The post below is provided by my colleague, PD Lawton, creator of the website:africanagenda.net
It is abundantly clear that African nations must become economically sovereign republics, and that is not possible without becoming industrialized economies with advanced agricultural and economic sectors. . For this transformation to occur, massive amounts of additional reliable, powerful energy is required. My estimations is that a minimum of 1,000 gigawatts of additional power is required. Without doubt, this will require the construction of nuclear energy plants across the continent. Listen to Princy Mthombeni, founder Africa4Nuclear
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton.
Lawrence Freeman giving a presentation on applying the economic principles of Alexander Hamilton and the American System to the development of African nations.
Below, you can read a transcript or watch my video presentation on the essential concepts necessary to understand physical economy, whose principles should be applied to all African nations to end poverty and hunger. Courtesy of PD Lawton, creator of the website: africanagenda.net
Africa Can Create Real Wealth Through the Development of the Physical Economy: Presentation by Lawrence Freeman
This presentation by physical economist and Africa analyst, Lawrence Freeman, was part of an international conference entitled `Solutions for African Economic Development` hosted by Christophe Ndayiragije and PD Lawton. You can find more from Lawrence Freeman at his website: lawrencefreemanafricaandtheworld.com. You can watch the video at the end of the transcript.
“Now people don`t understand that the purpose of an economy for society is the development of human beings. There is no contradiction between the development of human beings and the development of the physical Universe. Human beings are governed by a creative mental process and the Universe is governed by a creative process. And therefore the Universe is there to be intervened upon by the human mind for the advanced propagation of the human race, itself.”
I call myself a physical economist because I am trying to change the conception that people have of an economy in their minds. One of the biggest problems we face in the world , in the West, as well as in Africa, is that people have a very poor, if totally erroneous conception of what wealth is.
People think wealth is money, making money on Wall Street, derivatives, stock trading, day trading, and this really is not wealth at all, from my standpoint. A financial system is not wealth. A financial system is necessary, although I would term it more appropriately, a credit system. But the system iteslf which is necessary to facilitate aspects of the physical economy, is not the economy.
What is the economy? Well, most people say it is to do with free trade, buying low, selling dear, all beginning with Adam Smith. In fact the original conception that Smith has comes from Bernard Mandeville, who wrote a poem about bees. And basically his theory was that the interaction of all these bees , which are equated to human beings, desiring pleasure and avoiding pain, by all their individual pain and pleasure reactions, they serve the greater good. And this supposedly is the Invisible Hand. Of course the Invisible Hand is always there to steal your money. But idea is that the Invisible Hand is somehow the interaction of various human beings in seeking pleasure and avoiding pain, is how an economy operates. And of course there is no truth in that whatsoever.
An economy is actually the self organization, determined by human beings to organize their society in such a way that it continues to perpetuate itself. And it will perpetuate itself if it is a successful economy. The criteria is that you will produce an increase in the standard of living for your population and you will increase the number of people. So you have two criteria which are connected, the increase in total wealth and the increase in total population, and this is what a productive economy should be able to do. And we are talking about tangible wealth, physical wealth in terms of what has just been presented [previous presentation by Knox Msebenzi], in energy, railroads, agriculture and physical, tangible products that society needs.
Now the production of wealth is done by a productive labour force, that is within the entire workforce of an economy, there is a section of that workforce that actually performs what we would call productive labour. There are many other occupations which are necessary, complimentary and essential like education, scientific development, classical education development. But the actual labour force is involved in acting on the physical Universe, to transform the physical Universe in to producing the existence for Humankind.
And that, therefore, what we are primary concerned with in physical economy is how do we make improvements to raise the productivity of the productive labour force. This is our main concern that we are involved in, is acting on the physical Universe to produce more wealth from one production cycle to the next production cycle.
Now how do you produce more wealth from one period to another? And this brings in the essential questions of science and technology. Each economic mode of production, for each production cycle, is governed in a sense by the level of education and scientific knowledge and technology available for that production cycle. If we change the dynamics of that production cycle then we can change the outcome.
How do we change the dynamics? It is through science and technology. The human mind, is the only force we know in the Universe that can actually discover new physical principles embedded in the Universe. And as we discover those physical principles, the results are seen to us in new technologies. We bring in a new technology into a current mode of production, current economic system, and we find that we can produce more wealth with the same or less effort. For example what the previous speaker brought out.
