The Wealth Of Nations 22

 Book 3 Chapter 4

How The Commerce Of Towns Contributed To The Improvement Of The Country

Free Markets Are The Most Humane

Hand in hand, stride for stride, the whole of the economic model and the close relationship between urban and suburban living continue to improve the lives of the people when, THE MARKET IS PERMITTED TO OPERATE FREELY.

As such, the only truly humane market is a free one.  This is grounded in the reality that this life is about learning and becoming self-reliant.  Systems that take away someone’s right, opportunity and freedom to learn from the natural consequences of action is thievery.

For instance, if a child is never permitted to fall down while trying to walk, the learning process of walking is greatly extended.  Or, if a child is not faced with the struggle of learning mathematics, the energy required to truly understand remains dormant.

Our Challenge

The challenge facing us today is allowing the market to freely operate wherein it is self-regulating.  People are much less likely to pollute, steal and cheat the next person or neighbor when the market is permitted to reign.  Or more simply, the responsibility for actions and the consequences for those actions are based on true principles of liberty.   The Golden Rule can be followed successfully within communities without regulating everything and turning control of governance for every single decision in life over to bureaucrats.

The Key Three

Smith highlights a healthy functional relationship between urban and suburban life.  He breaks it down into three basic points.

“The increase of riches of commercial and manufacturing towns contributed to the improvement and cultivation of the countries to which they belonged, in three different ways:

First, by affording a great and ready market for the rude produce of the country, they gave encouragement to its cultivation and further improvement…

Secondly, the wealth acquired by the inhabitants of cities was frequently employed in purchasing such lands as were to be sold, of which a great part would frequently be uncultivated…

Thirdly, and lastly, commerce and manufactures gradually introduced order and good government, and with them the liberty and security of individuals, among the inhabitants of the country, who had before lived almost in a continual state of war with their neighbours, and of servile dependency upon their superiors…”

The Earth’s Increase

Many are simply confused by the Earth and its power to continually yield an increase as it is cultivated and cared for.  Our planet is rightly considered Mother Earth through a life sustaining and life giving yield.  There is enough in the Earth for the whole of God’s plan for it.

Self-Governance of Man

To fully succeed in free markets and understanding that Man is very capable of self-governance.  Once freedom is granted, a period adjustment occurs until the market reigns, which is really Natural Law.

Struggle for power

Standing in the way of a true market condition is the struggle for power and control over the neighbor.  For simple and understandable and wrong reasons, some people have a fundamental need to control others.

Faith In Truth

The cure for broken markets is faith in Natural Law and the writer of that Law.

I encourage you to read this text and learn about the true Wealth Of Nations.

God Bless You and God Bless America!

The Wealth of Nations 21

Book 3 Chapter 3

Of The Rise And Progress Of Cities And Towns, After the Fall Of The Roman Empire

This era of change in the history of cities and towns is important to recall, especially as it relates to the second amendment.

Primary to the rise of cities and towns in relation to the Lords of the country was the influence of the local militias.  Cities and towns had militias as did the Lord’s in the country.  However, the militias in the cities and towns were assembled more quickly and often had the advantage in disputes with their neighbors.

This is essential today as well.  The right to bear arms for self-defense is essential as a check and balance against crime, over reaching government and potential invasion.

Also interesting was the type of inhabitants found in the towns and cities versus the country.  Smith writes, “After the fall of the Roman empire, on the contrary, the proprietors of the land seem generally to have lived in fortified castles on their own estates, and in the midst of their own tenants and dependants.  The towns were chiefly inhabited by tradesmen and mechanics, who seem, in those days to have been of servile , or nearly of servile condition.”

Then a shift began.  ”But how servile soever may have been originally the condition of the inhabitants of the towns, it appears evidently, that they arrived at liberty and independency much earlier than the occupiers of the land of the country.”

This independence is typical of people when they are no longer oppressed.  People tend toward freedom.  As such, the townspeople began setting up walls for protection, establishing leadership and creating by-laws for self-government.

It is proven time and time again that people can self-govern if the conditions are in place to do so and true cause and effect are seen as the rule.

In certain countries, due to the development of towns and cities with the attendant militias, laws and leaders, the sovereigns we defeated as in Italy and Switzerland.

