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.
Sincerely,
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
The Fall of Roman Empire
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.
17 Responses to “Division of Labor & Government Five Laws of Decline”
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Chad said
Hi Orrin
We need to educate people and scoiety of what is happening and going on and this new book will definatly open some eyes! Being a business owner I understand all the principles explained and have lived how they can be effected by the government!
Can’t wait for the book to be out!
God Bless
Olivier Jean-Baptiste said
Hi Orrin
I truly like that one…thanks a lot!!! Please allow me to add the following:
When the government become the biggest exploiter of the people and enters the economic area where it does not belong, it not only damages the VBC but it initiates social conflicts in the form of ongoing vicious class conflict cycle. The nature of government intervention on the market economy is not so much by involving the state into production but rather by granting special privileges and special deal (monopoly)to parasitic economic actors (who wrongly call themselves capitalist) at the expense of the true producers (capitalist) who are willing to do whatever it takes to remain competitive by better serving their true constituency (the customer) by adapting to market changes and engaging in improvement initiatives cycles ( PDCA). What is even more wicked on the part of a state that has become the worst plunderer of the producer is that it often seeks and obtains the approval and legitimacy of the uninformed and misinformed populace to implement its destructive policy and portrays itself as the guardian of justice and
class equality (based on unsound political philosophy).
Let there be light and let there be Life Leadership!!!
Thanks,
Olivier.
Renee Oettinger said
Wow! I had the privilege of being with Orrin this past weekend and his clarity and ability to communicate why we have fallen away from “liberty and justice for all” is amazing. His explanation of the FLD and SDS make connections I would have never understood. Thank you Orrin for your caring enough to make a difference. I look forward to your next book. God Bless, Renee
Tim Marks said
Orrin
I was just in Rome again this summer and its scary to look around and think about a couple things, first, how powerful and productive Rome was at one point, and it still fell. The second thought I had was, how scary the similarities are between the causes of the fall and the issues we face in our country now.
great post
thanks
Tim
Bill Eder said
Orrin: Another outstanding blog. It sure is a reminder to all how big government can ultimately kill the society it is suppose to protect. Exploitation of the people has been the downfall of great nations for sure. Leadershift and freedomshift are the way to avoid the demise of the America we know and love. Looking forward to your book. God bless –Bill–
Christofer French said
People describe the “state of things” through their various political prisms and individual points of view. Orrin has done such a wonderful job of bringing clarity without vitreol, without excessive hand wringing and doom talk. I praise him for his wonderful work.
Elizabeth Sieracki said
So much education needs to be done. I have learned so much from you Orrin and will be forever grateful to you and Laurie for the sacrifices you have made in your lives to be able to share truths such as this.
Randy Robson said
I love that VBC. Great!
Kevin Hamm said
Orrin,
Great article. I am so motivated to read your next book. On that note, I was given a book a few days ago written by Sam and Andrew Wyly entitled TEXAS GOT IT RIGHT! If you haven’t read it you may enjoy it. It will certainly give you historical background material to share in your next seminar in Texas. It is amazing though, how the political and economic culture in Texas is not terribly far from what you are presenting in your teaching. Too bad the Appalachians are not in Texas, I may be drawn to live there otherwise. It seems I would not have to work so hard on softening my choleric edges if I lived in Texas. 🙂
Steve Meixner said
Orrin, This is more great material! It’s too bad we are not teaching this in school to children. What a difference it would make! We need to get to a Million fast! I never heard any of this before I joined the LIFE business. You can bet my Grandkids will all be learning all about the (FLD) and (SDS) when they visit Grandpa! Thanks again,
Steve
Harold L. Lamma II said
Orrin,
It all really makes complete sense. When the vestiges of government decided to become corporations; a shift of morality and decency took place in “justice” as it was replaced by profit and contractual law; as true representation and accountability was lost. Unfortunately enough; dishonor and gain took over for any form of virtuous capacity. The demise of virtue in a sense, is only attainable through improper intent; In-which embraced; unleashes a negative effect from its’ originating cause. Proof tells us; When wealth is in the hands of the people who actively engage in honorable fashion, prosperity inevitably abounds, growth is exponentially verified, and a sustainable business is not waned to default. Yet; interference by forces less honorable always brings about destruction. I really think its the “human heart” of the leadership issue when we really get down to it, and mans inability to to get rid of, or control his selfish lusts for power and glory.
Orrin Woodward said
Harold, well said. Inside of every heart is service and plunder. Whichever one is rewarded in society produces the appropriate fruit – either justice and prosperity or injustice and poverty. Biblically, it fits Jesus saying, “You will know them by their fruits.” thanks, Orrin
Titi Woki said
Orrin – Your next book I can already tell is going to be a wonderful tool to educate and re educate the world in simple yet profound truths on how to propagate freedom and how to sustain it for the long haul! I am amazed at how far we have trailed from these truths! Hurry and get this thing on press!!
Blessings
Titi
Roosevelt Jean-Francois said
Just a question: Why governments have a tendency to become bigger?
Roosevelt
Orrin Woodward said
Five Laws of Decline is answer. Government “monopoly of power” leads to desire for more power in more spheres which leads to more promises to people for more money and power and bigger government results. 🙂 thanks, Orrin
Greg Oesch said
Our own American government is already plundering all in the name of government fixes. We as individuals must RE SOLVE to fix ourselves first. Maybe then we can attempt to fix our families. Then our local communities. Then our state. Then our nation. And ultimately our world in that order. Thank you for your book Orrin, it has really helped me.
Jason Dames said
Thank you for communicating this in a way we can understand. Thx Orrin