One of the central messages of President Obama’s inaugural speech was that Americans now must sacrifice in a time of great hardship. This sounds noble, but also is rather vague. What kind of sacrifice is Obama talking about?
It would be fair to venture to guess that sacrifice for Barack Obama means a number of things that our forefathers would have shunned. Sacrifice means higher subsidization of the masses by those at the top of the economic scale through increased taxation. Sacrifice means imposing the will of the government on the people in the name of “fairness,” “equality” and “justice.” Sacrifice means that everyone must be required to bail out the few who are reckless and irresponsible. Sacrifice means coercive taking of our life, liberty and property for the “greater good.”
At root of all of this is collectivism. How did we end up here? We had an economy that was mixed as opposed to a true, free-market one. We had a small republican government that grew to be a massive democratic one. We had a society built on success and failure, that gave way to one of success and protection against failure. We took the middling path, which inevitably led us to this socialistic mentality. I posit that democracy mainly paved the way for this collapse, but that will be addressed in a post in the near future.
Prior to the Great Depression, we lacked a government-imposed social safety net because of the sacrifice of individuals. Some voluntarily chose to provide for those who were less fortunate, not always with just a handout, but for some like Rockefeller by providing an education for those who showed aptitude in the hopes that they could better themselves. Our forefathers fought for our country, sacrificing their lives so that they could build a society where they would not need to sacrifice their liberty and their property. They sacrificed so they could establish a country built on the natural rights granted to them by G-d, not the rights so determined by the new Messiah, Mr. Obama.
People labored in steel mills and coal mines not out of the goodness of their hearts, but out of self-interest, and this work helped pave the way for unprecedented economic growth. It all brings to mind Adam Smith’s line in the Wealth of Nations, “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.”
We did not achieve our prosperity from forced sacrifice, but from voluntary trade predicated on the self-interest of individuals seeking to better their lot. People could dispose of their wealth for the most part as they so chose. Universities, libraries and medical institutions were established by wealthy folks, and charitable institutions were able to provide (probably much more efficiently than the public) services for those who were needy. But this charity again was voluntary.
You have to wonder why it was the case that the government stayed out of the business of charity. Was it because individuals knew that politicians would only use these programs out of their own self-interest to gain votes? Was it because of the belief in a government with limited responsibilities? Was it because of the belief that it wasn’t the job of all of society to take care of those who were broke?
I think it was probably a combination of all of these things. Also, I think that while individuals may have acted out of self-interest in giving charity like politicians (be it for PR purposes or for religious reasons), they were still making this decision unto themselves, not forcibly requiring all others to sacrifice as well. There just is not this sense of individualism anymore. It is one for all and all for the banks. We all own a piece of Wall Street, we all own a piece of Fannie and Freddie over on Main Street and we all own a piece of Detroit too. Of all cities, I mean come on…Detroit?!
We did not build the most prosperous nation in the world through sacrifice and collectivism. We built it through the self-interest of the skillful, visionary individuals that immigrated to this land. Our forefathers did not sacrifice themselves during the Revolution for more sacrifice; they sacrificed themselves for freedom. To forget this fact would be to tarnish their efforts.