How the Elites Betrayed Working-Class America

How the Elites Betrayed Working-Class America by Bill Bonner – Markets & Money

The Dow was flat yesterday.

Investors must have been distracted by the latest tempest in the Washington teapot.

Did President Trump say something he shouldn’t have?

He told the Russians that terrorists were trying to make bombs out of laptop computers.

No kidding!

Trump was careful to get the gunmen and the moneymen on his side; he’s stocked his team with generals and Goldman guys.

He’s stayed on the course set by Bush-Obama. But he’s alienated a big part of the Establishment.

They regard him as reckless and unreliable. They’d prefer more of a dull Deep State team player, such as Vice President Mike Pence.

Who knows? Maybe they’ll get their wish.

Progress = learning
Meanwhile, we return to the basics…

Win-win deals get people more of what they want. Win-lose deals — usually imposed by government — bring them less. The few (the insiders) use government to exploit the many (the rest of us).

Win-lose deals also depress economic progress for everybody. Partly, this happens for an obvious reason.

Dropping the atom bomb on Hiroshima was a technical milestone, but not the kind of progress we’re talking about. Progress only makes sense if it means that people are able to get more of what they want.

By definition, when a person is forced into a bad deal, he gets less of what he wants. (Later this week, we’ll look at how Venezuelans are getting a lot less of what they want as a result of their government’s win-lose programs.)

Progress is also a learning process. You try something. You see what works and what doesn’t. As people experiment in this way, they learn…and the economy accumulates knowledge and wealth.

They learn to get to work in the morning, for example…to say please and thank you…to save their money…and to invest it wisely.

Win-lose deals interrupt the learning process. That’s why welfare programs fail: People get money without learning.

Temptation to cheat
That is the real reason the Soviet Union failed, too.

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Bill Bonner founded Agora Inc. in 1978. Since then, it has grown into one of the largest independent newsletter publishing companies in the world. Bill also co-wrote two New York Times bestselling books, Financial Reckoning Day and Empire of Debt, In his latest book, Hormegeddon, Bill describes what happens when you get too much of a good thing in the sphere of public policy, economics and business. This new newsletter is unlike anything else published in America today. Now in this industry, Bill Bonner has agreed to share his secrets and insights every month. It’s like having a super-wealthy uncle share his best ideas, insights and wisdom about business, relationships, investments, trends, developments, ideas and more.