Economic Ignorance Undermines Prosperity.

On October 18th the headline on the first page of the Gazette was “Big money from FEMA.” This is what the politicians have all proclaimed as a good thing, as part of the charade to make it appear that they are being productive.

When the ‘Big money’ flows into the area what will happen? With regards production - more units of goods cannot be squeezed out of what is physically available, so in essence there are the same number of goods but there are more dollars chasing those same goods. Demand increases while supply is fixed which means prices will go up! Our thanks goes to the politicians who add nothing to production but who intensify inflation.

Additionally FEMA gets its money from the federal government - the biggest debtor in the history of the world. Where does it get its money? The Federal Reserve prints it up and the effect is the exactly the same as counterfeiting. Printing up dollars out of thin air makes the dollar worth less which means its purchasing power diminishes which is the definition of inflation. Who is vigorously bringing this funny money into our area thereby intensifying inflation? The politicians who are trying to make a name for themselves at our expense.

It is a shame that the U.S. political system simply generates politicians who know only socialism and fascism and pretend that it is economics. For example, every single representative from Iowa voted to bail out Wall Street.

Vote against status quo.

For more information go to http://www.divineeconomyconsulting.com/.

To earn a Masters Degree in Divine Economy Theory go here.

The Magnetism of the Model Classical Liberalism City.

As I mentioned in my last blog entry it is the Association of the private owners of property in the model classical liberalism city that ‘acts to attract capital by making the City a place where people want to come to visit, and shop, and do business and leisure.’ There are no artificial boundaries necessary since all property rights and human rights are protected by clear definitions, ones that are continually refined to keep up with changes in technology.

Once these artificial boundaries are discarded the concept of world citizenship and international free trade become clearly relevant to a City that wants to be a place where people want to come to visit, and shop, and to do business and leisure. All the benefits from the international division of labor around the world find welcoming arms in a City earnestly seeking ways to bring sustainable prosperity to the property owners.

There are no reasons to construct trade barriers since the Association covenant defines the requirements necessary to protect the integrity and aesthetics of the activities in the City. As a result this City quickly becomes recognized as a free trade zone with reasonable customs to be respected (the covenant).

The owners of property in the model classical liberalism city benefit directly from the flow of people and capital that migrate to this haven of non-coercive economics. There is no limit to the amount of prosperity that will continually flow from the laissez-faire approach implemented by the Association and wholeheartedly desired by the property owners.

At some point the City will have to do one of two things to overcome the physical limitations of its original boundary. More property lying outside the original privately owned City can be purchased and the City can expand its boundary in that way.

Or nearby cities can decide to emulate this model classical liberalism city and gradually restructure themselves so that they are completely private. Then the flow or overflow (maybe a more accurate description) of prosperous activity can continue in that same region and take advantage of the infrastructure already being used in and around the model classical liberalism city. That model city can be Cedar Rapids if the socialistic tendencies resulting from improper education can be overcome!

This blog will be a repository of ideas, concepts and principles that support the philosophy of classical liberalism for the purpose of making Cedar Rapids a model city, worthy of emulation.

Submit your ideas to divineeconomyconsulting@msn.com.

The Covenant of the Model Classical Liberalism City.

In my last blog on this topic I said this:
‘Now we begin to get a picture of who will compose the owners of the downtown properties and some of the basic elements of commerce. These property owners are the ones who will become a community, with a common interest in a prosperous city. In a later blog I will discuss the organization of the Association.’

For the lack of a better term we will call this group of owners an Association. There is much to be done by the Association and so membership needs to be quickly defined. All owners of private property in the designated downtown area which demarcates the tax-free zone are members. If there is any property which for the time being is considered ‘public’ lying within this boundary that entity does not have any membership rights.

Private ownership of property is the membership requirement.

This is where the philosophy of classical liberalism becomes extremely important since the next two steps are foundational. A covenant needs to be developed that honors liberty, justice and prosperity. And a governing body needs to be instituted, one that forbids economic interventionism.

An analogy will help here. If a weed seed is planted it will germinate and may very well grow very rapidly but it is ultimately undesirable. If the seed planted is classical liberalism then the fruits of liberty, justice and prosperity will nourish everyone from then on as soon as it attains maturity.

The essence of the covenant is the recognition that property rights are human rights. It is the covenant, then, that establishes and defines property rights and implements a process that allows for a constant refining of property rights so that those areas which are currently cloudy become more clear. Then protecting people and property from violence and fraud - which is the responsibility of government - can be accomplished without arbitrariness.

The Association necessarily has structure and it functions to serve the members and to represent well the City to the visitors. Removal of the possibility of ego-driven interventionism is one of the reasons the Association will not take on powers that are not given to it.

From among the members individuals will be nominated based on their service within the community (their virtuous deeds), again not because they have ego-driven schemes in mind. Initially the Association will have to decide how to allocate its representation. Do corporations have the same voting power as an individual? Do residents have the same voting power as businesses?

