The Best Book on the Economy’s Only Hope

Originally posted February 26, 2013.

Of all the books you want to read this year, be sure you make some time for The Financial Crisis and the Free Market Cure: Why Pure Capitalism is the World Economy’s Only Hope, by John Allison. You’ll get into the mind of one of today’s great thinkers. John Allison gives you the inside scoop on what really happened during the financial crisis.
Mr. Allison had a front-row seat. For example, as president of BB&T, he describes how the government strong-armed his bank to participate in TARP even though it didn’t even need the money.

You’ll also read about the virtues of being selfish. It’s a belief in stark contrast to the government’s mantra of self-sacrifice for the benefit of others. I’ll share one of my favorite parts with you here about how kids are made to feel bad for being selfish.

In fact, a very commonly held belief in our culture today is that as human beings, we are born bad— because we are selfish, and being selfish is bad. We learn this belief at a young age.

Johnny, age three or four, is in the sandbox playing with his truck. He is not bothering anybody. He is having a good time playing with his truck. Along comes Fred. Fred would like to have Johnny’s truck. Johnny does not want to give Fred his truck. A discussion and then an argument ensues. Mom, Dad, or the kindergarten teacher gets involved in the discussion. Mom says, “Johnny give that truck to Fred. You must share. Don’t be selfish. Don’t be bad.”

Two great moral lessons are being taught right there in the sandbox. The first lesson: where did Fred get the right to Johnny’s truck? This lesson from the sandbox is the moral justification for our social welfare system. Johnny has a truck. I do not have a truck. I want Johnny’s truck. Why should Johnny have a truck when I do not have one? Johnny is greedy. He is selfish. He is bad. Give me his truck. I will vote for Barney Frank. He will get me a truck from that greedy Johnny.

How about the moral lesson for Johnny? (And the people who are reading this book are far more likely to be Johnny than to be Fred.) What lesson did he learn? Do not go for what you want. Other people’s needs are more important than yours. You must consider others as being more important than yourself. After all, Fred “needed” that truck. Your life is secondary. Everyone else’s “need” is more important than your life.

It is interesting to reflect objectively on the concept of selfishness. An immutable, nonnegotiable law of nature is: everything that is alive must act in its own self-interest or die. This is how Mother Nature designed the system.

If you want more great insight like this from John Allison, read the book. But don’t just take my word for it. “Required reading.… Shows how our economic crisis was a failure, not of the free market, but of government,” says Charles Koch, Chairman and CEO, Koch Industries, Inc.

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E.J. Smith - Your Survival Guy

Preparing your investments and family for when disaster strikes.

E.J. Smith is the Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH, where he completed course-work in Practical and Defensive Handgun, Conceal Carry Pistol, Shotguns, Precision Scope Rifle and Kidnapping Prevention. E.J. plays a Yamaha Recording Custom drum set with Zilldjian cymbals. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@youngresearch.com. Sign up here to receive all the best content from Richardcyoung.com each week.