The best way to make money is to have money. As in a feudal society. Gentry owned the land, the power and the money. Everyone else was a servant. The French and American revolutions seized power from gentry and king and replaced a feudal society with a capitalist society. Under feudalism wealth is inherited. Under capitalism inheritance is still the main source of wealth, but one can also acquire wealth by doing something better. That is an enormous improvement over feudalism. Competition is the motor of progress.
Americans attribute their dominance to hard work, flexibility and inventiveness. They think they deserve to win the competition between countries because they are better. That suspicious assertion requires an explanation. Why would people in one country be smarter and more industrious? Jill Lepore puts an end to this self-congratulatory explanation. We won because we had space for immigrants and were ruthless at genocide and exploitation of slaves.
Genocide
The early settlers had guns and bacteria which allowed them to prevail over the native Americans (who had no immunity to European bacteria) Moreover, the settlers could use all the clearings and paths that the native Americans had made over centuries.
Exploitation
Slavery allowed slave owners to build much more wealth than they could consume. When slavery ended, that wealth did not evaporate. Many current trust funds can be traced back to wealth that was built 200 years ago by the labor of slaves.
Immigration
An endless stream of young, entrepreneurial men provided cheap labor and inventiveness.
No wonder that Jill Lepore’s book “These truths… “ is banned from schools in the South. The conservative argument is convincing. Children should not be brought up with a negative self-image.
Old wealth keeps paying off. The mantra “Money makes money “ is true for families. It is also true for countries. US universities are the best endowed which allows them to attract the best minds from all over the world. Consequently, the companies that determine our current world: Apple, Amazon, Microsoft, Google, Facebook, Tesla, Uber, Netflix, are all American. No wonder, America is where the money is.
As long as the USA used its power mostly benevolently, other countries accepted US dominance. albeit grudgingly. They had no choice. What can other countries do when the USA does not support the UN, the WHO, the International Criminal Court? Other superpowers, China, Russia, India, also give priority to national autonomy. The middle countries can only make the best of it. They keep negotiating.
The downside of ‘money making money’ is inequality. Inequality creates frustration and frustrated voters elect someone who promises to tear it all down. Trump presents himself as the powerful defender of the oppressed. The slogan of his TV program, “You are fired!” remains his favorite statement. Frustrated people identify with that; they want the elite to be fired. Trump promised to do so and already he has fired many government workers. His popularity among Trumpers increased. But he wants more. Now, Trump fires whole countries. "Do as I say, or else “
Raising tariffs is a solution in search of a problem. What problem is supposed to be solved by tariffs? It can’t be the national budget deficit. Other countries go bankrupt when their deficit becomes too big, too long. But the claims of other countries towards the USA are in dollars. They would all suffer if they let the dollar devalue. China will keep lending us dollars as long as the dollar is the favorite international denomination. Meanwhile, in the short term, the American economy is the envy of the world. Full employment, low inflation, rising wages. America demonstrates triumphantly that “Money makes money”. Nevertheless, the general sentiment is negative. The American Dream has become a mirage and a nightmare. In response, Trump does what he likes to do; create a conflict and dominate. It does not matter that his policies are counter-productive. He is not interested in policy. He likes power; he is good at winning conflicts. It brought him golden toilets. In his delusional world he will never fail. When some hing does work out, he blames others. He will say that people did not do what he told them to do.
Yet, Trump and his cohorts are not the basic problem; their ascendancy is a symptom of bigger problems. The world is ready for three revolutionary changes.
· End national sovereignty to achieve peace and address global warming.
· End capitalism to end obscene inequality.
· End the forms of democracy that let populism reign.
The problems and the solutions are obvious. Equally obvious are the stupidity and tribal instincts that prevent diagnosis and therapy.
We will keep bickering. To our peril. 4/5/2025
In this essay I placed Trump in a wider perspective. Today, two months later, I realize that my perspective was too limited; AI will change the world more and faster than universal democracy and universal basic income Soon, most work can be done better, faster and cheaper by AI powered robots. Where does that leave us? Making love 24/7? China will lead while Americans keep hating each other. 4/7/2025