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The Geniuses Of Society Will Make You A Millionaire
Those people also give reasons for America's weakness in international trade. They all say the problems started after World War II. At the end of World War II, America was the dominant economic power in the world. Thus, they blame our trade deficit and weakness in international competitiveness on factors that occurred after World War II. They list reasons such as management laziness, excessive union demands, excessive government regulation, all of which eroded America's international competitiveness...now causing factories to close down and people to lose their jobs by the thousands. ...All this sinking economic strength happened since the end of World War II, they all say.
But nobody knows that 100 years ago a man called James J. Hill started something really magnificent that would have painted an entirely different picture of America's future than that of gloom today. But the parasitical elite destroyed that great and prosperous future when they destroyed Hill 100 years ago:
This is a story about James J. Hill. I'm going to tell you a story tonight that demonstrates what Mark Hamilton has been talking about these past four weeks...this phenomenon where a few of our working-class brothers start doing integrated thinking; therefore, they start pushing up the lid on this jack-in-the-box. When they do that, they begin threatening the parasitical-elite class and, as a result, they get smashed down.
As Mark has described, a person rises as he learns to integrate. As he rises, he soon buckles the lid on this jack-in-the-box. But then the envy class, those parasitical elite and their bogus jobs become threatened. So they push down the lid where it buckles. And the real damage is far more than what meets the eye immediately. The real damage comes with opportunity and prosperity lost in the future, as America is learning now, 100 years after Hill buckled the lid but was pushed back down.
Now, I will tell you the story of a working-class brother, James J. Hill. He was a railroad pioneer back in the mid-1800s, and his story is brought to light in a book called, "Entrepreneurs Versus The State" by Burton Folsom.
Let's travel back in time to the 1860s. America was experiencing its first railroad boom. Railroads were being built all up and down the East Coast. Well, as Mr. Folsom identifies in his book, two classes of entrepreneurs exist: market entrepreneurs and political entrepreneurs. Political entrepreneurs are what Mark has been calling lazy political businessmen who are part of the parasitical elite. Political entrepreneurs make their money by seeking government subsidies, by getting special government rights of way, and by accessing political clout. Indeed, they seek their success through political clout with government officials.
Market entrepreneurs are what Mark has been calling our hard-working brothers in the working class who are rising up. They are the precious head of the working class, men and women who learn how to integrate, rise up, and create jobs. Market entrepreneurs make their money by providing more and more values and services to society at lower and lower costs. They also create more and more jobs for us.
But that was a deception woven by the parasitical-elite class: by political
entrepreneurs so they could line their pockets with lavish government subsidies
and by congressmen so they could boost their self-worth and soak up self-glory
by spending money that they controlled but did not earn. They could parade
around and say, "Look how important we are. Look how we benefit the American
public. We, the government, are building this transcontinental railroad and
opening up the interior and west coast of America." ...A perfect setup for the
parasitical-elite class to come together -- political entrepreneurs joining
hands with power-seeking politicians.
So a deception was woven: only the federal government could finance the
building of the transcontinental railroad. The public bought it, and with
great fanfare, Congress went ahead with it.
But because they were being paid by the mile, these companies purposely built
the longest, most circuitous routes they could possibly justify so they could
get more government money. And they rushed construction to collect their
per-mile subsidies. They rushed ahead with poor construction and poor planning
into the wilderness.
Remember, the congressmen were spending money that they did not earn but
controlled, and they wanted to reap the self-glory for spending that money.
Those politicians, always trying to justify their jobs, always trying to show
that they benefit the American public, got into the railroad business where
they had no business being in the first place. Controlling tremendous amounts
of money they didn't earn, they reaped all this self-glory that comes with
spending the money. Now they could say, "Look how valuable we are; we're
financing the building of a transcontinental railroad across America!"
But those bogus-job congressmen were part of the parasitical-elite class. They
were not interested in getting out and exerting the nitty-gritty effort that
business does when it spends money. They were glad to spend the money, large
amounts of money, and reap the glory, but they weren't about to get out there
and exert the nitty-gritty effort to put the controls on spending to make sure
that money was spent right. They were not about to get right down into the
details themselves to make sure that they were buying the right quality goods
and that the railroad was being built over the right routes...not like a
businessman would who is spending that money out of his own pocket.
In addition, because they were getting paid by the amount of rail they built,
each company was racing to build as much track as it could before the other
one...to get the most money from the government. So instead of taking the
proper time to carefully map out the best routes, especially vital for building
over hills at the lowest uphill grade, they instead just raced forward and paid
no attention to vital planning and surveying. No time to be wasted on planning
and surveying, they built track over uphill grades that were far too steep.
