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Posts Tagged ‘prosperity’

Why the New Paradigm Was Inevitable – Doug Casey’s International Man

Posted by M. C. on February 9, 2021

Prosperity, Wealth Disparity, Resentment, Collectivism

https://internationalman.com/articles/why-the-new-paradigm-was-inevitable/

by Jeff Thomas

Just as people go through a lifespan that consists of different stages, so empires tend to follow a pattern of stages.

They tend to start off slowly, making progress as a result of industriousness, understanding that progress is dependent upon hard work and an entrepreneurial spirit.

This is important to understand, as it’s the one essential in the growth of a nation. No nation becomes an empire through complacency or a lack of productivity. Welfare states do not become empires, although most empires end up as welfare states.

So, if that’s the case, what is the progression? And more importantly, what does this mean, considering the dramatic changes that are now unfolding in much of the world?

Prosperity

As stated, prosperity is created through a strong work ethic and an entrepreneurial spirit throughout a significant portion of the population. This is what brings about wealth creation – a condition in which people invest their time and money in a business enterprise that reaps profit. The profit is then re-invested to expand upon that success.

In the early stages of prosperity, those who create the wealth are revered, as the goods and services they create benefit all, even those who may be less ambitious or less imaginative and may never become business leaders themselves.

But inevitably, there will be those who seek to prosper to the exclusion of others. This trend was seen around 1900 in the US – a time when the country’s wealthiest entrepreneurs figured out that, if they banded together, they could buy both political parties. That would mean that, regardless of which party held power, the government could be counted on to pass laws that would protect their monopolies and make success increasingly more difficult for the competition.

Wealth Disparity

Of course, the objective of this would be that there would be a small number of individuals and corporations at the very top, who would be in a position to split up the pie amongst themselves and throw the crumbs to those beneath them.

Over time, this would lead to those at the very top becoming inordinately wealthy, well beyond what would be normal for their level of investment. And very few new individuals and corporations would be able to break into this cabal. Only those who could add to the size of the pie would be allowed in.

Resentment

Not surprisingly, this, over time, would lead to resentment amongst those who were left out of the loop. When this became generational, with minimal change, the “greedy rich” would become the most hated segment of the population.

Those who come to understand that they will never be able to advance to the top layer would come to regard themselves as “disenfranchised.”

This in turn results, eventually, in the awareness that the “little man” represents the majority of voters, which is then capitalized upon by opportunistic political candidates.

Increasingly, there are cries by political hopefuls for the one percent to be taxed. With every election these promises are renewed. And each time out, greater demands are made by the politicians.

Of course, the one percent are already running the show on both sides of the aisle and can make sure that they are taxed very little, if at all. But someone must be made to cough up, so politicians go after the middle class, taxing them increasingly until, after decades of increases, they are squeezed to the limit.

As Vladimir Lenin said, “The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.”

At this point the wealth disparity is at a peak and the resentment turns to anger. Those, who for decades have been promised a “fair share,” realise that they have instead been sold out.

And here’s where it gets interesting.

Traditionally, once the population became resentful enough that the system was in jeopardy, those few who comprised the ruling elite were likely to essentially say, “Let them eat cake.” This, ultimately, would lead to their downfall.

But today, we have the illusion of democracy, which allows for a different paradigm.

Collectivism

From the time of the French Revolution onward, we have had the construct of collectivism to work with.

Rather than defy the little man, defeat him by being seen to agree with him.

Create political figures who call out for a re-engineering of society: “An equal outcome for all. Take the wealth from the wealthy who stole it and give it back to the little man.”

Such platitudes sell well when resentment has hit its peak.

But the secret benefit for the ruling elite is that the new breed of politician works for the one percent, just as politicians always have.

And collectivism benefits the one percent even more than any free-market system could. Under it, the little man is not raised up, as promised. Instead, the middle class is beaten down to the same level as the little man, creating uniform poverty.

As Winston Churchill stated, “The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.”

