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Mike wrote an article about the five principles that were violated by the financial bailouts that happened around 2009. He realized that these five principles also apply in government. He’s hopeful that these five principles are things that we can incorporate into conversations with friends and people we interact with to help engage thought processes in conversation. Fixing America is about fixing hearts and minds!
We have a tremendous potential to influence people around us just through casual comments and conversation. In this episode, Mike breaks down the principles and how they apply to us. This lecture was originally given in January of 2009 at the IPS Economics Conference held in Modesto, California. Mike talks about lessons learned from the bailouts that were occurring at the time of the financial crisis.
You’ll Learn:
- [02:53] Mike is convinced that the solution to America’s problems is to change the hearts and minds of individuals.
- [03:28] We have tremendous potential to influence the people around us.
- [04:57] People become interested in your opinion when you start asking them questions. Ask what they think.
- [07:28] Congress has spent over 700 billion dollars in bailouts and has guaranteed bad debt.
- [10:29] These expenditures can only be financed through taxation or inflation and printing paper or digital money.
- [12:14] Inflation reduces the power of money.
- [13:36] Rising prices are a result of inflation. Increasing the supply of money is inflation. The only way to inflate the money supply without raising prices is if productivity goes up equally.
- [16:50] Principle #1 inconsistency. These bailouts violate the principle of inconsistency. Government should treat its citizens equally.
- [19:24] If you can’t bail out equally, you shouldn’t do it at all, because it’s not fair.
- [20:50] Principle #2 theft. How do we define theft? It’s taking something from a rightful owner against their will. Taxpayers don’t have the option of consenting to the bailout.
- [24:44] Principle #3 Socialism. Anything that redistributes wealth against anybody’s will is socialism.
- [25:33] Principle #4 Violation of the Constitution. The creation of government is the giving of power. We can grant power through inclusion or exclusion.
- [27:52] Our founding fathers knew that the inclusion list was the only effective way to create the Constitution through enumerated powers.
- [30:52] 99% of our Congress people violate the constitution weekly and vote for unconstitutional things.
- [31:54] The Constitution is no longer revered like it used to be. We need to defend the Constitution.
- [32:44] Americans need to learn the principles of good government.
- [33:20] Our rights have a divine source. We are endowed with rights that come from the Creator.
- [36:53] Principle #5: The triumph of pragmatism over principle. Every decision goes through a process. We should look at the principal issue and call these ethical principles.
- [40:16] Pragmatism has important uses, but we should focus on the principal. Does it violate any absolute law or truth?
- [41:29] The principled approach isn’t always easy, but it’s always simpler. With pragmatic decision making we analyze all the pros and all the cons and try to make the best decision. There are false assumptions. Decision makers need to know all of the consequences, which isn’t really possible.
- [42:39] The law of unintended consequences. A law may fix problem A but will cause problem B, C and D.
- [45:09] We need to train people to think in principle terms. If you follow the principled approach, you will receive pragmatic benefits beyond your original intentions.
- [47:50] Finding principles. Right and wrong aren’t circumstantial. Take out the government and assert yourself in their place and see if it violates any principle.
- [50:09] To change America all we have to do is change the viewpoint of half the population.