They didn't take the necessary time to do anything right. When winter came,
they just kept on building over the plains, right over the ice! Because
they wanted to build as much as possible, they did not wait for the ice to melt
-- they just kept on laying track. When summer came, they had to tear up
thousands of miles of track and rebuild it, before they could open the line!
And to get more money, the two railroad companies built the longest
routes with under-quality material. ...You can just imagine what the
future operating costs this transcontinental railroad would endure.
Therefore, the government had to continue to subsidize the transcontinental
line once it was built. Union Pacific had to continue to receive more and more
government money or it would have gone out of business and stopped running.
Indeed, Congress had just spent a fortune financing the building of the
transcontinental line. Now Congress could not let their prize transcontinental
line declare bankruptcy and close down. So, the government continued financing
it.
After the Union Pacific was built, other political entrepreneurs got together
with glory-seeking politicians in their areas of the country and said, "The
federal government financed the Union Pacific, therefore they have to finance a
transcontinental railroad in our region."
So Congress went ahead and financed the building of a transcontinental up North
called the Northern Pacific, and one down South called the Santa Fe. Of
course, both of those had the same results. They built extra long, circuitous
routes; they turned into an orgy of fraud, substandard quality material used,
no time taken to select the lowest grade hills. So right from day one, the
other two transcontinentals lost money, and they had to receive government
subsidies just to continue operating.
Well, from day one the idea was labeled Hill's Folly, and you can see why. How
could someone build a railroad that could possibly compete when he had to pay
all the building costs himself, and there were three others that existed
farther South that had all their building costs paid by the government?
Moreover, Hill's railroad was going to be way up North where no one lived.
Those other three government-financed railroads were located in the main
population areas of the U.S. In addition, once Hill did complete his railroad,
how could he compete with the other three railroads when they continued to
receive government subsidies and Hill had to pay his expenses through his own
bottom-line profits -- and the three other lines proved that no profits
existed!
Well, Hill went ahead with his plans anyway. Hill had to obey the disciplines
of a bottom line. He couldn't go rushing into the wilderness to collect
government subsidies. He had to build his line out West one extension at a
time. He'd build westward into the wilderness a few hundred miles at a time.
Then he would send agents back East to advertise to farmers in the East. Hill
offered to move the farmers for free into this western wilderness so they could
settle and start their farms. Then Hill would give them free rates to ship
their crops back to the markets in the East for a couple of years until they
got established.
This worked. For each extension West, he brought in farmers; he'd build up his
track, and after awhile his extension West made money. From those profits,
he'd finance another extension West...a few hundred miles at a time. He never
stopped. He settled the entire northern border of the United States with his
railroad. And, lo and behold, in 1890 the first American transcontinental
railroad was built without one penny of government money. He reached the
Pacific Ocean, and he did it without one penny of government money!
What an accomplishment! But most amazingly, one man did it! Not the
entire might of the U.S. Government -- one lone man! One man and his
integrated thinking was raising the prosperity of an entire nation! But, now
that he accomplished this amazing feat, could he make it work? Here Hill was
with his transcontinental, way up North when the population base was farther
South; he was competing against three transcontinentals farther South that had
all of their expenses paid for by the government. So, what would happen to
Hill's transcontinental?
One man was running circles around the almighty U.S. Government! Of course,
the incompetence and greed of career politicians could never bring values to
the people. But one market businessman can raise the standard of living of a
nation. ...Just think of the power behind Mark Hamilton's Great Replacement
Program in which market businessmen lead our country and build our economy!
Anyway, back to J. J. Hill:
This one integrated thinker's advantages kept building momentum and left
Congress's follies in the dust. Hill was one real man from the working class
with the competence to build jobs and values for everyone. He kept rising up.
Congressmen, by contrast, are fakes with no business competence whatsoever.
Thus, Hill left them all in his dust.
Hill built up the whole industry of the Northwest. He built feeder lines. For
example, if copper were found a hundred miles north, he'd build a feeder line,
move in a copper company so they could start mining and shipping the copper
over his line. If lumber were discovered up in the mountain, he'd feeder line
up there, move in a lumber company, and they'd start shipping the lumber over
his lines. If there was a good clearing for cattle ranching a few miles south,
he'd build a feeder line. ...Railroads discovered that feeder lines became a
main source of profit.
But consider Congress's lines built for their own glory and self-worth.
