“They can’t stand prosperity.” My father used to say it about his beloved Buffalo Bills during periods in the 1970s when they were competitive but couldn’t quite break into the ranks of the elite contenders. He was referring to the team’s maddening habit of ceasing to do what had previously been successful and “snatching defeat from the jaws of victory.”
What he said of the Bills applies to Americans in general.
There is no mystery to why the United States in a matter of decades grew from a few agrarian colonies to the richest, most powerful nation in history, surpassing competitors with over a millennium head start. It was capitalism. Period.
That’s what “the land of opportunity” meant, back when America was so styled. The opportunity was economic opportunity. The million-plus wave of immigrants who came here in the late 19th and early 20th centuries weren’t pursuing abstract notions of liberty. They were coming because there was an opportunity to make a materially better life for themselves and their families. That opportunity existed solely because America was economically freer – more “capitalist” – than the countries they left.
While America may be the most prominent example of capitalism’s success, it is by no means the only one. Indeed, history is replete with examples of economic freedom emerging, bringing with it unprecedented prosperity, and eventually being strangled by the re-emergence of state meddling.
Murray Rothbard documents this phenomenon occurring repeatedly throughout Europe in the pre-colonial period. More recently we’ve seen it in Asia, with the rise of the “Asian Tigers” in the 1990s, culminating in the rise of prosperity in China. During the same years, both Scandinavia and Canada dramatically cut taxes, regulations, and government spending to save their economies from becoming what Venezuela is today.
Throughout history, countries that freed their economies from mercantilist or socialist controls, even if not completely, have seen a dramatic reduction in poverty and rise in living standards. Nowhere is the opposite true.
Yet, in almost every case, including America, people just “can’t stand prosperity.” There is always and everywhere an instinct to kill the goose that laid the golden egg. Even among Americans today who by no means consider themselves socialist, there is an inherent resistance to allowing the conditions that has made the lives they lead possible.
Why?
Ludwig Von Mises wrote an entire book exploring the reasons for the “anti-capitalistic mentality.” I believe his insights were correct, especially in in terms of academia’s resentment towards the way free markets reward less educated, “vulgar” businessmen with more wealth than they enjoy themselves.
Walter Block has done research with fellow academics indicating there is an evolved preference in humans to prefer what he calls the “direct benevolence” associated with socialism over the “indirect benevolence” of the market economy.
Then, there is the plain, old human failing called, “envy.” The market economy results in the most prosperity for the most people, but it doesn’t distribute that prosperity equally. In fact, it doesn’t “distribute” prosperity at all. It allows each individual to keep the fruits of his labor and dispose of them as he sees fit. Some people are able to produce more than others and therefore accumulate more wealth.
There are some people who simply cannot abide this. Forget that no system has ever produced economic equality, least of all socialist systems, but the fact that no one even seems to be trying to correct this unjust inequality, in the envious person’s eyes, makes him resentful of the capitalist system that allowed the rich person to accumulate so much more than he.
While the above explanations certainly provide part of the answer, I do not believe they address the primary reason so many people are resistant to economic freedom. We use reason to overcome our passions and even our evolved instincts every day. But there is one instinct, one emotion that I believe transcends all the rest in motivating us to be suspicious of freedom.
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Tom Mullen is the author of It’s the Fed, Stupid and Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty, and the Pursuit of Happiness?
