American Chrysalis

The Lonely Realist is pleased to present the following guest commentary. The views expressed below are those of the author and not those of TLR and the following commentary has not been edited or approved by TLR:

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“It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.” — Charles Darwin

In the aftermath of World War II, America entered a period of extraordinary growth and productivity. Between 1945 and 1970, the country transformed into a global superpower, driven by innovation, industry, and an unwavering sense of purpose. Factories that once produced wartime equipment shifted to consumer goods, and the government invested heavily in infrastructure, education, and scientific research. This (literal) golden era of prosperity wasn’t accidental; it was the result of radical adaptability in the face of immense global and domestic challenges.

Today, America faces a different set of challenges—stagnation, systemic corruption, and a pervasive resistance to change. Institutions that once thrived on adaptability have calcified, clinging to outdated models of governance, economics, and social order. To move forward, we need to embrace what will unlikely feel uncomfortable to many: pragmatism.

American Phases of Evolution

Throughout its history, America has undergone distinct phases of transformation, each marked by dramatic shifts in its political, economic, and technological landscape:

  • 1776–1860: Revolutionism — Founding a nation through radical upheaval.
  • 1860–1929: Industrialized Darwinism — Rapid industrial growth driven by ruthless competition, conglomeration, and survival of the fittest.
  • 1934–1970: Innovationism — New Deal-era government-sponsored public works programs; WW2, unprecedented technological and cultural advancement.
  • 1971–2024: Global Imperialism — Expanding influence globally, often at the cost of internal stability.
  • 2024–: Pragmatism? — A potential new era defined by realistic, adaptive approaches to modern challenges.

Each of these dramatic new eras was predicated on shifts in currency, technology, and economic innovation, and often succeeded by stronger, more resilient systems. Today, we find ourselves on the cusp of another such transformation, driven by the disruption of digital and e-currency. Our money is now (mostly) stored in bits. It’s value is still measured, however, in dollars.

Society needs to fundamentally shift the way it thinks about money.

The Post-War Boom and the Forgotten Lessons of Adaptability

The most productive period in American history came on the heels of war—a time when the country was forced to adapt rapidly or risk falling behind. Wartime production created an industrial base that could be retooled for peacetime prosperity. The government played an active role in guiding this transformation, ensuring that innovation didn’t just serve military needs but also fueled economic growth. This led to unparalleled wealth and prosperity.

Now, over 50% of American wealth remains “safe and sound” in the hands of baby boomers, who came of age through the post-war time period. That’s actually not how fiat dollars were supposed to work: hoard cash, and you, personally, help to seize up America, and/or you necessarily cause inflation (ex. A: 1971-73 Oil Crisis).

Institutions seem more focused on preserving the status quo than fostering innovation. Fear of volatility has led to risk aversion, stagnation, and hoarding of wealth rather than reinvestment into a thriving American economy. The lesson from the post-war era is clear: adaptability, not stability, is the foundation of prosperity.

Chaos Theory and the Butterfly Effect

If you’ll recall Jeff Goldblum, from 1994’s wildly scientifically inaccurate Jurassic Park, Chaos Theory posits that small changes can have far-reaching consequences- a concept famously illustrated by the Butterfly Effect. In complex systems, a seemingly insignificant action can trigger a chain reaction, leading to profound outcomes. This isn’t just a theoretical idea; it’s a reality in both nature and economics.

In high-beta environments, where volatility reigns, the potential for both failure and success increases. These environments are inherently chaotic but offer unparalleled opportunities for those willing to take calculated risks. Embracing chaos does not mean courting disaster or taking unnecessary, uncalculated risks; it means recognizing that within volatility lies the potential for transformative change and that to do nothing would be to lose everything in that future. Like a chrysalis undergoing metamorphosis, America must enter a period of radical transformation if it hopes to emerge stronger. America, the overgrown, fetid, molting caterpillar, will no longer exist- at least not in its current form. It only survives if it transforms into the next, better form of itself.

Unfortunately, the larval stage of the animal is not beautiful and does not fly. 

The Problem with Neoclassical Economics

One of the significant impediments to America’s progress is our outdated, fundamentally broken economic mindset. Neoclassical economics, emphasizing accumulation and individual wealth maximization, has led to a culture of hoarding rather than productive investment. We’ve forgotten that currency is not money, money is not wealth, and wealth is not just something to be stored away; it’s a tool that must be circulated, reinvested, and used to keep striving toward something even more extraordinary.