Therefore, it should come as no surprise to us that, when an empire such as the US begins to unravel, the ruling elite who actually own the country are ready and eager to create a transition that will appear to benefit the little man but will, instead, enslave him to a greater degree than he ever could have imagined.

So, it should come as no surprise to us that in recent months, the US has witnessed a carefully orchestrated drama in which the poster boy for the greedy rich – the US president – goes down in flames.

And the heroes of the play appear centre stage, providing a litany of collectivist promises that will bring cheers from the populace.

And so the trap is sprung. A totalitarian future disguised as a panacea.

As P.T. Barnum said, “There’s a sucker born every minute,” and there is no greater sucker than a voter who actually believes that there’s a pot of gold at the end of the rainbow. His vain hope is that, even though every collectivist government in history has failed to deliver on its promises and has, instead, resulted in uniform misery, this time it will be different, and the new government will deliver on the now-hackneyed empty promises.

The new paradigm was as inevitable as it will be long-lived and ultimately destructive.

Editor’s Note: Misguided economic ideas are advancing rapidly in the US. In all likelihood, the public will vote itself more and more “free stuff” until it causes an economic crisis.

That’s precisely why bestselling author Doug Casey and his colleagues just released an urgent new PDF report that explains what could come next and what you can do about it. Click here to download it now.

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Historical Lessons in Prosperity vs. Poverty – LewRockwell

Posted by M. C. on February 5, 2021

By 1350, Kublai Khan had been dead for decades. But the Yuan dynasty’s economic overseers were still printing paper money like crazy. And it was causing severe hyperinflation across China.

People’s lives were turned upside down by the government’s fiscal irresponsibility, and rebellions broke out across the country.

By 1368, the Yuan dynasty had completely collapsed, and a destitute peasant farmer-turned-monk named Zhu Yuanzhang rose up to become Emperor and found the new Ming Dynasty.

To stimulate the economy ravaged by inflation, the Ming dynasty created an unprecedented level of economic freedom.

Markets and industries were deregulated; the government abandoned its monopoly on salt production, for example, and merchants were encouraged to allow market competition to set prices.

https://www.lewrockwell.com/2021/02/simon-black/historical-lessons-in-prosperity-vs-poverty/

By Simon Black

Sovereign Man

As the grandson of Genghis Khan, Kublai Khan had a lot to prove.

So he set his eyes on the biggest prize in the known world at the time: southern China.

Kublai Khan completed his conquest of China in 1279, forging a new empire and creating the Yuan dynasty.

The Mongols were known for their expensive habits— they liked war and women especially. So when the money started to run out, administrators in the Yuan dynasty started printing paper money.

Yuan officials weren’t the first to come up with this idea; the government from the prior Song dynasty had also printed paper money. But there was a huge difference—

Paper currency from the Song dynasty, known as guanzi, was backed by copper, silver, and gold coins.

The Yuan currency, however, was backed by nothing. So whenever the government started to run out of money, they simply printed more.

By 1350, Kublai Khan had been dead for decades. But the Yuan dynasty’s economic overseers were still printing paper money like crazy. And it was causing severe hyperinflation across China.

People’s lives were turned upside down by the government’s fiscal irresponsibility, and rebellions broke out across the country.

By 1368, the Yuan dynasty had completely collapsed, and a destitute peasant farmer-turned-monk named Zhu Yuanzhang rose up to become Emperor and found the new Ming Dynasty.

To stimulate the economy ravaged by inflation, the Ming dynasty created an unprecedented level of economic freedom.

Markets and industries were deregulated; the government abandoned its monopoly on salt production, for example, and merchants were encouraged to allow market competition to set prices.

In time, the government stabilized the currency and reintroduced metallic coins. And by the 1500s Ming officials even allowed foreign currencies like the Spanish Silver Dollar to circulate in China.

This proved a much more stable medium of exchange than fiat currency, and the Chinese economy blossomed as a result.

Wealth rose dramatically. China was able to build canals, bridges, expand and fortify the Great Wall into the brick and stone mammoth we know today, and complete numerous other public works projects.

