Delivering the Goods

The United States rose up from a handful of rebellious colonies to become the richest and most powerful nation in the world. Why? Because we led the world in production. For 200 years, America delivered the goods.

But, in the 1970’s, all that suddenly changed. For the first time in history, the U.S. started having trade deficits. That means our net consumption exceeded our net production. And, every single year since 1975, our nation has consistently consumed more than it produced. It doesn’t take a rocket scientist to know that’s not sustainable.

The depressing truth is America is no longer a world leader in production. We are trailing the pack. We are now a debtor nation, and our biggest creditor is China. — What the hell happened? And how will we ever recover? And, the more disturbing question is, what will happen to America if we don’t?

If we ever want to restore America to its proper place in the world, the first thing we need to understand is why we no longer have a productive economy. It’s pretty simple, really. — Because we no longer produce. Why not? – If we take a good hard look at the nature of production, maybe we can figure that out. The three key elements of production are capital, labor, and raw materials.

First, you need capital for research and development. To develop a new product that meets a real need in the marketplace takes a lot of research. It may take many years to develop. Research and development is extremely expensive, and there’s no guarantee of success. There has to be an enormous potential return on investment to justify that kind of risk.

That kind of return on investment is what our current administration refers to as “excessive profits.” And they have this notion that “excessive profits” should be punitively taxed. When government puts a lid on the potential for return on investment, what happens? The investors take their capital and invest it someplace else, — someplace that welcomes production, and wants to build up their economy and provide employment for their population. (Unlike the United States, it would seem.)

The second thing you need for production is raw materials. No matter what you want to produce, you need some combination of raw materials to produce it, whether wood, paper, metal, glass, fiber, or petroleum products. All raw materials come from the earth; they don’t come out of the air, or some genius’ imagination, or the printing presses at the Federal Reserve. They all come out of the ground, either through timber, mining, or agriculture.

Here, in Southern Oregon, we live in one of the richest areas in the country, in terms of natural resources. We’re rich in timber. We’re rich in minerals. But, if this part of the country is so rich, why is it so poor? Why is unemployment so high? Because we’re not allowed to use the natural resources with which we’re abundantly blessed. Overregulation, and the endless environmental litigation it has spawned, has all but curtailed the timber and mining industries, — the very industries that provide raw materials for every sort of production on which our economy relies. And the overregulation doesn’t stop there. It’s hobbling the manufacturing industries, too.

The third thing required for production is labor. We’ve actually got a surplus of that. Look at our unemployment numbers, nationwide. Private sector jobs are steadily declining because our industries are stymied by excessive regulation and punitive taxation. So how does our government address that issue? It tries to replace the jobs lost due to declining production by creating new jobs in the public sector.

The trouble is those jobs do nothing to restore our national productivity. Public sector jobs and service jobs don’t create any new wealth. They just swirl money around in the economy. And, as that money swirls around, more and more of it leaks out to other countries, as we buy foreign-made products because we can’t or don’t produce enough at home.

As the real wealth leaks out of our economy, the Fed prints up more and more new money, which only dilutes the value of the money we already have in circulation, leading to higher and higher inflation. As long as we consume more than we produce, there is no way to add real value back into our economy, and our currency will continue to lose whatever value it has. We must restore production to have a sustainable economy.

This country was founded on the sacred principles of liberty and freedom. Not just individual freedom, but economic freedom. America became a world leader because America delivered the goods. That’s what it’s all about. That’s what it’s always been about. We have to stay solvent to preserve our liberty. If our economy fails, we’ll lose our freedom. Stifling production smothers the economy. And that’s what our government is doing.

Contact your Congressmen and Senators and tell them we want our economy back. Government can’t solve this problem. Government is the problem.


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Freedom is Not a Pendulum

The periodic swings from one party to the other in control of our government often give rise to the analogy of a pendulum. A pendulum swings from one side to the other, always passing through the equilibrium position at its center. This flawed analogy leads to the illusion that our country’s political swings from left to right also pass through a stable center that is fixed and permanent.

History belies that illusion. Throughout the history of civilization, there has never been a government that did not eventually come to an end, either through defeat in war or corrosion from within. The Roman Republic lasted 500 years before it gave way to the Roman Empire, and that too collapsed after a few hundred more years. Ancient history? Yes, indeed. But the rate of social, political, industrial, technological, and cultural changes on the global scale have accelerated, not decelerated, from ancient to modern times. Change happens much more rapidly than it used to.

We think of our government, and our nation, as permanent and impervious to destruction from without or within. That is a comfortable, but naive and historically insupportable, perspective. This country has only existed for a couple of hundred years. It will not exist forever. It too, like all other governments and nations, will someday decline or be overthrown by an enemy. Most of us cannot conceive of the demise of our country and the way of life we’ve taken for granted from birth, so we don’t believe such a thing could happen, — at least not in our lifetimes. But nobody ever realizes they’re living in a historically significant period until it reaches the tipping point and cataclysmic change is suddenly thrust upon them.

