Happy 250th America…Let’s Celebrate all year long!!
Happy 4th of July.
This past Sunday I was reminded about a letter from John Adams to his wife Abigail Adams on July 3, 1776. It is steeped in divine providence and reminds me of our founding father’s faith and devotion to God. Here is just a part of the letter that John Adams wrote to his wife Abigale. I encourage you all to read the entire letter as it goes on to predict the celebration of the founding of our country. I know it will awaken pride in us all and fuel the fire of independence and rugged individualism and yearning to protect our freedom, individual liberties and prosperity for generations to come.
My Dear Abigail,
“Yesterday the greatest question was decided, which ever was debated in America, and a greater perhaps, never was or will decided among Men. A Resolution was passed without one dissenting Colony ‘that these united Colonies, are, and of right ought to be free and independent States’ The second Day of July 1776, will be the most memorable Epocha in the History of America. I am apt to believe that it will be celebrated, by succeeding Generations, as the greatest anniversary Festival. It ought to be commemorated, as the Day of Deliverance by solemn Acts of Devotion to God Almighty. It ought to be solemnized with Pomp and Parade, with Shews, Games, Sports, Guns, Bells, Bonfires, and illuminations from one end of this continent to the other from this time forward forever more.
You will think me transported with Enthusiasm but I am not. I am well aware of the Toil and Blood and Treasure, that it will cost Us to maintain this Declaration. Yet through all the Gloom I can see the Rays of ravishing Light and Glory. I can see that the end is more than worth all the means, and that posterity will triumph in that day’s transaction, even although we should rue it, which I trust in God we shall not.”
Johnn Adams, July 3, 1776
I cannot help but enjoy John Adams’ enthusiasm for the birth of the greatest nation on earth. Truly worth celebrating every year, but more importantly living daily the values that have protected western civilization and our way of life. Our constitution has been the catalyst for individuals to improve one’s lot in life so that not to burden one’s neighbor yet fostered a responsibility or moral obligation to always be available to lend a helping hand.
This uniquely American idea of limited government has set us free from the tyranny of government as a nation and created the most innovative, creative, prosperous and most generous nation the world has ever seen. When comparing today’s economic issue and what happened last week, I have to wonder what they would our Founding Fathers have said about the economic news of today. Let’s look at today’s news and reflect upon what they might of said about the issues we face today. Enjoy the quotes. They are timeless.
Q1 GDP was revised up to 2.1%…Briefing.com consensus was 1.6%.
What does it mean – While imports where revised down for the quarter, the key takeaway from the report is that Q1 GDP was stronger than originally thought.
Our Founding Fathers put an exclamation point on free markets. They believed that economic freedom fosters innovation and growth. They saw government as a threat to innovation and economic prosperity. Heck, one of our Founding Fathers primary grievances was “No taxation without representation.” They argued that minimal government intervention allows for more efficient resource allocation. They supported policies that encouraged domestic and international trade to stimulate economic activity. Our Founding Fathers recognized the value of infrastructure and understood that the importance of investing in infrastructure is vital for facilitating commerce and growth.
They rejected the “heavy hand of government.” Policy matters. Today deregulation and lower taxes have led to massive investments coming into America from domestic and international companies as our policies reversed field and made investing in America a better more prosperous alternative for all as we see GDP and manufacturing continue to grow as unemployment is near record lows.
Productivity has picked up nicely from a year ago up 2.8%…At the same time unit labor costs have increased +0.5%.
What does it mean – This has tempered concerns about labor-based inflation.
Thomas Jefferson once said that “Industry is the soul of business and the foundation of prosperity.” John Adams went on to say, “Freedom and production are inseparable.” Our founding fathers clearly knew that a prosperous society was one that solved problems and produced goods that made the world a better place.
Initial jobless claims for the week ending June 20th declined by 12,000 to 215,000…The consensus was 225,000.
