Prosperity

The Amazing (Ironic/Tragic) Debate

November 19th, 2011 // 2:15 pm @ Oliver DeMille

There is a truly amazing debate happening right now in the United States. It would actually be comical if it weren’t so potentially tragic for America’s future. This debate is not any—or all—of the Republican Presidential Debates. Nor is it some formal debate taking place on television, the Internet or a university campus.

It is a cultural debate, a large-scale argument playing out in millions of discussions online, thousands of opinions and rants from the talking heads in the media, and – most dramatically – fought indirectly between the Tea Partiers and the Occupy Wall Street crowds.

Most of this debate is taking place in emotional and passionately charged ways, rather than in clear, concise intellectual dialog. Still, a quick look at the two intellectual arguments is instructive.

Some say that the divide between the rich and the rest is increasing each year. More to the point, the structural division between the upper classes and the other classes is becoming less porous and less elastic. Social mobility—which was once the American keynote—is steadily eroding.

A majority of Americans now feel that their children will have a lower standard of living than they did; many feel that the rising generation in China will have more opportunity than our American youth. The American Dream is over in this view, and things seem likely to get worse before they get better—if they ever get better.

I wrote about this reality a few years ago in my book The Coming Aristocracy, and it remains one of the most significant challenges of our time. It is presently a major catalyst of current trends and of our evolving future. Unless things change direction, an aristocracy is coming to America. Indeed, it is already almost entrenched.

In a typical debate, the opposing view would argue that such a divide is not occurring, or that it is a good thing for America – or even that it is a minor trend that will be offset by some larger reality. But this is no typical debate. In an interesting twist, all sides of the current amazing debate accept this truth—the divide between the rich and the rest is real, and it is a major challenge in our century.

The debate is about how to fix this problem.

One side of the debate wants government to solve the problems, the other side wants government to get out of the way so the people can resolve things. It’s More Government against More Free Enterprise.

The More Government side argues for higher taxes, more government relief, increased government spending, more government jobs programs, increased government training options, improved government education, and more regulations. It is summed up in the title of Thomas Frank’s recent article in Harpers: “More Government, Please!”

In contrast, the More Free Enterprise side promotes fewer government regulations, reduced or at least no hikes in taxation, lower corporate rates to boost America’s competitiveness in the world economy in the, decreased government spending, less government borrowing and printing of money, and smaller government.

This side wants the era of big government to truly, finally, be over,[i] or, at the very least, for us to realize that our government must stop shutting down or undermining the free enterprise incentives that are the basis of all historical prosperity and freedom.

The More Government side tries to convince the nation that the Free Enterprise side “Hates Government,” or “Hates the Poor.” Too many on the Free Enterprise side characterize the ideas of the More  Government side as “Hating Freedom” or “Hating Small Business.” Both of these characterizations are flawed.

Many who argue mainly for government solutions also feel deeply the need for government to be checked and balanced, while many who support answers mainly by private enterprise feel great pride and trust in the potential for good by our government and consider its success vital to society. Most people on both sides care about freedom and also want to help the underprivileged and struggling. Most people on both sides want government and business to be successful. Most people from both sides want the government to be fiscally responsible. They just have an honest disagreement about the best way to do these things.

Some want to label one side of the debate Democratic and the other Republican, but this simply isn’t the case. Government spending, government programs, and the regulatory load increased drastically—drastically!—under the Republican administrations of Eisenhower, Nixon, Ford, Bush and Bush and also under the Democratic leadership F. Roosevelt, Johnson, Carter, Clinton and Obama. Note that these things also increased under Truman, Kennedy and Reagan, but at least these three presidents made a loud and energetic case for proper limits on government. In short, both political parties have proven effective supporters of the More Government side of the debate.

The one big difference, the most fundamental divide, between the More Government and More Free Enterprise sides is this: one believes we need more government force right now, the other that we need more freedom and incentives right now.

For this reason, I am on the side of free enterprise.

The government has a vital role to play in our society. Without it, none of our freedoms will last. But government power must be wisely limited, and the best articulation of the right level of limits on our government is found in the U.S. Constitution. More to the point, the government today may or may not be too big, but its massive regulatory load and anti-business policies are clearly hurting the economy and fueling an increased class divide in society. They are keeping our economy down because they don’t incentive economic innovation or growth.

