How an Economy Grows and Why It Crashes


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how an economy grows

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t’s a shame how few modern Americans really 
understand how our country was founded on a radical 
experiment in strictly limited government. Steeped in the 
transformative philosophies of freedom, reason, and science 
that fl ourished in the seventeenth and eighteenth centuries, 
the Founding Fathers sought to create a completely new 
relationship between people and government, whereby 
sovereignty rested with the individual, whose rights where 
inviolable. 
In the early days after the War of Independence, in 
exchange for the establishment of a national government, 
which many Americans did not want, the U.S. Constitution 
was conceived as a masterfully designed cage that would 
prevent the “beast” of government from running amok. The 
Constitution not only protected people from government, 
but it also protected minorities from the tyrannies of 
majorities. 
The Constitution deliberately sought to segment powers 
in the different branches of the federal government to 
decentralize authority into the many states, and most 
importantly to prevent the federal government from taking 
any power it decided to take. 
The result was a nation where individuals could be secure 
in their personal liberty and possessions, and who were not 
prevented from disposing of their assets in any way they saw 
fi t. The fact that these rights, unfortunately, did not apply 
to all inhabitants of the new country, does not diminish 

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