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Wow. An amazing example of why this country is headed in the wrong direction.


June 4, 2012
New York City

This past Friday, Barack Obama was at a Minneapolis-area Honeywell plant touting his economic recovery credentials to cheering disciples. One of the excited faithful was a young boy, fifth-grader Tyler Sullivan, who took the day off from school to hear the President speak.

The President was full of the usual bombast about how Congress needs to work with him to ‘build a strong economy’, and how he wants to get $3,000 to everyone in the American middle class so that people can go out and buy ‘thingamajigs’.

Naturally, the crowd cheered. It was the typical sort of gross misunderstanding of economic prosperity that you see from politicians… and most people at this point.

People these days think it’s a great idea when the government sprinkles money around the middle class, and love the idea of politicians ‘coming together’ to build a better economy.

In reality, when people hear talk about politicians ‘building an economy’ they should run away like a scalded dog.

Throughout history, a lot of other politicians have also tried building an economy– it’s called central planning, and it just doesn’t work.

From Diocletian’s failed ‘Edict on Prices’ in 301 AD in which the Roman emperor tried to fix wages and prices, to Stalin’s Soviet Union, to Mao’s China, to Mugabe’s Zimbabwe, the verdict is obvious: economic growth is better left to the private sector, not government.

The other important mischaracterization was this idea of the economy getting better from people spending money, in this case, the government sending everyone $3,000 to buy stuff.

Most people seem to think this is a good idea, even the ones who consider themselves to be educated about economics (having been brainwashed with deeply flawed Keynesian fluff).

The truth is that a nation is like an individual… and individuals do not become wealthy by going into debt and consuming. They become wealthy by saving and producing.

Yet there was the country’s exalted leader energizing the crowd with talk of sending them free money to spend. And as I mentioned, one of them was fifth-grader Tyler Sullivan.

The President’s even shook Tyler’s hand, commenting that he would offer to write an excuse note to pardon the boy from skipping school: http://www.npr.org/2012/06/04/154271715/fifth-grader-skips-school-to-see-president-obama

On the exact opposite end of this spectrum is the case of 17-year old Diane Tran, a Houston area high school student who has had to take on two jobs in order to support herself and her siblings after her deadbeat parents divorced and skipped town.

Tran reportedly misses a few days of school per month so that she could hold down her jobs, yet somehow still found time to complete her schoolwork and make the honor roll.

She was arrested by local officials for truancy and hauled in front of the ‘Honorable’ Lanny Moriarty who threw the girl in jail so that he could show everyone that he’s ‘tough on truancy.': http://www.khou.com/home/Honor-Student-Jailed-for-Absences-153847275.html

Tran has aspirations to become a physician someday, and she is despondent now that her new arrest record may tarnish her chances of being accepted to medical school.

For the sake of brevity, I’ll skip commenting on how worthless the government-managed education system has become, and simply point out the obvious dichotomy:

– Boy skips school to cheer the President as he extols debt and consumption: OK
– Girl skips school to work, save, and support her family: NOT OK

These examples are the most obvious signs yet that, like the tax and regulatory frameworks, those who mindlessly support the political process of debt and consumption are rewarded, while those who produce and save are punished.

Such is life now in the Land of the Free. Have you hit your breaking point yet?

Our goal is simple: To help you achieve personal liberty and financial prosperity no matter what happens.

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About the author: Simon Black is an international investor, entrepreneur, permanent traveler, free man, and founder of Sovereign Man. His free daily e-letter and crash course is about using the experiences from his life and travels to help you achieve more freedom.

Comments on this entry are closed.

  • Tfsteven

    This is an illustrative example of the kind of wrongheaded glibertarian nonsense that passes for insight on this blog. Do you guys ever think about anything other than your own tax rates and the goddamn Emperor Diocletian? I’d love for you to get down off your high horse for once and consider some of the actual problems that real leaders have to deal with, such as providing basic secruity to the legion of old people about to retire in this country

    • http://pulse.yahoo.com/_H2TTIY67TRLS6ASEWJ7LFVVJPE Ross

      …”retire”…what’s that?  What’s the derivation of the word?  Is it something that’s required?  Should I have provided better myself for these years?

       Gosh, should somebody besides the gubmit (like maybe families) “provide basic security” for old people? YES, because givermint’s contribution will eventually be a joke.

      Did I think Socialist Security was unsustainable BS from an early age? 
      YES.  My Dad educated me on that fact at an early age, and it’s all bearing out.