The reason I call this debate “amazing” is simple: It is both surprising and indeed shocking that anyone who has read history can believe that force is a more effective way to freedom than free incentives. One side of this debate seems committed to using government force to fix our economic problems, even though all through history free economies, minimal regulation and limited governments have consistently been the forerunners and partners of economic success and high economic mobility.

It is simply amazing that we still haven’t figured this out. Perhaps the most astonishing thing about this debate is that anyone still argues that more government force in our current model will spread more freedom, prosperity, or social mobility. There is no historical evidence for this, and overwhelming evidence of the opposite.

Freedom works. Why is anyone arguing that we give more support to government force? If the Republican Presidential Debates, and the ongoing responses from the White House, are about real solutions, they will be all about the government effectively incentivizing free enterprise. If the Tea Party and Occupy Wall Street events are about real solutions, they’ll promote ways to more effectively incentive free enterprise.

As long as government force is the dominant factor in our economy, things are going to get worse. The Bush-Obama economic environment we live in combines stifling regulations with massive government spending and uncertainty about what Washington will do next. This dis-incentivizes growth, hiring, and investment in the U.S.; meanwhile, business moves to foreign economies with better incentives.

Unemployment lingers above 9%, and the real number when we include all who are underemployed is pushing 20%. The mortgage bubble may not have reached its lowest collapse, and inflation or deflation appear imminent. In response, the White House now recommends more government spending, regulations and programs.

This is a truly amazing debate. The more the government regulates and spends, the worse the economy fares. As a result, the government seeks to spend more. And a lot of the American people think this is a good idea.

Many Americans were shocked into political activism by the Great Recession, where the average household lost 3.2% of its income.[ii] Since the Great Recession ended, during the so-called Recovery, the average household has lost an additional 6.7%.[iii] Are we simply scared into submission? Are we crying out to the government to fix things, because we are deeply terrified that nobody else will? Is that why so many people believe that government force is more likely to boost our economy than free enterprise?

The amazing question remains: Given all of history, how can anyone take the Force side of the current great debate?

Seriously?

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

He is the co-author of New York Times, Wall Street Journal and USA Today bestseller LeaderShift, and author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, and The Coming Aristocracy: Education & the Future of Freedom.

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

Category : Aristocracy &Blog &Current Events &Economics &Entrepreneurship &Generations &Government &Prosperity

19 Questions Answered in FreedomShift

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

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

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

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

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

He is the co-author of the New York Times, Wall Street Journal and USA Today bestseller LeaderShift, and author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, and The Coming Aristocracy: Education & the Future of Freedom.

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

Category : Aristocracy &Blog &Citizenship &Community &Culture &Current Events &Economics &Entrepreneurship &Featured &Government &Independents &Leadership &Liberty &Mini-Factories &Politics &Prosperity &Tribes

An Old Joke

July 13th, 2011 // 9:01 am @ Oliver DeMille

Just One Wish

A society without adequate entrepreneurship will see little, if any, progress.

Disney’s Aladdin & the Genie

The old Cold War-era joke is told of an American, a Frenchman, and a Russian, lost in the wilderness, who find a lamp and rub it.

Out comes a Genie.

He offers them each one wish, for a total of three.

The American pictures the large ranch owned by the richest people in the valley where he grew up, and wishes for a ranch ten times its size, with flowing streams and meadows full of horses and cattle.

His wish is granted and he is transported home to his new life.

The Frenchman pictures the farm and cattle of the largest estate from his home province, and pictures one just like it.

Again, his wish is granted.

Finally, the Russian pictures the land and herds of the rich family in the steppes where he grew up, and wishes that a drought kill the cattle, dry up the grass, and bankrupt the aristocratic family.

This play on old stereotypes isn’t really very funny, though it brings big laughs with audiences of producers.

They get it.

The Frenchman, thinking like an entrepreneur, wants the good things that life provides, and is willing to go to work to produce them.

The American, who thinks like an entrepreneur and an investor, is willing to go to work also, but wants to see his assets create more value.

The Frenchman wants value, the American plans for value, increased market share and perpetual growth.

In contrast, the stereotypical-punchline “Russian” in this parable can only think of one thing—getting even with those who seem to have more than him.

This is the same as Steve Farber’s lament about the sad state of our modern employee mentality—where “burn your boss” is a slogan of millions of workers who see their employer as the enemy.

Even Washington sometimes likes to join the blame game by pointing fingers at Wall Street, Main Street and everyone in business.