Otherwise, it’s a liar with a big gun guarding a deep, dark vault. “Just trust us, they say, “there’s still plenty of gold inside.”

To mistake bits on the vault door for the food the gold in the vault provides would be a grave error, an infinite money glitch exploited by middlemen of money. Gold would fuel labor, allowing people to make new things to commoditize and then retribute tax to the government to get security to watch the vault and, in turn, store the gold.

When did we allow “economics” to become the science of abstract math problems and oblique financial engineering?

Economics is the study of the flow of goods through a society. Velocity of money is more important than maintaining a perfectly balanced budget sheet (which can, by default, never exist- though I personally am of the opinion the government should pay for its own infrastructure and not charge the public/interest on wholly imagined debts to itself). Currently, each dollar circulates about 1.3x every year through the economy. How many extra-money systems are obsolete and no longer necessary?

The risk is in doing nothing. Get creative: increase the velocity, the flow, of your money.

During the post-war boom, economic prosperity was driven by investment in infrastructure, education, and research—not by the accumulation of capital in a few hands. To recreate that prosperity, we need to shift our focus from accumulating and hoarding wealth to cycling it through the economy. This means fostering an environment where innovation thrives, risk-taking gets rewarded, and the benefits of growth are broadly shared.

Yes, that means we have to start thinking more globally. But that’s a benefit of having control over a sole, sovereign currency: everyone wants to hoard more of it because they can transact with it– any place, any time. If they can’t get it, if you don’t continue to innovate on the technology of money, people inevitably continue to make their own (Ex B, C, D: crypto; the stock market; derivatives markets.).

One of the U.S.’s main exports is its dollars—a privilege and responsibility that requires keeping the dollar store open 24/7/365 with transparent and fair exchange practices. Maintaining the dollar’s status as the world’s reserve currency means ensuring accessibility and trust in its value. Incalculable opportunity costs lie in not cooperating with each other so as to fail to navigate and emerge from the chaos a more unified, stronger organism.

Everything Is Corrupted, Everything Can Be Better

Much of America’s current system is broken. Corruption permeates politics, economics, and even social discourse. But corruption isn’t an insurmountable obstacle; it’s an opportunity for reinvention. The economic systems we rely on today were built by people. They can be rebuilt—better, fairer, and more adaptable to the challenges of the modern world.

Radical change isn’t just desirable; it’s necessary. We need to overhaul our political system to make it more transparent and accountable. We need an economic system that prioritizes innovation and reinvestment over short-term profit. And we need an education system that prepares people not for a world of stability but for a world of constant change.

Statistic: Wealth distribution in the United States from the first quarter of 1990 to the first quarter of 2024, by generation | Statista

Getting to the Other Side of Fear

So much of what we take as truth is actually rooted in fear—fear of loss, change, and failure. One negative experience can shape our worldview, convincing us that risk is dangerous and stability is safe. But that’s a fallacy. Hedge your bets. Play the odds. You can navigate the chaos and manage rather than try to avert or avoid risk. History proves the latter is a fool’s errand.

If we allow fear to dictate our decisions, we will never achieve the transformation we so desperately need. Fear tells us to stay tribal, cling to what we know, and resist the unknown. But the truth is, we can’t afford to play it safe anymore. The world is changing rapidly, and the only way to survive—to thrive—is to embrace that change.

Whether you, dear reader, are ready and willing to accept it or not, it’s time to have the conversation. We need to stop being afraid to talk about what’s broken. I was always taught that when you see something wrong, you are obligated to do anything within your power to correct it. To not do so is to be complacent or, at best, negligent.

The only way to move forward is to create the space for open, honest dialogue.

Adaptability isn’t a luxury; it’s a necessity. The future belongs to those who can navigate chaos, embrace change, and build something better from the ashes of the old. To thrive, we must adopt a mindset of antifragility — growing stronger in response to volatility and uncertainty, not merely surviving. This means hedging our bets across multiple avenues: technological innovation, economic reinvention, and societal reform. If these bets pay off, we could reap exponential rewards. If they don’t, we’ll likely be no worse off—just far better prepared for what lies ahead.

It was Chaos that gave birth to America. Must we fear it?

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