Because those railroads were receiving their money from the government, they
would have to get Congress's permission to build a feeder line. Well, of
course, everyone knows what happens when the government has to make a decision.
A simple black-and-white decision to build a profitable feeder line that should
be made overnight would be tied up for months, even for years. All the
incompetent congressmen would get up and debate over it to get in the spotlight
and appear needed and important. ...They cared only about themselves, not about
what's best for America.
So Hill's railroad ran circles around the three government-financed railroads
from day one. In addition, Hill brought civilization and industry to the
Northwest: mining, lumber, apple farmers in Washington, wheat farmers on the
plains. He built up the whole region along his railroad line.
In the meantime, we had these political entrepreneurs in America still running
around wondering how to get more government subsidies to line their pockets.
Yet one working-class brother was integrating out, pushing up the lid, creating
jobs by the thousands. Indeed, Hill sent his agents to Japan and China to
start promoting American products, and he went out and bought his own steamship
line. He raced his ships back and forth between Japan and China and America.
Hill built up American trade with Asia the same way that he built up business
along his line. He would send products for free to the Japanese and Chinese if
they would just try them out. Then once they tried them out, if they liked
them they would come back, and Hill would build up the business.
Every day Hill filled his ships with American grain, and with copper from
Montana, lumber from Washington, cotton from the South, textiles from New
England, rails from Pittsburgh, apples from Washington. He would send them all
free to the Far East. The Asians would try these American goods, and if they
liked them, then they would come back for more.
In fact, Hill went to Japan, met with Japanese businessmen, and proposed that
he would buy southern cotton, pay for it himself, ship it to the Japanese for
free, and give it to them free. Hill would buy the southern cotton out
of his own money if the Japanese would just try this cotton in place of the
cotton they normally got from India. Well, the Japanese took him up on his
offer; they liked it, and soon Hill's box cars were full of cotton, travelling
from the South to the North to the Pacific Coast and then on to a steamship to
Japan.
Hill used this strategy to build up all kinds of business. In 1900, Japan
started a railroad building boom. Hill recognized the potential of railroads
throughout Asia. At that time, the world's suppliers of rail were England and
Belgium. But there were a few American rail makers in Pittsburgh. So Hill
went to Japan; he purposely underbid the English and the Belgian, paid the
difference out of his own pocket just to get the Japanese to try rails made in
Pittsburgh. His strategy worked: Japan started buying all their rail from
Pittsburgh, which built up the fledgling rail industry in America.
Well, once again, Congress wove a deception: They presented themselves as
protectors of the American public. They would nobly project, "Look how great
we are; look how needed and important we are; we're going to protect the
American public from those greedy and corrupt railroad executives." Yet, the
root cause of the problem was Congress itself. Congress was the culprit!
Congress spent other people's money in a railroad business where they had no
business being in the first place. ...Incompetent politicians in the railroad
business -- c'mon!
So instead of getting up and confessing, "Look, the problem was us. We now
realize the problem was us getting into the railroad business in the first
place. We had no business in there, so now we're going to get completely out."
They could have been honest, but they were not. No, they didn't want to say
that because that would have exposed their bogus jobs. Instead, they saw a
chance to increase their bogus jobs and to increase their popularity and
political power for re-election. They instead self-righteously projected,
"Look how we earn our jobs. We're protecting the American public." Congress
self-righteously started parading those corrupt railroad executives in front of
the nation. Congress made the railroad executives solely to blame for the
transcontinental fiascoes. And then, to "protect the public," they proposed to
form the ICC, the Interstate Commerce Commission, and to pass Sherman Antitrust
legislation to further get in there and regulate the railroads.
Now, the congressmen were intelligent men. They were college educated. They
knew what Hill was saying. They knew it all made sense. They knew it was the
truth, but they didn't care because they wanted to justify their bogus jobs.
So they ignored him. They ignored Hill, and they went on to pass the ICC and
the Sherman Antitrust legislation, which enabled them to get in and heavily
regulate and punish the railroads.
Hill even wrote a book on this whole ordeal and circulated his book to the
congressmen, explaining the situation. He presented all the evidence that
showed how Congress was doing the wrong thing. But the bogus-job fakes in
Congress ignored Hill because they wanted to advance their own power. This
clique of people went ahead and passed the ICC, passed the Sherman Antitrust
legislation. And what did that do? Those regulations made it illegal for
railroads to make any kinds of deals with customers. They had to charge the
same standard rate to all customers. Therefore, the dynamics Hill used to
build up his railroad, to move in people for free, to ship their freight for
free or for a low cost until they got established...was now illegal! Those
same dynamics that he was now using to spearhead an American dominance of trade
in Asia were all now illegal! Bam! Hill was a working-class brother who
discovered integrated thinking, and he was rising up faster and faster, pushing
up the lid to lift all the world into a jack-in-the-box explosion -- and BAM!