If the African continent, the nations, would begin to proliferate nuclear energy in their economies, which is something Cheik anta Diop discussed 60 years ago! But if the African nations were to do that, we would not only see an increase in energy production, but we would see an increase in the entire physical economy. And we would see an increase in the level of education, skill labour, science centres, because you would be mastering a new technology, that is not new to the world but is not being applied in Africa. This would be an upgrade or an upshift of the entire economy.
Now how does this work? The human mind makes a discovery in the physical Universe which is then transformed by other humans into a technology. How does that technology then change the economy? For example: machine tools. Machine tools produce all other machines. If you change the technology of machine tool design, you change all other forms of production in your economy because you would be producing those new machines based on a new design of machine tools which are the essence of an industrialized economy. How many machine tool plants do we have in Africa today? Just like how many nuclear energy plants, we know we have one in South Africa.
The other area where we change the economy, improve the economy is through infrastructure. Again as you bring in a new technology, again such as fission or lets say, more advanced, such as fusion, that new technology embedded in your infrastructure platform changes the total ptoductivity of every member of your society.
Every farmer becomes more productive when he is surrounded by density of energy, by a density of clean water for society, by a density of railroads. So the density of infrastructure and the technological level of the platform of infrastructure are fundamental ways you actually change the economy. You bring in something new that has been discovered by man for the economy.
Now people don`t understand that the purpose of an economy for society is the development of human beings. There is no contradiction between the development of human beings and the development of the physical Universe. Human beings are governed by a creative mental process and the Universe is governed by a creative process. And therefore the Universe is there to be intervened upon by the human mind for the advanced propogation of the human race, itself.
And therefore in changing and improving the physical economy we are not only increasing the physical output of goods but we are actually increasing the power of each individual member of that society. Even if the majority members of society do not partake in the productive process, they participate in an economy of a rising standard of living and of an improved technology and scientific capability.
Now this also begs another question that is involved in physical economy; which is your scientific, cultural educational level. Is a society producing the scientific level that is necessary for new discoveries? Is the educational level of the population sufficient for the members of the population to assimilate that new technology, that new scientific level, and are they able to transmit that?
So by looking at the physical economy from the standpoint of the mind of man, you see that the entire society should be organized to promote this quality of development, of the human being, which leads, and is completely connected to the quality of development of human life itself. Now many people think Africa is overpopulated, I had this problem with many of my friends who are somewhat ignorant on the issue, over the last 30 years I have been travelling to Africa. Africa is not over populated, there are not too many people. There is not enough people. There`s entire parts of Africa that are completely underdeveloped. There`s entire parts of Africa where agriculture is completely underdeveloped. So it is not a question of population. It is a question of development.
And what we need to do is we need to have African leaders begin implementing, as was discussed earlier with the question of Ghana and other nations, have to begin understanding the coherence of one concept of a physical economy in a society and promoting those policies that will actually raise the level, qualitatively and quantitatively. Now this also has a very serious implications for education. This has very serious implications for security. Because we are approaching the security question. in many cases, all wrong. So therefore, what I think about and what I suggest what other leaders think about is what inputs do we make in the long-term which then reflect in to what we have to do in the short term that actually change, improve, advance the physical economy as part of the entire development of society.
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton.
President Abraham Lincoln delivering his Second Inaugural address on March 4, 1865, one month before his death.
April 17, 2022
President Abraham Lincoln, who was assassinated on April 15, 1865, was arguably the greatest U.S. President, but I would also suggest, perhaps the finest American. His tragic death changed the the, world not just the United States. My colleague, Nancy Spannaus, provides a fitting requiem for the fallen President. A Requiem for Abraham Lincoln
His temperament, his intellect, and his commitment to the U.S. Constitution, saved our precious Republic, which was less than eighty years old, and heading towards a Civil War, when he took office in 1861. President Lincoln’s unwavering resolve to defeat the opposing army of the Confederacy, demonstrated his superior military skills and strategic understanding that only the surrender by a defeated South, would the Union be preserved. His tragic death affected the world, not just the United States. If his reconstruction program had been fully implemented in his second term, the U.S. would be dramatically different today.
Much has been written and even taught that President Lincoln was not opposed to slavery, but only freed the slaves to win the Civil War. The remarks by the intellectual titan and fierce anti-slavery leader, Frederick Douglas, following the death of President Lincoln, quoted in Spannaus’ articles eloquently dispute this claim. Douglas was an ally of President Lincoln in the fight to eliminate slavery.
In his eulogy on June 1, 1865, at Cooper Union, NY, Douglas said:
“But what was A. Lincoln to the colored people or they to him? As compared with the long line of his predecessors, many of whom ere merely the facile and service instruments of the slave power, Abraham Lincoln, while unsurpassed in his devotion, to the welfare of the white race, was also in a sense hitherto without example, emphatically the black man’s President: the first to show any respect for their rights as men.”
