Showing posts with label Thanksgiving Message. Show all posts
Showing posts with label Thanksgiving Message. Show all posts

Thursday, November 22, 2012

Thanksgiving Day: The Triumph of Capitalism

Americans celebrate the traditional Thanksgiving day today.

But many fail to realize that the quintessence of Thanksgiving is the showcase triumph of the experimentation of property rights, division of labor, and voluntary exchange or laissez faire capitalism over collectivism.

From a 2003 article by Bloomberg’s Caroline Baum…
One of the traditions the Pilgrims had brought with them from England was a practice known as ``farming in common.'' Everything they produced was put into a common pool, and the harvest was rationed among them according to need.

They had thought ``that the taking away of property, and bringing in community into a common wealth, would make them happy and flourishing,'' Bradford recounts.

They were wrong. ``For this community (so far as it was) was found to breed much confusion and discontent, and retard much imployment that would have been to their benefite and comforte,'' Bradford writes.

Young, able-bodied men resented working for others without compensation. Incentives were lacking.

After the Pilgrims had endured near-starvation for three winters, Bradford decided to experiment when it came time to plant in the spring of 1623. He set aside a plot of land for each family, that ``they should set corne every man for his owne particular, and in that regard trust to themselves.''

A New Way

The results were nothing short of miraculous.

Bradford writes: ``This had very good success; for it made all hands very industrious, so as much more corne was planted than other ways would have been by any means the Govr or any other could use, and saved him a great deall of trouble, and gave far better content.''

The women now went willingly into the field, carrying their young children on their backs. Those who previously claimed they were too old or ill to work embraced the idea of private property and enjoyed the fruits of their labor, eventually producing enough to trade their excess corn for furs and other desired commodities.

Given appropriate incentives, the Pilgrims produced and enjoyed a bountiful harvest in the fall of 1623 and set aside ``a day of thanksgiving'' to thank God for their good fortune.

``Any generall wante or famine hath not been amongst them since to this day,'' Bradford writes in an entry from 1647, the last year covered by his History.

With the benefit of hindsight, we know that the Pilgrim's good fortune was not a matter of luck. In 1623, they were responding to the same incentives that have been adopted almost universally four centuries later.
Remember the lessons of Thanksgiving

Happy Thanksgiving Day!

Saturday, February 26, 2011

How Valid is The Concept of American Exceptionalism?

A comment prompted me to share my insight on the so-called American exceptionalism

American exceptionalism, according to Wikipedia.org, refers to the theory that the United States is qualitatively different from other nations.

America is allegedly “qualitatively different” in two ways (from Wikipedia.org):

-via Alexis de Tocqueville, “emergence from a revolution, becoming "the first new nation", and developing a uniquely American ideology, based on liberty, egalitarianism, individualism, populism and laissez-faire”

-via American Communist Party (1920s), their belief that "thanks to its natural resources, industrial capacity, and absence of rigid class distinctions, the United States of America might for a long while avoid the crisis that must eventually befall every capitalist society.

Wikipedia further adds, ``Although the term does not imply superiority, some writers have used it in that sense.”

I would reckon that every nation’s history is in many ways unique or implies exceptionality, except that to quote Winston Churchill, “History is written by the victors”.

This means that the string of America’s successes may have prompted many writers to overconfidently believe that America’s successes represent a permanent state of order.

In my view, this could be analogized to the famous but worrisome Wall Street maxim “This time is different”.

Also the thought of America’s “exceptionalism” seems guilty of what is called as the survivorship bias or to quote the Wikipedia, “the logical error of concentrating on the people or things that "survived" some process and inadvertently overlooking those that didn't because of their lack of visibility”

Moreover, there is a time consistency problem with both assertions: the ideology of liberty, egalitarianism, individualism, populism and laissez-faire can’t be seen as exclusively unique to the American race, since these can be learned and assimilated by other nations. The world does not operate on a vacuum. People learn and adapt.

Alternatively, if these traits represent the core of exceptionalism, then any significant erosion would also risk reducing such perceived ‘exceptionality’.

Thus, exceptionalism largely depends on how the US struggles to maintain this “uniquely American ideology”, and similarly, how other nations respond to incorporate on such success model as their own.

I am less inclined to respond to the American Communist Party view: industrial capacity is simply an output of this “unique American ideology” while natural resources depends on the economic value assigned to it by the market, while the absence of class distinction seems like an opaque premise—all forms of government have ‘rigid’ class distinctions.

