There are some very significant challenges around the world – the Middle East, Ukraine, Russia; China, the hot Israel-Hamas war – all complex International crisis points.
However, these are not where most Americans greatest concern lies. Our collective and personal concern is much closer to home – our pocketbooks. In other words the “economy” as it impacts each of us at home. What exactly is the US economy?
A great economic experiment entitled “Democratic Capitalism”
Is our Capitalism, rooted in Democracy or as this author prefers,
Is our Democracy rooted in Capitalism.
Believe it or not, whether one thinks as a conservative or as a liberal can change the way the economy is viewed and how one thinks about what will drive the best outcomes both nationally and at the personal pocketbook.
But it all starts with how one views our economic system, what the results should be and who is impacted. How our government interacts with the economic system is one of the leading influences. This is why when our political parties take a position of control, this almost always impacts the economy and – our pocketbooks, both short an d long term.
Let us explore the US economy 2024.
A possible downfall is what is on the minds of most of us – are we heading directly down that rabbit hole called the economic abyss? Much of that concern is fault of past activity and consequences. The Great Recession of 2008 left a dark scar of fear on all. Who is at fault is to many a matter of political view but the hard facts show the path to 2008 abyss. Our government was involved but not as directly as were the recklessness of our banking system that let up to the meltdown. The economic consequences of the Pandemic years were also very concerning for most of us. But really we are thinking about personal questions, not the big national picture.
We want to know about our pocketbooks, about today’s bills, tomorrow’s college expenses and our summer vacation plans. Billionaires want to know that their investments are safe, the world events will not impact the economy , and how much business is likely to profit (the stock market). Wealth also wants to influence the way government interacts with them as far as taxes and favorable to higher profits, laws are concerned.
But for all of us there is having a job, earning power, buying power, savings power. Kids, college, retirement. And our the ability to have peace of mind, freedom to choose and how much fun we get to have during the year! That (fun) too, is a pocketbook issue.
To understand why things go up, down or sideways we must first come to understand the nature, drivers, and state of the big picture. Our Democracy as viewed through the lens of Capitalism has significant impact . This is because one of the core purposes of government is the regulation and stabilization of the economy. The government in a Democracy should assist all of us to achieve – yes? Not so fast there. Often times the needs of the wealthy conflict with the needs of the common man and therein lies the dilemma for politicians. WHO TO SERVE!
The rules, policies, and choices by our government both Federal and State, filter down directly to each of us and impact each of the important parts of our lives (above). But the effects and impact to each of us deeply depends on where we are economically and what the focus of our elected leaders who drive legislation – is.
THE MAIN DRIVER OF A THRIVING CAPITALISM IS A STRONG DEMOCRACY.
That “strong democracy” includes a government which interacts intentionally, and appropriately to produce strong and stable economic results that the majority of the population wants. And there it is – what does the majority want?
Capitalism is a Grand Competition.
The objective at the start,, one might say the core ideal of capitalism is exactly the same as good old Monopoly. We’ve all played this game of (economics). One starts the game with so much “play money” and – LUCK (the way the dice rolls). Then it comes down to tempering one’s personal game desires like owning Park Place or all the Railroads and focusing on bigger, long term business objectives.
Getting to knowing the other players and a solid plan, along with some good fortune – result in gaining control of the board. When one controls the board, one controls the other players activities or possibilities and – one wins.
So what was the objective? To own everything on the board of course! And in so owning, control other players as well as having most of the resources. Why is this important? So that no other player can compete (or get ahead) of you!
Welcome to Capitalism!
But wait? Isn’t the point of capitalism that everyone gets an equal opportunity?
NO! Not really. In fact in capitalism as in any sports competition there is always intended – a winner. The reality then is that there will also be losers. One might say capitalism is not for the faint of heart! One might also say that “The Art of War” can be used to win in capitalism and that brings us to our government and to the Politics of Economy.
To be continued in part 2.
A few current day Ultra Capitalists in the US.