In spite of the dire, and oft-repeated, warnings of our founding fathers, the size and scope of our government has continually increased from the founding of our nation until now. For the first hundred and fifty years, the expansion was slow and gradual, with each incremental transfer of power to centralized authority a result of prolonged deliberation and strenuous debate. In the last half century, government expansion has accelerated dramatically, and continues to accelerate at an unprecedented rate. The president and Congress now sign bills into law without even bothering to read them!

Along with the increasing momentum of government expansion, we’ve also seen a pronounced trend toward more and more socialist programs and policies. By that, I mean state control of production and distribution, and increasing regulation of industry and of individual rights. The “pendulum” may still swing to one side or the other, but the center point is moving, and it’s moving ever more rapidly. We are straying further and further from the principles on which our founding fathers established this nation. When government takes power away from the people to determine what’s in their best interests, that power does not swing back to the people, like a pendulum. The balance of power is permanently shifted from the people to the government, making it easier for government to usurp even more power in the future.

History informs us that the decline and fall of our nation will eventually come to pass. But history doesn’t tell us when or how. We are on a trajectory toward the termination of the greatest and most successful experiment in freedom the world has ever known. We could stand back and idly watch it slip away and, afterward, wonder where it went. Or we could wake up and start waking up our friends and neighbors, and impress upon them what is at stake.

In his farewell address on March 4, 1837, Andrew Jackson said:

But you must remember, my fellow-citizens, that eternal vigilance by the people is the price of liberty, and that you must pay the price if you wish to secure the blessing. It behooves you, therefore, to be watchful in your States as well as in the Federal Government.

We, the people, may have it within our power to stave off the inevitable expiration of our nation by exchanging complacency for vigilance, and apathy for involvement. How long we can maintain it is unknown. But it rests with us to at least pass it on to the next generation. What happens after that is up to them.


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Liberty. Freedom. Independence.

I always get Independence Day and Thanksgiving confused. Not because I can’t tell a turkey from a firecracker, but because every Independence Day I am overwhelmed with gratitude.

I am proud to be an American. I love this country. I’m grateful for the fundamental freedoms, not granted by our government, but recognized by our government as inalienable, and protected by our Constitution. I’m grateful to our founding fathers, who came up with the idea of a nation dedicated to the preservation of individual rights and liberties, and persevered to establish that nation. And I am immensely grateful to all the men and women in our armed forces who have sacrificed their lives upholding those principles, and to those who continue to put their lives on the line day after day to defend our freedoms and the way of life we take for granted.

This is the greatest country on earth. Not because of the land, though it is a beautiful country and abundant with natural resources, not because of the people, because there are good and bad people everywhere, but because of the principles set forth by our founding fathers that define this nation. Liberty. Freedom. Independence. Those are three of my favorite words.

I am proud to be an American. I love this country. And I give thanks for the good fortune of having been born here and for the privilege of being an American citizen.

God bless America! God bless America! God bless America!

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What’s So Great About America?

Above all else, what makes our nation great is that it was founded on the principle of individualism. The fundamental precept that every individual has the inalienable right to life, liberty, and pursuit of happiness ensures that each one of us has the freedom to live our own life however we see fit, with minimal government intervention except to prevent us from infringing on the rights of others. The natural corollary of individual freedom is individual responsibility.

A society that values individuality assumes that individuals are responsible for their own lives, their own actions, and the rewards or consequences of whatever choices they make. Nobody is guaranteed anything but the freedom to carve out their own life and succeed or fail on their own merits. A society that places a high value on individualism encourages entrepreneurship, invention, and advances in all fields of endeavor by allowing individuals who develop and enable valuable innovations to reap the natural benefits of their imagination, enterprise, insight, and skill.

In a collectivist society, the right of the collective supercedes any rights an individual may have. The purpose of government is to ensure that all resources are equally allocated, and that nobody gets a greater share than anybody else. (It never works out that way in reality, but that’s the principle.) Individuality is suppressed in the interest of levelling, and good citizens must always be willing to sacrifice their individuality for the greater good of the collective.

A society that values the collective over the individual assumes that people are not capable of taking responsibility for their own lives, and that the government must assume the responsibility of making sure everybody’s welfare is provided for. Individuals who create more value do not reap the natural rewards of their efforts, but their profits are redistributed to those who can’t or don’t contribute as much. Collectivist societies work best with homogenous populations where people are considered essentially interchangeable. Uniqueness and diversity are not valued, and independence of thought and action are considered a potential threat to the welfare of the masses and the stability of the government.

Most nations lie somewhere in between the two ends of the spectrum. But our nation is the only nation that was explicitly founded on the principle of individual rights and dedicated to the preservation of individual freedoms. From my perspective, that’s what makes America the greatest nation on Earth.


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