Other countries were not as successful at throwing off their sovereign as in France and England.

Another key factor to the success of any one particular city or town was transportation.  ”The inhabitants of a city, it is true, must always ultimately derive their subsistence, and the whole materials and means of their industry, from the country.  But those of a city, situated near either the sea-coast or the banks of a navigable river, are not necessarily confined to derive them from the country in their neighbourhood.”

This highlights the importance of transportation, it’s interaction with manufacturing and the value both have to the creation of wealth of a nation, town or individual.

The factors that drove the development of towns and cities ultimately produced manufacturing centers, wealth creation and progress in technology.

We see this today.  If the people are enabled to create, innovate and develop new concepts, products and ideas without the interference of bureaucratic gravity, new life, new cities and new freedom is on the horizon.

God Bless You and God Bless America!

The Wealth of Nations 20

Book 3 Chapter 2

Of the Discouragement Of Agriculture In the Ancient State Of Europe, After The Fall Of The Roman Empire

This chapter contains a history lesson steeped deeply in the nature of man to seek power and control through coercion and force upon his brother.  Smith shares the story of the disposition of the lands in Europe following the fall of the Roman Empire.

Most significantly here is the division of lands through the Natural Law process of inheritance that was practiced in the Roman Empire.  Roman law was no respecter of gender when a father passed his lands on to his children and subdivided them.

This process of subdivision created and ever more cultivated landscape and thus greater opulence among the inhabitants as division of labor and it attendant fruits ruled.

To the contrary, the conquering hoards had no such law and disrupted the natural order of commerce and trade for many centuries.

Total chaos reigned.  As such, the local landlords became “petty princes” to those living on their land.  The land was undivided.

When the land was passed down to an heir it remained one whole, undivided and ruled over by the landlord.  These landlords were the judge, general and legislator of his subjects.  He did what he wanted including making war against his neighbors to conquer more land or against the sovereign to exert greater influence and control.

This system is called the law of primogeniture.

In essence it makes of one child a fortune and of all the others beggars.  Not only does this concept adversely effect most of the children of a landlord, it also places in an uncultivated state great tracts of land.  In this undivided state the land is not yielding its natural force to sustain the people.

This brings to light a very interesting question.  How much land in our nation is uncultivated and unproductive because it is deemed Federal lands? And,  How much or our land is subsidized into non-productivity by our own government?

“The pride of man makes him love to domineer, and nothing mortifies him so much as to be obliged to condescend to persuade his inferiors.  Wherever the law allows it, and the nature of the work can afford it, therefore, he will generally prefer the service of slaves to that of freemen.”

Smith is correct.  This is indeed one of the foundations of our Constitution.  Or rather, one of the core human characteristics the Constitution is designed to mitigate.  Time changes, but people don’t.  Technology changes, but the human flaws remain.  We seem so easily frightened and scared by a rustling leaf behind us in the woods.

Property rights are therefore essential with a natural transfer process protected by a system of laws.  Free men and women must have the protection of the law and their property in order for a nation to generate wealth.

Our founding Fathers knew about our natures and designed a system of government with a basis of property rights that operates effectively when we have a humble and repentant people.

Do we now have a humble and repentant people upon this land?

God Bless You and God Bless America!

Jesus Christ 16

What if I knew it was True?

What if it were true?

What if the Holy Scriptures were true?

What if the story of Jesus Christ and His ministry in the heavens, upon the earth and throughout eternity were true?

What would I do differently?

Yes indeed, what would I do differently than I am doing now?

Heavy Questions

These questions seem heavy to me.  The questions appear full of deep meaning and merit real consideration.  ”If I did know with absolute certainty of the truth of the Gospel of Jesus Christ in its fullness life would be different.”  This is what my brain is telling me.

I would use better language.

I would worry less and pray more.

I would be content with the truths of God.

I would be happy to serve.

I would be happy at home.

I would be more kind and gentle.

These are some of the natural conclusions I found.  It makes sense that if the temporal worries of this life were removed and I was fully focused on the Savior, things would be better.  Would they be easier?  Maybe not, but I think much better.

Fully Persuaded

So, what prevents me from being fully persuaded by the truths of the Gospel of Jesus Christ?