The vast majority of Americans are also unaware that President Lincoln adhered to the economic policies of Alexander Hamilton’s American System. Abraham Lincoln in his basic campaign stump speech, advocated for protectionism, a national bank, and internal improvements. As President, he initiated the building of the Transcontinental Railroad across the U.S., connecting the Atlantic and Pacific oceans, which became a model of transportation infrastructure for the rest of the world. To fund the U.S. economy during the war he created a new currency-greenbacks, bonds backed by the federal government. Lincoln’s economic advisor was Henry Carey, a student of Hamilton’s economic method.
Abraham Lincoln’s frequently delivered speech on Discoveries and Inventions, reflects his philosophical understanding of human economy, revealed in its opening sentences:
“All creation is a mine, and every man, a miner.
The whole earth, and all within it, upon it, and round about it, including himself, in his physical, moral, and intellectual nature, and his susceptibilities, are the infinitely various “leads” from which, man, from the first, was to dig out his destiny.
In the beginning, the mine was unopened, and the miner stood naked, and knowledgeless, upon it.
Fishes, birds, beasts, and creeping things are not miners, but feeders and lodgers, merely. Beavers build houses; but they build them in nowise differently, or better now, than they did, five thousand years ago. Ants, and honey-bees, provide food for winter; but just in the same way they did, when Solomon referred the sluggard to them as patterns of prudence.
Man is not the only animal who labors; but he is the only one who improves his workmanship. This improvement, he effects by Discoveries, and Inventions.”(Emphasis added)
Let the U.S. again return to the policies of Abraham Lincoln by providing true leadership in the world.
As viewers of my website know, this is my second post in recent days discussing former outstanding U.S. Presidents and their policies. Why has American culture not produced such leaders in the last six decades following the death of John Kennedy? This will be the subject of a future article.
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton.
Cambridge University Press, 2018. Hardback, Softback 330 pages, and Kindle
June 26, 2020
Creativity Is the True Source of Economic Wealth
Lawrence Freeman
(I promised Patrick Kabanda over a year ago I would write a review of his book, “The Creative Wealth of Nations: Can the Arts Advance Development?” and I always keep my word.)
With his book, Patrick Kabanda makes a significant contribution to examining the subject of economics with a new and refreshing approach. Rather than being stuck in a maze measuring monetary values, he looks beyond the financial structure of prices and export-import figures, to the relationship of the human mind to economics. While I do not agree with everything in this book, its principal value to me is that it elevates the discussion of the importance of creativity in economics. The title of Mr. Kabanda’s book caught my eye, because it provocatively alters the title of Adam Smith’s well known, wicked book, “The Wealth of Nations.” Contrary to what is commonly accepted by the majority of my fellow citizens, and what is taught in our institutions of learning, the United States was not founded on the tenets of Adam Smith. In fact, no economy ever was, or ever could be successful by following Smith’s canons. President George Washington and his brilliant Secretary of the Treasury, Alexander Hamilton, rejected Smith’s doctrines, as did every follower of the American System of Political Economy, including many American Presidents and foreign leaders. (Read Alexander Hamilton’s Credit System Is Necessary for Africa’s Development)
While it is useful that Kabanda calls attention to the function of culture (art, music, drama) in contributing to economic progress, he errs in properly pinpointing the relationship. It is not culture per se that contributes to economic progress, but rather only a culture that fosters and nourishes human creativity. More precisely, it is those compositions of art, music, and drama, which stimulate creative thinking, an aptitude uniquely bequeathed to the human species, that we should revere. It is this potential for creative thought that makes us truly human, which society’s culture should cherish and nourish.
Creativity in Economics
Machinists set up and operate a variety of computer-controlled and mechanically-controlled machine tools to produce precision metal parts, instruments, and tools.
Before proceeding with my review, it is necessary to discuss the genuine role of creativity in the science of economics. Improving the conditions of life for an expanding population is not based on money. To understand real economic growth, it is important to comprehend that it is physical (not monetary) inputs injected into an economy that yield improvements in the productive powers of society, which causes an increase in aggregate of wealth. It should be evident that the augmented capacity of a nation to ensure a prosperous future for those living and their posterity is not the result of the silly creeds of Adam Smith’s “invisible hand.”
