Obama, Monarchy, and Inequality
It baffles and frustrates me after reading a Wall Street Journal article about the French government subsidizing 75% of young workers’ pay to companies just so the employer will be motivated to reduce the 25% unemployment rate among young people. Or Dan Mitchell’s blog about the IMF, the giant statist bank, and its bribing Albania with loans if it does away with its flat tax and increases corporate taxes. Or that President Obama believes that income equality is bad and that only the government can rescue low-wage earners with an increase in the minimum wage. Why have all of these well-intended policies gone awry . . . time after time, over the last hundred years?
Of course the French companies have already figured a way to game the government. The growth Albania has earned through free trade will be trashed and poverty will increase again. An increase in the minimum wage in the U.S. will result, as it always has, in a decline in a segment of the economy, particularly in the low income group. To survive, more will move into welfare because the government destroyed their jobs.
I’m not a scholar or university professor or Nobel-winning authority on economics. I’m just a working stiff who’s labored in business, as an employee and running businesses as an owner. Yes I have a university degree, but that didn’t help me succeed in the real world. Common sense and perseverance are omnipotent and outweigh much of the scholarly text.
Since I bought my Kindle, I’ve doubled down on two main topics that really interest me: history and economics. You see, I pride myself in understanding and believing that history tells us what we’ve accomplished and whether it’s worked or not. I also believe in the basic values of God and a free country, capitalism and a free market, property rights and the rule of law, and have a general understanding of human motivation.
When we put those basic free principals together, it’s easy to understand why people in the late 1680’s threw off their government and a monarchy during the bloodless Glorious Revolution in England. They told the ‘few’ to leave the ‘many’ alone and that became the seed for what fueled the Industrial and the American Revolutions. The Industrial Revolution, as you know, began in England before the American.
Prior to this period, the few, the monarchs and nobles, controlled all of the wealth. The peasantry had to depend on them for subsistence. Those two Revolutions, the Industrial and American, introduced us to capitalism and the growth of wealth for everyone was the result. Through their own ingenuity and personal efforts, a few deprived souls began to accumulate wealth, rising to the heights of the richest. Their labors fueled the population’s growth in wealth because of their innovations in agriculture, transportation, communications, warfare, manufacturing, and science. Poverty nearly disappeared in countries that adopted the basic principles of free enterprise.
To correct for inequities in the evolutionary process of capitalism, liberals and governments used compassion and, in error, over-compensated, going past the triggers of human motivation. For instance, governments have created a segment of the population that’s somewhat dependent on someone other than themselves. The Europeans for example. Yes, there should to be a safety net, but not a hammock.
And this theory extends not just to those in the lower income levels, but also the mighty corporations who depend on the government to protect their businesses from outside influences. Giving people or institutions something they haven’t earned takes self-sufficiency away and slides the supply curve inordinately up and down the demand curve, causing a dysfunctional economy and therefore society.
In their efforts to correct the natural capitalist system, leaders of the world have determined that they need more control over our lives, returning us back to the system of a controlling monarchy. Rather than fixing the broken elements of capitalism, they’ve succeeded in disrupting a working system which has resulted in populations returning to poverty or being permanently stuck there.
Today, our country is failing in education, economy, and the values that Americans used to build a successful society based on Judeo-Christian beliefs, independence, self-reliance, and the freedom to innovate and profit. Rather than following our founding documents and the equality of opportunity, we have strived to make everyone equal, and that’s impossible. We can blame all of our failures on the excesses of government.
As a result, our Constitution as been bent and twisted by Progressives and Activist to the point that it isn’t recognizable anymore. We have to take it in for a tune up after nearly 225 years. Article V allows for ‘we the people’ to amend the beloved document and the Convention of States is doing that.
“There is nothing wrong with America that cannot be cured by what is right with America.” Bill Clinton