"Enlightened Self-Interest"

Perhaps it might prove helpful for those who are a bit historically challenged to look back in time for some help from across the sea.

One Alexis de Toqueville, the famous French economist, was a huge fan of America!  So much so that he toured the new America in the early 19th Century.  He was so enamoured with what he saw beginning to blossom across The Pond that he made it the centerpiece of his economic theory.  He studied the effects of groups banding together for their mutual benefit.  And when they do, his studies showed, they benefited both individually and collectively.  

Well, duh!

In his book, "Democracy in America," circa 1835, published more than half a century after the signing of our Declaration of Independence, de Touqueville put forth the concept of "Enlightened Self-Interest."  And this simple realization has subsequently come to form the basis for Capitalism as an economic theory.

And in America, an economic fact.  People work harder and smarter and faster and better and more diligently when they're working for, or to the benefit of, themselves. 

Well, duh! 

As a graduate economist, I find it both amusing and terrifying that seemingly half our population wants to dump Capitalism and embrace socialism.  

You tell them that socialism doesn't work, has never worked, and will never work, and it's met with a big yawn.  You refer them to Venezuela, one of the richest countries on Earth as it relates to natural resources, and its population is now eating their zoo animals.  From the Top Ten in overall economies of the early part of the last century to eating their pets.  All due to their embracing socialism; promise everything, deliver nothing. 

Why do I bring this up at this particular point?  Election Day is but a couple of days away.

And those who are beginning to buy into some politician's promise to redistribute somebody else's wealth to them in exchange for their vote should consider a few factoids:

-  75% of all America's jobs come thanks to the creation of small business.  And those businesses would not have been formed without the profit motive.  And thank God for it!

-  More than half of America's population owns stocks individually or via a retirement plan.  And those stocks only go up if the companies they invested in make a profit.

-  And oh yeah, de Touqueville cautioned us that Rome's democracy went down in flames after just a bit more than 200 years.  Our democracy (Representative Republic) is a bit more than 200 years old.  He stated that we're toast when the politicians learn they can use our tax money to buy our votes.  

Oh yeah, they already learned that.  What do you get with a nearly $One Trillion Dollar stimulus program?

"I guess those shovel-ready jobs weren't so shovel ready after all!"   

                                                     -  Barack Obama, 2011