(Incidentally, as we discussed recently, taxing the rich was not the main method of funding this infrastructure. Instead, merchants were praised, and held in high esteem, for their voluntary contributions to the public good.)

And overall China had become one of the wealthiest, most powerful countries in the world.

It’s not hard to see why. Economic freedom. Deregulation. Stable currency. Responsible spending.
We’ve seen these elements over and over again throughout history.

In the 10th century, the city-state of Venice followed a similar model of economic freedom.

At a time when Medieval Europe was choking on the feudal system, Venice was one of the few places where even peasants could strike it rich.

The Venetian government established limited partnerships, enshrined the rule of law, and eventually established the Venetian Gold ducat– a gold coin that quickly became widely accepted around the world for international trade due to its purity and stability.

As a result of such policies, tiny Venice became one of the wealthiest and most powerful economies in Europe.

Centuries later, the Netherlands advanced this model even further, becoming the most capitalist country the world had ever seen up to that point.

The Dutch established the first stock exchange, the first publicly-traded companies (like the Dutch East India Company), and countless other financial innovations ranging from mutual funds to stock options.

The government stepped out of the way and allowed the private sector to flourish. They kept taxes reasonable and the currency stable; in fact the Dutch guilder– a silver coin– became the reserve currency of Europe during the 1700s.

History is full of more examples that show how economic prosperity is actually a pretty simple formula.

All it takes is economic freedom, fiscal responsibility, and a stable currency. This is also how the United States became the wealthiest country in the world.

But the direction that the US and most of the West are taking now is the opposite.

They demonstrate a complete lack of fiscal responsibility. They spend trillions of dollars now like it’s no big deal. $30 trillion in debt– 50% larger than the size of the entire economy– is nothing to them.

The central banks also keep debasing the currency; they ‘printed’ so much money last year that the Federal Reserve’s balance sheet nearly doubled in the span of a few months.

And there are plenty of examples of that throughout history as well.

The Western Roman Empire collapsed as a result of its never-ending corruption, fiscal irresponsibility, and currency debasement.
The French Bourbon Monarchy, the Austro-Hungarian Empire, the Ottoman Empire— they all ended as corrupt, bloated, highly-regulated bureaucracies with enormous debts.

Sometimes it helps to just step back and look at the big picture— 5,000 years of human history makes it pretty obvious what elements create prosperity versus poverty.

So when you see your government actively embracing extreme deficits, money printing, nationalization of industries, debilitating taxes, and other Marxist principles, ask yourself– are these the principles of prosperity or poverty?

Again, history is quite instructive.

Remember, though, we’re talking about trends here– the bottom won’t fall out tomorrow morning.

But that makes it even more important to think about the future (and your family’s future). Because your government certainly isn’t thinking about it.

You can’t control what politicians and central bankers are going to do. You can’t control the national outcome. But you can control your own outcome… and your own future prosperity.

If they raise taxes, for example, you can be prepared to take legal steps to reduce what you owe.

If devalue the currency, you can preserve your savings in alternative assets.

If they excessively regulate business, you may consider restructuring in a more advantageous jurisdiction.

This is what a Plan B is all about– ensuring that whatever happens or doesn’t happen next, you’ll always be in a position of strength.

On another note… We think gold could DOUBLE and silver could increase by up to 5 TIMES in the next few years.

Reprinted with permission from Sovereign Man.

The Best of Simon Black Simon Black is an international investor, entrepreneur, and founder of Sovereign Man. His free daily e-letter Notes from the Field is about using the experiences from his life and travels to help you achieve more freedom, make more money, keep more of it, and protect it all from bankrupt governments.

