Posts Tagged ‘five laws of decline’

The 5 Laws of Decline – (#3) Gresham’s Law

Posted: September 2, 2013 in Economics, Freedom, Leadership
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GreshamWe have been discussing the 5 laws of decline detailed by Orrin Woodward at the end of his book ‘Resolved‘, and in his and Oliver DeMille’s book ‘Leadershift‘.

In our look at Bastiat’s Law, we saw how people do the least amount of work possible to get what they want, which includes nothing and theft. Add to that Sturgeon’s Law, and we know at most 10% of the people in charge will stand up to that law and do what is right, even if the easier way is available.

That leaves at least 90% of politicians and leaders to fully embrace Bastiat’s Law.

It would not be surprising if you were convinced that the numbers are even worse than that. With the 3rd law of decline, I would be on youre side in that argument since it brings out the worst in a company; and in a country’s leaders as well. It is also always in action when you have Bastiat’s Law showing it’s teeth; in fact it feeds Bastiat’s Law, making Surgeon’s Law even a smaller percentage.

Gresham’s Law

Orrin Woodward takes his 3rd law of decline from Thomas Gresham‘s view on what happens to money. In the book ‘LeaderShift’, he describes it like this:

Thomas Gresham, an English financier, first elaborated Gresham’s Law as it pertains to money. He taught that when a government uses force to support one kind of currency over another, the bad money drives out the good.

But Gresham’s Law applies to more than just money. In short, when a bad behavior is rewarded, more of the bad behavior will be done, and that in turn will drive out the good behaviors.

In the leadership field, this is displayed when bad behavior is rewarded. For example, if someone can sit at their desk all day watching movies and get paid, this will cause others to choose this simpler method of making money (plunder).

Rewarding bad behaviors either converts others to plunder or drives them out of the company as they seek a firm that rewards people based upon productivity, not plunder.

Gresham’s Law: When bad behavior is rewarded, more of the bad behavior will be done, and in turn will drive out the good behavior. (more…)

The 5 Laws of Decline – (#2) Bastiat’s Law

Posted: August 11, 2013 in Economics, Freedom
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TheLawPreviously we had discussed the first law of decline; Sturgeon’s Law. This law stated that 90% of everything is crud, and showed how you can’t count on 90% of leaders and politicians to do the right thing without some kind of check in place to stop them. 90 percent of them will undoubtedly fall to the second law of decline; Bastiat’s law.

These laws come from Orrin Woodward‘s book ‘Resolved‘ as well as his and Oliver DeMille‘s book ‘LeaderShift‘.

A couple of years ago I read a book by Frederic Bastiat called ‘The Law‘. In this book, Bastiat goes through the concept of having a law; what it is supposed to be used for and what it then actually get’s used for. He shows how laws are supposed to be there to protect a persons property, and thus people themselves, but end up getting used to steal or harm people’s property.

Bastiat’s Law

Bastiat wrote a profound passage that Orrin Woodward takes for his second law of decline, which he first outlined in ‘Resolved: 13 Resolutions for Life.’

Man can live and satisfy his wants only by ceaseless labor; by the ceaseless application of his faculties to natural resources. This process is the origin of property.

But it is also true that a man may live and satisfy his wants by seizing and consuming the products of the labor of others. This process is the origin of plunder.

Now since man is naturally inclined to avoid pain—and since labor is pain in itself—it follows that men will resort to plunder whenever plunder is easier than work. History shows this quite clearly. And under these conditions, neither religion nor morality can stop it.

When, then, does plunder stop? It stops when it becomes more painful and more dangerous than labor. It is evident, then, that the proper purpose of law is to use the power of its collective force to stop this fatal tendency to plunder instead of to work.

– Frederic Bastiat, The Law

Bastiat’s law: Since men are naturally inclined to avoid pain, which labor is itself, it follows that they will resort to plunder whenever it is easier than work. (more…)

Freedom Has Arrived!

Posted: July 20, 2013 in Economics, Freedom
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freedomEver since I started on the LIFE subscriptions, I always looked forward to the next talk I would get on the subject of freedom or economics. I have always considered freedom to be one of my core principles, but at the same time I used to be a socialist; I had the wrong information on how the world worked. I had the wrong information on what was right. I thought the socialists ideas helped the poor, helped those in need, while stopping the rich from trampling all over the poor; did I ever have that backwards!

Through many of the teachings on leadership, economics, and freedom from the founders of LIFE, and their subscriptions, I have come to see the error of my ways.

I have come to see the value of free enterprise, and how it actually helps more people get jobs. I have seen how it actually gives people an incentive to get out of poverty and provides paths to do so. I have seen  how governments and big business’ use new laws and regulations to keep people dependent and in poverty; I’ve seen them use regulations to allow themselves to grow beyond where free enterprise would have allowed, at the expense of hard working citizens.

I have seen how important leadership is to bringing back lost freedoms (more…)

A LeaderShift: What we need in our country today

Posted: April 30, 2013 in Economics, Freedom, Leadership
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LeaderShiftIt’s time for power to go back to where it belongs; to the people. With politicians and the business elite making all our decisions for us, we are losing our freedoms each and every day, and our standard of living goes down with that loss.

LeaderShift, by Orrin Woodward & Oliver Demille, is a call for people to stand up and become who they need to be in order to take back our freedoms and prevent it from being lost again. It in no way supports Republicans, nor does it support Democrats; it supports the American people (and Canadian if you read it from my perspective).

It is written in the form of a business parable about the United States, but don’t let that fool you into thinking this is just for Americans. There are a number of proposals put forth in the book that could drastically change the way we run our society, and the principles behind them can be applied to any country.

It all starts with the Five Laws of Decline; If these laws are not addressed in the frame-work of a company or a nation, they will become its undoing. Leadershift will go through the details of how they apply to a nation, but the reasoning will become obvious as you go through them.

1. Sturgeons Law – 90% of everything is Crud (this includes workers, leaders, politicians…) This means that 90% of the people running for office (and being elected) can’t be counted on to do the right thing. Thankfully the other side to this law is that 10% of the people out there are good leaders. We just need to allow them to come forth.

2. Bastiats Law – People will do the least amount of work possible to satisfy their wants. This means that if someone can get what they want without doing anything or by getting someone else to do it for them, they will.

3. Gresham’s Law – When bad behavior is rewarded, more will occur; The good ones will be driven away. Through this law, If you need to be corrupt to get ahead in an organization (or country) those that aren’t corrupt will not even enter the field; if they are already involved, they will likely leave. They do not want to be bad people, and will not be part of something where they feel they will need to do something wrong. At the same time, Those that don’t mind doing something wrong will be much more likely to do so since they will be rewarded for it. (more…)