Governments do not create wealth. Entrepreneurs create wealth, governments can only create the conditions to create wealth, or the conditions to destroy it.
As an entrepreneur and business owner I guess I already know this. In a recent Facebook thread that brought out a whole bunch of somewhat entitled socialists spouting largely nonsense, an idea that many socialist ideas such as free health care, social security and stronger trade unions, was what made the baby boomers the wealthiest generation on the planet.
Whilst this contributed to a better social structure it was not what made America and the Baby Boomers rich. WW2 was what made America rich, and trust me thats a massive generalisation and lacking both detail and nuance, I know that.
So here is an explanation of how that happened, a historically accurate one.
The end of the Second World War profoundly reshaped global economics and gave rise to the Baby Boomer generation, the wealthiest cohort in modern history. America emerged from the war not devastated like Europe or Asia but invigorated. Unlike Britain, Germany, or France, whose cities and industries had been bombed into ruins, the U.S. homeland remained intact. Instead of rebuilding from rubble, America became the workshop of the world. Wartime industrial mobilization left the U.S. with unparalleled manufacturing capacity, a highly skilled workforce, and enormous capital reserves. This advantage enabled the post-war boom.
The Baby Boomers—born roughly between 1946 and 1964—were the first to fully benefit. Returning soldiers and pent-up demand for consumer goods created an unprecedented surge in population and prosperity. The GI Bill expanded home ownership, higher education, and middle-class stability. Meanwhile, U.S. companies dominated global markets in cars, electronics, steel, and oil, ensuring both job security and rising wages. The unique combination of demographic expansion, industrial monopoly, and government-backed programs created a generation able to amass wealth on a scale unseen before or since.
Europe, by contrast, entered the post-war era in ruins. Although the Marshall Plan provided vital aid, European nations had to prioritize reconstruction, rationing, and rebuilding infrastructure. Britain, in particular, was saddled with enormous war debts and the costs of maintaining a declining empire. Unlike the U.S., which grew stronger through war production, Europe had to claw its way back from devastation. While European social policies—universal healthcare, welfare states, strong unions—did foster stability and equality, they could not replicate America’s post-war dominance in industry, finance, and innovation.
Over time, globalisation and the rise of new economic centres eroded Europe’s relative position. The U.S. maintained technological leadership through Silicon Valley, global finance through Wall Street, and military dominance through NATO. Europe, meanwhile, has struggled with slower growth, demographic decline, and political fragmentation within the EU. The United Kingdom, in particular, faces the challenge of slower productivity, Brexit-related dislocation, and reliance on services rather than manufacturing. The stark fact that Britain today is poorer than the poorest American state—Mississippi—illustrates the long-term consequences of starting the post-war era on unequal footing.
The stark fact that Britain today is poorer than the poorest American state—Mississippi—illustrates the long-term consequences of starting the post-war era on unequal footing.
In summary, the Baby Boomers’ wealth was not created by social policy but by America’s unique post-war position: victorious, industrially intact, and globally dominant. Europe, despite strong welfare systems, simply lacked the same economic launchpad and has never fully caught up.
But here’s my simple question to those of both left and right persuasion, and many don’t really truly understand what is left and what is right any more, this is very evident listening to their posts.
For the record I’m at heart a centrist, probably a little right of the centre. This form of political stance has been the norm for decades. During the time of JFK I’d have probably been a democrat but in 2025 I’d be a Republican. The shifting sands of time has changed where the centre point of political thinking is. But I’m at heart an old fashioned libertarian who wants small government, low taxation and a cohesive society, not socialism.
Most people want this really. Many Socialists, especially the champagne variety are fine with the idea of redistribution of wealth as long as it doesn’t directly affect them too much, the reality is, sooner or later it will.
Many Socialists, especially the champagne variety are fine with the idea of redistribution of wealth as long as it doesn’t directly affect them too much, the reality is, sooner or later it will.
The UK is currently a mire. It’s broken beyond recognition and most small business owners will tell you how difficult it is now to make money in the UK.
The highlighted issues of the day are in my view not a cause, they are in many respects a symptom.
Successive European governments since WW2 have moved more and more into a socialist structure regardless of their actual political heading (Conservative or Labour in the UK) and that is why we are getting progressively poorer and more authoritarian as those in power seek to keep their power.
The Anarchist Entrepreneur 