In my January 4th article titled The Real Economy I highlighted the fact that what’s fundamentally behind the economic crisis that we face is the fact that we’ve forsaken freedom for socialism and entitlements. Now, it’s the creation of massive government debt to pay for these things that will be the fulcrum around which the crisis occurs but, ultimately, it will have been our turning away from the principle of freedom and free markets that is the underlying cause of that debt and crisis.
I want to expound on this idea. Why do the principles of freedom and liberty create prosperity? As I’ve mentioned before, the real economy is people doing things of such value that others are willing to pay with their own money in the free market for those things of value. Freedom lays the groundwork for this to occur.
In a truly free society, we are masters of our own lives. We determine the course of our lives through our own decisions and actions. We are free to do things however we choose. We’re free to make good decisions and experience the benefits of having done so. We’re also free to make bad decisions and experience the consequences of having done so.
Living in a situation of freedom encourages us as individuals to develop our talents and skills because we are individually benefited from having done so. Beyond individual benefit, however, others around us are also benefited as we are creating value for society that was not previously there. The new car, electronic gadget, service, or general technology created is now an option for others to purchase and utilize. Over time this momentum snowballs and creates the society that we see before us today in the United States.
Stop and look at the world around you in America. Do you ever stop and think how wondrous it is; ever stop in amazement about how quickly we got here? From housing, to indoor plumbing, to central heating, to jet planes, to the internet, to medical miracles….FREEDOM CREATED ALL THIS!! By encouraging people to create and develop their talents, freedom made all this possible.
Here in America we live like Kings and Queens compared to even the wealthiest individuals of just 100 years ago. We live a life of luxury compared to most other people around the world. Just consider this startling statistic. If you made $5000 last year, you’re in the top 15% of income earners worldwide. Just $5000!! That means that nearly every American is in the category of the wealthiest 15%. Freedom did this by encouraging your talents and the talents of everyone around you, and collectively we all benefit in this society. Freedom is the underlying cause of our prosperity and relative wealth compared to everyone else in the world.
Yet, we don’t realize it anymore. We don’t think about it. We’re so busy watching television commercials advertise a lifestyle that’s better than ours and, simmering with jealousy, so focused on the people on the other side of town that drive nicer cars and have bigger houses, that we don’t realize that when we really speak about the wealthy…. it’s us, all of us, here in the United States. Freedom created that wealth.
Note, I don’t feel bad about this discrepancy in wealth between America and much of the rest of the world. For the most part, America didn’t steal its prosperity from someone else. We created it from within by developing our own talents and abilities. If other nations desire the same level of prosperity that America has, then we have shown them the roadmap of how to get there….through a commitment to the principles of freedom and equality and a complete intolerance for corruption and injustice. That, no other nation is the world has taken on those principles to the extent that America has, is not our fault.
Notice, however, that as we are slowly forsaking these principles, our prosperity is starting to wane and come under threat. We’re starting to experience the same problems, economically and otherwise, that other countries have been experiencing all along.
You see there’s a fundamental and direct correlation with these things. The more tightly adherent to the principles of equality and freedom that a country is, the more prosperity that country will eventually develop. The more oppression, inequality, corruption, and injustice that a society has… the more impoverished that society will be. People just don’t work as hard or put in the difficult effort of developing their skills and talents if there is no individual benefit to them for doing so. When freedom is oppressed through socialism, or even more oppressive measures, then the result is greater and greater levels of impoverishment because of this aspect of human nature.
Coming full circle back to the concept of the Real Economy versus the Fake Economy, the Real Economy (again, which is people doing and creating things of value and being paid accordingly in the free market for those things of value) is ultimately produced by freedom. The Fake Economy (where people are paid for doing nothing or are being paid artificially inflated amounts for that which they are doing) is caused by entitlements, socialism, and the oppression of freedom.
The Real Economy, by encouraging people to develop their talents and do things of value, creates prosperity for a nation. The Fake Economy, by discouraging people from developing their talents and from doing things of value, destroys prosperity for a nation.
I say once again, look at incredible prosperity that the principles of freedom, equality, and liberty have created for us. Why on earth would we, as a nation, ever forsake these principles after everything they have done for us? Yet, currently that is exactly what we are in the midst of doing.
We must have hope that the citizens of this great nation will wake up to these fundamental truths so we can reverse course and get back to true adherence to the principles of freedom, equality, and liberty. We must work diligently to make this awakening and realization comes about. Whatever you are currently doing to further yourself individually, bringing the country back to a true belief in freedom and equality will likely have an enormously bigger impact on your future prosperity. Please tell everyone you know about this book and blog as all of our futures, individually and collectively, hang in the balance. Word of mouth is the only way this will grow and the only way this movement to bring the country back to equality, freedom, and liberty will succeed.