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The Paradox of Prosperity | Mises Wire

Posted by M. C. on October 9, 2020

De Jouvenel aptly wrote “strangely enough” to characterize the fact that as capitalists raised standards of living in each succeeding generation, the hatred of capitalists increased instead of diminished. This is paradoxical, but true. The more prosperous our society has become, the more the creators of that prosperity and the system that enables it have been vilified. How dare those wicked capitalists break the iron grip that abject poverty had held over the masses of human beings throughout millennia of history!

https://mises.org/wire/paradox-prosperity?utm_source=Mises+Institute+Subscriptions&utm_campaign=ee0aad78c3-EMAIL_CAMPAIGN_9_21_2018_9_59_COPY_01&utm_medium=email&utm_term=0_8b52b2e1c0-ee0aad78c3-228343965

Mark Hendrickson

In Friedrich Hayek’s 1954 book Capitalism and the Historians, the late French philosopher and political economist Bertrand de Jouvenel noted a baffling historical trend: “Strangely enough, the fall from favor of the money-maker coincides with an increase in his social usefulness.”

In surveying the history of capitalism from its inception in the late eighteenth century to the mid-twentieth century when he was writing, De Jouvenel was struck by an ironic and counterintuitive phenomenon. By “money-maker,” he meant the capitalist entrepreneurs who became rich by supplying the masses with more consumer goods. Entrepreneurs generated the economic growth that uplifted standards of living; hence, their “social usefulness.”

De Jouvenel aptly wrote “strangely enough” to characterize the fact that as capitalists raised standards of living in each succeeding generation, the hatred of capitalists increased instead of diminished. This is paradoxical, but true. The more prosperous our society has become, the more the creators of that prosperity and the system that enables it have been vilified. How dare those wicked capitalists break the iron grip that abject poverty had held over the masses of human beings throughout millennia of history!

This graph of world per capita wealth over the last two thousand years tells an amazing story. (A chart of US per capita GDP growth shows a similar trajectory over the last 230 years.)

hend.jpg

hend

Mass poverty was the norm for centuries. That finally began to change in the late 1700s with the emergence of capitalism. The nineteenth-century socialist reaction to capitalism condemned capitalism for not making every human being prosperous equally and simultaneously. It’s true: some prospered before others. As I have explained before, the reason that there was not faster economic progress for more people in the 1800s was not that evil capitalists were exploiting workers, but simply that there were not enough capitalists to “exploit” (employ) more workers and mass produce more goods.

Looking at the graph, you can see that economic growth accelerated explosively in the twentieth century. (Note that growth became much more rapid after the end of slavery, which debunks the fallacious assertion that America’s great wealth depended on slavery.) In the United States, per capita income rose (in 1990 dollars) from $5,301 in 1913 to $31,178 in 2008 and life expectancy from 53 years to 78 years. In short, more Americans are living longer lives at higher standards of living than ever before due to our capitalist system. That has happened despite the considerable handicaps of bureaucratic regulation, wasteful pork barrel politics, and government redistribution of wealth. (There is also more prosperity outside the United States than ever. See chart above and my article “Ready for Some Good News?”)

Despite the astounding success of the free enterprise system in producing unprecedented prosperity, antagonism toward capitalism is growing, and popular politicians are adopting platforms that are essentially socialist. Indeed, the paradox of prosperity that De Jouvenel noticed almost seventy years ago remains firmly intact, for capitalism has never been more fruitful and never more hated by its beneficiaries than it is today.

The present fascination with socialism and hatred of capitalism reflects a combination of willful historical blindness, lack of simple common sense, and inexcusable economic ignorance:

  • Anyone even casually familiar with twentieth-century history should know that socialism has failed miserably, causing economic retrogression and impoverishment wherever it has been tried.
  • Common sense should recognize that since capitalism is a system where entrepreneurs compete with each other to produce what people want, and socialism is a system in which producers produce what the state wants, then obviously people prosper more under capitalism.
  • Most appalling and bitterly ironic about so many Americans enthusiastically, even fanatically, espousing socialism in 2020 is that this year marks the centenary of the most important economic discovery of the twentieth century: in 1920, the Austrian economist Ludwig von Mises explained with irrefutable logic that socialism must inevitably discombobulate and reduce economically rational production because it obliterates the market-based price system necessary to coordinate production. Shame on the economics profession for remaining silent about this fundamental truth and allowing dangerous economic ignorance to persist.