One good first step is to make electioneering a reason for disqualification. Those who serve on the Association will be the ones who are already serving in the community and are nominated because others recognize their deeds.

The Association is the steward of private ownership and it acts to attract capital by making the City a place where people want to come to visit, and shop, and do business and leisure. If Cedar Rapids is alert to the opportunity at its door to become a model classical liberalism city then those who stand at this juncture in history will be praised for their foresight.

This blog will be a repository of ideas, concepts and principles that support the philosophy of classical liberalism for the purpose of making Cedar Rapids a model city, worthy of emulation.

Submit your ideas to divineeconomyconsulting@msn.com.

The Capital Fund For The Model Classical Liberalism City.

Cedar Rapids is a good place to begin a classical liberalism city in this ‘modern’ era of skepticism. I will address this skepticism a little later in this blog entry. Cedar Rapids is being forced to begin from scratch because the entire downtown area was flooded to unprecedented levels. In general all of the downtown area was submerged to the depth of 8 feet of rapidly moving river water.

Every owner of property in the downtown area currently is unsure about the next step. Some will leave, some will stay. Will there be buyers? One thing is for sure, there will be property available for purchase.

As I mentioned in an earlier blog Cedar Rapids needs to be made into a tax free zone. This will provide an extra incentive for property owners to stay and this will attract new property owners. Also providers of services who will replace the ‘public service providers’ will see an opportunity to minimize some of their costs by locating close to their downtown clientele.

Now we begin to get a picture of who will compose the owners of the downtown properties and some of the basic elements of commerce. These property owners are the ones who will become a community, with a common interest in a prosperous city. In a later blog I will discuss the organization of the Association.

The owners of the entire downtown area, including the streets and bridges, will recognize that there will be a need for a capital fund. This capital fund will serve as a resource in case of large expenditures but also as an equity fund. The immediate goal will be to determine its necessary size and find ways to accomplish the establishment of this capital fund. One important beginning point is attaching a percentage on all new sales of property in the downtown area to go directly into the capital fund without discouraging any sales. Eventually fundraising efforts will be an important contributor to the health of the capital fund.

The Association will be able to identify which services are most efficiently provided to all property owners, especially to guarantee that the aesthetic and safety standards established as part of the Association covenant are maintained. These ‘common’ services will be paid for by assessments, probably monthly. A monthly accrual from all owners towards the capital fund will be another source of capital fund growth.

What starts to take shape is a financially sound private city with a valuable and working covenant that makes the city very desirable to visit and to live in and within which to engage in commerce.

Now what is the skepticism of this ‘modern’ era that gets in the way of this way of thinking? It is the socialistic education promulgated by public education. The government funds the education and has a vested interest in telling the children that government is needed and has done this for numerous generations which is why you are probably a skeptic. Write to me if you are wondering if it is possible to discard this debilitating skepticism.

This blog will be a repository of ideas, concepts and principles that support the philosophy of classical liberalism for the purpose of making Cedar Rapids a model city, worthy of emulation.

Submit your ideas to divineeconomyconsulting@msn.com.

A Classical Liberalism Society Is A Contractual Society.

In a contractual society people simply interact with each other and when they exchange goods or services they do so voluntarily. The voluntary nature of the exchange is evidence that both parties believe that they will be better off afterwards, otherwise there would be no reason for the exchange.

This voluntary agreement is a form of contract. Some exchanges are more complex and as such require a more formal contract. All contracts reinforce trustworthiness and protect property rights. This contractual relationship taking place between the people in society acts naturally to foster respect and to stimulate further refinement of property rights.

These are exactly the things that are missing in decadent societies.

It is this valuable contribution of contractual relationships that makes a classical liberalism society free and prosperous. What I mean by free is that there is no intervention, no intervening parties creating a barrier to the voluntary exchange. Without this stifling effect there is significantly more prosperity both in terms of the total and in distribution. No longer is the prosperity partially distributed to intervening parties, which means that this type of political corruption is eliminated - thank God - in a classical liberalism society.

Here is where government has a role: its role is confined to protecting persons and property from violence and fraud. The contracts represent claims and if those claims can be verified then it is easy to see if the contract is being upheld. If the contract is not being upheld then taboos or penalties are assigned to the negligent party and then enforced by the government.

If the contract is not formal and not easily verified and yet claimed to be violated then it may merely be that it is chocked up as a mistake; we all make them. In a contractual society it is very important to have a good reputation so if someone acts in an untrustworthy manner then very quickly the well will run dry! Notice that this rectification needs no government action.

For Cedar Rapids to become a contractual society and a model classical liberalism city there has to be a laissez-faire environment. That means no intervention in the economic affairs of the community! Let the voluntary exchanges flourish and watch as contracts of all types form, as respectfulness and trustworthiness grow, as property rights become more and more refined, and as prosperity finds Cedar Rapids to be a welcoming city.

