Oppressor->Oppressed is a path to inevitable poverty and failure. Win<->Win is a path to prosperity, success, and Social Justice, but how do we get there? Oppressor->Oppressed is always a path to disagreement, injustice, failure, poverty, and even war; it is only a matter of time.
Statues at the Win-Win Monument in Cambodia
Photo by
Bunsim San on
The Great United States Experiment
The United States, until most recently, led world order imperfectly towards a Win<->Win world; for most of its 240+ years, it has moved in a progressively positive direction. While others experimented with social democracy, authoritarianism, socialism, and communism, the United States Constitution, with its Freedom of Religion, based on thousands of years of human history, formed the progressive democratic process that ended the Oppressor->Oppressed slavery on our way to a better Win<->Win version of ourselves setting a shining example for the rest of the world. While perfection is never obtainable, we must always strive to be and do better.
US Government Spending (% GDP) and US Government Tax Revenues (% GDP)
Data From the Office of Management and Budget, US Government
The US Government is Designed to be Minimal
For the first 161 years, US government jobs represented a small percentage of the economy: 5% to 10%. Because of WWII's wartime need for austerity and production, government jobs rose to 15%. It was not until the postwar welfare state and Cold War that the government job percentage was continually raised to 20% by 1970. During the 1970s and 1980s, we saw the government sector struggle with doing more with fewer government employees as the government sector and policymakers sought to control budget deficits, a period similar to what we are on the verge of today. During President Regan's administration, government jobs dropped to 16% as the Government struggled to reduce the size of the government.
The US Government Socialism is to Provide Life Support as a Last Resort
Our economy is of the people, by the people, and for the people, with prosperity for all who earn it and charity for those who can not. To the degree that a person can produce what others are willing to pay for., that person will prosper. Traditionally, religion and family, not government, supported and cared for those without basic human needs. Even the government's limited safety net must be based on money, made possible by the prosperity generated by US Free Market Capitalism, government charity, not national debt.
Today, Private Sector vs. Public: Just 40% of Americans Support the Other 60%.
U.S. government spending is growing at a faster pace than the ability of taxpayers to pay for it. As government spending outpaces economic growth, more resources are redirected from productivity-enhancing functions toward government-fueled consumption without commensurate increases in the ability of workers to pay for a larger government. Excessive government spending fuels inflation, depresses growth, and lowers living standards. Congress’s latest debt deal is woefully inadequate for addressing the drivers of growing spending and debt, primarily putting controls on less than one-third of the budget that is already projected to decline further as a share of the economy: discretionary spending. --Quote from CATO Institute - 20 July 2023 - Romina Boccia
Government is Never Enough - It Needs Idealogical Faith
A government with only a Rule of Law without the super majority following one of the many Win<->Win ideologies, religious or non-religious, is left in Oppressor->Oppressed circumstances, on a path to disagreement, injustice, failure, poverty, and even war; it is only a matter of time.
Has The United States Lost It's Magic?
The chart above depicts the current out-of-control government spending that is unsustainable. Today's taxes on 40% of United States's citizens fall way short of that needed to cover government spending. The US government tax revenue and government spending as a percent of GDP from 1960 to 2023 have two trend lines: the spending is in blue, and the tax revenue is in red. Notice that the government struggled in good faith from 1960 until well after 2000 to control spending, debt, and taxes with a break-even in the 1960s and some debt payback at the end of President Regan's two terms. Notice how well the US economy handled the 911 Iraq War. Then, the Housing Bubble and Subprime Mortgage Crisis of 2006 through 2010 witnessed big government spending, low worker productivity, and significant debt during President Obama's administration. The President Trump Administration managed to bring the economy back closer to breaking even before 2020; the employment levels, consumer spending, and GDP recovered by the second quarter of 2021 thanks to fast, effective action by President Trump. The recession caused by COVID-19 was only two months long. Still, when Democrats gained complete government control, the gap between revenue and spending was as great as ever and so far has shown no sign of significantly shrinking.
Academic Meritocracy, Not DEI - Education is an Individual Responsibility After Basic Education, Many Wish for Government Support for Career Education, College
Education is the responsibility of the individual, not the government. However, the government should and does offer basic knowledge acquisition knowledge and skills for all, the three R's, equally, and an introduction to college, lifelong knowledge acquisition, and career development. Government social indoctrination and involvement in higher-level specialized education is too expensive, unfair to everyone, and corrupts education's content, quality, and value. Besides the primary responsibilities you need to perform your obligations as a citizen, the government should leave social skills up to the family's diverse cultural and religious ideological teachings.
Is the United States economy becoming more managed (socialist), while Russia, China, and other socialist countries are shifting towards more "free market" capitalism?
Remember, all economies are mixed, part state-managed (socialist), and part free-market capitalism (Win<->Win), even the US!
Other Experiments Elsewhere in the World
All other forms of government have assumed that some elites, like elected officials, anarchists, and dictators, rise above the rest of us, control and govern us with controlling management. This is true even in so-called social democracies, e.g., in Western Europe, where representatives are elected. This control extends to speech, news, education, political correctness, and religious repression. Soon, the people's diversity of opinion is replaced by collectivism, leaving one, two, or more stagnant non-progressive political ideologies that are non-dialectical and unable to make decisions.
