Why Are Bubbles Great for the Economy?
From the awe-inspiring feat of early hot air balloons to contemporary financial bubbles, the concept of bubbles has left a significant imprint on human history. While hot air balloons symbolized mankind's willingness to soar above the earth, providing a grand perspective of our planet, financial bubbles have been more akin to the bath-tub filled with bubbles, offering the allure of wealth without the substance.
Historical Inspiration: Ben Franklin and the American Revolution
Ben Franklin's Interaction with Hot Air Balloons: During the American Revolution, Ben Franklin in Paris was inspired by the early hot air balloons that took people above the earth. This fascination was a pivotal moment in human history, marking a shift where mankind, through the use of science, could now reach heights previously unreachable. Prior to this, such views were limited to the heights people could climb manually. But these balloons were a result of the intentional actions of humans, propelled by scientific advancements that had distinct implications for future global developments.
British Empire and American Revolution: Hot air balloons and the technological advancements that accompanied them played a crucial role in the winning of the American Revolution. On one side, these balloons provided critical intelligence and communication capabilities. On the other, the victory of a Republican form of government sent a powerful message around the world. This victory inspired other nations, such as the United States, to pursue freedom, and ultimately led to the moon landing within the ensuing 190 years. The impact of these early bubbles extends far beyond the immediate context of the American Revolution; it has shaped modern economics and social structures.
The False Promise of Financial Bubbles
Oligarchical Elite: Promises of Wealth: While Ben Franklin's balloons were a symbol of true innovation and development, another group fond of bubbles, the Oligarchical elite, promotes the idea that wealth can be accumulated through 'trinkets'- predominantly gold and paper securities. These are illusory promises, much like a bathtub filled with bubbles that pop when the water is drained. These financial assets promise wealth but often contain no substantial physical assets, merely promises of value.
Hamiltion’s Economic Process: Physical Assets and Development: Alexander Hamilton's economic process aimed to fund the nation with essential physical resources that would free citizens from want. This approach, driven by tangible assets, was fundamentally different from the fleeting nature of financial bubbles. The physical advancements made during this period, such as steamships, electricity, and space exploration, were all rooted in real-world solutions, leading to an improved quality of life and enhanced cultural contributions.
The Ethical and Moral Dimension
Human Values and Morality: The core of economic development must sustain and uplift individuals, fostering personal freedoms and higher cultural values. The development of society through practical assets—such as food, clean water, electricity, and transportation—allows people to express their talents and contribute positively to the world. This foundation, established after the American Revolution, was rooted in humanitarian principles of freedom, justice, and moral responsibility.
The Dark Side of Bubble-based Economies: Conversely, the current Oligarchical approach, saturated with financial bubbles and driven by debt and manipulation, threatens to stifle true innovation and ethical development. The focus on creating a global digital currency and controlling a worldwide accounting system undermines the potential for human creativity and individual freedoms.
A Call to Action
Empowering Individuals to Drive Change: Every individual born into this world has the potential to create a better future. It is up to us to choose between perpetuating the cycles of bubbles and embracing real-world development that nurtures human potential. Investment in physical asset creation over speculative bubbles can lead to a vibrant, open, and beautiful future for all.
Conclusion: As we continue to navigate the complexities of global economics, we must remain vigilant and energetically committed to ensuring that our focus remains on real-world development and individual empowerment. Let us strive to break free from the limiting cycles of financial bubbles and instead cultivate a future rooted in ethical, sustainable, and innovative economic practices.