I came up with three problems that seem universal to the human condition and certainly to me.

1. Pride  2. Fear  3. Ignorance

Since experience is the best teacher and I prefer to advance in my understanding and happiness prior to living out my entire life something else is needed.  That something else if greater faith.

Some Big Fixes

Greater faith in God helps me overcome the big three listed above in the following way.

1.  Pride becomes a humble gratitude due the blessings obtained from gospel living.  There is a natural desire to share the truths of the gospel because of this humble gratitude.

2.  Fear becomes love through virtuous confidence in the presence of God.  As my faith in God grows, I find myself much more willing to think good thoughts, serve more patiently and experience deeper feelings of love toward all.

3.  Ignorance becomes Spirit-guided progress toward greater light.  The best path is guided by the Holy Spirit of God.  There are so many ways to go in life, so many options and so many voices.  Do this.  Do that.  Go here.  Go there.  Eat this.  Don’t eat that.  How can you know you are right?  The answer to this is to always follow the promptings of the Holy Spirit.  The Holy Spirit always leads us to greater light, the best light and the light that gives the greatest joy.

What Now?

So, we have the question, the problem and some fixes.  Now what?  How can I take action and actually begin moving toward the answers I seek?

A Few Suggestions

1.  Faith comes from hearing the word of God.  Read and listen to the scriptures.

2.  Pray for increased faith.

3.  Act as if you know and go forward.

I know that Heavenly Father and His Son Jesus Christ want us to grow and have greater joy, happiness and love in our lives.  Please seek them, ask them and keep knocking on Their door.

God Bless You and God Bless America!

America The Beautiful 1

This place is worth fighting for!

America The Beautiful

Oh beautiful, for spacious skies, for amber waves of grain

For purple mountains majesty, above the fruited plain

America, America God shed His grace on thee

And crowned the good with brotherhood

From sea to shining sea!

Enjoy the tribute to our nation by Martina McBride.

She Is Easy To Pick On

America bashing seems so much in style.  What are the bashers really trying to say?  Are they trying to say the idea of America was a bad one and man is not meant to self-govern?

Or, are they saying, we have no idea where this thing is going, because no other nation on earth has every risen so fast, leaped 5000 years and blessed the entire world because of it?

I think the latter is true.  There is no precedent for America.  The grand experiment of America is still going and it is up to us to improve it, be part of the popular bash club or leave to attempt to create something equal to it, good luck.

The Final Chapter – Unwritten

The next chapter of America’s future is unwritten.  Are there some deeply rooted issues?  Yes.  For instance the diminishing value of the dollar, the federal debt and the indebtedness of most Americans.

Well, here is a news flash for the bashers, there are plenty of Debt Free Americans too.  More in number than you can find in any other nation comparable to the US.  Oh, wait a minute, there is no other nation that compares to ours.

Does the United States Of America Exist?

Many well-informed and highly intelligent people I have met say that the United States of America no longer exists and has been replaced by the Corporation of the United States.

At first I was deeply offended by this, now I understand they are simply making a statement of fact, from their perspective.  From the worldly perspective of gain and wealth generation.

Has there been legislation that most people don’t know about or understand that has altered the original form of our Nation?  Yes.

Are there forces at work in our nation that we know nothing about in the form of foreign influence?  Yes.

Are there people who would love to see us fall?  Yes.

Too bad, America goes on and will go on.

America Survives

The next chapter heading in American History reads, AMERICA SURVIVES!

Why? America survives because once the concept of freedom has been so deeply rooted in a culture for over 200 years and grounded by many good people of faith, it always survives.

The Tea Party, the Reformation of America and the God-Fearing people in America have awoken, never to sleep again.  That is the American chapter I see.

Hard times?  Yep.

Recovery?  Yep.

A bright and shining future, The Shining City Upon A Hill?  Yes Sir!

Just One Example, Boston Travel

I flew into Boston Logan yesterday and started driving around downtown Boston.  Boston is a beautiful city.  It just happened to be a night when the Celtics were playing and the place was hopping and it’s not even summer time when this place is buzzing with runners, tourists and dreamers.

I love my country.  It is worth fighting for because it represents like no other nation on earth the idea that people are meant to govern themselves.