World's Best-Known Government and Economy
History, common sense, and reason have shown that a Win<->Win constitutional republic is the best prosperous democracy; it is a fair and balanced form of government coupled with a Win<->Win free market capitalism economy.
Capitalism
Capitalism is an economic system that is an economic democracy allowing private ownership and promoting the idea of a free market that offers profits in return for productivity, innovation, and efficiency. Many centrally controlled economies have recently tried and failed to live without capitalism. Today, all major economies depend on capitalism and participation in a mix of state-managed and free-market capitalist economies. A list of countries by the dominant in their mix is listed below. An expanded breakdown of larger economies in each category is given at the end of this article and referred to in examining how economies work.
Traditional State-Managed Capitalism Countries:
China:
Russia:
Singapore:
Vietnam
Malaysia:
Indonesia:
Saudi Arabia:
United Arab Emirates:
Qatar:
Kazakhstan
Venezuela:
Iran:
Traditional Free-Market Capitalism Countries:
United States:
United Kingdom:
Canada:
Australia:
New Zealand:
Hong Kong:
Switzerland:
Ireland:
Denmark:
Singapore (Partially):
Taiwan:
Israel:
Too Difficult to Categorize, but Using Capitalism
It's important to note that these categories are not always clear-cut and can vary significantly within countries. Additionally, some countries may exhibit state-managed and free-market capitalism characteristics, making them difficult to categorize:
Japan:
Brazil:
France:
Italy:
Mexico
What Does This Ongoing Worldview Experiment Tell Us?
Today, as we sit in 2023, the mixed economies of the United States and China, the world's #1 and #2 ranked economies, look strikingly similar even though the politics and culture are very different. The numbers above show the US 28% managed and 72% free-market forces. China's numbers are 30% managed and 70% free-market forces. Given the strength of the two economies, the US is trending toward a more managed economy, which is less productive per capita and has a national debt of 129% of its productivity (GDP), putting it in a less progressive position. Conversely, China has only 50% of its productivity (GDP) in debt and is far more productive both per capita and as far as manufacturing. In the 1950s and 1960s, we heard "made in Japan". Then, President Nixon opened up China. Today, we say "made in China."
Capitalism is One of the Pillars of Human Civilization
So, it's true that both state-managed and free-market economies utilize capitalism, but they do so differently. It is impossible to give an exact percentage of how much of the world's productivity is managed and what capitalism produces; the world's economies are too complex and diverse. However, we know that only 10% of productivity worldwide is performed by 100% Publicly Owned Enterprises (POEs), leaving 90% of worldwide productivity involving some form of capitalism.
Free-Market Capitalism: At its core, capitalism is an economic system based on private ownership, control, and management of the means of production (factories, land, resources). In return for profit, the private owners must partner in a Win<->Win partnership with investors, employees, and customers to provide economic value and productivity. The bigger the value and the more productivity, coupled with the greater the demand, the bigger the profit. The primary motivators of economic activity are free markets with minimal government intervention and profit. Free-market capitalism is of the people, by the people, and for the people. More than ever, due to the internet, social media, and the 24-hour news cycle, we, the people, have the right and the ability to regulate our free market economy. Elected representatives are not an elite class elected to lead us but elected to follow the people's will. In the US today, with today's 24x7 internet-connected electorate, We, The People, should control the free market and the governance of ourselves:
Private ownership and entrepreneurship: Individuals and private companies own and operate most businesses, driving innovation and competition.
Market forces: Supply and demand dictate prices, production levels, and resource allocation, with minimal government intervention.
Deregulation: Regulations are generally kept to a minimum, allowing for greater flexibility and economic dynamism.
Limited social safety nets: While some forms of social welfare may exist, the emphasis is on individual responsibility and private insurance.
State-Managed Capitalism: Elected individuals are not elected as representatives but as elite leaders, anarchists acting independently from the electorate's will, the free market, who elected them. State-managed economies: While not entirely devoid of capitalism, these economies are characterized by:
Significant government ownership and control: The state owns or heavily influences critical sectors such as energy, banking, and infrastructure.
Centralized planning: The government plays a significant role in directing the economy, setting production targets, and allocating resources.
Limited competition: State-owned enterprises often enjoy monopolies, having dominant positions in their respective sectors, reducing market competition. Anarchists wrongly think control, offering less choice to the people, is more efficient.
Social welfare programs: These economies often have strong social safety nets and provide subsidies to meet basic needs even when the individual had the chance to be self-sufficient and prosperous beyond that and blew it.
Why Does All the World Use Capitalism?
Despite their differences, both state-managed and free-market economies utilize some aspects of capitalism because it offers certain advantages:
Efficiency: Private ownership and competition can incentivize efficient production and resource allocation.
Innovation: Capitalism rewards investment, risk-taking, and entrepreneurship, leading to technological advancements and new products and services.