Also in response to implications that America had been endowed with wealth by birthright, it must be remembered that the essence of the annual Thanksgiving Day celebration emanates from a painful chapter of US history, where the Pilgrims experimented with and suffered from the collectivist state which eventually prompted them to espouse the “unique American ideology”.

Writes Heritage Foundation Conn Carroll, (bold emphasis mine)

When the first Pilgrims founded the Plymouth Colony, all property was taken away from families and transferred to a “comone wealth.” In other words, the Pilgrims tried to do away with private property. The results were disastrous. According to Bradford, the stronger and younger men resented working for other men’s wives and children “without any recompence.” And the women forced to cook and clean for other men saw their uncompensated service as “a kind of slavery.” The system as a whole bred “confusion and discontent” and “retarded much employment that would have been to [the Pilgrims’] benefit and comfort.” Unable to produce their own food, some settlers “became servants to the Indians,” cutting wood and fetching water in exchange for “a capful of corn.” Others tragically perished.

It was not until private property rights were restored and every man was allowed to “set corn for his own particular” that prosperity came to the colony. Bradford reported, “This had very good success for it made all hands very industrious. … [M]uch more corn was planted than otherwise would have been. … Women went willingly into the field, and took their little ones with them to set corn.”

More, American exceptionalism does not imply that other countries have been accursed to suffer from ‘codified poverty’. This perspective unjustly sees Americans as in a state of permanent entitlement.

There are reasons why society suffers from impoverishment, but the least of which is that people volunteer to be poor.

The principal cause why many are poor is due to economic repression or policies that interdict people to trade, inhibit the exchange of ideas that leads to innovation and importantly suffer from lack of capital.

As Ludwig von Mises once wrote, [bold highlights mine]

What distinguishes contemporary life in the countries of Western civilization from conditions as they prevailed in earlier ages, and still exist for the greater number of those living today, is not the changes in the supply of labor and the skill of the workers and not the familiarity with the exploits of pure science and their utilization by the applied sciences, by technology. It is the amount of capital accumulated. The issue has been intentionally obscured by the verbiage employed by the international and national government agencies dealing with what is called foreign aid for the underdeveloped countries. What these poor countries need in order to adopt the Western methods of mass production for the satisfaction of the wants of the masses is not information about a "know how." There is no secrecy about technological methods. They are taught at the technological schools and they are accurately described in textbooks, manuals, and periodical magazines. There are many experienced specialists available for the execution of every project that one may find practicable for these backward countries. What prevents a country like India from adopting the American methods of industry is the paucity of its supply of capital goods. As the Indian government's confiscatory policies are deterring foreign capitalists from investing in India and as its prosocialist bigotry sabotages domestic accumulation of capital, their country depends on the alms that Western nations are giving to it.

Finally American exceptionalism can be represented by the state of US dollar functioning as the world’s premier currency reserve or forex anchor.

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From Google

Looking at the above, I’d say that American exceptionalism has been on a decline and will likely suffer from a further loss of competitiveness, in the condition that her government continues to implement policies that corrodes her “unique American ideology”.

Monday, November 22, 2010

Friday, November 27, 2009

Turkey Talk And The Message Of US Thanksgiving

Mintlife's interesting trivia on the US Thanksgiving celebration.

For a crispier view, please click on the image.

Thanksgiving_gra
Personal Finance – Mint.com

Some noteworthy Thanksgiving messages from:

(Pls. click on link to read the articles...)

-Dr. Richard Ebeling: The Real Meaning of Thanksgiving: The Triumph of Capitalism over Collectivism

-Wall Street Journal's Editorial: And the Fair Land

``But we can all remind ourselves that the richness of this country was not born in the resources of the earth, though they be plentiful, but in the men that took its measure. For that reminder is everywhere--in the cities, towns, farms, roads, factories, homes, hospitals, schools that spread everywhere over that wilderness.

``We can remind ourselves that for all our social discord we yet remain the longest enduring society of free men governing themselves without benefit of kings or dictators. Being so, we are the marvel and the mystery of the world, for that enduring liberty is no less a blessing than the abundance of the earth.

-Steven Landsburg: Giving Thanks

``We can be thankful too for the system that channels all that potentially destructive greed into life-sustaining brilliance."