*/WHAT MAKES ECONOMIES GROW?/*
The answer to this question has been clear since the days of the
little-known School of Salamanca in the sixteenth century. It was
popularized by Adam Smith in 1776. This was made even more clear by
Austrian School economists, beginning in the 1870s.
little-known School of Salamanca in the sixteenth century. It was
popularized by Adam Smith in 1776. This was made even more clear by
Austrian School economists, beginning in the 1870s.
What makes economies grow is this: (1) private ownership, (2)
future-orientation, (3) capital formation through thrift, (4)
technological innovation, (5) a system of profits and losses, (6) low
taxation, (7) free trade at every level, (8) the enforcement of
contracts, (9) honest money, (10) the reduction of envy. This list can
be boiled down into three phrases, all of which have been dominant in
the history of the United States.
future-orientation, (3) capital formation through thrift, (4)
technological innovation, (5) a system of profits and losses, (6) low
taxation, (7) free trade at every level, (8) the enforcement of
contracts, (9) honest money, (10) the reduction of envy. This list can
be boiled down into three phrases, all of which have been dominant in
the history of the United States.
1. Live and let live.
2. Let's make a deal.
3. Mind your own business.
2. Let's make a deal.
3. Mind your own business.
The American middle class has seen its progress blunted ever since 1973.
There are reasons for this. (1) present-orientation, (2) capital
consumption through reduced thrift, (3) government-capped profits and
government-subsidized losses, (4) rising taxation (Social Security), and
(5) dishonest money (no gold exchange standard after 1971).
There are reasons for this. (1) present-orientation, (2) capital
consumption through reduced thrift, (3) government-capped profits and
government-subsidized losses, (4) rising taxation (Social Security), and
(5) dishonest money (no gold exchange standard after 1971).
What has saved the middle class from ruination is this: (1) private
ownership, (2) technological innovation, (3) free trade, (4) the
enforcement of contracts, (5) the reduction of envy.
ownership, (2) technological innovation, (3) free trade, (4) the
enforcement of contracts, (5) the reduction of envy.
Entrepreneurship is still alive and well in the United States. It is
very easy to start a company. The USA remains the richest free trade
zone on earth. Generally, "live and let live" overcomes the politics of
envy. "Mind your own business" is honored in the breach, although the
extension of Homeland Security is undermining this relentlessly.
very easy to start a company. The USA remains the richest free trade
zone on earth. Generally, "live and let live" overcomes the politics of
envy. "Mind your own business" is honored in the breach, although the
extension of Homeland Security is undermining this relentlessly.
So, there is a war on. It's an ideological war. The Keynesians want to
reduce the extent of the second list of five. The libertarians want to
increase this list and then reduce the government's restrictions on the
first five.
reduce the extent of the second list of five. The libertarians want to
increase this list and then reduce the government's restrictions on the
first five.
*/CONCLUSION/*
Your assessment of the economic future of the United States and the West
should focus on the list of ten virtues of the free society. There are
large segments of the elite that do not see them as virtues except when
overseen by government-empowered, academically certified experts.
should focus on the list of ten virtues of the free society. There are
large segments of the elite that do not see them as virtues except when
overseen by government-empowered, academically certified experts.
What is happening in the Middle East indicates that millions of people
have had enough. The attitude of Americans toward a government shutdown
indicates that they have also had enough . . . before any pain from a
shutdown actually sets in, anyway. The fact that legislatures are ready
to confront the public employee unions indicates that the last remaining
stronghold of union power is about to end.
have had enough. The attitude of Americans toward a government shutdown
indicates that they have also had enough . . . before any pain from a
shutdown actually sets in, anyway. The fact that legislatures are ready
to confront the public employee unions indicates that the last remaining
stronghold of union power is about to end.
Where we are clearly losing is in monetary policy. Dishonest money is
still undermining the middle class. Until that battle has ended in favor
of the enforcement of contracts, the abolition of legal tender laws, and
the abolition of central banking, the middle class will be on the defensive.
still undermining the middle class. Until that battle has ended in favor
of the enforcement of contracts, the abolition of legal tender laws, and
the abolition of central banking, the middle class will be on the defensive.
Conclusion: end the FED.
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