Printer Friendly
View as PDF

“At the dawn of the twenty-first century, the position of the United States in world affairs has no equivalent in History.”   The “Great Recession” of 2008 and recent bad economic news has not changed this fact.  This summer, I read a fascinating book-- one that anyone concerned about the U.S economy should read.  An Empire of Wealth by John Steele Gordon reveals the story behind American economic power.  Our economic prowess did not come by accident.  It came from people free to pursue their own personal destiny.  This concept and the power of its message are being drowned out by the current noise demanding economic change. 

Why would we want to change the most effective economic system in the world?  Yet the pressure is on to change this superior system to a proven inferior European-style social democracy with centrally planned government and a caretaker state.  Look at the history of Europe.  In just the last 100 years, this economic system is responsible for two world wars, killing and maiming millions of people and utter economic ruin.  Their current peace, prosperity and security are the result of the financial and military investments of the United States.  The Great Depression of the 1930s originated in Europe. It resulted from the debts of World War I, which produced a financial crisis that engulfed the world.  This economic model is now about to collapse on itself-- again dragging the world’s economies down with them.

During that same 100 years, the United States has blown the doors off of the world’s economy and provided a level of affluence to its people that has never been seen before.  Not through government intervention, but just the opposite: letting natural economic principles take over.  Adam Smith did not develop an economic system any more than Sir Isaac Newton invented gravity.  Both men simply discovered, identified and described existing systems as part of a natural process.  These “laws of nature” cannot be violated for extended periods of time without severe repercussions and dire consequences. 

The epic history of American economic power is the story of individuals working to overcome challenges, secure a better future and obtain economic riches.  As a country, we invented the field of engineering, which is derived from a European military term regarding the use of artillery.  The U.S. took a military profession and adapted it to overcome technical challenges associated with building infrastructure and products.  The first of these challenges was to develop an economical means to transport products from on location to another.  The most efficient means to move freight is by water.  In the 1790s, there were 30 canal companies chartered in the U.S., and while many never achieved financial success, “The Erie Canal would prove to be the first of a long, and continuing, list of megaprojects—the Atlantic cable, the transcontinental railroad, the Brooklyn Bridge, the Panama Canal, the Hoover Dam, the interstate highway system, the Apollo project” , the information age and beyond. 

The key to our success is we don’t stop after simply identifying a problem. Many are great at pointing out problems, but to go beyond the challenge, build a solution, make it profitable and actually build wealth.  Cornelius Vanderbilt did not invent steam-powered transportation.  He simply made it profitable with a simple business model: “1) run the most efficient, lowest-cost organization possible; 2) compete fiercely by means of price until the opposition is ether broke and can be bought out or pays you to stop competing; and 3) live up to your agreements.”   Not exactly the “robber baron” he has been made out to be. 

John D. Rockefeller, Andrew Carnegie and J.P. Morgan are others who built great wealth during the nineteenth century and were also known as “robber barons.” These barons not only created vast personal wealth but greatly improved the standard of living and personal wealth of generations of people, the nation, even the world.  These men built upon the foundation laid by their forefathers and subsequent generations built on what was left to them, creating a better life and wealth for all.  In the words of John F. Kennedy, “A rising tide lifts all boats.” 

Here’s a small, personal analogy that I believe has meaning for the U.S. as a whole. While riding a bike along a mountain trail and rounding a corner up ahead, I saw two Ravens standing on the trail.  In between the two Ravens stood an Owl.  The Ravens were picking on the Owl, who was holding his own.  As I approached, the Ravens flew off leaving the Owl on the trail.  It was truly fascinating to be within 10 feet of this magnificent creature.  The Owl was injured and would have been killed by the Ravens.  I remained by the Owl to keep the Ravens at bay and finally some hikers came along.  Using a cell phone we called a bird rescue organization and saved this Owl.

If this Owl had been out in the wilderness he would have fallen prey to the Ravens or other predators and died.  This Owl had the benefit of our resourcefulness, as we intervened.  Did we, in rescuing this Owl interfere with a natural process?  My conclusion: we did assist nature, but it was only because we had the ability, resources, and technology to help this Owl.  Our direct action to this challenge made a small difference.

You probably know someone who did not let a challenge stop them.  They persevered, looking for a solution or even simply a way around the problem.  The economic history of America is replete with the names of individuals who made a difference in both big and small ways. Some of the names are easily recognizable, Thomas Edison, Milton Hershey, Henry Ford, Bill Gates and Steve Jobs.  Some are not as well know, such as James J. Hill (Great Northern Railroad), Irving Fisher (the Rolodex), Thomas Watson (IBM) or even Malcolm McLean (the shipping container).  The ability to make a difference, advance the world and create wealth is not dead.  We live in America and have the opportunity to build on or be inspired by these past successes. We are free to pursue our own personal destiny and even to build wealth.

Let me know if you have any comments, questions, or suggestions.
Write David W. Weatherholt at david@bnewsviews.com

Copyright © 2011 Weatherholt & Associates, LLC all rights reserved worldwide.
Business/News & Views® is a registered trademark of Weatherholt & Associates, LLC