Quote from Star Parker’s article: “There is no question more perplexing than ‘Why are some nations poor and some rich?’”
Principle: A nation’s prosperity is proportional to its freedom. What’s so perplexing about that? A quick survey of the world will confirm that the richest nations are semi-free economies (there are no free nations). All dictatorships are poor.
Freedom is the key ingredient. Man’s mind, his rational faculty, is his distinctive attribute and is the fundamental means of his survival. To optimize his survival a man needs to fully use his mind and act according to his mind’s conclusions. Thinking is man’s source of survival, and individual liberty unleashes the product of his thought. Marx was wrong. It is not machines that create intelligence, but intelligence that creates machines. All of the Marxian muscle in the world cannot innovate a single original thought. Man’s mind brought him out of the cave and into the modern industrial-informational world, not his muscles.
Man’s basic pattern of survival is to think and then to put his thoughts into action which results in production. He then consumes his production in order to live. Regardless of the complexity added by living in a society, this is the basic pattern. And if some men in society do not think, they still survive by repeating the patterns originated by some previous thinker.
Production is wealth. One of the proudest distinctions of Americans is that they coined the phrase, “to make money.” Wealth must be created before it can be consumed and thus support human life. Keynes was wrong. Spending does not create wealth. Wealth must first be created before it can be spent. This fundamental error, the reversal of cause and effect, is the reason why Keynesian economists in Washington DC are driving our nation bankrupt.
Only private industry can create wealth. This is why the government cannot, in a fundamental sense, create jobs. Government jobs are parasitic. The government can only pay government workers with money it took (taxed) from those who actually do produce wealth, workers in private industry. If Americans do not figure out these fundamental truths soon, they will live under tyranny. (They are to a large extent already there: IRS scandal, NSA scandal, onerous regulations, entitlement programs, redistribution of their wealth….)
If Americans wish to regain their prosperity, they must first regain their freedom. Freedom is the cause; prosperity is the effect. Since rights and freedoms are roughly and inversely proportional to the size and power of government, they must drastically reduce the size of their government. Reduce by how much? Our US Constitution is an excellent standard and guide.
Since our government has shown that it will not reduce its out-of-control spending on its own, the only sure method is to reduce its size. Thus, reducing the size of our government will not only increase our freedom, it will reduce its spending. It will also reduce corruption. Why would you attempt to bribe a politician when he does not have the authority to do what you are bribing him to do?
The essence of Capitalism is freedom. Unfortunately, most Americans have no idea what Capitalism truly is. A great resource is, Capitalism, the Unknown Ideal, by Ayn Rand. We need to rediscover the benefits of a truly free society and thus grant ourselves the magnificent right to pursue our happiness.
Star Parker reviews new book answering why some nations are poor and some are rich