Consumer choice: Free markets offer consumers a variety of goods and services at competitive prices.
Economic growth: Historically, capitalist economies have tended to experience higher economic growth rates than centrally planned economies. Thus, the failure of Russia and the Chinese transformation. The more significant Win in the Win <-> Winmarket.
The Rest of The Story
However, the degree and manner in which these aspects are utilized differ significantly. State-managed economies may use elements of capitalism, like private ownership in specific sectors, but maintain control through regulations and government intervention. Conversely, free-market economies embrace private ownership and market forces more extensively while implementing some rules to protect consumers and ensure fair competition.
Which is Better?
Ultimately, the choice between or just the right mix of the two, state-managed and free-market systems, is complex. Both models have advantages and disadvantages, and the optimal approach depends on various factors like the country's cultural context, historical background, and development goals. Competition and evolutionary progress are baked into the nature of our universe. One thing is for sure: it is a race to see who can do better, and I am betting on Win<->Win rather than Oppressor->Oppressed to do better at each step of the way.
Win <-> Win World Order
In the opening paragraph titled "The Great United States Experiment," we said, "The United States, until most recently, led the world imperfectly towards a Win<->Win world; for most of its 240+ years, it has moved in a progressively positive direction." Following WWII, in 1946, marking an end to the Oppressor->Oppressed world order or the domination era. For the first time in world history, a new Win<->Win world order era began, led by the United States, representing 50% of the world's economy and productivity. Instead of dominating and oppressing the world, the United States offered other countries of the world a "bribe", a deal where, in return for order, the United States would:
Patrol the seas to ensure free navigation and trade everywhere for all.
Would fight and bleed for any ally when necessary.
Open its free market to other partner countries even if they protected their own
Provide financial liquidity to grease all wheels to make trade work.
This new world order advocating Win<->Win with Free Market Capitalism has unleashed worldwide prosperity, growing the world's economies, feeding an ever-expanding world population, and keeping military conquest to a minimum. Not all countries have participated; those that have not have not prospered. Effective trade relationships have formed between participating countries.
Politicalization of Gaslighting Coupled With an Oppressor->Oppressed Start of Decline of the Win<->Win World Order
For me, the assassination of President Kennedy marked the politicization of gaslighting with Oppressor->Oppressed radical movements by President Johnson and the Democratic Party.
In The 1960s
Progressive radical movements began. First, the birth control pill unleashed sex free of the resulting children and parenthood responsibilities (Free Love), which challenged and changed conservative religious beliefs. This morphed into the antiwar movement as the war in Vietnam escalated. As President Lincoln signed the Emancipation Proclamation on January 1, 1863, he and many other leaders felt it would be 100 years before black people would have absolute freedom and equality.
My Personal Experience
I came of age in 1963 and can tell you I did see historical evidence but no modern-day pervasive racism that one could call white supremacy or systemic racism. I lived in the south, Houston, Texas, and there was bias and prejudges on many sides. My family joked and disparaged blacks, Texas A&M Aggies, Indians, Italians, Mexicans, and many others. We always assumed we were also fooled about and disparaged; we enjoyed and allowed freedom. There existed friendly racism on all sides. The world then could have used a little more Win<->Win attitude. My father, the banker, had many black and minority customers who were quite successful and whom he respected. When Martin Luther King made his "I Have a Dream" speech, our family was in total agreement and sympathy. Everyone in our extended family believed as Martin Luther King did - to judge a man by his character and merit, not by his color. As far as we were concerned, that was social justice. That marked the end of any Oppressor->Oppressed affecting social justice.
Politicalization of The Civil Rights Movement
However, the Civil Rights Movement activists and scholars sought and found evidence of legal, social, and cultural systems that disadvantaged minorities. However, when asked for detailed contemporary examples, the answer points us to no longer-used laws and behavior that existed during the 100 years after the Emancipation Proclamation, generalized opinions with no specific truth or examples, and cherry-picking contemporary events while ignoring counter-example events. We are told that the answer is complicated. We are left with the feeling we are being Gaslighted with political propaganda. My personal experience, witnessing my father grant loans to minority bank customers while turning away family and friends due to each individual's ability to repay the loan in the 1950s, is a compelling example that merit matters.
The 1960s also saw the birth of rapid technological/social change:
Computers
Remote Computing
Man on the Moon
In The 1970s
These were torturous years marked by Stagflation, which combined high inflation with shortages, uneven productivity, and economic growth. High budget deficits, lower interest rates, the oil embargo, and the collapse of managed currency rates contributed to stagflation. Under Federal Reserve Board Chair Paul Volcker, the prime lending rate was above 21% to reduce inflation.
The Petrodollar Was Born
With the dollar facing devaluation and cars lining up the night before for gas in the morning, The President, Richard M. Nixon, in 1974, made a deal with Saudi Arabia, the Petrodollar Doomsday Deal. In 1975, other Organization of Petroleum Exporting Countries (OPEC) members followed suit, and the petrodollar was born. This had the immediate effect of strengthening the U.S. dollar.