How can we fix her?  It starts at home, not through endless legislation.

More to come…

God Bless You and God Bless America?

The Wealth Of Nations 19

Book 3 Chapter 1

Of the Natural Progress Of Opulance

A Few Definitions To Begin

To be sure, here is a definition of Opulance.

Opulance – Wealth as evidenced by sumptuous living.

Okay, let’s get clear about sumptuous.

Sumptuous – Of a size or splendor suggesting great expense; lavish

And, how about lavish for good measure.

Lavish – Characterized by or produced with extravagance and profusion

So, Smith writes in this chapter about the natural progression of extravagance, lavish and opulent living.

Commerce Basics

To summarize, the commerce of all societies is driven by the fundamental arrangement of goods moving from the country to the city and manufactured goods moving from production to everyone that needs them.

As discussed in a prior chapter, the movement of these goods and service is fueled by the effectiveness of the transportation systems and effectiveness of the distribution network.

You can see the system at work every time you get on the highway and watch semi tractor trailers zipping by.

More commonly now, money is exchanged for the good from the country and manufactured products.

The Obvious Improvements

As this exchange between the country and technology continues over time, great efficiencies develop and provide something not found in most of human history.  That something is disposable time in a quantity never imagined by anyone other than a few “royals”.

In time farming becomes more efficient because the equipment manufactured to do it is better and better.  In turn more yield comes from the farm which lowers the prices and ease of obtaining them.

Likewise, manufacturing technology continues to improve and products are made more efficiently and at better prices.

Transportation and sales distribution follows similar patterns of improvement.

All of this is designed to make life easier and better.  At least this is the idea.

Microchip Supercharger

Adding to the modern version of this magnificent progression is the power of the microchip.

This tiny little device is marshaling in the collapse of bureaucracies in business, government and every other walk of life.  This is adding to making the systems more efficient as they become more tailored to individuals rather than one size fits all.

A Natural Progression – International Trade

Once the needs of the nation are met, producers of goods and services begin taking their products abroad to find greener pastures.  Or as in the miracle of the Chinese economic boom, competitive goods and services are exported while most needs are home are largely unmet.

Smith puts it well when he writes, “According to the natural course of things, therefore, the greater part of the capital of every growing society is, first, directed to agriculture, afterwards to manufactures, and, last of all to foreign commerce. ”

This international trade is very good as it introduces external capital that can improve the lives of the local population.

Potential Opulance Challenges

A few questions to consider regarding all this free time and opulance.

How does the population use the extra time and means?

Are the people spending their wealth only on feeding insatiable appetites?

Do the people use the wealth to build up or tear down the moral structure of the society?

Does the nation use its wealth to build bombs and make war?

We have built wealth, what are we going to do with it?

God Bless You and God Bless America!

This entry has gotten ongoing attention and clearly strikes a chord with many.  This is a reprint.  First time ever.

Enjoy!

5000 Year Leap

4th Principle

Without Religion the Government of a Free People Cannot be Maintained

This 4th principle supports the first three.

Religion is the systematic way spiritually based organizations share the truths about man’s relationship to God.  The Founders knew religion was essential to maintaining freedom and the miraculous constitution they penned.

Why was religion so essential?  It is within the walls of the churches that we see the Natural Law taught upon which the constitution and laws of the land were based.  Natural Law was taught in the churches. The first three principles are clear regarding Natural Law in the constitution of the United States of America.

The religions of that day were all harmonized on what Franklin described as the Five Fundamentals of All Sound Religion.  These five points were beyond question to the citizens of United States of America.  This point is highlighted by the five “Fundamental Points” that were taught in schools.  These points were considered common knowledge.

“The “Fundamental Points” to Be Taught in the Schools

The five points of fundamental religious belief expressed or implied in Franklin’s statement are these:

1.  There exists a Creator who made all things, and mankind should recognize and worship Him.

2.  The Creator has revealed a moral code of behavior for happy living which distinguishes right from wrong.

3.  The Creator holds mankind responsible for the way they treat each other.

4.  All mankind live beyond this life.

5.  In the next life mankind are judged for their conduct in this one.

All five of these tenets run through practically all of the Founders’ writings.”