  • BW

    “…the verdict is obvious: economic growth is better left to the private sector, not government.”

    If governments did not exist as we know them – with that collectivist mindset, economic growth would not be expected to be *their* responsibility, and the decision over whether it should be “private” or “public” would then also not be an issue. 

    Once individuals got over the unwitting acceptance of an image of themselves as under the ownership and direction of all the Official Decision Maker legislative officials, such dichotomies would be the problem of particular individual philosophies, rather than characteristic of a legislated intellectual ambiance  (it’s hard to describe that Cloud where everybody stores their mind).

  • http://pulse.yahoo.com/_3ZZTMNN5NP6Y5YKP4EF4OHELHQ M

    If Obama really wanted to reduce taxes for small business owners, one good place to start would be to remove the unfair double taxation of self-employed persons who currently are forced to pay *both* the employer and employee portion of FICA taxes on the money they earn. That’d be a start.

  • http://www.bzemic.com/impossibleInstinct/ steve ward

    i’ve already supported her through a petition not sure whatelse i can do at the moment, the judge should be thrown in jail. For not looking at the facts that she is or was a honor student most likely they will try to take that away from her too.

    I would hire her in a minute, this is another case of quantity or quality the judge is saying that you can pass school all you need it to not miss a day………..then they wonder why the school system is in bad shape mass education is over it 3 cycle we are in 4 cycle

  • Kevin Lynch

    Because of the petition which of course resulted in her true character being revealed to the judge etc, the charge got dropped from her record and there was a fund set up for her with $100k in it at last count. Yes, private individuals through their efforts resolved this. There ought to be some recourse when a judge goes over the top and sends a minor to jail for a night without due diligence being applied to see if it is deserved. Thanks for highlighting this case but I didn’t like the scare tactics used by inferring that the actions of one man are indicative that a country is going in the wrong direction. Some moderation would be nice.

    M…great point..I’m self employed and to add to this..we pay both but CANNOT claim unemployment.  

  • http://www.brentdgardner.com/ Brent D. Gardner, CLU, ChFC

    Excellent article!

  • Dennis

    Guess Donald Trump is too busy with his Miss USA contest on Twitter.  He would love your article.  https://twitter.com/#!/realDonaldTrump

  • http://pulse.yahoo.com/_LDFVDBNEODEICYXJSYDU444JCA Pleiades R

    Agree, I don’t like a lot of trends I see in America, but don’t think this is an example of it. Pity the president setting a bad example… but then… not surprised.  The good that can come from this wonderful girls situation is that it will get attention for her and her siblings and probably help from the public. The judge, appalling to me, in Los Angeles, in California, real criminals are being turned lose because the jails are not comfortable enough… send a kid, especially an achieving kid in a desperate situation, to jail for truancy? No excuse. 
    I prefer to see the arguments have some solid basis…what an example of idiocy, how about ben’s plan to stamp on American currency to support the occupy movement… now there is stupidity. Ben’s a rich guy, maybe he can help pay for the clean ups that cost the cities a fortune after occupy (clean up trash, graffiti and human waste), maybe new york can outlaw ice cream, it is more fattening than soda…  a lot more fat for the fire…

  • JumpingTwoConclusions

    Well, to be fair I don’t
    think that the President had nearly as much to do with her arrest as THE
    STATE OF TEXAS, not known for either their overly liberal policies or
    love of racial diversity. Lumping him into that situation is relatively
    uncool journalism. He has no jurisdiction over the laws of Texas. In fact, this whole story is a circumstantial head
    game, journalism style. The two events have absolutely nothing to do with
    each other, yet they’re joined here as if to expose some dark motive,
    maligned intent or negligence on the part of an administration. Don’t get me wrong,
    he’s not on my dance card, but this article is designed to incite human
    ire and reduce critical thinking. Much better work can be done to define policy failure than this “news of the weird” fishing trip.

    • John Lloyd

       Haha…well said. Simon wants the sheepple to catch on to Uncle Sam’s propoganda machine, as do I. Now they’re catching on to Simon Black!

    • Citizen Jones

      Maybe so, but your argument still doesn’t excuse POTUS offering a $3,000 handout to buy middle class votes, nor his clueless idea of what builds real prosperity. 

  • Steven

    If money weren’t an issue, this girl would certainly find comfort/like-minded friends in the Simon Lithuania Summer camp.  She asks for no handouts, and is willing to toughen up and work hard for what I read. People like her are an inspiration. 