Putting aside cult like beliefs in monetarism, let us focus on crucial aspect of physical economy. In the broadest yet most accurate terms, economics is humankind’s relationship to the physical universe. Humans act creatively to transform nature lawfully for the perpetuation of our noble species. Natural resources are not the ultimate source of value. It is true that human labor adds value to resources in the production process. Thoughtful economists recognize that the productivity of farmers and workers depends on the quality and quantity of infrastructure available to society. However, the crucial concept for our purpose here is the following. Discovery and utilization of resources, productivity of human labor power, and the level of infrastructure for any given economy, are all delimited by the level of existing scientific and technological culture accessible by the population. Improved productivity emanates from the invention of new designs for machines that enable work to be performed more efficiently. The application of advanced technologies is derived from discoveries of new scientific principles by the noetic process of the human mind.
Let us examine energy from a higher conceptual standpoint. On the simplest level, oil has existed for millions of years. However, it only became a valuable resource to humans when a technology was invented to utilize oil for energy, which became the dominant fuel to power the twentieth century. The attainment of electricity was made possible by a human scientific discovery of electromagnetism. It was the scientist, William Gilbert, whose publication of the “de Magnete” in 1600 that began the process of understanding the correlation of electromagnetism and earth’s magnetic field.
All energy is not equal. Energy is measured by energy-flux density, that is the ability of that energy source to achieve higher concentrations of heat available to perform work. With that criteria in mind, we can assert with scientific certainty that nuclear fission is the most powerful form of energy we have today. Africa would be well served, if there were hundreds of 1,000 megawatt or modulars of two to four 200 megawatt nuclear power plants dotting its landscape. To achieve nuclear fusion, whose energy flux-density would far exceed fission, requires additional scientific breakthroughs to fuse hydrogen isotopes at temperatures hotter than the Sun. In tragic comparison, large parts of Africa still rely on burning wood and biomass. Not only is this practice primitive, environmentally unsound, but it utilizes energy at the lowest flux density.
Nuclear fission, which has the greatest energy flux density, making it the most powerful energy source, until nuclear fusion energy is developed.
All machines and integrated infrastructure platforms incorporate in their design, principles of scientific knowledge of the universe relative to that historical period. The greater the density of machine-infrastructure capital in an economy engenders a more productive and educated labor force. The effects of manufacturing, and railroads on the productivity, and level of knowledge in society are brilliantly discussed by Alexander Hamilton in his “Report on Manufacturers” (1791), and Friedrich List in his “The National System of Political Economy” (1841). Both authors, who identify humankind’s mental powers as a source of economic wealth, should be studied by every competent economists and statesman.
Without going beyond the scope of this article, the history of civilization’s progress can be measured by the increase of total energy throughput and energy flux-density, which is made possible by technologies that encompass new scientific principles. It is the profound ability of the human mind to continuously discover higher principles embedded in the physical universe, which lifts humankind from one plateau of economic activity to the next superior one. Civilizational progress emanates from the human mind, not nature per se. Even from the few paragraphs above, it is discernible that the source of economic wealth is the metaphysical, non-material creative imagination, not some corporeal “thing” that you can see, smell or touch. These apparently intangible ideas that spring from the brow of our “mind-soul” have greater force than bodily-physical objects. This conception has profound epistemological implications in economic theory. More can be said about physical economics and how societies develop, but that will have to wait for another time.
Culture and Imagination
Returning to our review, Mr. Kabanda’s book highlights the role of the contribution of culture and creativity to economic development, and contains many useful insights. In his opening chapter entitled, “Overture,” he discusses “the arts ability to emancipate and foster human imagination.” (p. 3) In chapter two, “Arts in Education,” he writes: “…since the arts embody creativity and innovation, they have a major role to play in fostering knowledge for development.” (p. 44) Quoting Theodore Schultz, “advances in knowledge are a decisive factor in economic progress. The increases in the quality of both physical and human capital originate primarily out of the advances in knowledge.” (p. 48) Kabanda quotes cellist Yo-Yo Ma, who advocates changing the curriculum of science, technology engineering and math-STEM to STEAM by adding the arts. (p. 53) Renaissance-man, Leonardo De Vinci is also mentioned for his search “to know what we don’t know” originally espoused by Socrates 2,000 years earlier. (p. 26)
Cellist Yo-Yo Ma said he’s often asked how he keeps his repertoire fresh, even after playing a piece hundreds of times. “I play as if it were the last time I will play that piece,” he said. Photo by Eric Bronson, Michigan Photography.
He includes the creative hypotheses by the towering scientist-astronomer, Johannes Kepler, who unknown to the majority of our society, hypothesized that the ordering of the solar system was derived from musical harmonies. (p. 53) Kepler’s great astronomical discovery of gravity and the spacing of the orbits of the planets is presented in his book, “The Harmony of the World” (1619).