The Founders considered these points essential to a church being considered bonafide and a religion at all.  This point is distorted and intentionally blurred today by those desiring to alter the Natural Law.  Too bad for them, their cause is certainly frustrated by the whole of the universe working in direct conflict with them.  They may occasionally win the day, but Natural Law prevails, it must, it is the Law.

Additionally, the Founders believed in each religious sect with these five points as a basis be given equal treatment in the Law.

The Founders also desired to clearly keep the federal government out of the religion business while maintaining the absolute right of “five point based” religions to function unobstructed and protected at the state level.

Principle 4 of the 5000 Year Leap encourages the religious to renew their faith and feel gratitude for a country of free “five point based” religious practice.

Please read this excellent book.

God Bless You and God Bless America!

The Wealth of Nations 18

Book 2 Chapter 5

Of The Different Employments Of Capital

Putting Capital To Its Proper Use

“Though all capitals are destined for the maintenance of productive labour only, (otherwise it is charity, waste and not investment) yet the quantity of that labour which equals capitals are capable of putting into motion, varies extremely according to the diversity of their employment; as does likewise the value which that employment adds to the annual produce of the land and labour of the country.”

This is just plain fun.  We are figuring out where capital is best applied in order to generate the greatest wealth for the nation.

Four (4) Ways To Employ Capital

There are four ways to employ capital.

1. Raw material production including agriculture and mining/drilling

2. Manufacturing with the raw materials

3. Transportation or logistics associated with moving manufactured goods or raw materials

4. Wholesale to retail sales and trade

Smith states, “Each of those four methods of employing capital is essentially necessary, either to the existence or extension of the other three, or to the general conveniency of the society.”

So, which one of these adds the greatest wealth to a nation?

Answering The Question

Plain and simple, raw material production including agriculture is the basis for wealth generation and is fundamentally sound as a wealth generator.  In Adam Smith’s day, there was no microchip or computing power to facilitate the knowledge economy.

However, all of the information and knowledge zipping around the internet and contained on all the hard drives in the world all supposedly go to the same end, helping to make the system better or more efficient.  Better or more efficient to do what?

The answer is to meet the basic needs of the people with food, goods and services.

Keep in mind, everything stops if there is no food.

Great quantities of money can be made trading mysteriously backed instruments like derivatives.  But does this really add wealth to the nation or just shift it around rewarding the puzzle masters with more and more fiat fluff?

Also Very Important

In addition to the core essential of a nation feeding itself, comes the ability of the marketplace to distribute and sell the products in a way that is useful to the consumers.  Thus, retail and wholesale sales channels are essential to building national wealth.

Also keep in mind, nothing happens in economics until you get the order.

Important, But Variable

Manufacturing is important, if and only if it is conducted in the nation.  Manufacturing is not bound, however to any on particular piece of ground.  Goods are made all over the world and sold all over the world depending on the needs of the market.

So, if manufacturing is occurring at home, it is a wealth builder.

Finally, logistics and shipping is important but can be managed from a distance and changes rapidly.  Without reliable logistics, wealth is impossible to build.  Yet, logistics comes in last in the wealth building beauty contest.

What Does This Mean According To Smith?

To gauge the future wealth potential of a nation look at the effectiveness of raw material and agriculture, retail/wholesale distribution and how much of the goods are produced at home in that order.

1. Agriculture/Raw Material Production 2. Retail Sales

The goods will always find a way to move.

What do you think?  Does this still apply?

God Bless You and God Bless America!

The Wealth of Nations 17

Book 2 Chapter 4

Of Stock Lent At Interest

The Core of The Problem With The United States Financial Crisis

“The Stock which is lent at interest is always considered as a capital by the lender.  He expects that in due time it is to be restored to him and that, in the mean time, the borrower is to pay him a certain annual rent for the use of it.  The borrower may use it either as a capital, or as a stock reserved for immediate consumption.”

The core of the problem with the United States financial crisis is simply this, borrowing for the purpose of consumption rather than investment.

The Prodigal Nation – The United States Corporation

Smith goes on the write, “If he uses it as a stock for immediate consumption, he acts the part of a prodigal, and dissipates, in the maintenance of the idle, what was destined for the support of the industrious.”

