The System’s Hidden Hand – Cronyism, Power, and Economic Distortion

One of the greatest economic deceptions is the idea that wealth must be "managed" by government intervention. The reality? Government intervention often creates a corrupt system where wealth is extracted rather than created.

Economists George Stigler, Thomas Sowell, and Milton Friedman warned against this—highlighting how bureaucrats and politicians distort free markets to serve their own interests.

🔹 Stigler’s Capture Theory of Regulation shows that politicians don’t regulate industries to help people—they regulate to benefit themselves and the corporate elites lobbying for power.

🔹 Thomas Sowell exposes income redistribution as a scheme that entrenches political elites, trapping generations into dependency while politicians profit.

🔹 Milton Friedman warned that government programs often have the opposite effect of their intentions—creating more poverty, more inflation, and more economic stagnation.

What "The System" Really Is – A Bureaucratic Wealth Extraction Machine

When I refer to “the system,” I’m talking about the bureaucratic-political class that thrives on expanding government control, increasing the money supply, and redistributing wealth under the guise of economic justice.

This is not capitalism—it’s a distortion enabled by government overreach.

Think about it: Politicians can enter office with a six-figure salary and exits with a net worth that rivals Hollywood elites. Meanwhile, people resent billionaires like Elon Musk and Jeff Bezos—who actually produce goods, services, and jobs—while ignoring politicians who extract wealth without building anything.

This pattern repeats with Pelosi, Biden, Obama, and others.

Meanwhile, Musk, Bezos, and Jobs built their wealth by creating products people voluntarily buy. That’s not extraction. That’s value creation.

Politicians? They don’t create. They legislate money into their own pockets.

The System Thrives on Dependency – And You're the Product

The system profits off keeping you dependent. It needs you waiting—for the government, for policies, for “change.” It thrives when you’re distracted, fearful, and unskilled.

They push the illusion that wealth is a game of extraction, when in reality, wealth is a game of creation.

Thomas Sowell, Milton Friedman, and Walter Williams all argued: Real capitalism doesn’t create poverty—government intervention does.

• Milton Friedman: “The great achievements of civilization have not come from government bureaus. Einstein didn’t construct his theory under order from a bureaucrat. Henry Ford didn’t revolutionize the automobile industry that way.”

• Ronald Regean: “The problem is not that people are taxed too little. The problem is that government spends too much.”

The free market is not a zero-sum game where one person’s gain is another’s loss.

The welfare state doesn't reduce poverty—it creates dependency.

How Inflation and Taxes Keep You Poor

Politicians promise free money, government assistance, and handouts to gain votes. But how do they pay for it?

They print money. They raise taxes.

Milton Friedman: "Inflation is taxation without legislation."

Who suffers the most? Workers. The middle class. People trying to build wealth.

The government creates poverty by:

• Debasing the currency through inflation.

• Regulating entrepreneurship to slow down free-market growth.

• Creating dependency so people remain loyal to politicians instead of themselves.

How Do You Escape?

Most people live and die within the system because they refuse to take control. They work 40+ hours a week, giving their best energy to a system designed to extract their wealth—and then complain about their financial situation.

That stops today.

Here’s how you break out of the cycle:

1. Leverage – Your Job is a Funding Tool, Not a Trap

• Don’t quit—but don’t get comfortable.

• Treat your job like an investment fund.

• Extract knowledge from your employer and use it to build your own empire.

2. Capital – Shift from Consumer to Producer

• Stop trading time for money.

• Invest in high-value skills, assets, and ownership.

• Wealth isn’t earned. It’s owned.

3. Build Relentlessly – Execution is Everything

• The system wants you waiting.

• Stop waiting. Start taking.

• Create businesses, products, and income streams that work for you.

Empirical Proof: Wealth Comes from the Bottom Up, Not the Top Down

China lifted millions out of poverty—not through redistribution, but through market-driven economic policies.

🔹 F.A. Hayek: “The more the state ‘plans’ the more difficult planning becomes for the individual.”

Welfare policies do not "help" disadvantaged communities—they institutionalize dependency, trapping generations.

And yet, politicians continue selling the lie that government is the answer.

Take Ownership or Stay Stagnant

You’re either building wealth or making excuses.

No system, no policy, no movement will "give" you a better life. The only way out is to build your way out.

🔹Ludwig von Mises: “The market is a democracy in which every penny gives a right to vote.”

🔹 Milton Friedman: “Underlying most arguments against the free market is a lack of belief in freedom itself.”

If you don’t take control of your financial future, someone else will.

Now the real question is: Are you ready to build? Or will you keep waiting?

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