This blog will be a repository of ideas, concepts and principles that support the philosophy of classical liberalism for the purpose of making Cedar Rapids a model city, worthy of emulation. Submit your ideas to divineeconomyconsulting@msn.com.

For more information go to http://www.divineeconomyconsulting.com/ .

It Must Begin With Trust In God.

This condition - trust in God - is important and enriching both in good times and bad. But what has happened is the substitution of a false belief in place of the trust in God. That false belief is reliance and dependence on government.

And so creating a classical liberalism city is a major step in the right direction since the classical liberalism philosophy already recognizes the virtues of limited government. Rightfully, government is restricted to protecting persons and property from violence and fraud. It has no role in the economy.

Trust in God is the fabric that holds everything together in good times. Once it becomes replaced with dependence on government the system deteriorates into a two-class system; the politically connected and the politically unconnected.

In bad times it is the trust in God that causes all the random acts of kindness which amaze and inspire everyone. This is the source of unlimited sustenance. When trust in God becomes secondary to reliance on government it comes with a big price. All of the sudden there are limitations in many forms and people begin to vie with each other.

The message here is that classical liberalism allows freedom and prosperity without some parasitic class siphoning off increasing portions of wealth to grow the tumor of socialism.

The message here is that all wounds heal and that trust in God is the most potent healer. It cannot be replaced with the bandages of favoritism, nepotism, political showmanship, or ego-driven interventionism. Disunity and paternalistic regulation hamper the recovery.

For more information go to http://www.divineeconomyconsulting.com/ .

Private Ownership of Streets and Bridges in Cedar Rapids.

As part of making Cedar Rapids a model classical liberalism city all property within the tax-free zone will be designated as private property. The streets and bridges belong to the covenanted community of property owners and they will take care of them.

Two more elements for consideration emerge: a capital fund and the ‘association.’ I will go into more detail about these in future blog entries. Suffice it to say that these private owners of the streets and bridges understand how vital both are to a vibrant and prosperous local economy.

Again, these businesses and residents of the tax-free zone can hire whoever they want, to provide the necessary services. A distinguishing characteristic is that services are only paid for once. There are no fees extracted to subsidize public works. If the owners choose the services of the public works office then they will be paid for their work. If their work is substandard or if it is behind the scheduled completion date they will be treated the same as comparable private firms. Ultimately only the best means for achieving the desired ends will eventually win out.

This degree of efficiency will guarantee that the city remains progressive, attracting capital! Did you see what I just announced? ATTRACTING CAPITAL!

In case you do not know this yet: capital is the most limiting factor in the economy, without any doubt and without any other factor even close to being as important! And what we see is that private ownership of streets and bridges and their efficient caretaking attracts capital.

No certain type of bureaucracy, no special type of government can do anything comparable to private ownership. Capital flows in freely, without gimmicks or redistribution of wealth schemes.

I hope the light bulb has gone on in your mind!

A Tax Free Cedar Rapids!

All property within the flood affected area needs to be proclaimed to be tax-free! Implied in this decree is that all property will be designated as private property. There are buildings and property that currently are regarded as public property belonging to the City, the County, and Federal. These can, for the time being, remain public but may return to private hands when the private services out-compete the public services. This is a certainty since there will no longer be services that are subsidized by tax revenues; unfairly competing with private services.

All businesses and residents in the tax-free zone (which eventually can easily be expanded beyond the flooded area to encompass all of the city of Cedar Rapids) will have the option of choosing private services instead of public services. Either way there will be fees charged by private businesses or by the public works office for those services. Those who choose private services will not have to pay any amount at all towards those particular public works services. Then only the best means for achieving the desired ends will eventually win out.

As part of the covenant to set up the tax-free zone all property owners will be required to abide by standards of conduct that pertain to a healthy and aesthetic environment. Property owners can hire private services or public services to assure that the standards set for the tax-free zone are met.

The next entry will look into private ownership of the streets and bridges.

This blog will be a repository of ideas, concepts and principles that support the philosophy of classical liberalism for the purpose of making Cedar Rapids a model city, worthy of emulation.

Submit your ideas to divineeconomyconsulting@msn.com.

Cedar Rapids, Iowa Is Ready For Change!

The alternatives are threefold:

1. Massive dependence on money created out of thin air by the Federal government with all the strings attached so the 'social engineers' can make Cedar Rapids into their 'Sims City.'

2. A mixed economy with local government interventionists salivating over the prospect of a 'justified' flood of expanded government intervention requiring increased tax revenues to come from those who were unflooded, to 'rebuild our city.'

3. Create a model classical liberalism city by making Cedar Rapids tax free as the first step. It will be set up as an association and all property will be privately owned.

This blog will be a repository of ideas, concepts and principles that support the philosophy of classical liberalism for the purpose of making Cedar Rapids a model city, worthy of emulation.

Submit your ideas to divineeconomyconsulting@msn.com.