We’ve just wrapped up another big mud slinging battle that should have ended on November 3rd but didn’t. The rhetoric was vile. At one-point Biden had to turn around and state categorically that he wasn’t a socialist. He boldly claimed that he beat Bernie Sanders for the Democratic party nomination for President.
In America, it’s a sin to be considered a socialist. For the record, and it will be obvious to you in a minute, I am not a socialist. I am also not a Nazi. But let’s not forget that Hitler created VW, and the autobahns. My point: regardless of your political or philosophical proclivities, you can look at things you despise sometimes and see a few things that might have value.
It turns out that a good portion of America has a guttural affliction to socialism. Ironically these are the same people that voted against themselves in support of Trump. To profile the vast majority of them: they appear to be very overweight, with major health issues, who live in trailer parks, without work, receiving government handouts (unemployment, or disability, or retirement benefits), visit church regularly, and watch Fox News all day long! They also live in Republican states that are functionally bankrupt and depend on Federal handouts i.e. that smooch off Democrat controlled California and New York. They truly hate socialists. The tragedy, of course, is that they have no clue what socialism is. In any other country, they would be the bastions of left-wing parties, but not in America.
There are without doubt, many hard-working, driven, apparently self-made wealthy folks who hate socialists too… who fund the Republican party. Most of these folks have some level of education; but have a major issue with their tax payments being handed to people who ‘should’ otherwise be working i.e. their new political allies in trailer parks who also voted for Trump.
I am not in any political camp, but my own objective analysis – based on data and facts – is that freedom of enterprise is crucial to economic advancement and human progress. It is freedom of enterprise after all that maximizes the rate of innovation. And without doubt, innovation has been the greatest contributor to prosperity and welfare.
Today we buy tires with 100,000-mile warranties for cars at the same relative price as 1,000-mile rubber tires for cars 100 years ago. Tires have improved 100x yet their price remains unchanged. Tire consumers have become incredibly wealthy, without even realizing it. They have all this added value, without added cost. Everyone, rich or poor benefits from this type of value creation. There is no need to redistribute this wealth – from rich to poor – its simply out there as an option for ALL consumers. It makes everyone rich, without folks even realizing it.
After all, if you were wealthy what would you do with the money? Well, you might want to spend it on your health first… i.e. try to live longer. And, to illustrate my point on innovation, in the past few weeks alone it was announced, that a range of new vaccines will become available in the war against COVID … prepared at lightning speed by for profit enterprises – which will be available to everyone. In fact, in order to conquer the virus, the government will make sure everyone is jabbed. You see it benefits rich people, to have poor people vaccinated, otherwise we won’t have herd immunity. So, this innovation will be distributed widely. And once again, we will have free enterprise come to everyone’s rescue – rich or poor!
If you want innovation, you must have free enterprise. Whether you are to the left or right in America’s political spectrum, you can not argue with any policy that promotes free enterprise in the U.S. Maximizing free enterprise MUST be the most important goal of governments.
Like human beings, companies have distinct lives. We need to constantly create new companies or enterprises, in order to have a vibrant economy i.e. have a high standard of living, and prosperity. The rate of new enterprise formation in the U.S. has been dropping.
Critical steps must be taken to revitalize enterprise in our economy. And we can not be dogmatic or ideological about it. We have to simply find out what works best and then implement new policies or strategies that maximize the rate of enterprise in our economy.
Here are two suggestions:
- Public Health Care System
When I decided to leave the security of employment to start my own enterprise, the single biggest concern (i.e. worry) was health insurance for my family. I did not know where my next paycheck would come from. I didn’t care. But I did care that if my kids had an emergency, they would be admitted to a hospital if need be. I was ready to risk my own welfare, but I did not want to risk theirs. Having health insurance was crucial to my plans.
This wasn’t the first time I had been enterprising. You see, I went to college in the UK while Margaret Thatcher was the Prime Minister. She was a champion of free enterprise (a warrior against trade unionism). One interesting fact about her period in office was that she managed to reinforce the National Health System (NHS) while at the same time ensuring that a parallel private health care system thrived and grew. She was very astute. She understood that a public health care system enabled enterprise.
Starting a business for me, here in the U.S. was not entirely a new experience. I had graduated from college in the UK without a job (the UK had record unemployment at the time) and so, I started a business. I did, however, need to visit a doctor a few times during that start-up period. Access to healthcare was crucial to my ability to be enterprising. Fortunately, I had access through the national health system.
