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The Wealth is in the Beer, not the Loan

Wages are stagnant, but rents are soaring. Metered utilities are going up about ten percent a year. We are getting a lot less food for the same price. The signs are everywhere; the candle is burning at both ends and it is only a matter of time. Something is very, very wrong.

But there are two ways to respond. We can continue allowing grievance merchants to dominate our politics or we can take our politics back from them. It really isn't any more complicated than walking away from those who just want to monetize our grievances, go out for a beer together, and rebuild our politics from the ground up around our communities.

And in going out for that beer, we will re-learn a fundamental lesson about wealth, and how it is created.

California's 52nd Congressional District is a special place. It is the heart of San Diego's craft beer scene. And each and every one of our breweries was once a science project in someone's garage.

Our grandparents used to say: "If you build a better mousetrap, people will beat a path to your door." It is an interesting metaphor. When I ask young people - usually when I am visiting one of our breweries - if they 'get' the metaphor, I usually get a blank stare. It is old, tired, and dated, and in need of being refreshed.

So then I ask: "What if we said: 'If you brew a better beer, people will beat a path to your garage'?" That little idea light bulb all of a sudden shines bright; it is a metaphor for today.

And this is exactly what has happened. Someone takes raw materials like grain, hops, and water and adds in a wide range of other interesting ingredients. All of a sudden people are beating a path to their garage, and if they are going to meet the demand, well, this needs to be something more than a science project.

So they get a loan, lease a commercial pad, buy plant and equipment, and... wait for it... actually start hiring people!

The lesson here is simple: Wealth is created by entrepreneurs who take raw materials and make things people want or need, and do it better than the competition. Or in other words: the wealth is in the beer, not the loan.

There are three directions our money supply can go: The political economy, now $20T in debt; the speculative economy of Wall Street, which is now just one big casino; and main street - where wealth is created.

Make no mistake, neither Washington nor Wall Street - throughout their history - has created a thin dime of wealth. Wall Street brings capital to the wealth creator so they can multiply the creation of wealth. Again - the wealth is in the beer, not the loan. Washington's job is to simply get and stay out of the way.

Please join me in returning Congress to its job: making tough fiscal decisions, and even taking unpopular votes, so the wealth creators in this country will once again have first claim on the money supply. And then we will begin rebuilding the Middle Class and creating living wage, bread winner jobs we can be proud of.


John Horst Win the Future Congressional Campaign Committee
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