Posts Tagged ‘Economic’

Uncommon Knowledge with Paul Rahe – Part 3

U.S. Capitol, DC
Image by FranciscoDiez via Flickr

In part 3 of the Uncommon Knowledge interview with Paul Rahe Peter Robinson and Paul Rahe explore the 4 characteristics of American culture that tend to protect it from the slide into  soft despotism. These are:

Local Government – Local government is accessible. If you want something done or change there is a possibility of getting it done at the local level. In the early American Republic if you wanted to build a school, road or hospital you did it locally. The distant federal government didn’t do very much. This gives people a feeling of power and control over their own lives and surroundings. This helps fight the feeling of helplessness and ankiatude (there’s that word again, which I am spelling wrong) that can bedevil free republics.

Civic Association – Unlike France, American’s did things through private associations. Like local government this gives people power over their own lives (not to mention that it is most likely much more effective)

Religion – Americans in Tocqueville’s time were shockingly religious, unlike France. Religion puts a certain responsibility on the individual that you are the master of your own soul. This provides a sense of dignity as well as areas of your life which you will not allow anyone to encroach upon.

Family – During this time the French family was not in great shape. Adultery was common. This was not the case in America. The women were strong minded and kept the men inline.

It seems to me that the stronger the central government gets the more it weakens all 4 of these institutions. You have seen this throughout the western world to varying degrees and America is far from untouched.

Take Religion, for example. If the government already has a substantial control over your life why pray to God? If government is already promising you everything you need doesn’t it tend to “Crowd God Out”? Is it any wonder than in the advanced welfare states of Europe (not to mention Canada) that religion is dying?

Same thing with Family. What are the ties that bind? If the government promises to take care of you in your old age via social security, why have kids? Is this not the driving factor behind the falling birth rates in most western nations?

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Republics, Democracies and Currency

Philadelphia: 2nd Bank of the United States
Image by wallyg via Flickr

I recently came across a great article that I think goes a long way to explaining what made America great. You can check it out here:

http://townhall.com/columnists/ChristopherMerola/2009/09/15/a_republic,_if_you_can_keep_it

Below is a rather long comment I wrote relating to it.

This is a great article. I’m currently working on a documentary which looks at where America has been, where it is now and where it is going. One of the questions I want to answer is just what made America so extraordinary in the first place? I think this article is big piece of that puzzle. The founders wanted a Republic, not a Democracy.

One of the animating features of all of the Anglo / American systems, with America being the greatest example, is that individual success was least dependent on government than at anytime in history. Is this changing? To me it seems that it has been changing for some time. When you can rob Peter to pay Paul you can always count on Paul’s vote.

Here is a thought of mine that I believe is crucial but is esoteric to most people. If you want to maintain a Republic that is of the people, by the people and for the people you must have a hard currency that is separate from the government. If you do not do this you place the government above the people. Consider this scenario.

I’m a politician seeking Peter and Paul’s vote. They each have $10 of a non fiat currency (most likely backed by gold). I say to Peter “Hey Peter, what can I give you for my vote?” Peter says “I want free education”. “Great”, I say. I then take take $5 from Paul, keep $3 for myself, and give $2 to Peter. “Here’s your free education! Thanks for your vote!”

I then turn to Paul. “What can I offer you for your vote Paul?” Paul wants free healthcare. “Great, I say”. I then turn to Peter, take $5 from him, keep $3 for myself, and give $2 to Paul. “Here’s your healthcare! Thanks for you vote”.

Now, Peter and Paul are not stupid. They are going to quickly realize that I now have $6 whereas they now have only $7 each. They obviously would have been better off to get the stuff they wanted on their own without going through me,  the inefficient government.

However consider the same scenario if I am able to counterfeit the money. When Peter or Paul asks for their free stuff I no longer have to tax them honestly. Instead I can just print up the money. For a brief period it would appear that they both will have gotten something for nothing. Of course, however, this is an illusion which inflation will soon destroy. Not before I’m elected though.

A system based on fiat currency changes the nature of government from the power residing with the people to those in political power. This undermines a Republic and puts it on the rode to a self destructive Democracy.

Just my two bits.

If you have any thoughts on this feel free to visit my blog at angrybeaverfilms.com. I’m also looking for answers to the following questions:

  • What qualities make America extraordinary?
  • What are some examples of American exceptionalism?
  • What do Americans take for granted about America?
  • What does the world take for granted about America?
  • is America’s character changing? If so how and why is it changing and what is it changing into? What are the consequences of these changes for itself and the world?

I’ve only just started work on this project but any thoughts are welcome.

Best,

Dave

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