of things beyond the twenty powers outlined in the Constitution.

Moreover, they will say, this is what the American people want.

I do not dispute any of this, but let’s all be clear that these very changes in our society are the root and main reason that our government is so often ineffective, unwieldy, expensive, intrusive and simultaneously impotent to solve the major problems of our time.

As long as government itself is broken, we can’t really expect it to fix the other problems in our world.

The amazing thing is how well it actually does! Given that the foundations are cracked, that we are living under a larger government than Montesquieu or Madison or Jefferson ever came close to predicting, it is surprising just how much good is accomplished in America every day–by private citizens and groups but also by government.

Dedicated, caring, wise and hard-working public servants in government, and from all political parties, deserve the same kind of praise that our society rightly gives to excellent teachers, firemen, peace officers, soldiers and other who sacrifice for the greater good.

Still, until we fix the foundations, we are unlikely to see an era of successful, efficient, effective and free government ahead.

Challenges will arise, grow and fester, and as more and more problems pile on without being fixed, the load on government and the cost to citizens will increase.

Happily, there are solutions, though they too often are found in dusty volumes long undervalued. When a new generation begins to study and apply these solutions and others like them, we will see a new era of freedom, prosperity and progress.

Specifically, how do we address the problem of being too big for central governance from Washington? We really only have two options.

The famous economist Thomas Malthus callously argued that when nations become too big the natural result is war or pandemic–which has the side effect of reducing the population. Unfortunately, this concept has proven true in a number of cases through history.

So has the old maxim that nations which govern inefficiently and ineffectively either collapse from within in or are conquered from without.

Our modern arrogance in thinking these things can’t happen to us is actually part of the package that causes nations to fall–this has happened repeatedly in history, from ancient Israel, Athens and Rome to most recently the Soviet Union.

Whenever a nation gets so big and powerful that it becomes convinced it cannot fall, that is the very time that its status begins to crumble. History is quite adamant on this point. Western examples include Egypt, Persia, Babylon, Athens, Carthage, Rome, Prussia, Spain, Portugal, and Britain, among others.

But there is another option.

While it is true that nearly all great powers have fallen, usually because of inner decay caused by being too big in the center, the American founders taught us another way.

By voluntarily returning power to the states, vesting in them Constitutional authority to handle most of the needs of society (while maintaining national defense at the federal level), we could revitalize American strength and freedom at the most basic levels.

Conclusion

When great sports teams begin to struggle, wise coaches and managers take the players back to mastering the basics. When the fundamentals are solid and sound, these teams win a lot and often regain their earlier status.

Americans today need a return to the basics.

The regular people need to be overseers of the government, not vice versa, and the federal and state governments need to return to their constitutional roles.

We can fix ourselves from within, by returning to the most basic principles upon which freedom is based, or we can wait for inner corruption or international aggression, or a combination of both, to run its course.

We will eventually be forced to get big government under control, and we can do it either by wise choices now or by suffering the loss of blood in our young men and women in the years ahead…

Sources:
[i] Tocqueville,Democracy in America, Volume 1, Chapter XIII
[ii] Federalist 14
[iii] Donald S. Lutz, “The Relative Influence of European Writers on Late Eighteenth-Century American Political Thought,” American Political Science Review, 1984. Cited in John Eidsmoe, Christianity and the Constitution
[iv] Ibid.
[v] Montesquieu,The Spirit of the Laws, Cambridge University Press, translated by Cohler, Miller and Stone, 1997 reprint, page 131
[vi] Ibid.
[vii] Federalist 14.

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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 : Citizenship &Constitution &Government &Liberty

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