The parasitical elite smashed him down. Hill's drive into Asia was over.
The year after the ICC's legislation passed, America's trade with Japan alone
dropped by 40%. Now remember, Hill was spearheading a geometrical
increase in trade. Trade with Japan and China was increasing geometrically.
Now Congress passed this legislation and, plop, everything dropped 40%.
Today, you hear our President and top CEOs and top economists saying that
America's greatest danger economically is its trade imbalance with Asia, and
our lack of international competitiveness. But who the hell knows that a
hundred years ago Hill was spearheading an American dominance of trade
throughout all of Asia? That trade dominance was cut off by pip-squeaks and
clowns in Congress. Who even knows that? Nobody mentions that today, but
everyone is warning about "the greatest economic danger facing America today".
Americans are losing their jobs by the thousands, being outcompeted, factories
being closed down. Yet who knows that one hundred years ago this one
integrated thinker, one man, learned how to start doing integrated thinking,
started pushing up the lid on this jack-in-the-box, started spearheading an
American dominance of trade with Asia increasing geometrically, then WHAM! It
was all smashed back down by a few pip-squeaks and clowns in Congress strutting
around with superiority complexes a hundred years ago!
The politicians back then knew what they were doing. They were intelligent
men. They were college educated. Hill went and explained the facts to them.
But no, they wanted to increase their power. They wanted to justify and
advance their bogus jobs. So they ignored Hill, and they cut off something
magnificent a hundred years ago.
Let's consider this further. What did they really cut off? What
really happened a hundred years ago?
So what does that mean? Consider the spread of Communism in Asia. Communism
cannot take over an affluent, industrialized nation. Communism never has; it
can't. Communism only takes over poor, unindustrialized peasant countries.
Well, a hundred years ago Hill was spearheading a geometrical increase of
American commerce in China. This was causing China's industrialization. But
because he was cut off in the bud a hundred years ago by a handful of
self-serving politicians, all that trade and industrialization was cut off.
Forty-five years later, China was still a backward, peasant, unindustrialized
country waiting for Mao.
So what happened? Communism swept through China; Mao killed 30 million people.
Thirty million people! In addition, Communism spread into Korea and
Vietnam, costing 110,000 Americans lives. Why? Because a hundred years ago a
few self-serving politicians in Congress, trying to fake manhood, cut off
something magnificent, smashed down this integrated thinker who was causing the
industrialization of China. He would have prevented Communism in Asia and the
deaths of 30 million Chinese and 110,000 Americans...history's unforgivable
tragedy.
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A Deception Was Woven
During America's railroad building boom in the 1860s, an opportunity arose for
the parasitical-elite class. The political entrepreneurs seeking easy money
got together with congressmen seeking popularity, and together they wove a
deception. The deception was that only the government could finance the
building of America's first transcontinental railroad. That deception 100
years ago is still promoted today. I remember reading about it in my history
text books in school. Construction Begins
There were two companies: Central Pacific started building eastward from the
West Coast and the Union Pacific started westward from the East Coast. The
government paid those companies by the total miles of track they built. So
what did they do? Instead of being bound by the disciplines of a bottom line,
they were getting lavish subsidies from the government for the total miles of
track they built. So they rushed into the wilderness to collect government
subsidies.Construction Corruption
So the whole program was laced with fraud to begin with. The line managers set
up their own supplier companies selling their railroads substandard quality
rails and ties at exorbitant prices. For, there was no control over the
government money.Profit-Proof
Indeed, when the Union Pacific was complete, from day one it could not make a
profit because it's operating expenses were too high. First of all, thousands
of miles of shoddily built, under-quality track had to be constantly replaced.