Rules for Radicals Adopted by The Democratic Party
The oppressive Democrat political activity began to deploy Political Correctness and stress women's rights, the Democratic academic beginning of CRT, Woke-ness, ESG, and DEI, and the end of dialectical speech and any free speech in general. "Rules for Radicals: A Pragmatic Primer for Realistic Radicals" was published in 1971. These cancel culture tactics first appeared in the 1930s to 1950s to describe strict adherence to the ideology of authoritarian regimes like Nazi Germany and Soviet Russia. The general game plan was attention-getting demonstrations and protests, sometimes violent, followed by gaslighting claims of being oppressed.
Rules for Radicals from the Link Given Above
RULE 1: “Power is not only what you have, but what the enemy thinks you have.” Power is derived from 2 main sources – money and people. “Have-Nots” must build power from flesh and blood. (These are two things of which there is a plentiful supply. Government and corporations have difficulty appealing to people and usually do so almost exclusively with economic arguments.)
RULE 2: “Never go outside the expertise of your people.” It results in confusion, fear, and retreat. Feeling secure adds to the backbone of anyone. (Organizations under attack wonder why radicals don’t address the “real” issues. This is why. They avoid things with which they do not know.)
RULE 3: “Whenever possible, go outside the expertise of the enemy.” Look for ways to increase insecurity, anxiety, and uncertainty. (This happens all the time. Watch how many organizations under attack are blind-sided by seemingly irrelevant arguments they are forced to address.)
RULE 4: “Make the enemy live up to its own book of rules.” If the rule is that every letter gets a reply, send 30,000 letters. You can kill them with this because no one can possibly obey their own rules. (This is a serious rule. The besieged entity’s credibility and reputation are at stake because if activists catch it lying or not living up to its commitments, they can continue to chip away at the damage.)
RULE 5: “Ridicule is man’s most potent weapon.” There is no defense. It’s irrational. It’s infuriating. It is also a key pressure point to force the enemy into concessions. (Pretty crude, rude, and mean, huh? They want to create anger and fear.)
RULE 6: “A good tactic is one your people enjoy.” They’ll keep doing it without urging and come back to do more. They’re doing their thing and will even suggest better ones. (Radical activists, in this sense, are no different than any other human being. We all avoid “un-fun” activities, but we revel in and enjoy the ones that work and bring results.)
RULE 7: “A tactic that drags on too long becomes a drag.” Don’t become old news. (Even radical activists get bored. So, to keep them excited and involved, organizers are constantly coming up with new tactics.)
RULE 8: “Keep the pressure on. Never let up.” Keep trying new things to keep the opposition off balance. As the opposition masters one approach, hit them from the flank with something new. (Attack, attack, attack from all sides, never giving the reeling organization a chance to rest, regroup, recover, and re-strategize.)
RULE 9: “The threat is usually more terrifying than the thing itself.” Imagination and ego can dream up many more consequences than any activist. (Perception is reality. Large organizations always prepare a worst-case scenario, which may be furthest from the activists’ minds. The upshot is that the organization will expend enormous time and energy, creating the direst of conclusions in its own collective mind. The possibilities can easily poison the mind and result in demoralization.)
RULE 10: “If you push a negative hard enough, it will push through and become a positive.” Violence from the other side can win the public to your side because the public sympathizes with the underdog. (Unions used this tactic. Peaceful [albeit loud] demonstrations during the heyday of unions in the early to mid-20th Century incurred management’s wrath, often in the form of violence that eventually brought public sympathy to their side.)
RULE 11: “The price of a successful attack is a constructive alternative.” Never let the enemy score points because you’re caught without a solution to the problem. (Old saw: If you’re not part of the solution, you’re part of the problem. Activist organizations have an agenda, and their strategy is to hold a place at the table to be given a forum to wield their power. So, they have to have a compromise solution.)
RULE 12: Pick the target, freeze it, personalize it, and polarize it.” Cut off the support network and isolate the target from sympathy. Go after people and not institutions; people hurt faster than institutions. (This is cruel but very effective. Direct, personalized criticism and ridicule works.)
The 1970s saw increasing technological/social change:
Databases
Timesharing
Desktop Computer
In the 1980s
The oppressive Democrat Party became ideological, joining racism with LGBTQ, which likely arose in the late 1980s as a way to encompass various sexual and gender identities under a single impactful term together used in Gaslight->Oppressor->Oppressed political rhetoric and propaganda. 1989: Legal scholars Kimberlé Crenshaw, Neil Gotanda, and Stephanie Phillips organized a workshop at the University of Wisconsin-Madison titled "New Developments in Critical Race Theory (CRT)," marking the official coinage and public introduction of "critical race theory." Technological innovation continued:
Microcomputers
Microsoft
Apple
In The 1990s
A decade of dramatic change and diverse ideas. No longer is the scientific method and dialectical contrast of progress to reasonable objective facts. The critical theories of elite academics, like CRT, are accepted as fact. Most college professors are ideologically committed to the Democratic party. Therefore, Critical Theory that happens to match Democratic Party political opinion forms the subject matter of higher education:
Soviet-occupied East Germany, officially known as the German Democratic Republic, was reunited with West Germany on October 3, 1990. The Soviet Union collapsed a year later due to Regan's Conservatism, more Win-Win-like successful free market capitalism, and a threat of the United States becoming space dominant.
