America has Lost Her Way
The United States of America is known as the greatest nation in the world. The reason we are the greatest is because of one word:
Capitalism
Definition: an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state.
Free trade is what made this country so great. Post WWII the US fought communist regimes that eventually failed by their own poor economic policies. The two greatest examples of these regimes are The Republic of China and The Soviet Union.
Cold War Era and Post Cold War the U.S did not need military force for the Soviet Union to fall. China was a failing nation with millions dying from starvation and disease, and the rest from government led genocide. It was clear Capitalism was the right way to run a country and Communism would lead to mankind's downfall.
According to Robert Longley, writer from Thought Co, "The main difference is that under communism, most property and economic resources are owned and controlled by the state (rather than individual citizens); under socialism, all citizens share equally in economic resources as allocated by a democratically-elected government".
I am not here to support communism or socialism. Rather I am here to expose the United States. We are no longer a capitalist nation. The US has decided to turn its back against the philosophies of our founding fathers in exchange for "Modern Monetary Economics".
If any American wants to learn how to make money, it is only natural one would take advice from Benjamin Franklin, the man on the $100 bill. Franklin was a poor man who worked his way towards wealth through rational prudence. Here I will list his 5 most well known quotes that when understood can lead anyone to secure financial freedom:
- "A penny saved is a penny earned"
- “An investment in knowledge always pays the best interest.”
- “Having been poor is no shame, being ashamed of it is.”
- "He that is of the opinion money will do everything may well be suspected of doing everything for money.”
- “Rather go to bed without dinner than to rise in debt.”
Franklin touts saving money, yet currently the US has the most debt. Investment knowledge tends to interest only financial elites. Today middle class and poor Americans choose to take part in ponzi schemes under the guise of investment literacy because few want to put in the work to truly develop their knowledge despite it being free in the modern day. One can notice in the US it is the poor people flaunting designer Guuci and Louis Vuitton despite living paycheck to paycheck. The rich today in America would rather get bailed out, the poor would rather take social welfare, all paid by America's diminishing middle class. Franklin even recommended one starve than take a loan, which is ironic considering the coronavirus led American leaders to take over $2 trillion in loans under the justification people need to eat.
What has America gained in taking debt? The rich in the US set up offshore tax havens while employing corporate buy backs, then ask to be bailed out during economic turmoil. The poor waste their money feeding hedonism and complaining on social media about the rich while using credit cards and government benefit programs. At least with communism the state owns businesses to distribute to the people. In socialism the people own businesses. In the U.S we employ communism for business leaders who hoard their wealth instead of investing in American infrastructure. We no longer allow the economy to take care of how businesses operate and allow losers to fail. What is the consequence? The free market has been sold to the S&P. US stocks are tumbling while oil has reached negative numbers.
Who are the real winners from a post-pandemic world? China and Russia have the lowest levels of debt. China has been one of the least affected nations from the virus and are using their money to purchase discounted Western stocks and property. Russia is actively waging an oil war with the petrodollar. Despite being "communist" nations, both countries have employed Franklin's capitalist philosophies to come out superior in this situation. The US despite being "capitalist", chose to spend government dollars for social welfare primarily for rich people that are no longer profitable and poor people who do not plan on paying their debts.
What is the solution? Mark Cuban recommended the government use bailout programs to make profit from Corporate America for the American people. Provide bail out loans to companies with interest, use the profit to invest in the public. Stop providing easy credit to low income individuals and cut excess foreign spending. Sadly these solutions I predict will fall on deaf ears.
China lacks innate superiority to America. The same goes for Russia. But these two seemingly "backward" nations have surpassed us merely because the American people have grown obese with cheap debt and cheap burgers. Americans are senile, we have grown weak from prosperity. America has forgotten the pain of hard work and thoughtful action in exchange for an easy life. Unless we correct our ways, the US will follow the same ending as the British crown.