Second of all, because they took the extra long route, and it wasn't built over
the lowest grade hills, they had to pay a lot more money in fuel costs, wage
costs, and it took a lot more time to haul freight across the country. So the
operating expenses were so high, from day one the Union Pacific was never able
to make a profit. Enter The Market Entrepreneur
In the meantime, there was this young man, James J. Hill. He was born in a log
cabin in Ontario, Canada to a working-class family. His father died when he
was a young boy, so he had to get a job to support his mother. At seventeen,
he moved to St. Paul and got a job for a shipping company. He started in an
entry-level position, but he loved the transportation business. He really
applied himself; he began making contacts, and he began moving up. Before
long, Hill started integrating. He began making partnerships in local
railroads that were being built in his area. Eventually, Hill started major
integrating. He decided that he was going to build the first completely
privately financed transcontinental railroad way up along the U.S. and Canadian
border, which at that time was all wilderness with no settlers. Competence
During the building of Hill's railroad, since it was his personal money that
was being spent, he personally dug into the tough nitty-gritty details. With
unyielding disciplines and efforts, he put controls on everything: He
personally surveyed the routes; he made sure the shortest, most direct routes
were built. When the track had to go over hills, he would spend time with the
engineers and make sure they picked out the lowest grade hills. He personally
supervised the buying of materials to make sure they got the highest quality
rails and ties for the lowest cost. ...So what happened to Hill's Folly?
Well, from day one, when it was completed, he made a profit! He ran circles
around the three government-financed lines because his operating expenses were
so much lower. In addition his freight took a lot less time to reach the West
Coast. From day one, Hill made a profit. From day one, the
government-subsidized transcontinental railroads never, ever turned a profit.
Pushing Up The Lid
Once Hill completed his line to the West Coast, he did not stop there. He kept
integrating out. Hill started integrating out toward the Orient. What about
trade with the Orient? Hill did some calculations: if one major province in
China substituted an ounce of rice a day for an ounce of American wheat, that
would mean 50 million bushels of American wheat would travel over his railroad
to China every year! American farmers exporting huge shipments of wheat to
China -- what a possibility! So Hill sent agents to Japan and China to begin
promoting American trade, the same way he had done during the building up of
his transcontinental railroad.Hill's Miracle
What happened in the 1890s was nothing short of a miracle: When Hill started
his push into Asia, trade with Japan was seven million dollars a year. Nine
years later, with Hill in charge of this American mission into Asia, American
trade with Japan alone was 52 million dollars! And he was now pushing
into China as well! Hill was causing geometrical increases in American
commerce. He was spearheading 100 years ago an American dominance of trade in
Asia! In the meantime the political entrepreneurs, Hill's so-called rivals,
were still running around Washington trying to figure out how they could get
more subsidies. And Hill just kept on integrating and pushing out into Asia,
spearheading a geometrical increase of American commerce in Asia. This was 100
years ago.The Government's Folly
As time went by, the other three government-financed transcontinentals
continued to lose money. The government kept pouring taxpayers' dollars into
financing them. No, career politicians can never serve the people and provide
values to society; career politicians can only drain the people by spending
taxpayers' money incompetently. The public started getting fed up with this.
In addition, as time went by, the fraud committed by the political
entrepreneurs started to surface - things like setting up their own companies
to sell substandard material at overcharged prices. The American public had to
continue to pay subsidies into this hoax just to keep these other three
government railroads running. The public finally had enough. So Congress,
nothing but glory-seeking politicians, started self-righteously parading the
corrupt political entrepreneurs in front of Congress and the nation, forming
special-investigation committees.Hero Hill
Well, Hill knew what was going on; he knew what the story was here. So Hill
moved to Washington. He set up residence in Washington, D.C. He personally
talked to the congressmen. He testified before their special committees. He
told them what was going on: the root cause of the problem was the government
getting in there where it had no business being in the first place, financing
these railroads, spending other people's money on rails. That caused the
corruption. Hill gave the example of his railroad. He didn't accept one penny
of government money while his railroad built up all the industry in the
Northwest. And now his line was promoting an explosion of American trade into
Asia while the three government-sponsored lines were sinking in corruption.Hill's Miracle...Was Over
Hill was forced to sell his steamship lines, he got out of trade completely
with Asia, and he was so frustrated, he retired. Suddenly, the miracle was
over. Now, this was a hundred years ago! Let's stop and look at the
implications of this. Let's stretch this out to see what Congress really cut
off a hundred years ago. It was bad enough they cut off Hill's trade with Asia
back then, but let's project that into the future to see what they cut off
today:The Unforgivable Tragedy
Hill was not only spearheading an American dominance of trade with Asia a
hundred years ago, trade that was increasing geometrically, but Hill was also
spearheading an industrialization of Asia, of Japan and China. He was
getting the American trade in there; he was bringing in railroads, causing the
railroads to be built up, causing factories to be built. He was causing
American industry to follow its natural course and start flooding in and
dominating Asia, which would have caused Asia to industrialize, Japan to
industrialize, China to industrialize.Chapter 3 Continues
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