What does it mean – The key takeaway from the report is that initial jobless claims continue to track at low levels, offering a nice clue that suggests the labor market, overall, remains on solid ground.
George Washington saw the very best in his men. His leadership and commitment to the wellbeing of his troops is recorded throughout the history of the Revolution. Washington went on to say, “A nation’s greatness is measured by how it treats its workers.” There is no question that our country is imperfect when it comes to a number of issues, but our imperfect nation has always strived to be better and more perfect. We fought a war to end slavery, passed woman’s rights and labor laws to protect children. Yet, the Middle East, Asia and Africa continue to struggle with slavery, child labor, and woman’s rights. Don’t let the noise of division divert your gaze from the truth or prevent you from seeing the opportunity in front of you.
Personal income rebounds in May…The month of May saw a large jump in the growth of personal income.
What does it mean – Real disposable income growth also rebounded sequentially. As the war in Iran started to slow and the US took control of the Straight of Hormuz, oil prices started to drop in May and now back at $70 per barrel. Oil is a major driver in everything we purchase.
Affordability is still an issue for most Americans. High taxes and regulations take up a large part of your paycheck. While personal income jumped due to oil falling, we have a long way to go to get back to what sets our country on course to create more wealth in 250 years than any other nation. The good news, free markets and access to capital set a record as people seeking access to capital from all parts of the world set their sights on America. Elon Musk recognizes this and sets up his companies not in Africa, Europe, or Asia, but here in the USA. Space X just completed the largest IPO in the history of the markets.
New home sales fell sharply…Coming in well below expectations as elevated mortgage rates continued to weigh on demand.
What does it mean – New home sales decreased 7.3% month-over-month in May. This is the second lowest level over the last 12 months. Interest rates, taxes, regulation, a government competing against its citizens to house non-citizens. All contribute to higher prices and an affordability issue brought on by a government often void of reality.
Derived from the Magna Carta and enshrined in our Bill of Rights, our Founding Fathers believed protecting property rights was essential to realizing individual liberty and creating wealth and promoting the conditions essential for economic growth. They understood that stable property rights and the rule of law would be a catalyst for economic activity and innovation.
Like John Locke, Maddison and Hamilton argued that government’s function was protecting these rights. Maddison stated that “property rights were akin to personal rights.” Hamilton went on to state that private property needed shielding from legislative overreach and majority tyranny. NY just elected three people and a mayor who wants to impose government control on private citizens property.
History is amazing. Our Founding Fathers drew from all the great philosophers from ancient Grece and Rome, but those pale in comparison to the inspiration they drew from the New and Old Testament of the Bible. In Ecclesiastes 1:9, It says, “What has been will be again; there is nothing new under the sun.” King Solomon is stating that God has seen it all. As humans, we are destined to repeat it. Yet, our saving grace is that wisdom and knowledge are gained from past experiences. As a nation, will we allow ourselves to be divided by envy?
The economic policy choices of 1790 under the guidance of Treasury Secretary Alexander Hamilton, not only launched an economic boom that outpaced every nation for over 250 years, but it also provided the framework that continues to encourage capitalism and entrepreneurism today. With a vigilant eye on protecting individual rights and keeping government small, our Founders consolidated and funded the national debt, created a national bank, established a national currency backed by gold, imposed import duties to collect revenue to fund the government without taxing the citizen, protected intellectual property rights, and encouraged the formation of corporations and business enterprises.
America, history is on our side. A free nation is a prosperous nation. The United States of America has created more wealth and freedom in 250 years than any other nation and most the world combined. It is not our land, nor our rivers, mountains or great plains. It is the idea of Liberty and Justice for all. That every United States Citizen possesses the constitutional protection of their inalienable rights endowed by our Creator.
Happy 4th of July. Together let’s say a prayer, thank God for all the provisions he has provided our nation and ask for his guidance for the next 250 years. And together, celebrate the greatest day in America!
Let’s roll America!!
Doug De Groote, CFP®, MBA, CTC
Managing Director
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