Fact: it is free market capitalism that has made us wealthy beyond the wildest dreams of our great-great grandparents. Fact: the socialist alternative simply does not work. For anyone to favor replacing the world’s greatest wealth-creating system with a proven wealth-destroying system is to spurn prosperity, forsake rationality, and court destruction. That is the grim reality of the paradox of prosperity. Author:

Mark Hendrickson

Mark Hendrickson is adjunct professor of economics at Grove City College. 

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A young person with MORE Sense than 50% of Our Politicians.

Posted by M. C. on July 31, 2019

https://raptureonline.blog/2019/05/24/a-young-person-with-more-sense-than-50-of-our-politicians/

This article was written by a 26 year old college student by the name of Alyssa Ahlgren, who’s in grad school for her MBA. It’s a short article but definitely worth a read. I would love to see this go viral!!

“College Student: My Generation Is Blind to the Prosperity Around Us

I’m sitting in a small coffee shop near Nokomis trying to think of what to write about. I scroll through my newsfeed on my phone looking at the latest headlines of Democratic candidates calling for policies to “fix” the so-called injustices of capitalism. I put my phone down and continue to look around. I see people talking freely, working on their MacBook’s, ordering food they get in an instant, seeing cars go by outside, and it dawned on me. We live in the most privileged time in the most prosperous nation and we’ve become completely blind to it. Vehicles, food, technology, freedom to associate with whom we choose. These things are so ingrained in our American way of life we don’t give them a second thought. We are so well off here in the United States that our poverty line begins 31 times above the global average. Thirty. One. Times. Virtually no one in the United States is considered poor by global standards. Yet, in a time where we can order a product off Amazon with one click and have it at our doorstep the next day, we are unappreciative, unsatisfied, and ungrateful.

Our unappreciation is evident as the popularity of socialist policies among my generation continues to grow. Democratic Congresswoman Alexandria Ocasio-Cortez recently said to Newsweek talking about the millennial generation, “An entire generation, which is now becoming one of the largest electorates in America, came of age and never saw American prosperity.”

Never saw American prosperity! Let that sink in. When I first read that statement, I thought to myself, that was quite literally the most entitled and factually illiterate thing I’ve ever heard in my 26 years on this earth. Many young people agree with her, which is entirely misguided. My generation is being indoctrinated by a mainstream narrative to actually believe we have never seen prosperity. I know this first hand, I went to college, let’s just say I didn’t have the popular opinion, but I digress.

Why then, with all of the overwhelming evidence around us, evidence that I can even see sitting at a coffee shop, do we not view this as prosperity? We have people who are dying to get into our country. People around the world destitute and truly impoverished. Yet, we have a young generation convinced they’ve never seen prosperity, and as a result, elect politicians dead set on taking steps towards abolishing capitalism.

Why? The answer is this, my generation has only seen prosperity. We have no contrast. We didn’t live in the great depression, or live through two world wars, the Korean War, The Vietnam War or see the rise and fall of socialism and communism. We don’t know what it’s like to live without the internet, without cars, without smartphones. We don’t have a lack of prosperity problem. We have an entitlement problem, an ungratefulness problem, and it’s spreading like a plague.”

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Watch “ANTIFA Is Protesting Their Own Freedom And Prosperity” on YouTube

Posted by M. C. on July 2, 2018

ANTIFA thinks that freedom and prosperity is limited to just a few. So their solution is to replace freedom and prosperity with the Venezuelan model government.

Freedom and prosperity for no one.

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Socialism, Progressivism, Free Stuff, Reality

Posted by M. C. on May 2, 2016

You cannot legislate the poor into prosperity by legislating the wealthy out of prosperity.

What one person receives without working for, another person must work for without receiving.

The government cannot give to anybody anything that the government does not first take from somebody else.

You cannot multiply wealth by dividing it!

When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that is the beginning of the end of any nation

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