Commentary: Creeple have systematically hijacked freedom from the American people by manipulating the economy and society for over a century. This is what the Governance Indicators section is all about.
Need and Demand: To understand how the American economy works one must understand the important difference between need and demand. Need is an excess of debt and/or a lack of necessities and/or fear of loss. Demand is a result of perceived affordability. Affordability is having perceived financial wealth in excess of perceived need, whether as cash, manageable credit or some other valuable commodity. Demand can only come from existing wealth that exceeds perceived need. If need exceeds wealth, then any additional money acquired goes to paying down need and no new demand is created.
To create new demand, existing wealth in excess of perceived need must first exist, and second, be enticed into the marketplace as demand. If consumers that possess excess wealth have no confidence in the success of the marketplace returning that excess wealth, or they fear that future market downturns may take away savings and investments, they will hold onto it and there will be no new demand even though the excess wealth exists that might otherwise produce new demand. So, to generate new demand one must have a marketplace that produces confidence in consumers that their excess wealth spent on demand will be at least replaced, or preferably multiplied as a return in the future, and that their savings are adequate and safe.
Freeplenomics and Creeplenomics: Capitalism is an economic system based on a symbiotic relationship between private ownership of property (capital), and government ownership of property and control over privately owned property. Capitalism in America has fluctuated through various iterations throughout its history, however, for our purposes there are basically two types of economic policies.
1) Freeplenomics is obviously based on freedom and seeks to create continuous demand in the marketplace so as to produce prosperity. It was first described in detail by Scottish philosopher Adam Smith in his book An Inquiry into the Nature and Causes of the Wealth of Nations in 1776.
2) Creeplenomics is based on extreme government control through high taxes, high government spending, ever-expanding entitlement programs, ever-expanding government bureaucracies, ever-expanding government regulation, tolerated corruption, sicking government bureaucracies on targeted individuals, groups and companies, bending of the rules, ignoring the enforcement of laws, go-it-alone executive actions, implementing trade barriers and tariffs, and a modern corporatism of picking winners and losers with government subsidies, bailouts and penalties. Prosperity is desired, though unnecessary and erratic, with recession and malaise often the result. Creeplenomics is generated by paranoia – a fear of freedom in the marketplace.