Wednesday, April 11, 2012

Something I think everyone should consider. When they decide what they believe about what our country needs to do specifically, what it should consider changing. This is a graph that shows the slow but steady growth of the estimated GDP of the world. As you can imagine it grows with the steady growth of population. This is reasonable, though some people don't realize it, because people make things and thus create wealth.
For example a tree would grow indefinitely until something intervenes in its growth, whether it be a flood, lightning strike, or more likely a fire, ending the tree, eventually another grows. This is a cycle. Men though expedite that process by cutting it down for a purpose and replanting, if they are wise, thus making something that has use and, often, value. This is simple creation of wealth. It happens in many areas, often people purchase components at a certain price only to put in some efforts to make them a higher value like a car or a watch.
Thus the GDP or total production of mankind grows at a steady rate as mans population grew. In the 1800's suddenly though there was a spike. Not in population but instead in production. Something changed to make man more efficient. In other words more productive in wealth creation.
It could be said that in the 5500-6000 years of recorded history man had advanced in abilities from: a horse to a horse and wagon, from a sword to gunpowder, from a animal horn trumpet to a metal trumpet for signals, from a word of mouth to a courier for long range communication, from stone houses to some nails and wood homes, from a fire for cooking and warmth and light to a metal stove, candles, and a fireplace.
In the next 250 years man advanced: from a wagon to automobiles, from gunpowder to laser guided missiles, from a trumpet to sirens and cellphones, from couriers to UPS and e-mails or IM, from wood homes to steel reinforced skyscrapers, from stoves, candles, and a fireplace to microwaves, lightbulbs and electric heating and cooling units. Advances come so fast we cant even imagine life without some modern advances like TV, phones, flight?
These advances can be almost directly derived from the arrival of the free market. The market where people can risk it all they have saved for the payoff of one idea. The freedom to create new marketplaces never imagined. This freedom has changed our standard of living so much that we could now call 6000 years of human history ancient with only 250 years being modern. Where for nearly 6000 years the differences between someone born thousands of years before would be minute to now where the differences are staggering.
Efficiency improves through competition. Laziness accelerates without it. Why because efficiency is rewarded in a competitive world but complacency is rewarded without it.


This chart becomes even more pronounced when you look at 1600-2000.

Before we consider changing how we do things, I believe everyone should consider how successful we have been doing what we do.
We have also had a radical impact on the World, I recently looked at the estimated GDP of the world in 1880 I believe, It was estimated at between 60 and 80 billion. The current World GDP is about 65 trillion. That is about 1000 times improvement. To put that in perspective. There is no 1000 year period in history that it could be estimated that the GDP of the world even doubled or became 2x what it was previously. This new form of government, a representative republic, has changed the world. While when man is involved there will always be problems we should be very hesitant to throw away the system we should rather restore it. When we have a broken engine, rather than break out the old harness and turn it into a horse and wagon( the ways of the previous 6k years), shouldn't we restore the engine(the free market) that has served us so well. And would you go to the farrier(the monarchy's or dictatorships or socialist governments around the world) to fix your car or would you go to the dealership to get an expert on restoring to working order not radically changing your engine.
Before we ever change this free market system, we should at least look at the facts of record. Communism, socialism, and dictatorships have a record too. Consider them all.

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