Economic Outlook

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The first and second laws of thermodynamics hold true in a closed system. While we appear to live in a closed system on this earth, we constantly are blessed with a new shot of energy each and every day, courtesy of the sun. So, in fact, we live in an open system. Because the sun provides us with new, real, usable energy each and every day, we have the opportunity to make real economic progress, and create real new wealth by using working man's productive efforts to groom the earth and prevent the natural disorder which automatically occurs as the sun's energy creates new matter. The sun creates matter (real new wealth) on its own. But this newly created matter (real new wealth) will become disorderly and far less useful unless man takes dominion over it.

Real new wealth (matter) is created as new energy (solar) comes into the system. Grass, trees, and ocean vegetation grow freely. Cows, horses, sheep, and fish eat the grass, leaves, and algae and subsequently produce calves, foals, lambs, and more fish. New energy creates new matter.

Real new wealth is thus created. Solar energy, mixed with man's efforts, brings to harvest the fields of wheat, corn, oats, barley, and soybeans—all of which are real new wealth. While these grains can grow randomly, utilizing just the energy of the sun, when hardworking productive man is added to the equation, aided by the blessing of favorable weather, production of grain protein explodes . . . and so does meat protein. [And, of course, these products then serve to] feed man, providing him with the physical energy necessary to increase the bounty of new wealth (in the form of greater agricultural production).

The late Carl H. Wilken, an American farm economist, proved that a definite link exists between the value of farm products and national income. Wilken's evidence suggested that real new wealth created in the economy multiplied itself seven times as it worked its way through the economy.

Put simply, $1.00 of farm income generates $7.00 of other income. Also, a 1 % in crease in unemployment results from a 1 % drop in farm income, according to Wilken's studies. Wilken stated that the only factor that remains consistent with the earned profits and savings of a nation as a whole is the total price paid for all the raw material production. Agriculture is the largest source of this new wealth. And, as discussed previously, this new wealth is renewable and additional—thanks to the sun—when combined with the savings, creative thoughts, and hard work of free men, and it generates increased wealth year after year.

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