Hamilton Part 1

July 15, 2020

Welcome back to another episode of the Rise Up & Live Free podcast! Have you watched Hamilton yet?! Today, Brad and Jimmy share all the tidbits they’ve learned from the play and how it can help your financial game plan.

The guys are covering a lot of ground with today’s topic. They’re going from Alexander Hamilton to U.S. history over to Austrian economics and monetary policy. The hope is to expand your financial knowledge by piquing your curiosity and opening ways of thinking you might haven’t thought about before.

Join us as Brad and Jimmy break down lessons learned from the Broadway show, Hamilton, and Hamilton as a lens to look at the Core Four and Four Pillars throughout the entire history of the United States of America.

“Look for the Core Four pillars when you’re studying history.”- Jimmy Vreeland

What You Can Learn From Alexander Hamilton

The guys were initially pretty skeptical of the teachings of Alexander Hamilton. In the eyes of Austrian economics, he is the villain and not a source of credible advice. As they watched the play and learned more about his life, they realized he truly did embody some of the key values we hold in the CashFlow Tactics community.

Hamilton was from an immigrant family and the definition of a bootstrapper. He was so freedom-oriented and made that his singular focus. The play was inspired by Alexander Hamilton by Ron Chernow, depicting Hamilton’s life and how he shaped a young America.

He was a great early example of the American dream. He was not born until wealth but instead had to fend for himself at a very early age. His work ethic was apparent to those around him, and he was then sent to King’s College to receive an education. Hamilton had nothing to his name but had a strong desire to prove himself. He then goes on to fight in the Revolutionary War. He quickly rises the ranks and becomes George Washington’s right-hand man.

Hamilton was so determined to fight and led from the front. He was a man of action.

Hamilton: The Hero and Visionary

He still didn’t have any capital but leveraged his reputation and went on to law school. His motivation was incredibly impressive, and he finished his schooling in half the time of his peers.

His mind was incredibly advanced for his time. He saw a future where the U.S would cover the North American continent. He was able to see the natural resources available on the land. Hamilton’s vision was a precursor to what would come in the Industrial Revolution. He was able to see America as a country that would be innovative and a force of creation and ingenuity.

To make his vision work, they would need to develop a currency. The foundation of our economy is built on capitalism, but it is not the same as having assets. The importance of owning something means having the agency to improve it and make it better. Then that value could be traded and essentially become more valuable. Hamilton believed that we needed banks to facilitate the creation of capital.

The Rich Don’t Work For Money

This idea goes back to everything we’ve learned from Robert Kiyosaki. It is the idea that the rich don’t hold debt. The truth is this idealogy dates back to the 1700’s and we can look to Hamilton for more insight.

Hamilton was a high-income earner, but he died bankrupt. He was the highest income-earning attorney in Manhattan up until his death. He had bought an estate for his family on credit and would have done fine had he continued working. His military colleagues covered his debts, but the fact that there was no insurance would have left his living family destitute.

“Our monetary system was built to incentivize massive wealth creation for business owners and investors.”- Bradley Gibb

We believe that savers are losers. So how does that fit with Hamilton’s monetary policies? The savers are losers path is to work hard, accumulate the capital you need, and then use it to buy the assets to get your time path. There isn’t an inherent issue with this other than it’s a thirty to fifty-year path. The rich understand debt and taxes. They go and get other people’s savings and use it today to build wealth. This has been true for the last several centuries.

We’re continuing this conversation on the next episode and diving deeper into the conversation. Be sure to check it out! In the meantime head over to Cashflow Tactics Group to keep the discussion flowing.