National Wealth Generation, Maintenance, Growth

 


There are so many different and even opposing theories, regarding national wealth generation. In this article we are not going to fall into controversy of who says what and who is right and who is wrong. We will just combine different ideas, in a way that makes sense and sounds and looks practical in contemporary world and current circumstances. If we combine different factors, considered necessary for wealth generation proposed by different authors, thinkers, philosophers, economists and financial experts, the list comes out to be like this: 1. Creativity  2. Innovation  3. Intelligence  4. Labor  5. Capital  6. Money  7. Markets  8. Liquidity  9. Investment  10. Adaptability  11. Competition  12. Freedom  13. Trade  14. Access  15. Regulation  16. Taxation  17. Credit  18. Buying Power  19. Employment  Regardless of who says, which factor is important and which one is not, and which one is more important and which one is less, common sense says that any policies or economic environment providing a good balance of all these factors, will be good for wealth generation and any policies or economic environment lacking a good balance of these factors will not be good for wealth generation and growth.  A good point to start and expand this conversation would be, why United States and Europe, the former leaders in economic growth were now in recession and why China, India and Brazil are now the world leaders in economic growth?  Some people will say,  well their labor is cheap. So, the products and services are cheap. But labor in these countries is not cheaper then most parts of Africa. If this argument is true then Africa should have greatest growth rates in the world. Germany still has pretty good economic numbers. Their labor is not cheap. So, what is the real cause?  We became the world leaders in less then two hundred years and world’s oldest civilizations and countries just watched us overtaking them one after the other. How and why did we do it in the past. For this we need to have a look at the seventeenth century world. That world was dominated by colonial powers like Britain, France, Spain, Portugal and Dutch. These imperial powers were only interested in continuation of their domination and occupation. They were continuously fighting with each other for existing and new territories. They hardly did anything major for the real social and economic welfare and growth of their colonies. Rather then that, they wanted to make sure the colonies remain significantly weak and dependent, and never gain enough power and wealth to become a challenge for them. Their own citizens were increasingly interested in exploiting the colonies and colonized citizens to make easy money, rather then to be really productive. This brought the whole world economy to a strong hold, in which most people, particularly the really gifted and smart ones, hardly found any room to breath.  United States was the first one to revolt against this tyranny, while the other colonized nations watched America with hope. The hope that Americans may succeed against these powerful nations and become an example for the other suppressed ones. People here in United States, fought, and fought real hard. One advantage, United States had over other colonized countries was that it was a newly discovered land. Most people here were immigrants from the colonizing countries, themselves. So, although the war for independence, was still very hard, long and brutal, British could not execute many of the harsh policies, they implemented in other colonies. Reason? Most revolutionaries had roots, relatives, friends, former neighbors and co-workers back in Europe, including England. They could not be over ruled, right away, like the people in many other colonies, who were mostly ‘other’ people.  Nevertheless, Americans fought very hard and made immense sacrifices. They finally won and defeated a power that was probably the world’s biggest power at that time. This suddenly created a land of brave and free, in a mostly colonized world. People from all over the world, and specially from Europe, now, can find a place to breath. A new land, that  for the first time in human history, was offering vastly open, leveled fields. America became “the place” for highly creative, innovative, intelligent and hard working entrepreneurs from all over the world. And they did do the wonders. This brand new ingenious engine of growth soon left everyone behind. America became an ideal and dream place for billions around the world.  Unfortunately, just like the many other great civilizations in history, we were not able too sustain that great state of affairs for a long period of time. Just like many other fallen civilizations, this land of opportunity, soon lost it’s unique, open and competitive fields. Fresh, free and highly energetic society got deeply infested with vested interests. A new class of elites evolved which was made up of corporations and media, as opposed to feudal lords in traditional societies. These new elites posses much more global power and are far more brutal and heartless. Universities, that used to be the independent hubs of creation and innovation, became just another business, and the factories and assembly lines for cheap corporate employees. Money, capital and credit started to flow to already rich corporations and individuals, instead of the creative, hardworking entrepreneurs. Result? Just twenty years ago, it was unimaginable that China, India, Brazil and Russia will way surpass United States in their growth rates. This is happening, right now. While we were in recession (going back) these economies were registering record growth rates. China’s reserves have now surpassed trillion dollar mark and it is, the money supplier to whole world, including us. Who imagined even twenty years ago that we will borrow billions of dollars from China.  In China and India, and even in Brazil, the education is free. You don’t have to worry about, how you are going to pay for your education. All you have to worry about is to end up at the top of merit list and you are in there. Boom. All paid for. Result? No talent goes wasted and these graduates of nationalized educational institutions are proving to be the killers in global competition. Same is the case with capital, finance, loans and credit. You don’t have to be rich to get money for your start-up or business. All you need to show is that you have a viable idea and you are the person who can do it. Like it used to be in good old America. Got an idea? Why can’t we compete with them? The excuse that their cost is less, is just as lame as anything. The truth is that corporate owned politicians and media don’t want to let us realize the real reasons. They want to keep you in dark. Open up your eyes and be realistic. I hope and wish it is still not too late.

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