On Economic Growth ... what it is about the American System that made sustained growth possible

America's founders ... Washington, Hamilton, Adams, Jefferson, Franklin, and Madison in balancing their own political objectives, created something greater than any of their individual ambitions, an enduring system for prosperity.  

It is a system that for the first time enabled men and women to believe it rational to strive for something better with each generation ... rather than fear someone with power would ultimately take all that they have earned.

It is a system that provides for a free people by enabling all to have access to free markets that make it much easier (than before America) for people to efficiently sustain themselves and prosper.

Here are the fundamentals of the American System.  

1. Banking, that the pig farmer can trust to store his coins
vs. fearing that a thief, land owner, earl or king might seize it to fund his ambitions

2. Intellectual Property Law that enables the truck builder to protect his design
vs. fearing it being stolen by a competitor or the state

3. Employment Rights that force the truck company to profit by innovation
vs. taking more from labor as did the barons and earls of the past

4. Contract Law that enables manufacturers, suppliers, employers and employees to set clear and binding terms
vs. a system of bribery, cronyism and patronage

5. Honest Judges that enable businesses and individuals to resolve disputes
vs. resorting to violence that might end a business or a life

6. Property Law and Law Enforcement that enables successful businesses and individuals to accumulate wealth that can be invested in new businesses and homes
vs. the poor periodically burning and looting the very wealth that provides jobs

7. Monetary Systems that enable each State's market to dynamically set a value for all goods and services and enable a Global Market to dynamically set valuations for each State's Market
vs. trade being limited because of the inflexibility of currency.

That American System is the difference between poverty and wealth,
It is the difference that today separates 

countries that have fully stocked supermarkets and trains that run on time and 

countries that don't.

On Making Money ... in a Global Market

America's greatest innovation was creating an infrastructure for making money.

Before America, everyone could transfer one form of money (i.e. 20 pigs) into another form (i.e. 20 gold coins), but economies rarely grew.

America made it easier than ever before to grow or make money i.e.

▪ the pig farmer saves his coins in a bank
▪ the bank loans half of his gold coins to a man hoping to build a new truck factory
▪ the truck factory pays wages and buys supplies for manufacturing
▪ the factory workers buy bacon and clothes
▪ the bank loans more of the pig farmer's money to a truck parts supplier
▪ the suppliers buy shipping services and pay workers
▪ the trucks made by the factory drive a need to build new roads
▪ the taxes paid by the farmer, the truck company, the bank, the shipping company and the equipment suppliers pay wages for road workers and supplies for construction
▪ the shipping companies buy trucks from the truck company
▪ the shipping company uses the trucks and new roads to carry more freight at lower cost
▪ the truck company and the shipping company repay their loans to the bank with interest
▪ the bank pays interest to the pig farmer
▪ some successful employees from the truck company leave and start a car company
▪ the workers of all the companies buy more bacon, clothes and houses and have children who drive a need for schools, construction, stores, more roads and cars,
▪ all the companies use the roads to pay less for shipping, supplies and to get more employees to work

in short, the farmer is able to sell to more customers at lower cost,
those that have creative ideas are able invest their time, money, ideas and effort to start companies, hire workers, sell products and gain a return (wealth) on their investment
by using money saved to support the creation of new wealth, the economy grows
money is made at every level.