What President Trump Can Do With The American System 2.0 - Flipbook - Page 12
Part 2 — Science of Negentropic Economic Growth
The American System 2.0
Today, we can ensure the United States becomes a manufacturing superpower and provides a be琀琀er future for our population and our
posterity with the American System 2.0. Hamilton identi昀椀ed the axiomatic basis for the American System when he said, “the intrinsic wealth
of a nation is to be measured, not by the abundance of the precious metals contained in it, but
by the quantity of the products of its labor and
industry.” The great American physical economist Lyndon LaRouche (1922-2019) provided, 200
years later, a new understanding of how we can
increase the quantity of the products of our labor and industry through his development of a
science of physical economics.
Lyndon LaRouche speaking in 1985.
page 10
This approach is fundamentally di昀昀erent from
more traditional studies of supply and demand
or market 昀氀uctuations. Those traditional studies have their place when examining the shorter
term variations in the exchanges of goods and
services, but they fail to address the fundamental nature of long-term economic growth. We’re
talking about the big changes that determine the
fate of entire generations, the deeper changes
that can ensure each new generation is be琀琀er
o昀昀 than their parents’ generation, the type of
progress that made America great and can make
America great again.
The central basis for understanding economics as a physical science is to de昀椀ne, understand,
and measure the factors which determine
changes in the so-called carrying capacity
of a society.1 For example, it would be impossible for the current world population
of 8 billion people to be supported in an
economy based on pre-industrial revolution technologies; and it would have been
impossible for the world population of one
billion people in 1800 to be supported in an
economy based on pre-agricultural revolution technologies. Those are examples of
changes on the very largest scales of human
development, but the same fundamental issues are at play in the year-to-year policy
decisions of individual nations. For reasons
explained shortly below, we’ll identify this
type of progress speci昀椀cally as negentropic economic growth (to distinguish these
changes from more traditional measures of
economic growth, such as GDP, etc.).
As the original American System proponents understood, these changes come from
the unique human capability for scienti昀椀c
discovery and cultural advance. When expressed through technology, these changes
1. The more technical term developed for this by
Mr. LaRouche is potential relative population density.
What President Trump Can Do With the American System 2.0