Once the capital is spent on consumption it is gone forever, never to be reclaimed.  If on the other hand it is invested in some industry, a return is had and the original capital can be repaid and a profit is had.

Our nation, the Corporation of The United States, is a prodigal nation.  And like the New Testament story of the Prodigal Son, we are eating and drinking, destined only to live the life of a swine herder.

Consumption Based Economics Leads To Ruin

“The man who borrows in order to spend will soon be ruined, and he who lends to him will generally have occasion to repent of his folly.  To borrow or to lend for such a purpose, therefore, is in all cases, where gross usury is out of the question, contrary to the interest of both parties…”

There is a path back from the brink of spending vs. investment and it is clearly marked.  Each man must needs endeavor to serve if he is able.  Unfortunately our system currently rewards slothful behavior and encourages discouragement rather than thrift and innovation.

Interest Rates

Smith points out that as a nation builds wealth, lending at higher rates becomes increasingly difficult because of the abundance of available capital to lend.

As such, only the prodigals are willing to pay the higher rates of interest for their consumption while the borrower investor stays away.  He writes, “…the greater part of the money which was to be lent, would be lent to prodigals and projectors, who alone would be willing to give this high interest.  Sober people, who will give for the use of the money no more than a part of what they are likely to make by the use of it, would not venture into the competition.”

So, the truth is known.  Those who can make best use of the money stay away from the higher interest and as we see now, unstable market conditions and use their time more productively.

The best policy is to let the market determine the interest rates, not the ivory tower philosophers.

I encourage you to use capital wisely and invest in your future while avoiding unnecessary consumption.

God Bless You and God Bless America!

Jesus Christ 15

Sweet Guidance or Bitter Isolation?

Many Choices

There are so many choices to make in life, especially in the western world with increasing disposable income and time.

There is one choice that can lead to feelings of happiness or feelings of emptiness.

Truth or Appetites

This choice is a choice of following truth or following the appetites of mortality.

The true manifestation of truth is embodied in Jesus Christ, the Risen Savior of Man.  Following Jesus Christ and His teachings leads to happiness, joy and peace.

Ignoring Jesus Christ and serving anything else leads to emptiness, sadness and a constant sense of something missing.

Jesus Christ is our best friend

Jesus Christ is our best possible friend if we will have Him as a friend.  He says;

John 14:14 If ye shall ask any thing in my name, I will do it.

This is a stunning promise.  If we simply ask wisely in the name of Jesus Christ, He will do what we ask.  I also know our asking must be expidient unto our own salvation for the best possible results.

Which means, we need to ask wisely in accordance with God’s teachings if we are to be blessed and not tested.

The work we must do

To receive such a marvelous promise and support we must do our part.

John 14:15 If ye love me, keep my commandments.

We must show our love to the Savior by obeying His teachings.

An Invitation

Jesus Christ and His Father, God the Father, are both separate, individual, celestial beings focused completely on helping us achieve the greatest possible happiness in eternity.

Jesus makes a wonderful invitation for us to follow him and receive a tremendous gift;

John 14:16 And I will pray the Father, and he shall give you another Comforter, that he may abide with you for ever;

This Comforter mentioned in John is Christ Himself.  He will come unto us and abide with us if we are willing to receive Him.  This is a powerful promise and truth.

What we need to do

To claim this wonderful gift of the Savior dwelling with us, we must keep the commandments that Jesus taught.

John 14:21 He that hath my commandments, and keepeth them, he it is that loveth me: and he that loveth me shall be loved of my Father, and I will love him, and will manifest myself to him.

Keeping the commandments simply means doing what Jesus taught to our best ability, our very best ability.  This most certainly includes being merciful, especially with ourselves and repenting when we stumble.

The Father and Son will make and abode with you

The first time I read this scripture, I was amazed to know it was true.

John 14:23 … If a man love me, he will keep my words: and my Father will love him, and we will come unto him, and make our abode with him.

Pondering the thought that the Father and the Son would make an abode with me, walk with me, and allow me to feel their peaceful presence brings real hope and peace in a world filled with turmoil.

I encourage you to follow the teachings of Jesus Christ and be blessed.

God Bless You and God Bless America!