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 LIBERALS....what we learned from the reformers

We have heard it all for over 100 years. Not a day goes by that I don’t read some silly nonsense on the internet regarding America. Much of it is complaining about how America doesn’t do enough, or more, to care for people. Robert Reich and Bernie Sanders are the leading complainers. They tell us; “three Billionaires have more wealth than the other 99% of Americans.” Or that; “inequality is growing in the richest country in the world.” Let’s think this through. First it is important to agree…they are correct. Second, so what?

America was founded and built on one central idea: New Wealth. The middle class had become wealthy in Europe, but they were not Royalty and likely never would become Royalty. These entrepreneurs and business owners had grown tired of sharing the wealth with the Nobility. They wanted a place that they could own and create new wealth beyond the reach of European Monarchs. They established Trading Companies to use English and Dutch government resources to protect new business ventures around the globe. In America, the Jamestown Company and Virginia Company were two such “merchant guilds.” Their purpose was commerce that created wealth. They were not welfare organizations.

When the Acts of Union created Britain / UK in 1707, British King George became increasingly interested in commerce in America and imposed Taxes. This hurt the ongoing ability of the founders to create wealth. The result was rebellion. Again, the reason America was founded was to create wealth and sharing that wealth with European Nobility was not going to happen.

For over 100 years, the United States expanded based on the original idea of creating new wealth. America, the land of opportunity and the concept of “Manifest Destiny” were the driving forces behind immigration and westward expansion. Yes, some people came for religious freedom, but most came to create new lives and new wealth. Out of this prosperity came increased education and leisure time. The result was the Reform Era of the early 1800s. It is here that we find the beginning of the ideas widely supported today among the left. Two major groups emerged the Abolitionist and Temperance movements. Both were based on the idea that government can and should eliminate slavery and alcohol.

On or about 1830 the schism or shift in America begins. Religious people asserted that Slavery was simply wrong, and that alcohol was causing serious damage to families and society. America had grown quickly with limited government and limitless westward land. Eastern cities began to look like Europe. But the facts were undeniable. The proposed changes to slavery and alcohol would only limit the power of the Merchant Class [aka Middle Class] to earn profits. Although the facts were heartbreaking, the loss of profits, income and status were a price too high for many to pay. The Merchant Class, who included the Politicians of the period, refused to support change. Reformers continued their push to abolish slavery and alcohol. Some States agreed and abolished slavery, but others did not. The reformers took this debate to the US Congress.

The US Civil War was the first great victory for reformers. Their goals were achieved, and they were forever emboldened to force change / reform on America through relentless preaching and Federal government. They ignored the unintended consequences of this strategy. Yes the slaves were free but over 800,000 American died in the process.

This reform period continued and created a base of support for women suffrage, anti-trust, organized labor, and income tax laws. The basic idea was that America had grown too fast with limited supervision. The strategy was to force every good reform idea on the US Congress to compel America to change. However, it came to a stall with the Volstead Act in 1919. Alcohol was banned in America. Reformers rejoiced without regard for the unintended consequences of Organized Crime. By 1933, alcohol was legal and well regulated. Reformers had simply gone too far.

The lessons of the reform era are simple and clear: Every change has two parts. The WHAT and the HOW. Regardless of how compelling the WHAT can be, it is critical to understand HOW change can be created. The unintended consequences must be considered before change begins. The lessons of the Civil War and Prohibition must carry over into future reforms.

Today, we hear the cry to “Tax the Rich”. On the surface it sounds OK to those who are poor. But what are the unintended consequences of this rush to judgement? Successful wealthy people use their money to invest in new business and to pay countless staff. Is it really better to tax their wealth and give it to Congress to waste on another pointless war? If we have learned anything from the reform / leftist movement, it is to be careful of the good ideas that create more harm. We need to keep in mind that the reason America was founded was to create wealth not become a sheltered work shop.