The rise of individual expression and identity politics. Social movements and collective actions that advocated for the rights of marginalized groups gained momentum, including feminism, LGBTQ+ rights movements, and calls for racial justice. Too often, the solutions went too far and became Oppressor -> Oppressed in that decisions were NOT equal opportunity, taking opportunity from those of higher merit to benefit the marginalized unjustly; therefore, everyone was less prosperous. The Win<->Win solution always uses merit equally for everyone; Economic Justice comes before Social Justice in a Win<->Win World. The takeaway is that social justice is not a government function but a function of a prosperous family, religion, and charitable community.
"Global Warming" became political with the cancelation of free speech with no hope of dialectical reasoning to find the progressive truth and the answer to the question, "How do we provide the cheap, abundant energy we need to be prosperous and progressive?
The technology of this decade included:
Mobile Phones
Internet
Email
A First Successful Use of AI: Objective Systems Integrators (OSI) developed a NetExpert product to manage networks that enabled all the other technologies. Network repair times were reduced from hours and days to seconds and minutes.
Google Search
Facebook
From 2000 to 2010
The tech bust of early 2000 resulted in the doubling of tech Win<->Win innovation and investment, igniting the tech sector recovery.
9/11 and the War on Terror marked a pivot point demonstrating how fragile and vulnerable Win<->Win freedom is. The US has struggled with how to achieve safe freedom without restricting its freedoms to this day, e.g., illegal immigration. The 9/11 political unity was short-lived.
In 2002, Global Warming activism progressed to Climate Change activism. Never before has innovation been more needed.
Political Polarization: The decade saw a widening partisan divide in US politics, with "culture wars" reaching new heights over issues like:
Top-Down or Bottom-Up Legalization of Abortion?
Gun Control Versus Controlling Illegal Use of Guns?
Government Spending to Alleviate "Marginalized" LGBTQ+, Racial, and Ethnic Rights or Rule of Law on a case by case basis?
Oppressor->Oppressed climate change activism bent on damaging a prosperous Economy or Win<->Win Free Market Capitalism with innovative solutions, efficiency, customer choice, and economic growth?
Economic inequality and the financial crisis: The growing wealth gap and the causes and consequences of the financial crisis 2008 generated heated discussions about monetary policy and financial regulation. A majority of US citizens do not like Wall Street bailouts. They feel it is a moral hazard. They think they should also get a bailout when they, the people, come up short. They see it as Oppressor->Oppressed and not Win<->Win.
Regan Neoliberalism: The economic philosophy favoring deregulation, privatization, and free markets continued to sway, although its limitations became increasingly apparent after the financial crisis.
Technology has made interconnectedness and globalization possible:
Worldwide Internet
Smart Phones and Mobile Devices
Social Media
LinkedIn 2002
Facebook 2004
Youtube 2005
Twitter 2006
Instagram 2010
Snapchat 2011
TikTok 2015 (US 2018)
From 2010 to Today, 2023
Rise of social media and its impact: Social media platforms like Facebook, Twitter, and Instagram exploded in popularity, fundamentally altering communication, social dynamics, and political discourse, replacing the news media for most people. They facilitated unprecedented connections but raised concerns about misinformation, online manipulation, and echo chambers.
3,623 of the 7,243 professors registered as Democrats, and only 314 registered as Republicans. The ratio of registered Democrats to Republicans has increased in the past decade and is highest among young professors. Peter Zeihan, author of "Disunited Nations" and "The End of the World is Just the Beginning," says in the future, the Republican party will cease to exist. We will see!
For 15 months
Technology has entered the MetaVerse using Artificial Intelligence:
Facebook becomes Meta
Chat GPT, Bard, and ...
In 2023, the World Order is ending; the United States' leadership position is in decline. It is still the #1 economy in the world, but not by much, and probably not for long. Instead of 50% of the world's economy, the United States is only 25% of the world's economy. Everyone discusses a new world order that may return to Oppressor->Oppressed. To me MAGA means:
What other pillars of human civilization lead to progress, success, and prosperity?
Meritocracy: The people in a booming, prosperous economy have a right and expectation to free market capitalism with the widest variety of choices of the highest quality ideas, products, services, and solutions at the lowest possible price available as fast as possible. This means merit must be the selection and compensation criteria used in any Win<->Win free market capitalism transaction or decision. Social justice means judging everyone by their merit and character capable of delivering the best results. Other criteria, such as Diversity, Equity, and Inclusion (DEI), do not lead to Social Justice, prosperity and success.
Free Speech: the Win<->Win art of two or more investigating the truth of opinions. It has to do with a method of reasoning used to determine the truth, best idea, or best solution: free speech is dialectical. Opposing opinions must be heard, understood, and discussed; even unreasonable opinions may enhance or lead to more reasonable opinions, and, therefore, all speech has value.
