1215-1900 AD witnessed the rise of Western Europe; the 19th and 20th century produced the rise of the United States; the 21st century will record the rise of the rest. The challenge for the U.S. will be to lead while sharing the top spot with other countries. 

The historical impact of Marxian socialism cannot be overstated. While the U.S. was growing and prospering under private ownership and protected property rights, much of the rest of the world was flailing in the sinkhole of socialism. The problem is that everybody’s property is nobody’s property; that everyone’s responsibility is nobody’s responsibility. When was the last time that you washed a rental car? Gradually the majority of those caught in government’s vice learned that free people are not equal and equal people are not free; that freedom is still a country’s best investment; that when institutions protect the liberty of individuals, greater prosperity results for all. Freedom is the link between economic opportunity and prosperity. It works.

China and India have now made a primary commitment to capitalism by recognizing the effectiveness of rule of law, lowering tariffs, moving to free trade, and by privatizing economic activities formerly state driven. Capitalism is replacing socialism. China and India account for 40% of the world’s population, are in a high growth mode and are pulling much of Asia with them.

Argentina, Brazil and Mexico are one leader away from attaining prosperity. Vast expanses of fertile land, abundant natural resources and a relatively sophisticated and cohesive social culture are found throughout Latin America. Slowly they are discarding statist ideas that have not worked.
 
Eastern Europe now shows the way of supply-side economics to their Western neighbors. West Europe’s long-term economic slow-down and their declining population and tax base stem from a lost cultural dynamic. An ethic of productive work stems directly from the victory of political freedom; from the ability of ordinary citizens to make economic decisions on their own; and by government making it easier for people to work, save, invest and consume. The virtuous cycle of entrepreneurship, innovation and sustained economic growth flourishes when freedom supplants governmentalism. 

The 20th century ended with half of the world’s population in poverty. The 21st century will see most countries achieving the encouraging prospect of economic prosperity.

Over the last month, I have been using a new epithet in my presentations and have received several requests for the ditty.  I hope that you enjoy it.         

There once was a man named Ferrell
Who bought sub-prime homes by the barrel
Because his stock broker said Index funds were a joker
Three guesses why Ferrell lynched Merrill

And several from years past….

They stack it thick in Congress
It’s really awful raw.
What should be spread by tractor
They enact and call it law!

The year was 1984
When Congress did empower
Bureaucrats to safetytize
Each bathtub floor and shower.

To save our hides
From falls and slides,
A billion bucks they spent.
They studied every bathtub and every accident.

They computerized all data
On everything they learned.
They processed tons of paper.
No soap was left unturned.

And from it all, each tub and stall
A safety sign did get.
Ingeniously, three words decreed
SLIPPERY WHEN WET!

During the last twenty-five years as a public speaker and a Senior Economist with the National Center for Policy Analysis, a public policy think tank, I have had the privilege of traveling the world to present my views on the economy, globalization, energy, healthcare and freedom.

In this Blog, I intend to comment on economic, business and social issues from my perspective as a free market economist. I will also explore how our nation’s founding principles, values and ideas relate to the issues of today and their impact on the shape of tomorrow.