Tytler Cycle & Why More Government Help Leads To Less, by Lance Roberts

A good analysis of the cycles of civilization and why they fail. From Lance Roberts at realinvestmentadvice.com:

I recently received a message from a young fan of MMT (Modern Monetary Theory) suggesting it is always the “Government’s” job to ensure the care of citizens. Throughout history, the seven words which have been the hallmark of every socialist and communist system are “I’m the Government, I’m here to help.” A review of the Tytler cycle reveals why more Government help, always leads to less prosperity and freedom.

In the U.S. Constitution, there are specific clauses to providing both the security and infrastructure of the country, and the issuance of currency and debt. Interestingly, there are no clauses that state the Government’s responsibility is the financial support of households and corporations hurt after decades of financial mismanagement.

Defining The Systems

However, these are the basic tenets of both communism and socialism.

  • “Communism” is a political theory advocating class war and leading to a society in which the public owns all property. Each person works, and is paid according to their abilities and needs. 
  • “Socialism” suggests a social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the community.

In both cases, there is a direct relationship between the Government and the care and feeding of the population. However, given the Constitution’s writers had just fled an “Aristocracy,” they wanted to ensure America didn’t follow the same path. The founding documents established the basis from which “capitalism” was allowed to flourish.

  • “Capitalism” is an economic and political system in which a country’s trade and industry are controlled by private owners for profit, rather than by the state.

Do you see the difference?

Since 1775, millions of Americans have given their lives in defense of the American “idea.” The tyranny and oppression which arise from communism, socialism, and dictatorships have been a threat worthy of such sacrifice. I am sure those patriots who died to ensure the “American way of life” would be disheartened by the willingness of the up and coming generations to adopt such ideals.

However, there is little denying the rise of “socialistic” ideas in the U.S. today. You can try and cover the stench by calling it “social democracy,” but in the end, it’s still socialism.

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