Oppressor->Oppressed speech is a debate or political rhetoric where the outcome is usually a winner and a loser, not the best idea, solution, or objective truth/fact.
Oppressor->Gaslight Oppressor as Oppressed is used most often in recent times to gain power; the initiator, the oppressor, does something outrageous to get attention and then claims to be an oppressed victim to gain political power—for example, Hamas.
Cheap, Efficient Energy: The future survival of humanity depends on having access to affordable, efficient energy and not eliminating fossil fuels before we have an equal or better replacement. Forget prosperity; we are talking about survival. For a great dialectical discussion, see: ENERGY TALKING POINTS BY ALEX EPSTEIN Discussing Fossil Future with students from the John Locke InstituteMy answers to pre-college students’ most burning questions about energy, climate, and environment by ALEX EPSTEINDEC 15, 2023.
Win<->Win Cheap, Climate-Friendly Energy: The best solution to any problem is conducting a dialectical conversation, free speech, to find a solution. Define and agree on the proven facts and opinions surrounding the issue. Use the scientific method to prove and select among hypothetical solutions.
Oppressor->Oppressed: The Climate radicals refuse to participate in Win<->Win free speech; they are not interested in the truth, fact, best idea, or best solution; they do not want to reason; they want to eliminate fossil fuel and eliminate "man's impact" and "restore" earth's climate, whatever that means in an ever-changing universe. Climate Change Activists refuse to engage in Win<->Win speech and consider any benefit of more CO2 in the climate, ways to use fossil fuel/nuclear energy to remove CO2 profitability (if necessary), the lives saved from climate disasters, the energy needs of developing countries, and technology reducing climate change.
Rule of Law (Law and Order): There is no JUSTICE, neither social justice nor economic justice without an effective Rule of Law. Win<->Win social and economic order is fragile, requiring both basic human moral ideology and legal force to be successful. Everyone must be encouraged to be on the same page and do unto others as you would have others do unto you.
Win<->Win: the best freedom is Libertarian: the people are free to live their lives any way they please as long as they live by the Rule of Law. In the United States, the Rule of Law is divided into Constitutional and Legislative Law, with Constitutional Law taking the president and the Supreme Court resolving any conflict free of political opinion. Note that the Rule of Law does not include religious, ideological, or politically correct rules. There must be equal consequences for each person, and each Rule of Law violated, with no exceptions.
Oppressor->Oppressed: JUSTICE must be blind; any bias is oppression. This includes Social Justice and Economic Justice. The government may not be the oppressor nor allow any person to oppress another person. People can educate themselves, work smart-hard, accumulate property and wealth, serve others, and give to others in a free market capitalist economy.
All the World's Economies are a Mix of State Managed and Free Market Capitalism
Post WWII, the United States made possible a new world order advocating Win->Win with Free Market Capitalism, unleashing worldwide prosperity, growing the world's economies, feeding an ever-expanding world population, and keeping military conquest to a minimum. Not all countries have participated; those that have not have not prospered. Effective trade relationships have formed between participating countries.
Traditional State-Managed Capitalism Countries:
China is a prominent example, with a large state-owned sector in critical industries such as energy and banking, a vibrant private sector, and a growing emphasis on market reforms. China is a mixed economy; the government tolerates private ownership of businesses and property. China sees itself as being blocked, having too much success using capitalism to transition as previously planned from to post-capitalism. China's goal has always been dominant ideological utopian socialism, a method (transitional capitalism) and goal (pure socialism) shared by socialist countries like Russia.
State-managed capitalism elements:
Large state-owned enterprises (SOEs) dominate vital industries like energy, finance, and transportation. SOEs enjoy preferential access to resources, government contracts, and subsidies.
Five-year plans: The government sets economic priorities and directs resources through these plans, influencing overall economic direction.
Industrial policies: The government actively intervenes in specific industries to promote technological advancement, domestic production, and strategic goals.
Limited market access: Foreign companies face restrictions in specific sectors, creating a protected environment for domestic businesses.
Free market capitalism elements:
Vibrant private sector: The private sector plays a crucial role in the economy, accounting for around 60% of GDP and driving much economic growth.
Stock exchanges: China has two major stock exchanges, offering opportunities for private companies to raise capital and invest.
Price liberalization: While the government still controls some prices, many are determined by market forces, allowing for flexibility and responsiveness.
Foreign trade: China is a significant participant in international trade and has free trade agreements with many countries, boosting its export market.
State-Managed Capitalism Economy: 30% (trending down)
"Free-Market Capitalism": 70% (trending up)
Debt: 49.5% of annual productivity
Productivity(GDP): 17.86 (USD trillions) 11.3% of the world
Rank: #2
Inflation: 3.5% over the last three years
Government Spending: 33.4% of yearly total productivity (GDP)
Russia: Russia's economic system combines state-managed and "free-market capitalism". This hybrid approach is often called "state capitalism" or "crony capitalism." The government owns significant enterprises like energy, defense, and infrastructure.
State-managed elements:
Large state-owned enterprises: The state owns and controls significant portions of key industries like energy, defense, and infrastructure.