  • http://Sparkrealtor.com/ Joomla Real Estate

    You are right everyone needs 3,000 a year. But its how we get that 3k that differs. Work and sweat, or fill the needy hand. 

  • Amesmartin

    It’s like thanking the mugger for being gracious enough to give back a small portion of what he’s stolen from you!  Noone’s “giving me 3 grand”.  It was already mine to begin with!

  • VegasRage

    Would have loved to hear the full context of his comments, because where the clip started left out how he arrived at the $3,000 more a year. No rational person would consider themselves informed enough to form an opinion based on the short excerpt provided.

  • Gerald E. Latinous

    Certainly then, S.B., you could get behind a plan that would put the $3000 toward educating people how to “save and produce”, right? Or is this another one of those opinion pieces where the implied but unstated conclusion is, “poor people should just die”?

    • Cvdoubleu

      For some reason you seem to imply that the only way to help the poor is through goverment ! The goverment borrows and spends ultimately steeling from everyone(especially the poor) through an inflation tax. Apparently Tran was helped by private citiaens who set up a fund for her, not the goverment. Your problem is believing that the goverment is the answer to all questions and also believing that you have the moral high ground,

  • h5mind

    The simplest method to create a renaissance in  American business, ingenuity, and production of needful things would be to remove government from the equation altogether. Abolish the IRS.  Nullify the hundreds of departments writing thousands of ridiculous regulations that make it virtually impossible for small businesses (the source of 3/4 of our nation’s employment) to succeed today. Apply “most favored status” to family farms and businesses, local manufacturing, and domestically-sourced raw materials.  TV blowhards always say such moves would be “impossible” to implement or create a “disaster”.  What they mean is it would be impossible to support 42,000 professional DC lobbyist’s and their “too-big-to-compete” interests, and disastrous to political reelection prospects without the money they supply.

    The federal government already writes themselves a rubber check to cover half their operating expense– why not all of it?

    I for one could live perfectly well with such a scenario.  Or as Thomas Jefferson said:

    “I would rather be exposed to the inconveniences attending too much liberty than to those attending too small a degree of it.”

  • Huyjor

    Wow $3,000 ? What a smart guy? haha. If you don’t take it, They’ll waste on the social programs or war anyway? Go out and buy something tangle assets that hedge against inflation, great profit !!!!

  • 73amxman

    Honeywell and its CEO Dave Cote were some of the biggest contributors to party chairman maobama back in 2008 and no doubt they are bankrolling him again as Honeywell receives millions and millions of dollars in government contracts from various agencies.

  • Ilene little

    Love the boy/girl ditching school comparison.  I hope you will always keep writing!

  • Grammpsbulrew

    BULLCRAP is still BULLCRAP, even in English, especially if, or when spoken by Obama!!!

  • http://www.singledudetravel.com/ Manuel Pfister

    Off with their heads.

  • Citizen Jones

    I’m not buying his piddly $3,000. If we just say “no” and hold out, we could probably get $4,000 or more!   

  • Rev. LTC Retired

    Long time ago I was attending a college in eastern N.C. I was a freshman with a lot of get up and go. I passed the Student Union and I saw a bulletin that a well known Soviet leader was coming to our campus to speak to us all educated high minded young-uns, you know, the ones who know it all. I thought on this for a while and I came up with what was really wrong with this event.This man from the Soviet Union has, in all likelihood, honed this speech to a fine point that would infiltrate the minds of them that sat at his lecture without one clue about why he’s really among us. This surely sounds like I have really lost it, but I couldn’t take that chance. I made the most of the week ahead to play him down and asked that the students stay away or at least, remember this man speaking is a professional and we are not prepared to hear the garbage he will surely spout from his mouth. Well, I listened for a little while and to this day I can’t remember what he said. Obummer is a cut from the same cloth. Obummer had the gall to say to the child, if he is re-elected he will get some free money and this child  who knows nothing at all at what he sees, is swayed by this slick togued devil. This is really what obummer is all about, lying to a child is as common as he really is.And I bet you my last dollar that the people standing by who saw this thought that obummer was as cute as a viper snake. Obummer has no scruples and he will stoop as low as he thinks he needs to to get elected again. When history records what all this moron really has done it will be interesting to see how they so tell the whole truth or do what has already been done by watering down the facts about this HITLER reincarnated. I really would like to know what the BILDERBERGER GROUP has on obummer? Only time will tell if we can keep this world together long enough. But, God’s people will see and think of more important things.Obummer is/will be a dark blight in the annuals in our history that only the coming of Jesus Christ will be able to erase.               

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