[Editor’s Note: This piece has been revisited as part of our Independence Day celebration, highlighting themes that resonate increasingly with each passing year. We hope you find it enjoyable with some updated touches.]
“You’re never going to beat the big guys out there today at their own game. They will see you coming from miles away. You need to think outside the box, disregard the rules and do things unlike anyone has done them before. Let your inner child run free.”
– Steve Rocco
Star-Spangled Day
On the hot, sunlit days of July in the Northern Hemisphere, true American patriots roll up their sleeves and proudly raise the stars and stripes. On July 4th, amidst the ideals of duty and sacrifice, they take a moment to embrace the essence of independence while accepting their federal holiday pay. The spirit of rugged individualism and unwavering independence defines their character.
With enthusiasm and intent, they gather along the shores to mark the occasion of American Independence. Descendants of freedom lovers like Andrew Jackson enjoy hotdogs, horseshoe pitching, and refreshing drinks while celebrating their freedom. As the sun sets and the stars begin to twinkle, the excitement builds, culminating in joyous cheers at the vibrant display of fireworks.
These celebrations affirm that even in an age dominated by extensive governmental influence, there are still moments to cherish the principles of representational self-governance. Everyone is invited to partake—provided their vehicles are registered, taxes are paid, and they have the required documentation.
Freedom. Liberty. Independence. Limited government. Sound money. Private property rights. Rule of law. A respectful populace. Avoiding foreign entanglements. Rafting down the Mississippi. Creedence Clearwater Revival. Staying fit.
Sadly, many of these ideals have faded from everyday life over the past century, much like the horse-drawn plow. The essence of the republic was lost long before Elvis took his final bow. Washington’s influence has ensnared the globe, leaving little room for escape from its intricate web.
But why tarnish such a splendid day with harsh truths?
Instead, let’s reminisce about a time not so long ago—a time before the era of Homeland Security, Facebook, Google, smartphone surveillance, and facial recognition systems. A period when freedom felt a bit freer and currency debasement was less pronounced.
Creative Destruction
Pivotal moments in politics, commerce, and culture can often arrive without warning. In a flash, revolutions can shatter the status quo, but in hindsight, we realize that the foundation for change was laid long before the explosion.
In the early 1990s, Steve Rocco, a scrappy freestyle skater from Hermosa Beach, launched a powerful counterattack against the corporate skateboard industry. Operating on a tight budget, backed by risky loans from a financier named Kirby, Rocco quickly toppled the three dominant skate companies that had become complacent and out of touch.
In a prime example of Joseph Schumpeter’s concept of the “gale of creative destruction,” he transformed the industry and its subculture.
These major skate brands, riding high on the popularity of vert ramp skating in the late 1980s, had pushed the sport into a realm inaccessible to aspiring young skaters. To protect their hefty investments in sponsored professionals—some of whom were outdated—the big companies restricted new talent from entering the professional arena.
Through innovative design, relentless ambition, and clever satire, Rocco took aim at this elitist industry. Nearly overnight, the products of the old guard were deemed outdated, with their brands becoming unfashionable and their pros losing appeal. Sales for established skate companies plummeted.
Street skating, which anyone with a board could access, took center stage, with Rocco’s company, World Industries, at the forefront.
Breaching the Great Wall
By late 1998, Rocco and his five partners sold a 70% majority stake in World Industries to the private equity firm SPC, valuing the company at $29 million at the time of sale. Rocco retired to Malibu before hitting 40, while still keeping a financial stake in the company.
The documentary, The Man Who Souled the World, captures his journey effectively. In under 90 minutes, and at no cost, you can acquire insights on entrepreneurship that surpass what many business schools offer.
Rocco’s creative disruption opened doors for a vast array of new skating talent. Through collaborations and distribution deals, World Industries paved the way for many skater-owned businesses, unleashing a surge of youthful energy, creativity, and passion that swept through the industry in unexpected ways.
For instance, Plan B, founded by Mike Ternasky (RIP) in 1991, originated under a distribution deal with World Industries. Ternasky envisioned a super team to sponsor the most extraordinary skaters, pushing the limits of what was previously deemed possible.
Skaters like Matt Hensley, Rodney Mullen, Danny Way, Colin McKay, Rick Howard, Mike Carroll, and Pat Duffy rapidly advanced the sport to new heights.
Plan B skaters conceived and executed perplexing tricks, their innovation exemplified during a momentous event on July 9, 2005. After a harrowing fall on his initial attempt, Danny Way successfully completed an enormous 360 air over the Great Wall of China—an unprecedented feat since Genghis Khan’s time in 1216 AD.
By the Dawn’s Early Light
So, what’s the takeaway from all of this? More specifically, how do Steve Rocco, World Industries, Danny Way, and their stories connect to Independence Day and the American flag waving in the early morning light?
In reality, these connections resonate much deeper than mere hotdogs and refreshing drinks at the beach.
The U.S. economy, akin to the global economy, stands at a critical threshold. There’s no going back now—you can sense it all around you.
Government planners and strategists are already mobilizing their familiar agendas to unveil during times of maximum crisis: economic patriotism, universal basic income, modern monetary theories, trade conflicts, outright currency destruction, travel restrictions, central bank digital currencies, social credit systems, and increased governmental control threatening individual freedoms.
Yet, these measures will not remedy the approaching storm. Instead, these efforts, all designed to appease the masses, will exacerbate the situation.
Therefore, in the true spirit of American independence, embrace the ethos Rocco exemplified—innovate and craft according to your own principles.
A centralized government may eventually seize every cent you earn, but with a stroke of luck, you could contribute to a “gale of creative destruction” that sweeps away the status quo like a storm ripping through the Midwest.
Is this merely an idealistic notion? Perhaps.
Nonetheless, on Independence Day, circa 2025, it’s a vision worth pursuing.
[Editor’s note: Reflect on significant events like the Nixon Shock in 1971 or the panic brought by COVID-19—both created unforeseen opportunities. A powerful “black swan” event is anticipated in 2025, poised to redefine existing power structures. Learn how to turn this shift into a tremendous opportunity for your family’s lasting wealth and freedom.]
Sincerely,
MN Gordon
for Economic Prism