Strategic government intervention: The government actively intervenes in the economy to promote specific industries, direct investments, and influence economic outcomes.
Control over natural resources: The state controls vast natural resources like oil and gas, giving it leverage over the economy.
Limited competition in specific sectors: Sectors like energy and media have limited competition due to state control and influence.
Free market elements:
Private sector activity: The private sector plays a significant economic role, especially in consumer goods, services, and small businesses.
Stock exchange: Russia has a functioning stock exchange where shares of publicly traded companies are bought and sold.
Limited price controls: With minimal government intervention, market forces determine most prices.
Foreign trade: Russia participates in international business and has free trade agreements with some countries.
Managed Economy: 40% (trending down)
"free market capitalism": 60% (trending up)
Debt: 60% of annual productivity.
Productivity(GDP): 1.25 (USD trillions) 0.8% of the world
Rank: #16
Inflation: 25.77% over the last three years
Government Spending: 36% of yearly (2023) total productivity (GDP)
Singapore: Boasts a highly developed free market with limited government intervention but also features state-owned enterprises and strong government involvement in strategic sectors.
Vietnam is transitioning from a centrally managed economy to a mixed system, with increasing private sector involvement but ongoing state control in certain areas.
Malaysia: Combines a free market capitalism economy with government intervention in industrial development and social welfare areas.
Indonesia: A diverse economy with free market capitalism elements and state-owned enterprises, with the government playing a significant role in infrastructure development and resource management.
Saudi Arabia: A mixed economy with a large oil sector under state control but also growing private sector activity and diversification efforts.
United Arab Emirates: While boasting free market capitalism with limited government intervention, the UAE also has significant state-owned enterprises and sovereign wealth funds. This combination of free market capitalism principles and state-directed investment makes precise classification challenging.
Qatar is a wealthy state with a free market capitalism economy and significant government investments in infrastructure and energy.
Kazakhstan is a post-Soviet state with a mixed economy transitioning from a centrally planned system to a market economy with some state intervention.
Venezuela: Despite having a history of socialist policies, Venezuela has taken steps to attract foreign investment and promote private-sector activity. This recent shift makes it difficult to categorize Venezuela as purely state-managed. Thus, they are starting to realize the necessity of free-market capitalism.
Iran: With a large public sector, estimates suggest that around 60% of the economy is under state control or heavily influenced by government policies.
State-Managed Capitalism Elements: including critical energy, banking, and infrastructure sectors. The government significantly directs economic activity through five-year development plans, subsidies, and price controls. Resource dependence: Iran's economy heavily relies on oil and gas revenues, which state-owned enterprises control. This creates a significant vulnerability to fluctuations in global energy prices.
Free-Market Capitalism Elements: The Tehran Stock Exchange, one of the region's most active, allows for private investment and capital raising. The private sector still plays a significant economic role in agriculture, services, and small and medium-sized enterprises (SMEs). There have been some efforts to liberalize the economy, particularly in recent years, with some sectors experiencing deregulation and privatization initiatives.
Traditional Free-Market Capitalism Countries:
United States: The United States has a complex mix of state-managed and free-market capitalism elements, making it a genuinely mixed economy. The US has traditionally leaned more heavily towards the free-market side of the spectrum. However, it has moved significantly in the direction of the state-managed economy.
Free-market capitalism elements:
Dominant private sector: Private individuals and companies own and operate most businesses, industries, and resources. This drives innovation, competition, and economic growth.
Limited government intervention: Compared to many other countries, the US government has a minor role in directly regulating or controlling economic activity. This promotes individual freedom and market flexibility.
Substantial property rights: Private property ownership is protected by law, encouraging investment and risk-taking.
Open markets: The US generally encourages free trade and international commerce, further boosting economic activity.
State-managed capitalism elements:
Government spending: The US government spends significantly on various programs, including social security, healthcare, education, infrastructure, and national defense. This can influence market forces and provide essential services.
Regulation: While limited compared to some countries, the government does regulate industries for safety, environmental protection, and consumer welfare. This can restrict certain market freedoms but also ensure public well-being.
State-owned enterprises: While not as prevalent as in other mixed economies, the US government owns a few key industries, like the postal service and some utilities.
Monetary policy: The Federal Reserve sets interest rates and controls the money supply, influencing economic activity and inflation.
In General
The US economy is characterized by a strong emphasis on free markets and private sector activity, with limited direct government intervention.
However, the government plays a significant role in various areas, including social programs, regulation, and monetary policy.
This mix has led to successes and challenges, with ongoing debate about the optimal balance between government and market forces.
State-Managed Capitalism: 27.9% (trending up)
Free-Market Capitalism: 72.1% (trending down)
Debt: 129.2% of annual productivity (strongly trending up)
Productivity(GDP): 25.32 (USD trillions) 16% of the world
World Productivity Rank: #1
Inflation: 14.87% over the last three years
Government Spending: 36.26% of yearly total productivity (GDP)
United Kingdom:
Great Britain's economy walks a tightrope between state management and free market capitalism, creating a vibrant but intricate system. Here's a breakdown of the key sectors:
State-Managed Sectors:
National Health Service (NHS): This centralized healthcare system provides all citizens free or subsidized medical care, funded through taxation.
