Division of Labor & Government Five Laws of Decline
Posted by Orrin Woodward on September 23, 2013
I am wrapping up the chapter where I display how the Five Laws of Decline (FLD) attack each of the Six Duties of Society (SDS). The more I write, the clearer I see what has gone wrong in America and Western Civilization. For if society destroys the Virtuous Business Cycle, then it destroys the process by which wealth is created for all producers. LIFE Leadership has created a society of leaders to maximize the SDS and minimize the FLD.
Division of Labor and the Five Laws of Decline
Referring back to the Six Duties of Society chapter, the Virtuous Business Cycle (VBC) occurs when society saves its capital, leading to further investments in labor-saving devices. This, in turn, leads to an increased division of labor which then leads to expanded production. The greater production, subsequently, leads to further distribution and trade with members of society and other societies. Finally, this culminates in an increase in the capital of society’s members leading to more savings and the cycle begins anew. For review purposes, the six steps in the Virtuous Business Cycle are:
- Increased Savings which leads to
- Increased Investment in Business Enterprises which leads to
- Increased Division of Labor which leads to
- Increased Production of Goods and Services which leads to
- Increased Distribution of Goods and Services which leads to
- Increased Wealth for Society’s Members which leads to back to Savings
In essence, free societies, through ensuring justice, predictably leads to a (VBC) of expanding capital, savings, investment, production, and trade. In fact, when government is focused within its appointed sphere of ensuring justice through checking exploitation, the VBC is an unbeatable system for wealth creation. In point of fact, every single wealthy nation, that has produced its wealth by just means, has utilized the Virtuous Business Cycle as the method to create it. Unfortunately, however, when the state tampers with the VBC, hammers the producers, rather than the exploiters, the people through excessive taxation (beyond the necessary minimum for defense and justice), are bilked of their savings, thus denying society the needed capital to initiate the VBC.
If, in other words, the wealth is expropriated from the people, by exploiters within society or in government, capital savings are diminished and the Virtuous Business Cycle is impaired. Because, as John Marshall once explained, “the power to tax is the power to destroy,” government’s ability to tax must be strictly limited just like its delegated sphere of operation. For government’s “force hammer” is delegated by society to ensure internal and external defense (justice for all) by ensuring exploiters are nailed. Regrettably, however, the biggest historical exploiter of the people has been the government itself when it transforms from a limited government into a powerful state. The state, in short order, usurps its delegated boundaries and enters into the economic area where it doesn’t belong and can only harm the VBC. Consequently, governments must be prohibited from interfering with the capital accumulation process within society (outside of the absolute minimum need of ensuring justice for all); otherwise the VBC is damaged. For when exploiters can wrongfully plunder the capital of society, the Virtuous Business Cycle is stunted. Then, as plunder increases, society dies. In conclusion, when the state becomes the tool of injustice, society divides into the few, who plunder, and the many who are plundered.