Initiative, vision, effective planning, the wise use of risk, quality execution—all are the contributions of entrepreneurs and investors.

Without them, any society will decline and fall.

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

He is the co-author of the New York Times, Wall Street Journal and USA Today bestseller LeaderShift, and author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, and The Coming Aristocracy: Education & the Future of Freedom.

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

Category : Blog &Business &Culture &Economics &Entrepreneurship &Mini-Factories &Producers &Prosperity

The American Caste System

July 5th, 2011 // 6:57 am @ Oliver DeMille

The American framers overcame domination by an elite upper class by establishing a new system where every person was treated equally before the law. This led to nearly two centuries of increasing freedoms for all social classes, both genders and all citizens—whatever their race, religion, health, etc.

During the Industrial Age this system changed in at least two major ways.

First, the U.S. commercial code was changed to put limits on who can invest in what. Rather than simply protecting all investors (rich or poor) against fraud or other criminal activity, in the name of “protecting the unsophisticated,” laws were passed that only allow the highest level of the middle class and the upper classes to invest in the investments with the highest returns.

This created a European-style model where only the rich own the most profitable companies and get richer while the middle and lower classes are stuck where they are.

Second, the schools at all levels were reformed to emphasize job training rather than quality leadership education. Today great leadership education is still the staple at many elite private schools, but the middle and lower classes are expected to forego the “luxury” of opportunity-affording, deep leadership education and instead just seek the more “practical” and “relevant” one-size-fits-all job training. This perpetuates the class system.

This is further exacerbated by the reality that public schools in middle class zip-codes typically perform much higher than lower-class neighborhood schools. Private elite schools train most of our future upper class and leaders, middle class public schools train our managerial class and most professionals, and lower-class public schools train our hourly wage workers. Notable exceptions notwithstanding, the rule still is what it is.

Government reinforces the class system by the way it runs public education, and big business supports it through the investment legal code. With these two biggest institutions in society promoting the class divide, lower and middle classes have limited power to change things.

The wooden stake that overcomes the vampire of an inelastic class system is entrepreneurial success. Becoming a producer and successfully creating new value in society helps the entrepreneur surpass the current class-system matrix and also weakens the overall caste system itself.

In short, if America is to turn the Information Age into an era of increased freedom and widespread economic opportunity, we need more producers.

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

He is the co-author of the New York Times, Wall Street Journal and USA Today bestseller LeaderShift, and author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, and The Coming Aristocracy: Education & the Future of Freedom.

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

Category : Aristocracy &Blog &Business &Culture &Economics &Entrepreneurship &Featured &Generations &Liberty &Mini-Factories &Mission &Producers &Prosperity

Property and Freedom

June 23rd, 2011 // 11:38 am @ Oliver DeMille

We can learn a lot about freedom by understanding how Marx wanted to establish communism. One of his ten planks of establishing communism was this:

1. Abolition of property in land and application of all rents of land to public purposes…

Take away property and you take away freedom. If a man or woman cannot own land, a house, his or her own things, freedom is gone.

Note that there is more than one way to abolish property and ownership. One is to make it illegal, to not allow ownership. This is extreme, of course.

But there are other ways that are less obvious.

For example, what if it is legal to own property but only those who can afford a license, taxes, filings and attorneys to implement these things can actually own land.

This is an “abolishment,” but it is of the right rather than the left. To the person who can’t own the house, the land, or the car, however, the reality is the same.

Another way to abolish land or house ownership is simply to establish a legal-economic system where the majority cannot afford such ownership without advanced education and/or the careers which require such education.

Another is to disallow immigration so that the poor of other nations have no change to come to  your nation and benefit from a system that allows ownership.

The left can abolish property ownership simply by taxing at rates that keep those with money from investing in real estate development and keep those with little money from seeking ownership.

There are many other ways to in effect abolish property ownership. Any of them hurt freedom.

Whatever your politics, it is important to evaluate each policy to ensure that you are not unknowingly supporting a Marxian reduction of freedom.

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

He is the co-author of the New York Times, Wall Street Journal and USA Today bestseller LeaderShift, and author of A Thomas Jefferson Education: Teaching a Generation of Leaders for the 21st Century, and The Coming Aristocracy: Education & the Future of Freedom.

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

Category : Blog &Culture &Economics &Family &Featured &Prosperity