Education: While state schools follow a national curriculum, there's flexibility, and private schools also exist. Universities receive some public funding.
Defense: The British military and associated industries (e.g., shipbuilding) are predominantly under state control.
Utilities: Some sectors, like water and electricity, have private and public providers with varying degrees of regulation.
Free Market Sectors:
Finance: London is a global financial center, with private banks and financial institutions dominating the sector.
Technology: The UK boasts a thriving tech sector, with private companies leading in software, pharmaceuticals, and telecommunications.
Retail: Supermarkets, clothing stores, and other consumer goods businesses are largely driven by private competition.
Tourism: The UK's tourism industry relies heavily on private hotels, airlines, and tour operators.
The Balancing Act: The UK government plays a role in shaping the economy through:
Regulation: Setting safety standards, consumer protection rules, and competition guidelines.
Fiscal policy: Taxes, spending, and borrowing decisions influence economic activity.
Monetary policy: The Bank of England sets interest rates to manage inflation and economic growth.
Recent Trends:
Privatization: Over the past decades, formerly state-owned industries like coal and telecommunications have been privatized.
Devolution: Power has been devolved to Scotland, Wales, and Northern Ireland, giving them more control over their economies.
Brexit: The UK's exit from the European Union is expected to reshape trade and regulatory frameworks, with potential implications for various sectors.
The Future Landscape:
Navigating the balance between state and market will be crucial for the UK's future economic success. Addressing issues like income inequality, infrastructure upgrades, and the impact of automation will require constant adaptation and informed policy decisions.
Remember, this is a simplified overview, and the UK's economic system is complex and constantly evolving. Still, it offers a glimpse into the unique blend of state management and free market forces that shape Great Britain's economic landscape.
Canada:
Australia:
New Zealand:
Hong Kong:
Switzerland:
Ireland:
Denmark:
Singapore (Partially):
Taiwan:
Israel:
Too Difficult to Categorize
It's important to note that these categories are not always clear-cut and can vary significantly within countries. Additionally, some countries may exhibit state-managed and free-market capitalism characteristics, making them difficult to categorize:
Japan: Japan's economy presents a fascinating case of mixed capitalism, where elements of both state control and free markets coexist. Here's a breakdown of this intricate mix:
State-Managed Capitalism Elements:
Keiretsu system: This network of loosely affiliated companies, often with cross-shareholdings, fosters cooperation and coordination and reduces competition and transparency.
Industrial policy: The government actively guides and supports strategic industries through subsidies, loans, and research & development funding.
Regulation: While not as stringent as some developed countries, Japan regulates various sectors like healthcare and banking to ensure stability and consumer protection.
Social Programs: The government plays a significant role in providing social security, healthcare, and education, leading to a robust welfare system.
Free-Market Capitalism Elements:
Private sector dominance: Despite the keiretsu system, the majority of businesses in Japan are privately owned and operated, driving innovation and economic dynamism.
Stock market: The Tokyo Stock Exchange is one of the world's largest and most active, facilitating capital raising and investment.
Openness to foreign trade: While not free, Japan participates in numerous trade agreements and welcomes foreign investment in specific sectors.
Deregulation efforts: The government has recently implemented various initiatives to reduce regulations and promote competition.
Brazil: Combining a free market with significant social welfare programs and state involvement in specific sectors, Brazil's economy presents a complex mix that defies easy categorization.
State-Managed Sectors
Energy: Petrobras, the state-owned oil giant, controls a significant portion of oil exploration, production, and refining. While facing privatization efforts in recent years, it remains a powerful player.
Infrastructure: State-owned companies like Eletrobras (electricity) and Banco do Brasil (banking) hold considerable sway in these crucial sectors.
Social Welfare: The Brazilian government plays a major role in providing healthcare, education, and social security through a vast network of programs.
Free Market Sectors:
Agriculture: Brazil is a powerhouse in agriculture, with private companies driving the production and exports of commodities like soybeans, coffee, and sugar.
Manufacturing: Private businesses dominate sectors like food processing, automobiles, and textiles, though government incentives and policies play a role.
Services: The service sector, encompassing everything from finance to tourism, is largely driven by private enterprise.
The Dynamic Balance:
This mixed model reflects a historical and political context. State intervention aims to address infrastructural gaps and social inequalities, while free market forces drive economic growth and dynamism.
Recent Trends:
Privatization efforts: The current government has pushed for privatization in sectors like energy and infrastructure, seeking to attract foreign investment and boost efficiency.
Social welfare challenges: Balancing fiscal responsibility with social programs remains a constant challenge, especially with rising inequality.
The Road Ahead:
Brazil's economic future hinges on its ability to navigate this complex landscape. Striking a balance between state and market forces, promoting sustainable development, and addressing social inequities will be crucial for its continued progress.
It's important to remember that this is a simplified overview, and the nuances of Brazil's economic system are constantly evolving. However, it provides a starting point for understanding this dynamic and multifaceted economy.
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