In the book’s final chapter “Imagination and Choice,” Kabanda underscores an essential conception to understanding economic progress.
“Now when the people began to search for the wisdom behind progress, in the end it was not whether development came first and then the arts followed. Or some sort of miraculous statistical formula. Much of it was imagination in thought and deed. Imagination was the future, and the future was imagination. It was [and is] the cradle of civilization…this finale is a call to imagine the future we need.”(p. 221 emphasis added)
Kabanda points to the personality of Albert Einstein to demonstrate the unity of science and imagination. Einstein was known to resort to taking up his violin to kindle his imagination to explore scientific hypothesis. He quotes Einstein: “Logic will get you from A to B. Imagination will take you everywhere.” (p. 223).
All great art and scientific discoveries first emerge in the creative imagination. A true leader, a statesman, also relies on his or her creative-imagination. When he or she implements policies in the present they ought to be derived from a vision of what the future should look like seen through the mind’s eye.
Axiomatic Flaws
Despite many useful and challenging ideas presented in “The Creative Wealth of Nations” there are flaws in sections of Kabanda’s thesis. However, to be fair, these shortcomings are unfortunately endemic to our corroded culture.
Not all cultures i.e. music and art are good for society. Applying the criteria, which we developed above, we should rightly ask; does a particular culture nurture the creative powers of the mind? For example, the rock-drug counterculture ushered into the West in the 1960s was destructive, and its damaging effects still linger in today’s baby-boomer generation. Music is not good because it is music, or art because it is art. Todays’ music is in large part debasing and degrading to the human mind. Profits made from the music industry do not add value to the economy if their music assaults our soul-mind and undermines our creative capacity.
On a deeper level, Kabanda errs in Chapter 3, “The Arts and Environmental Stewardship,” when he writes: “The arts have long had a sense of stewardship towards protecting the environment and mitigating climatic change.” (p. 72) Contrary to present day popular culture, mankind’s relationship to the physical universe is much more than being a steward or custodian. Human beings lawfully transform the physical environment. Consider the injunction given to mankind in Genesis 27: “Be fruitful and multiply, and fill the earth and subdue it; and have dominion the fish of the sea and over the birds of the air and over every living thing that moveth upon the earth.”
Humankind is not meant to be a just a caretaker, but has dominion and the power to subdue. The universe is organized to respond to willful human cognition, transforming the biosphere into the nooespshere, according to Russian scientist, Vladimir Vernadsky. Humankind with the unique power of creative mentation, was not put on this planet to act as a glorified groundskeeper. When we exercise our creative potential, we humans are the most powerful living force in the universe.
Scientist Albert Einstein with his violin
Accepting the axioms of Adams Smith’s notions about economy and society leads us down the wrong path. Kabanda alludes to Smith’s “Theory of Moral Sentiments” favorably as he does with his “Wealth of Nations” (p. 49) It is in the “Theory of Moral Sentiments” that Smith presents his most hedonistic description of human nature, reducing humankind to being governed by animalistic instincts, rather than human creativity. Quoting Smith:
“The administration of the great system of the universe … the care of the universal happiness of rational and sensible beings, is the business of God and not of man. To man is allotted a much humbler department, but one much more suitable to the weakness of his powers, and to the narrowness of his comprehension, they are of his own happiness, of that of his family, his friends, his country…. Nature has directed us to the greater part of these by original and immediate instincts. Hunger, thirst, the passion which unites the sexes, the love of pleasure, and the dread of pain, prompt us to apply those means for their own sakes, and without any considerations of their tendency to those beneficent ends which the great Director of nature intended to produce by them.”
Smith’s economic assumptions flow from his degraded, amoral conception of human beings as mere creatures of pleasure and pain. For that reason alone, we know his dogma could never be a successful prescription for how an economy develops. At its core, Smith’s doctrine is antithetical to the lawful relationship between humankind and the physical universe.
Let the Discussion Begin
Kabanda deserves a great deal of praise and credit for focusing our attention on the relationship of culture, and creativity to economics. His endeavor is far more relevant to our economic well-being than the trillions of dollars gambled on the gyrations of the stock market. For civilizations to continue to exist, society’s culture must unceasingly produce creative individuals. If we want a more prosperous and stable world for our children and their children, then we need citizens from all nations to engage in a robust debate of the role of culture in our society. If this book helps spark such a discussion, then Kabanda’s contribution has served an invaluable function.
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com
