The Birth of Plenty

Question: I am concerned that the same opportunities that existed for me will not be there for my children. Companies are downsizing and it seems that more business is moving out of our area more than moving in. Don't you think the next generation will have a tougher time making it?

Answer: Rubbish.

The only way to be pessimistic about your children's economic prospects is to be addicted to the various 24-hour "news" services that thrive on sensational, negative events. They feature an endless cacophony of human depravity, oversexed celebrities, isolated catastrophic events and a complete lack of context.

Turn off the TV and wash out your mind with a good book.

May I suggest William J. Bernstein's The Birth of Plenty? This is a well-written account of how the modern world was formed and the critical factors that needed to come together to ignite the flame of prosperity in the modern world. It also drives home the point that America uniquely fulfills these requirements and continues to lead the world in every one.

Bernstein writes, "Prosperity is not achieved merely by possessing hydroelectric dams, roads, telephone wires, factories, fertile farmlands, or even great quantities of money. Nor can prosperity be transplanted from one nation to another simply by transferring the key components of an economic infrastructure. In all but the most exceptional cases, national prosperity is not about physical objects or natural resources. Rather, it is about institutions - the framework within which human beings think, interact, and carry on business."

He goes on to point out the four factors necessary for economic growth:

1. Property. A society must have secure property rights, not only for physical property, but also for intellectual property and one's own person- civil liberties.

2. Reason. We must have a systematic procedure for examining and interpreting the world. We call this the scientific method.

3. Capital. Prosperity requires a widely available and open source of funding for the development and production of new inventions. We have this in our modern capital markets (the stock and bond markets, etc.).

4. Communication / transportation. Prosperity multiplies with the ability to rapidly communicate vital information and transport people and goods.

While reading Bernstein's fascinating work, I thought about how these four factors might translate into one's own personal life - much more important to the prosperity of future generations than today's headlines are these building blocks for a personal "birth of plenty." They tie back into Bernstein's four factors.

Personal Responsibility - take personal responsibility for your life and what you do with it. Don't wait on someone else to do it for you. "If it is to be, it is up to me."

Learning - be a lifelong learner. In order to have more to offer, you need to have more within you. So be a reader. Ask lots of questions. Then listen. If you are young, spend time with people older and wiser than you. If you are older, spend time with someone younger with fresh ideas. Keep growing.

Risk-taking. Intelligent risk taking is not throwing caution to the wind. But there are few 100% certainties in the world. The Marines practice the 70/30 rule: if you have 70% of the information and are 70% certain, move out. Inaction as a habit rarely results in success.

Interdependence. You can't be successful in this world by yourself. Create synergy between yourself and others. Leverage your efforts and effectiveness through close cooperation with others. This magnifies your results, as well as the results of others. You become someone they want to be around.

As we celebrate the birth of our nation with weekend, let's all pause to give thanks for this land of plenty we inhabit. But let's also pledge to give back to this great land by engaging in our own birth of plenty.

The future is brighter than ever.