More recently, after I immigrated to the U.S., I started another (new) business. This time I had to make sure to purchase health insurance for my family separately. It took a lot of time and energy (which I could have devoted to other things). During the start up phase, while I employed only a handful of employees – I witnessed our health insurance rates increase by double digit values without any ability to control the increases. It was the one cost of business that was completely out of my control. It was dictated to me. Literally.
A public health option may be a concept that had its origins within some socialist writings, but it may in fact serve capitalism very well.
As I said before the key to prosperity lies in maximizing innovation, which in turn is linked to maximizing free enterprise. And, it is clear, that taking health care off the table for businesses – especially new businesses – would enhance the rate of enterprise in our ‘free enterprise’ (capitalist) economy.
2. Public (STEM) Higher Education System
Quietly, without a whisper, 5 million Chinese students graduated with STEM degrees this past year. And in India we had almost half that figure 2.5 million. While in the U.S. we barely graduated 600,000 students. Having hung around several different colleges in America, I would bet that at least 100,000 of the 600,000 graduating STEM students, were foreign born (many of them returning to their home countries).
But more crucially, almost 2/3rd of American Post-Graduate students are foreign born. The jokes in most engineering schools revolve around foreign born teaching assistants that barely speak English and how they interact with U.S. born students.
Meanwhile on a per-capita basis, while China and Iran are producing 5 STEM graduates per thousand citizens, the U.S. is barely managing to graduate 2. Not too surprisingly, overtime, these graduates will develop new ideas, new technologies… new businesses.
If its NOT painfully obvious, the U.S. is slipping down a hill towards relative poverty (like the Brits did after the second world war when they slowly but surely lost their global footing) to a rising China. US share of the world’s economy has dropped from roughly a third of the world economy to under 15%.
How can we realistically expect to not just develop but own the next batch of technologies – if we are producing roughly 5% of the world’s scientists and engineers.
There was a time when the U.S. could count on attracting the best and brightest from around the world – especially to its great universities. But the number of foreign students coming to the U.S. has been dropping. It has dropped almost 20% over Trump’s Presidency. America it seems has developed a xenophobic reputation. Muslim travel bans, border walls, Chinese trade walls … and a relative decline in global prestige have conspired to make the U.S. less attractive for these foreign students. It is NOT a coincidence that the 500 or so counties that produce 80% of America’s GDP are also the 500 or so most populated counties with foreign born college graduated immigrants. These immigrants, it seems, are core to American enterprise.
So, what can the U.S. do to increase its overall rate of enterprise. Why, the answer is obvious…. Have more STEM graduates.
Simple, reduce the cost of higher education.
How is it that China produces 5 million STEM graduates? It pays their full tuition. Why is it that American students don’t stay in college for post-graduate degrees? It simply costs too much!
I am not advocating for free education, all the way up to doctorate level, for all students in all fields. But I do think that STEM related higher education i.e. Basic sciences, engineering and medicine has to be dramatically reformed to increase the total number of graduates, and also enable more students to attain more advanced degrees. The U.S. has to literally double, its total number of STEM related graduates very quickly or it will simply fall behind.
The forces that led to the rapid rise of the U.S. economy in the 20th Century, are not in play in the 21st Century. Massive structural advantages that America once enjoyed in the form of a huge integrated economy, along with the lack of a meaningful foreign competitor, and a great influx of talented immigrants are no longer applicable. China has a much larger, more integrated economy that is further integrating into the rest of Asia, through to Europe with big investments in roads and infrastructure … leaving the U.S. in the dust. Foreign students are not coming to the U.S. in the same numbers as in the past, and immigration to the U.S. has been restrained. The U.S. no longer enjoys the advantages it once had. These are structural issues. It requires serious consideration, and a set of new policies that will quickly, and effectively address the new condition the country is in. It doesn’t matter whose ideas they are, or why the ideas were formed to begin with. It only matters that we increase and improve our overall rate of enterprise in America.
This blog is provided by the “Supreme Dr. Ayatoilet Kh.Kh.Kh.” pen name and moniker with a passion to exposing the abuses of the regime in Iran and those outside Iran who also abuse Iranians. The “Ayatoilet” communicates via original blogs, videos, music compositions, comedy, novels, and animation movies that can be found on www.baharmedia.net and can be reached via email at email@example.com